Mortgage rates fell again, the third consecutive week of declines, but once again gave only an inch.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.67%, down from 6.69% the week prior.
A year ago at this time, the 30-year FRM averaged 5.81%.
The 15-year fixed-rate mortgage slipped as well, down from 6.10% to 6.03%. A year ago, it averaged 4.92%.
“Mortgage rates slid down again this week but remain elevated compared to this time last year,” said Sam Khater, Freddie Mac’s Chief Economist.
“Potential homebuyers have been watching rates closely and are waiting to come off the sidelines. However, inventory challenges persist as the number of existing homes for sale remains very low. Though, a…
Mortgage rates ticked down again, the second consecutive week of declines.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.69%, down from 6.71% the week prior.
A year ago at this time, the 30-year FRM averaged 5.78%.
The 15-year fixed-rate mortgage increased, however, up from 6.07% to 6.10%. A year ago, it averaged 4.81%.
“Mortgage rates decreased slightly this week in anticipation of the pause in rate hikes by the Federal Reserve,” said Sam Khater, Freddie Mac’s Chief Economist.
The pause did come: after ten consecutive increases, the Fed declined to raise interest rates at its June meeting.
“We have been seeing the effects of our policy tightening on demand in the most interest-rate-sensitive sectors of…
By KIMBERLEY HAAS
Industry leaders are speculating about what officials at the Federal Reserve will do concerning rate increases during their meeting this week.
In May, Federal Reserve Chair Jerome Powell said they were prepared to raise rates again if economic conditions worsened, but hinted at a wait-and-see attitude regarding this month’s meeting. Policymakers may even skip raising rates after a smaller than expected rise in the Consumer Price Index, released on Tuesday.
CNN reporter Matt Egan said the CPI report gives officials the cover they need to hold off on increasing rates this month.
“Investors are becoming increasingly confident that the Fed is going to keep interest rates steady after … 10 consecutive interest rate hikes. The Fed has…
Despite being the largest cohort of potential homebuyers in the country, Millennials are lagging behind other generations in purchases.
That applies to Baby Boomers now – who are snatching up the few homes for sale thanks to home equity and greater savings – and Boomers when they were the same age as Millennials today. Just over 50% of Millennials owned a home in 2022, compared with 56.5% of Boomers in 1990 and 58.2% of Gen X in 2006.
Even the youngest generation, Gen Z, is tracking ahead of Millennials in homeownership at the same age.
A combination of forces has made it difficult for Millennials to become homeowners. Ongoing bouts of economic uncertainty in 2001, 2008, and today have hindered…
By KIMBERLEY HAAS
As artificial intelligence continues to dominate news headlines, real estate leaders are speaking about what this wave of technology means for the future of their market.
Glenn Phillips, CEO of Lake Homes Realty, said AI is a “massive game changer” during the National Association of Real Estate Editors conference in Las Vegas on Tuesday morning.
“In real estate, there is going to be a massive transition of who’s going to get consumer’s attention,” Phillips said.
Phillips said AI is going to enhance how they look at consumer behavior and suggested that industry professionals form partnerships to bring themselves to scale.
Michael Gerrity, founder and CEO of Global Listings, said they’re already planning to flip the whole listings…
Single-family home prices increased again in April as low inventory keeps a nationwide correction at bay.
Prices were up 2% YOY, the 135th straight month of growth, according to CoreLogic’s Home Price Index. However, it’s the sixth straight month of single-digit gains, a boon for affordability. Since peaking in spring 2022 at nearly 20% growth, prices have moderated.
Month-over-month, prices rose by 1.2%.
The ongoing stock shortage could keep prices up even as demand dwindles, possibly for the next twelve months. CoreLogic expects price growth to tick down further in 2023 before changing course at year-end.
“While mortgage rate volatility continues to cause buyer hesitation, the lack of for-sale homes is putting firm pressure on prices this spring, leading to…
With affordability at its worst level in more than three decades, most Americans are putting off buying a home until rates fall.
Only 6% of Americans interested in buying a home are planning to do so this summer, with the majority waiting for interest rates to drop, according to BMO’s Real Financial Progress Index. Just 4% say they expect to buy in the fall.
High rates, low inventory, and sky-high house prices are keeping potential buyers on the sidelines. Of those who don’t currently own a property, 65% are holding off due to the state of the economy.
In the current high-rate environment, affordability is an insurmountable challenge for many buyers. As of May, each of the 100 largest U.S.…
Tennessee now has more than seven million residents and a senior loan officer who works in the eastern half of the state says inventory and affordability issues have hit the communities he serves.
According to U.S. Census Bureau information, the population of Tennessee grew by 2% between April 1, 2020, and July 1, 2022. The latest population estimate is that 7,051,339 people live in the Volunteer State, a nickname earned because of Tennessean’s eagerness to step forward in times of war.
Athens, the county seat of McMinn County, is located near the eastern border between the cities of Knoxville and Chattanooga.
The population in Athens has grown from 14,086 residents in April 2020 to 14,371 in July 2022 and data…
By PATRICK LAVERY
Incremental but persistent increases in the Federal Open Market Committee’s policy interest rate have now officially entered a second year, with Federal Reserve Chair Jerome Powell announcing another quarter-percentage point hike on Wednesday.
The target rate is now 5.25%, up five full points since April 2022. Powell reiterated in his prepared remarks that the Fed’s objective is returning inflation to 2%, its historic target.
Unfortunately, Powell acknowledged, interest rates remain stubbornly high. Powell said that for the 12 months ending with this past March, total Personal Consumption Expenditures prices rose 4.2%, excluding food and energy prices which tend to be more volatile, while core PCE prices were up 4.6%.
“Inflation has moderated somewhat since the middle of…
Much has been made in recent weeks of loan level price adjustments made by the FHFA. Analysts have called the changes unfair, saying they subsidize borrowers with low credit scores by charging those with good credit more for their loans.
Finance officials from twenty-seven states sent a letter to President Biden him to stop this “unconscionable” policy, saying it would be a “disaster.”
Rep. Barry Loudermilk (R-GA) called it “President Biden’s mortgage socialism rule” in a tweet and claimed borrowers with good credit scores would “see a spike in your borrowing costs” to fund mortgages for others. President Biden’s mortgage socialism rule went into effect yesterday. This means, if you have a high credit score (680+), and have a FHFA…
