Mortgage Rates Top 3% For First Time Since July

Mortgage rates climbed to 3.02 percent this week, their highest level since the week ending July 23, according to Freddie Mac’s Primary Mortgage Market Survey released Thursday. The survey found: The 30-year fixed-rate mortgage averaged 3.02 percent with an average 0.6 point, up from last week’s 2.97 percent and down from 3.29 percent at this time last year.The 15-year fixed-rate mortgage averaged 2.34 percent with an average 0.7 point, unchanged from last week and well below last year’s 2.79 percent.The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.73 percent with an average 0.3 point, down from last week’s 2.99 percent and below last year’s 3.18 percent. “Since reaching a low point in January, mortgage rates have risen by more than 30…

Has The Predicted Surge In Mortgage Rates Begun?

By Elise Daniel Interest rates jumped to 2.97 percent last week, the highest they’ve been in six months. On its own, the increase is not significant—but it may actually be monumental if it is the beginning of a rate surge that has been long predicted. If the historic decline in rates that we have been experiencing has finally reached its bottom, then today’s rates may be the lowest available for months, and maybe years, to come. But if the surge doesn’t arrive and this week’s minor increase is just a predictable blip, then the frenzy will have been overblown. One market watcher has said that a “perfect storm is brewing,” but as any meteorologist knows, prediction is always a hard game. Market prediction…

Mortgage Applications Up Slightly

Mortgage applications increased slightly for the week, even as mortgage rates climbed, according to a report released Wednesday by the Mortgage Bankers Association. Overall, applications increased by a slim 0.5 percent for the week ending February 26. The Refinance Index increased 0.1 percent and was 7 percent higher than the same week one year ago, while the unadjusted Purchase Index increased 5 percent for the week and was 1 percent higher than the same week one year ago.  The refinance share of mortgage activity decreased to 67.5 percent of total applications from 68.5 percent the previous week. The adjustable-rate mortgage share of activity increased to 2.9 percent of total applications.    “The housing market is entering the busy spring buying season…

Mortgages In Forbearance Steady In US

The number of mortgages in forbearance remained at 2.6 million for the week ending February 21, according to a new report from the Mortgage Bankers Association. The report found: The total share of mortgages in forbearance in the United States increased from 5.22 percent to 5.23 percent.Ginnie Mae loans in forbearance increased from 7.32 percent to 7.35 percent.Fannie Mae and Freddie Mac loans in forbearance held steady at 2.97 percent. “A small increase in new forbearance requests, coupled with exits decreasing to match a survey low, led to the overall share of loans in forbearance increasing for the first time in five weeks,” said Mike Fratantoni, MBA’s Senior Vice President and Chief Economist. “The largest rise in the forbearance share…

Mortgage Rates Climb Toward 3%

Mortgage rates climbed again this week, inching ever closer to 3 percent as confidence in the economy begins to climb, according to Freddie Mac’s weekly Primary Mortgage Market Survey released Thursday. The survey found: The 30-year fixed-rate mortgage averaged 2.97 percent with an average 0.6 point for the week ending February 25, 2021, up from last week’s 2.81 percent and down from 3.45 percent last year at this time.The 15-year fixed-rate mortgage averaged 2.34 percent with an average 0.6 point, up from last week’s 2.21 percent and down from last year’s 2.95 percent.The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.99 percent with an average 0.1 point, up from last week’s 2.77 percent and down from last year’s 3.20 percent. “Optimism…

Rates, Weather Tamp Down Mortgage Activity

Mortgage applications tumbled more than 11 percent last week amid higher interest rates and severe winter weather in parts of the country, according to a report released Wednesday by the Mortgage Bankers Association. The weekly survey found overall applications were down 11.4 percent for the week ending February 19, while refinances were down 11 percent for the week and up 50 percent over a year ago. Purchase applications were down 8 percent and up 7 percent from last year. The refinance share of mortgage activity decreased to 68.5 percent of total applications from 69.3 percent the previous week. The adjustable-rate mortgage share of activity increased to 2.7 percent of total applications. “Mortgage rates have increased in six of the last…

Home Prices Set Record In 2020

Home prices in the United States surged 10.8 percent in 2020 – the largest annual increase on record, according to a report released Tuesday by the Federal Housing Finance Agency. FHFA’s House Price index found: Prices were up 3.8 percent from the third quarter to fourth quarter of 2020.Prices increased 1.1 percent from November to December.Home prices have risen for 38 consecutive quarters – or since September 2011.Home prices increased in all 50 states and the District of Columbia in 2020. “House prices nationwide recorded the largest annual and quarterly increase in the history of the FHFA HPI,” said Dr. Lynn Fisher, Deputy Director of FHFA’s Division of Research and Statistics. “Low mortgage rates, pent up demand from homebuyers, and…

Covid Relief And The Housing Market

By Damian Bell Late last year, Congress passed a $1.4 trillion continuing resolution to fund the federal government. Just a few months later, a newly inaugurated president is pushing a newly inaugurated Congress to pass a Covid-19 relief bill that dwarfs that government funding package by $500 billion—for a total price tag of $1.9 trillion.  For a housing market that has stood out as a rare bright spot in an otherwise faltering economy, the mammoth undertaking raises the question: What’s in the offing? If it becomes law, the unprecedented liquidity in the stimulus bill seems poised to support continued gains in house prices, which have boomed in recent months thanks to low interest rates. In short, the plan signals smooth sailing ahead—at least for…

Forbearance Numbers Drop For 3rd Straight Week

The share of US mortgages in forbearance declined for the third week in a row, according to a weekly survey released Monday by the Mortgage Bankers Association. The survey, which reported 2.6 million US homeowners remain in forbearance plans, also found: Total loans in forbearance decreased from 5.29 percent to 5.22 percent.The share of Ginnie Mae loans in forbearance decreased from 7.34 percent to 7.32 percent.The share of Fannie Mae and Freddie Mac loans in forbearance decreased from 3.01 percent to 2.97 percent. “The housing market is quite strong, with home sales, home construction, and home price data all testifying to this strength,” said Mike Fratantoni, MBA’s Senior Vice President and Chief Economist. “Policymakers and the mortgage industry have helped…

Mortgage Rates Jump … To 2.81%

Mortgage rates climbed for the first time in weeks but remain near historically low levels, according to the weekly Primary Mortgage Market Survey released Thursday by Freddie Mac. The survey found: The 30-year fixed-rate mortgage averaged 2.81 percent with an average 0.7 point for the week, up from last week’s 2.73 percent and 3.49 percent last year at this time.The 15-year fixed-rate mortgage averaged 2.21 percent with an average 0.7 point, up from last week’s 2.19 percent and last year’s 2.99 percent.The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.77 percent with an average 0.2 point, down from last week’s 2.79 percent and last year’s 3.25 percent. The 30-year fixed-rate mortgage is at its highest point since mid-November. “Economic spending has…