Cooling interest rates have opened a path for potential buyers heading into 2024, sparking “cautious optimism” for housing professionals.
First American’s Potential Home Sales Model for November 2023 saw its biggest monthly increase since December 2022, up 1.3%. That translates to 5.30 million potential existing home sales at a seasonally adjusted annualized rate.
The Potential Home Sales Model measures what the healthy level of home sales should be based on economic, demographic, and housing market fundamentals.
First American Chief Economist Mark Fleming says mortgage rate declines in November fueled the data.
Mortgage rates dipped below 7% for the first time since August last week after the Federal Reserve set the stage for rate cuts in the coming year. That decline,…
Mortgage rates dipped below 7% for the first time since August after the Federal Reserve set the stage for rate cuts in the coming year.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.95%, down from the week prior’s 7.03%. A year ago at this time, the 30-year FRM averaged 6.31%.
It is now down nearly 90 bps in the last six weeks. This lowers the monthly mortgage payment for a $400,000 house to $2,118, down $183 from recent peaks.
The 15-year fixed rate, on the other hand, rose to 6.38%% from 6.29%. A year ago, it averaged 5.54%.
“Potential homebuyers received welcome news this week,” said Sam Khater, Freddie Mac’s Chief Economist.
“Given inflation continues…
As 2023 draws to a close, good news for homebuyers keeps rolling in, suggesting change might be just around the corner.
New listings are on the rise and purchase applications are beginning to rebound, a new report from Redfin found.
Purchase applications are up nearly 20% from a low point in November. This is thanks to a combination of cooling mortgage rates and surprise inventory upticks. Daily rates have fallen to as low as 6.82% in recent days, the first time they’ve come in below 7% since July.
And even better rate news may be on the way as well. The FOMC decided not to raise the federal funds rate at its December meeting and even suggested that cuts may…
Refinance applications drove a spike in mortgage applications last week as rates slipped to nearly 7%.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – saw a 7.4% boost, up from the week prior’s 2.8% increase.
Adjusted purchase applications jumped by 4%, while the unadjusted index fell 1% from the week before and was 18% lower YOY.
The data highlights borrowers’ rate sensitivity, as the 30-year fixed rate slipped to 7.07%, its lowest point since July.
A recent round of positive disinflation data put downward pressure on rates. Analysts feel more optimistic about the possibility of Federal monetary policy changes in 2024.
“Borrowers who had seen rates near…
Mortgage costs cooled in November, cutting some homeowners loose from rate lock-in and easing inventory shortages that helped stall the housing market.
That’s according to Zillow’s latest market report, which found that the new listing deficit shrank to 14.1% below normal, a massive improvement over April’s record low of -35%.
New listings were still down 20.5% month-over-month in November and overall inventory remains down 37.2%, but the numbers still suggest positive movement.
Zillow attributes the data to declining mortgage rates, which may be encouraging homeowners clinging to super-low rates from the pandemic era to finally consider moving. About 70% of sellers are also buying.
The Midwest, the Great Lakes region, and the South are experiencing the smallest new listing declines.…
This year was one of the worst on record for affordability. But with the market at an all-time low, the only move now is up, according to a new analysis by Redfin.
A homebuyer with the median U.S. income needed to spend 41% of their earnings on monthly home costs in 2023, a record high in Redfin’s data (dating to 2012) and fully 10% more than just two years ago.
In some hot markets, like California’s Anaheim and San Francisco, that number jumps to more than 80%.
But Redfin expects mortgage rates and home prices to both cool in 2024, paving the way for more Americans to buy their dream home.
“A perfect storm of inflation, high prices, soaring mortgage…
The 30-year fixed rate mortgage fell nearly 20 bps in one week, almost hitting 7%.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.03%, down from the week prior’s 7.22%. A year ago at this time, the 30-year FRM averaged 6.33%.
It is now down nearly 80 bps in the last six weeks.
The 15-year fixed rate fell to 6.29%% from 6.56%. A year ago, it averaged 5.67%.
Mortgage applications overall increased by nearly 3% last week as refinances saw their biggest gains in two months thanks to cooling rates.
But purchase demand reversed course, slipping slightly.
“When rates began to rapidly drop, purchase applications rebounded initially, but this improvement in demand diminished in the last…
Freddie Mac is streamlining down payment assistance programs with standardized mortgage documents.
Leaders at the GSE say subordinate lien documents currently vary greatly by lender, causing confusion. These new documents will “increase clarity, consistency and accessibility” of DPA programs across the country, and can be used by lenders working with the HFAs at all levels.
“We know that standardization has increased efficiency, lowered costs, and improved many areas of the mortgage industry,” said Danny Gardner, Single-Family Senior Vice President of Mission and Community Engagement at Freddie Mac.
“By embracing standardization and creating a set of industry-wide documents, we are providing clarity and consistency that will enable more lenders to help more individuals and families leverage down payment assistance programs across…
By KIMBERLEY HAAS
As the end of the year nears, mortgage professionals are hustling, and although it may seem like it takes a lot more to get consumers to say “yes” in 2023, a leading real estate trainer and coach says it’s all about preparing for positive interactions with borrowers.
Ron Vaimberg started in the real estate business in 1983 and founded The New York Mortgage Institute in 1997. Today, he is the president of Ron Vaimberg International in Jefferson Valley, NY, working with professionals in the United States, Canada, and Australia.
Vaimberg said market frustrations – whether they be over a lack of inventory or the fact that borrowers are qualifying for less due to high interest rates –…
Mortgage applications increased again last week as cooling inflation and Fed rate expectations pushed mortgage rates down.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – increased by 2.8%, up from the week prior’s modest +0.3%.
Adjusted purchase applications fell by 0.3%, while the unadjusted index rose 35% from the week before and was 17% lower YOY.
Falling rates drove the jump, with the 30-year fixed-rate falling to 7.17%, its lowest since August 2023.
MBA Vice President and Deputy Chief Economist Joel Kan pinned the rate cooldown on disinflation and the dwindling possibility of further Fed rate hikes.
The FOMC will meet on December 12-13 and Wall Street…
