Mortgage Rates Inch Down To New Record

New month, another new record. The 30-year fixed-rate mortgage dropped to its lowest level in history again this week, according to Freddie Mac’s weekly Primary Mortgage Market Survey released Thursday. The survey found: The 30-year fixed-rate mortgage averaged 2.71 percent with an average 0.7 point for the week ending December 3, 2020, down from last week’s 2.72 percent and last year’s 3.68 percent.The 15-year fixed-rate mortgage averaged 2.26 percent with an average 0.6 point, down from last week’s 2.28 percent and last year’s 3.14 percent.The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.86 percent with an average 0.3 point, down from last week’s when it averaged 3.16 percent and last year’s 3.39 percent. “Despite persistently low mortgage rates, home sales have…

Mortgage Applications Show Mixed Bag

Mortgage applications decreased slightly Thanksgiving week, once adjustments are made for the long holiday weekend, according to the Mortgage Bankers Association’s weekly report released Wednesday. Overall, applications for the week dropped 0.6 percent on an adjusted basis but down 32 percent on an unadjusted basis. The Refinance Index decreased 5 percent from the previous week and was 102 percent higher than the same week one year ago. Seasonally adjusted purchases increased 9 percent from one week earlier. Unadjusted purchases decreased 28 percent compared with the previous week and was 28 percent higher than the same week one year ago.  The refinance share of mortgage activity decreased to 69.5 percent of total applications from 71.1 percent the previous week. The adjustable-rate…

Forbearance Levels Rise Before Holiday

The share of mortgages in forbearance in the United States increased for the second week in a row before Thanksgiving, according to the weekly report released by the Mortgage Bankers Association. MBA’s survey found for the week ending November 22: Total loans in forbearance increased from 5.48 percent to 5.54 percent.     The share of Ginnie Mae loans in forbearance increased from 7.73 percent to 7.83 percent.The share of Fannie Mae and Freddie Mac loans in forbearance increased from 3.35 percent to 3.36 percent.Independent mortgage bank loans in forbearance climbed from 5.48 percent to 5.54 percent.Bank-managed mortgages in forbearance climbed from 5.44 percent to 5.47 percent. “For the second week in a row, the share of loans in forbearance has…

Pay Reduced For 1/3 Of US Workers

With the Covid pandemic stretching into its 10th month in the United States, more than a third of full-time America workers report having their pay cut, according to a survey released Monday. The survey of 1,000 workers by MagnifyMoney found: 34 percent of full-time workers had their pay cut, with 52 percent of men and 44 percent saying pay levels had been restored.54 percent of workers received a pay raise in the past year, down from 59 percent in last year’s survey.39 percent of Americans expect to get a raise next year, down from 47 percent in last year’s survey. The survey also found that 38 percent of millennials had their pay cut – the most of any generation. “It’s definitely…

Pending Home Sales Fall Slightly In October

Pending home sales dipped slightly in the United States last month, though were significantly higher than in October 2019, according to a new report released Monday by the National Association of Realtors. The Pending Home Sales Index fell 1.1 percent in October, the second straight month it dropped from summer highs. Compared to last year, however, pending home sales climbed 20.2 percent. “Pending home transactions saw a small drop off from the prior month but still easily outperformed last year’s numbers for October,” said Lawrence Yun, NAR’s chief economist. “The housing market is still hot, but we may be starting to see rising home prices hurting affordability.” Regionally, results were mixed. The index dipped 5.9 percent for the month in…

Mortgage Rates Steady At 2.72%

Mortgage rates didn’t budget this week from their record low, Freddie Mac reports in its weekly Primary Mortgage Market Survey. They survey found: The 30-year fixed-rate mortgage averaged 2.72 percent with an average 0.7 point, unchanged from last week and well below last year’s 3.68 percent.The 15-year fixed-rate mortgage averaged 2.28 percent with an average 0.6 point, also unchanged from last week and down from last year’s 3.15 percent.The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.16 percent with an average 0.3 point, up from last week’s 2.85 percent and down from last year’s 3.43 percent. “Mortgage rates remain at record lows and while that has fueled a refinance boom, it’s been driven mainly by higher income borrowers. With about 20…

Driven By Refis, Mortgage Applications Increase

Mortgage applications increased last week amid record-low interest rates and high demand for a limited number of homes on the market, the Mortgage Bankers Association announced Wednesday. MBA’s weekly survey found that applications overall increased 3.9 percent, with refinances up 5 percent for the week and 79 percent over a year ago. Purchase applications declined 2 percent and were up 19 percent over the same period of 2019. “Amidst strong competition for a limited supply of homes for sale, as well as rapidly increasing home prices, purchase applications increased for both conventional and government borrowers,” said Joel Kan, MBA’s associate vice president of industry and economic forecasting. The refinance share of mortgage activity increased to 71.1 percent of total applications…

US House Prices Jump In Q3

House prices in the United States surged in the third quarter of 2020, increasing 3.1 percent from the second quarter and 7.8 percent ahead of 2019 levels, according to a new report released Tuesday by the Federal Housing Finance Agency. The report found: U.S. house prices have risen for 37 consecutive quarters.Prices rose in all 50 states and the District of Columbia between the third quarters of 2019 and 2020. The top five areas in annual appreciation were Idaho (14.4 percent), Arizona (11.1 percent), Washington (10.8 percent), Utah (10.7 percent) and Tennessee (10 percent).The areas showing the lowest annual appreciation were North Dakota (4 percent), Iowa (4.7 percent), Louisiana (4.8 percent), Alaska (4.9 percent) and Hawaii (5.2 percent).House prices rose…

Forbearance Climbs Slightly; Delinquencies Down

The share of mortgages in forbearance in the United States increased ever so slightly in mid-November, while a second report released Monday found that mortgage delinquencies overall were down in October. The Mortgage Bankers Association weekly report found: Total loans in forbearance from 5.47 percent to 5.48 percent as of November 15, which works out to about 2.7 million mortgages in the United States.The share of Ginnie Mae loans in forbearance increased from 7.70 percent to 7.73 percent.The share of Fannie Mae and Freddie Mac loans in forbearance decreased from 3.36 percent to 3.35 percent.Independent mortgage bank-managed loans in forbearance held steady at 5.94 percent, while bank-manage mortgages climbed from 5.43 percent to 5.44 percent. “A marked slowdown in forbearance…

Existing Home Sales Increase In October

Existing home sales climbed for the fifth straight month in the United States in October, with all regions of the country experiencing growth, according to a monthly report released Thursday by the National Association of Realtors. Sales were up 4.3 percent from September and 26.6 percent from October 2019 – and they were selling quickly. The report found that 72 percent of homes sold last month were on the market for less than 30 days. “Considering that we remain in a period of stubbornly high unemployment relative to pre-pandemic levels, the housing sector has performed remarkably well this year,” said Lawrence Yun, NAR’s chief economist.  “The surge in sales in recent months has now offset the spring market losses,” he…