Up, Up, Up: Interest Rates Climb Higher

Mortgage rates climbed higher for the fourth straight week as optimism around the economy improves, Freddie Mac reported Thursday in its weekly Primary Mortgage Market Survey. The survey found: The 30-year fixed-rate mortgage averaged 3.05 percent with an average 0.6 point, up from last week’s 3.02 percent and down from last year’s 3.36 percent.The 15-year fixed-rate mortgage averaged 2.38 percent with an average 0.6 point, up from last week’s 2.34 percent and down from 2.77 percent last year at this time.The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.77 percent with an average 0.3 point, up from last week’s 2.73 percent and down from last year’s 3.01 percent. “As the economy improves given labor market optimism, continued vaccination roll-out and additional…

Mortgage Credit Availability Holds Steady In February

Mortgage credit availability didn’t budge last month – and remained tight amid the Covid-19 pandemic, according to a report released by the Mortgage Bankers Association. The Mortgage Credit Availability Index remained unchanged at 124.6 in February. The Conventional MCAI decreased 0.3 percent, while the Government MCAI increased by 0.3 percent. Of the component indices of the Conventional MCAI, the Jumbo MCAI increased by 0.2 percent, and the Conforming MCAI fell by 0.7 percent.   “Credit availability … (remained) close to its lowest level since 2014,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “The housing market is in strong shape heading into the spring, with robust growth in purchase applications, home sales, and new residential construction. Government…

Higher Rates Drive Refis Down

Amid higher interest rates, mortgage applications dipped slightly last week, according to a report released Wednesday by the Mortgage Bankers Association. MBA’s weekly mortgage applications survey found that applications overall decreased 1.3 percent for the week ending March 5. Refinance applications decreased 5 percent from the previous week and were 43 percent lower than the same week one year ago, while purchase applications increased 9 percent for the week and were 2 percent higher than a year ago. The refinance share of mortgage activity decreased to 64.5 percent of total applications from 67.5 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 3.0 percent of total applications. “The run-up in mortgage rates continues to cool demand…

A Year Later, 2.6 Million Mortgages In Forbearance

Nearly a year into the pandemic, 2.6 million homeowners remain in forbearance plans in the United States, according to a report released Monday by the Mortgage Bankers Association. MBA’s weekly report found: 5.20 percent of mortgages were in forbearance as of February 28, down from 5.23 percent the week before.The share of Ginnie Mae loans in forbearance decreased from 7.35 percent to 7.28 percent.The share of Fannie Mae and Freddie Mac loans in forbearance decreased: from 2.97 percent to 2.94 percent. “The improving economy, the soon-to-be passed stimulus package, and the many homeowners in forbearance reaching the 12-month mark of their plan could all influence the overall forbearance share in the coming months,” said Mike Fratantoni, MBA’s Senior Vice President…

Rising Rates Mean Less Home For The Money

What do rising interest rates mean for homebuyers? A whole lot, it turns out. A new report released by Redfin on Monday found that homebuyers lose $23,250 in spending power with a mortgage rate of 3.25 percent versus a 2.75 percent rate, where they were sitting earlier this year. For example, a homebuyer can afford a $506,000 home for $2,500 per month at a 3.25 percent interest rate – down from the $529,250 they could afford on the same budget with a 2.75 percent rate. To put it another way, the monthly payment on a $506,000 home would rise $110 with the higher mortgage rate, from $2,390 to $2,500. “If the $1.9 trillion economic stimulus package that’s set to provide…

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…