Buyers seeking mortgages to finance home purchases may have reason to celebrate as a confluence of factors that make the market more favorable for mortgage notes, although tighter standards might put a slight damper on those developments. The overall housing market is showing signs of cooling off; though significant segments of the real estate market are still white-hot, increasing stock suggests the manic feeding frenzy of the past year may be settling down. Interest rates, meanwhile—though having risen some since President Joe Biden took office—remain historically low. Building material prices, meanwhile, are dropping, and while experts say buyers won’t immediately reap the benefits of that trend, lower material prices could echo through the market eventually. Mortgage forbearance numbers are also…
Prospective homebuyers looking to snag a modest home for less than the price of a motor yacht might consider an unlikely tactic: Petitioning their municipal council. Local zoning rules can have a significant effect on home purchases, with regulations often restricting the number of houses that can be built and thus driving up the price of remaining house stock. The Austin American-Statesman reports this week on that city council’s intention to revisit local zoning rules; the paper says that the “last comprehensive rewrite to land use rules [in the city] was completed in 1984.” Current rules have restricted building practices within Austin itself, driving housing stock down and prices skyward. As with many cities in recent years, bitter fighting in…
Key mortgage rates are remaining low, a trend which will likely spur continued homebuying as rates remain favorable for buyers and housing stock increases across the U.S. Rates for 30-year fixed mortgages effectively remained steady day-over-day, falling from 2.87 percent to 2.86 percent from July 18 to July 19, a very slight downward trend that sees rates remaining below 3 percent as they have since early June of this year. Rates for 30-year loans have fluctuated since early July but have remained below 2.9 percent. Rates for 15-year fixed mortgages and 5/1 ARMs, meanwhile, have risen over that time. Favorable mortgage rates and low housing stock have contributed to a highly competitive housing market over the past year and a…
The 30-year fixed-rate mortgage average fell below 3 percent for the week again in Freddie Mac’s weekly Primary Mortgage Market Survey released Thursday. The survey found: The 30-year fixed-rate mortgage averaged 2.95 percent with an average 0.7 point for the week, down from last week’s 3 percent and 3.15 percent last year at this time.The 15-year fixed-rate mortgage averaged 2.27 percent with an average 0.6 point, down from last week’s 2.29 percent and last year’s 2.62 percent.The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.59 percent with an average 0.2 point, unchanged from last week and down from last year’s 3.13 percent. “Mortgage rates are down below three percent, continuing to offer many homeowners the potential to refinance and increase their…
Mortgage applications increased 1.2 percent for the week, according to the latest report released Wednesday by the Mortgage Bankers Association. The MBA reports that the Refinance Index increased 4 percent from the previous week and was 2 percent lower than the same week last year. The unadjusted Purchase Index decreased 4 percent compared with the previous week and was 2 percent higher than the same week one year ago. The refinance share of mortgage activity increased to 63.3 percent of total applications from 61.3 percent the previous week. The adjustable-rate mortgage share of activity increased to 3.9 percent of total applications. “There continues to be strong demand for buying a home, but persistent supply shortages are constraining purchase activity, and…
Mortgage applications increased 2.1 percent for the week amid low rates and high demand for homes, the Mortgage Bankers Association reported Wednesday in its Weekly Mortgage Applications Survey. The Refinance Index increased 3 percent from the previous week and was 12 percent lower than the same week one year ago. The unadjusted Purchase Index increased 1 percent from the previous week and was 13 percent higher than the same week one year ago. The refinance share of mortgage activity increased to 61.3 percent of total applications from 61.0 percent the previous week. The adjustable-rate mortgage share of activity decreased to 3.8 percent of total applications. “Mortgage rates fell last week to the lowest levels since February, tracking the dip…
The Federal Housing Finance Agency announced Wednesday that Fannie Mae and Freddie Mac will extend some temporary loan origination flexibilities through May 31, while allowing some to expire at the end of April. Originally enacted early in the Covid-19 pandemic, alternative appraisals on purchase and rate-term refinance loans are among the flexibilities that will now be extended through May 31, FHFA said. Flexibilities related to employment verification, condominium project reviews, and expanded power of attorney are being allowed to expire as scheduled on April 30. Additionally, FHFA expects to retire all temporary selling flexibilities on May 31, 2021. …
By Elise Daniel Last year was the year without evictions and 2021 may be shaping up similarly. The Centers for Disease Control and Prevention recently extended their eviction moratorium, which bans landlords from kicking out tenants who fail to make rent payments. The ban is creating a situation that will present short term problems for landlords and have long-term impacts on the quality of the American housing supply. Already struggling to make ends meet, landlords should be prepared to face several months of additional eviction moratoriums and the prospect of tenants owing tens of thousands of dollars in back rent. Originally enacted in March 2020 as a public health measure to prevent overcrowding in shelters, the moratorium was successful in pushing evictions to historic lows. However,…
The Consumer Financial Protection Bureau and the Federal Trade Commission on Monday issued a warning to landlords to “stop illegal evictions” during the Covid-19 pandemic. The statement was issued as the Centers for Disease Control and Prevention extended its eviction moratorium, banning landlords from kicking tenants out for being unable to make their rental payments. “Staff at both agencies will be monitoring and investigating eviction practices, particularly by major multistate landlords, eviction management services, and private equity firms, to ensure that they are complying with the law,” CFPB Acting Director Dave Uejio and FTC Acting Chairwoman Rebecca Slaughter said. “Evicting tenants in violation of the CDC, state, or local moratoria, or evicting or threatening to evict them without apprising them of…
The US Department of Housing and Urban Development announced $450 million in housing block grants to support affordable housing, as well as another $5 million for Native Hawaiians. The Indian Housing Block Grants will be used to help Tribes carry out affordable housing activities to protect the safety and health of their Tribal members and communities during the Covid-19 pandemic. The list of tribes receiving the grants can be found here. Indian Housing Block Grants pay for housing development, operation and maintenance, modernization of existing housing, housing services to eligible families and individuals, housing management services, crime prevention and safety activities, and model activities that provide creative approaches to solving affordable housing problems in Indian Country. “With the enactment of the…
