Average mortgage rates increased for a fifth consecutive week just as spring buying season entered its peak months.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.22%, up from the week prior’s 7.17%. A year ago at this time, the 30-year FRM averaged 6.39%.
The 15-year fixed rate increased from 6.44% to 6.47%. A year ago, it averaged 5.76%.
“On average, more than one-third of home sales for the entire year occur between March and June. With two months left of this historically busy period, potential homebuyers will likely not see relief from rising rates anytime soon,” said Sam Khater, Freddie Mac’s Chief Economist.
Home sellers enjoy the biggest premiums in May as buyers take advantage…
The South has lost its sparkle for American movers in the post-pandemic world, but that could change as the region doubles down on producing affordable inventory.
More than half of all available inventory in April 2024 was concentrated in Southern states, according to an analysis by Realtor.com.
They also boasted the most new listings at 19.7%. In contrast, inventory rose by just 7.5% in the West and 2.9% in the Northeast. The Midwest came in a close second at 18.4%.
“Sellers continued to list homes at a greater rate than last year. This has led to a promising increase in more affordable homes for sale, especially in the South,” Realtor.com Chief Economist Danielle Hale said.
Florida metros saw the most…
Mortgage applications declined again last week as rates continued their upward march.
The Mortgage Bankers Association’s weekly survey shows that the adjusted Market Composite Index — a measure of mortgage loan application volume — fell by 2.3%, adding to last week’s 2.7% dip.
Adjusted purchase applications slipped by 2%, while the unadjusted index was down 1% and 14% lower YOY.
Rates jumped to 7.29%, their highest point since November 2023.
“Inflation remains stubbornly high, and this trend is convincing markets that rates, including mortgage rates, are going to stay higher for longer,” said Mike Fratantoni, MBA’s SVP and Chief Economist.
As buyers desperately seek ways to lower their monthly payments, ARMs clocked another strong week, accounting for 7.8% of applications.…
Annual home price appreciation continued its upward trend in February, accelerating on both an annual and monthly basis.
Prices were up 6.4% YOY, an increase from January’s 6% gain and the fastest annual rate since November 2022, according to the S&P CoreLogic Case-Shiller National Home Price NSA Index.
Month-over-month data showed prices on an upswing for the first time since October 2024. The National Index, 20-City Composite, and the 10-City Composite registered gains of 0.6%, 0.9% and 1.0%, respectively.
Monthly prices were cooling at the end of 2023 into 2024, but increased demand and still-tight inventory have turned that trend around.
Home prices are now “at or near all-time highs,” according to Brian D. Luke, Head of Commodities, Real &…
Markets in the Northeast and Midwest once again dominated the list of hottest markets for the year.
In a ranking produced by the Wall Street Journal and Realtor.com, Rockford, Illinois took first place for 2024. The ranking considered affordability, cost of living, and the city’s overall attractiveness.
Rockford has homes under $250,000 within commuting distance of three major metros, giving residents access to big city amenities without the price tag.
Towns in Ohio, Michigan, Missouri, Indiana, Maine, Tennessee, and New Hampshire rounded out the top ten, all for their affordability. Despite their popularity pushing prices up, the average listing price among the top 20 markets was $60,000 lower than the national median last month.
The report also noted that the…
Average mortgage rates increased again last week, worsening affordability and setting the market up for a slump as the spring buying season progresses.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.17%, jumping from the week prior’s 7.1%. A year ago at this time, the 30-year FRM averaged 6.43%.
The 15-year fixed rate increased from 6.39% to 6.44%. A year ago, it averaged 5.71%.
“Despite rates increasing more than half a percent since the first week of the year, purchase demand remains steady. With rates staying higher for longer, many homebuyers are adjusting, as evidenced by this week’s report that sales of newly built homes saw the biggest increase since December 2022,” said Sam Khater, Freddie…
By KIMBERLEY HAAS
Hunterbrook Media is taking a second swing at United Wholesale Mortgage, claiming that an executive there helped a shell company establish Philadelphia-based UMortgage.
On April 2, Hunterbrook made waves when they published a report accusing UWM in Pontiac, Michigan, of widespread fraud. They estimated that homebuyers paid “between hundreds of millions and billions more in closing costs” because independent mortgage brokers working with UWM sent more than 99% of their business to the lender.
UWM’s CEO Mat Ishbia blew off the report at the time, pinning blame for it on his competitor Rocket Mortgage and its founder and chairman, Dan Gilbert. Rocket Mortgage denied having any involvement with the report.
The following week, UWM leaders went after…
Pending home sales improved in March but low inventory remains a challenge to affordability.
NAR’s Pending Home Sales Index rose by 3.4% month-over-month to a reading of 78.2 last month. An index of 100 is equal to the level of contract activity in 2001.
Year-over-year, they were up a modest 0.1%, with the Midwest and West seeing improvement.
“March’s Pending Home Sales Index – at 78.2 – marks the best performance in a year, but it still remains in a fairly narrow range over the last 12 months without a measurable breakout,” said NAR Chief Economist Lawrence Yun. “Meaningful gains will only occur with declining mortgage rates and rising inventory.”
Month-over-month sales rose in all regions but the Midwest, which…
The Consumer Financial Protection Bureau is taking aim at mortgage “junk fees” yet again, this time in the servicing sector.
The bureau released supervisory highlights addressing what it classifies as illegal junk fees, such as prohibited fees, deceptive notices sent to homeowners, and violations of loss mitigation rules.
“Homeowners cannot just simply switch providers if their mortgage servicer charges them illegal junk fees,” said CFPB Director Rohit Chopra.
“Since mortgage borrowers are captive to a company they never chose to do business with, we are working hard to detect and deter violations of law.”
Servicers were found to have charged property inspection fees banned by Fannie Mae and late fees greater than allowed by their mortgage agreements. They also failed…
Mortgage applications declined last week as rates soared to a new high for 2024.
The Mortgage Bankers Association’s weekly survey shows that the adjusted Market Composite Index — a measure of mortgage loan application volume — fell by 2.7%.
Adjusted purchase applications slipped by 1%, while the unadjusted index was up 0.2% and 15% lower YOY.
Homebuyers are facing the highest rates of the year, with the 30-year fixed rate jumping to 7.24%. This is their highest point since late 2023.
“Purchase applications declined, as homebuyers delayed their purchase decisions due to strained affordability and low supply,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist.
Notably, the share of ARM applications shot up to 7.6% as buyers looked…
