Both purchase applications and refis saw increases as rates fell for a fifth consecutive week.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – rose by 7.4%.
Adjusted purchase applications increased by 3%, while the unadjusted index was up 4% from the week before and was 37% lower YOY.
Refinances saw a big upswing, rising 18% from the week prior. But they remain 75% lower than the same time last year, comprising only 33.9% of total applications.
In the past decade, refis averaged 58% of total activity.
“Both purchase and refinance applications increased last week and have shown gains in three of the past four weeks because of…
By CHUCK GREEN
As the average mortgage rates decline and markets slow in parts of the country that were red-hot during the pandemic, we at The Mortgage Note decided to ask who is currently in favor during negotiations – the buyer or the seller?
It seems that the current consensus on the ground is that there are benefits to being either.
Aaron Kozikowski is a loan officer at Ross Mortgage Corporation. The company is headquartered in Troy, Michigan, and serves customers in Michigan, Kentucky, Florida, and Virginia.
Kozikowski said “in this market, we’ve been seeing homes sit on the market longer, which allows buyers to take their time instead of having to put in an offer immediately. Sellers are also…
Rate buydowns continue to soar as borrowers look for ways to combat the affordability crisis, according to new data from Black Knight.
In the third week of January, 57% of buyers paid at least a half-point on a permanent buydown, while 44% paid a full point, and almost 25% bought down two or more points.
In total, borrowers paid an average of 1.25 points down, at an average of $4,300 per borrower.
Pre-pandemic buydowns from 2018 to 2020 averaged only 0.5 points, around $1,500.
This is not the high point for buydowns, which peaked in September and October 2022 with 71% of buyers buying down their rates. But it points to a continuing trend of buyers trying to decrease their…
As economists predicted, the 30-year fixed rate fell again this week, moving closer to 6%.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.09%, down from 6.13% the week prior.
A year ago at this time, the 30-year FRM averaged 3.55%.
The 15-year fixed-rate mortgage fell from 5.17% to 5.14%. A year ago, it averaged 2.77%.
“Mortgage rates inched down again, with the 30-year fixed-rate down nearly a full point from November, when it peaked at just over seven percent,” said Sam Khater, Freddie Mac’s Chief Economist.
“According to Freddie Mac research, this one percentage point reduction in rates can allow as many as three million more mortgage-ready consumers to qualify and afford a $400,000 loan,…
Home equity gains slipped in Q4 2022 as declining property values outpaced mortgages being paid off but homeowners are still largely equity-rich.
New data from ATTOM found that 48% of U.S. mortgaged residential properties were considered equity-rich. This is down slightly from Q3’s 48.5% but remains nearly double the pre-pandemic number. Most homeowners are still benefitting from historically high property values. More than 94% of homeowners have some level of equity built up in their homes.
This dip is the third straight month of declining equity values, however, turning the tables on the ten prior months, which all saw gains.
“Dents are beginning to surface in the armor around the U.S. housing market after 11 years of a strong showing…
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – fell by 9%.
Adjusted purchase applications fell by 10%, but the unadjusted index was up 7% from the week before. Purchase applications are down by more than 40% YOY.
Refinances dipped as well, down 7% from the week prior.
They remain 80% lower than the same time last year, comprising only 31.2% of total applications. In the past decade, refis averaged 58% of total activity.
“Mortgage rates declined for the fourth straight week and have now fallen almost 40 basis points over the past month. Treasury yields were higher on average last week, while mortgage rates decreased, which was…
Despite the insanity of the pandemic homebuying frenzy, Americans aren’t moving as often as they used to.
Many people moved in 2020 and the beginning of 2021, while interest rates were historically low and remote work allowed people to explore more affordable metros for the first time. But numbers show that by 2022, that number had declined.
Data analyzed by the National Association of Realtors found that the moving rate has been declining overall for the past six years.
“Millions of people moved during the pandemic, driven by the opportunity to work remotely, the desire for more space, and better affordability. Nevertheless, the moving rate has declined for the last six years. While the Census Bureau hasn’t yet released the…
The 30-year fixed rate slipped slightly again last week, prompting some pent-up buyers to lock in a purchase, Freddie Mac reported Thursday.
Freddie’s Primary Mortgage Market Survey found that the 30-year fixed-rate mortgage averaged 6.13%, down from 6.15% the week prior.
A year ago at this time, the 30-year FRM averaged 3.55%.
The 15-year fixed-rate mortgage fell from 5.28% to 5.17%. A year ago, it averaged 2.80%.
“Mortgage rates continue to tick down and, as a result, home purchase demand is thawing from the months-long freeze that gripped the housing market,” said Sam Khater, Freddie Mac’s chief economist. “Potential homebuyers remain sensitive to changes in mortgage rates, but ample demand remains, fueled by first-time homebuyers.”
Pending home sales have been…
Pending home sales rose for the first time since May, breaking a six-month streak of declines, according to the National Association of Realtors.
The Pending Home Sales Index increased by 2.5% between November and December. Year-over-year it dropped by 33.8%, an improvement over November’s 37%.
All four regions saw pending sales fall YOY, but the South and West saw gains month-over-month.
“This recent low point in home sales activity is likely over,” said NAR Chief Economist Lawrence Yun. “Mortgage rates are the dominant factor driving home sales, and recent declines in rates are clearly helping to stabilize the market.”
Mortgage rates fell again last week to 6.13%, drawing some buyers back to the market.
Purchase loan applications increased again as…
Home seller return on investment rose to 51% at the end of 2022 despite slowing sales, new data from ATTOM shows.
Sellers nationwide earned $112,000 on the typical sale in 2022, up 21% from 2021 and 78% from before the pandemic.
Both raw profits and ROI have now improved across the country for 11 consecutive years.
Ninety-eight percent of markets with enough data to analyze saw profits increase from 2021 to 2022. The latest number is the highest profit level seen by home sellers since at least 2008.
Sellers in Southern and Western markets saw the highest ROI, led by Hilo, HI (100% ROI); Lake Havasu City-Kingman, AZ (88.4%); Spokane, WA (86.2%); Fort Myers, FL (85.4%) and Port St. Lucie,…
