Mortgage rates reversed a one-time uptick and fell last week, giving potential buyers even more breathing room.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.63%, down from the week prior’s 6.69%. A year ago at this time, the 30-year FRM averaged 6.09%.
Rates have now been largely stable, within the mid-6’s, for almost two months.
The 15-year fixed also decreased to 5.94% from 5.96%. A year ago, it averaged 5.14%.
“Although affordability continues to impact homeownership, the combination of a solid economy, strong demographics, and lower mortgage rates are setting the stage for a more robust housing market,” said Sam Khater, Freddie Mac’s Chief Economist.
Khater noted that expected disinflation should push rates down further…
Potential buyers are coming out of the woodwork and touring homes, but that activity has yet to turn into a sales surge.
Redfin’s Homebuyer Demand Index, which measures requests for tours and other buying services from Redfin agents, increased by 6% in the week ending January 28.
Buyers are touring homes as rates hover in the mid-6’s, an exciting moment of stability in the wake of a rollercoaster year. Some are worried that rates will swing back up– or that ongoing home price appreciation will push their dream home out of reach regardless.
But the increase in touring has yet to translate into actual home sales. Purchase applications have actually declined, and Redfin says pending sales saw a huge drop.…
Purchase applications slipped, breaking a weeks-long upward trend, as rates barely budge and inventory shortages keep prices high.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – fell by 7.2%, wiping out the week prior’s 3.7% spike.
Adjusted purchase applications slipped by 11%, while the unadjusted index decreased by 6% and was 20% lower YOY. The data includes an adjustment for the MLK holiday.
Demand may have been tempered by rates ticking up slightly the week prior and hovering at 6.78%. Rates haven’t moved much in the last month, though they remain well below October 2023’s high of 7.9%.
Stock shortages and high home prices are keeping purchase…
United Wholesale Mortgage is suing Atlantic Trust Mortgage Corporation for submitting loans to Rocket Mortgage or Fairway Independent Mortgage, an alleged breach of its “All In” ultimatum.
Lawyers for UWM claim that Atlantic Trust submitted at least 71 mortgages to rivals Rocket or Fairway, causing about $355,000 in damages. If the company wanted to work with other lenders, they argue, it needed to submit written notice that it was terminating its business with UWM.
This is the second legal action by UWM regarding their ultimatum since December. A similar case was filed against Madison Atrina LLC, which operates as District Lending.
The ultimatum has been controversial since it was introduced by UWM CEO Mat Ishbia in March 2021.
“If you…
Home prices slipped in November, breaking a nine-month streak of gains, but were up year-over-year.
Prices were down 0.2% month-over-month from the month prior, according to the S&P CoreLogic Case-Shiller National Home Price NSA Index. This was the first monthly dip since January 2023.
This was partly the result of mortgage rates spiking to peaks of nearly 8% in October 2023, driving demand down and forcing sellers to adjust their profit expectations.
“The house price decline came at a time when mortgage rates peaked, with the average Freddie Mac 30-year fixed rate mortgage nearing 8%, according to Federal Reserve data. The rate has since fallen over 1%, which could support further annual gains in home prices,” Brian D. Luke, Head…
Homebuyers, newly infused with extra spending power, are returning to the housing market as they come to terms with 6% rates and move to beat out increasing competition.
Redfin reported that buyers on a $3,000 monthly budget have gained almost $40,000 in purchasing power as rates have fallen from a peak in October 2023.
This theoretical buyer can afford a $453,000 home with a mortgage rate at roughly 6.7%. Just a few months ago, they could only snag a $416,000 home at a 7.8% interest rate, a $37,000 difference.
Costs are easing for buyers across the income spectrum, of course. The monthly mortgage payment on the typical U.S. home (about $363,000) is $2,545 with a 6.7% rate but clocked in…
Pending home sales soared in December, proving that price-sensitive buyers are jumping at the opportunity to lock in sub-7% rates.
NAR’s Pending Home Sales Index rose by 8.3% month-over-month — their biggest increase since 2020 — to a reading of 77.3 in December. An index of 100 is equal to the level of contract activity in 2001.
Year-over-year, they are up 1.3%.
“The housing market is off to a good start this year, as consumers benefit from falling mortgage rates and stable home prices,” said Lawrence Yun, NAR chief economist. “Job additions and income growth will further help with housing affordability, but increased supply will be essential to satisfying all potential demand.”
All four U.S. regions saw declines both month-over-month…
Mortgage rates inched up but remained within the mid-6% range, a welcome moment of stability after a rollercoaster year.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.69%, up from the week prior’s 6.60%. A year ago at this time, the 30-year FRM averaged 6.13%.
The 15-year fixed also rose to 5.96% from 5.76%. A year ago, it averaged 5.17%.
“The 30-year fixed-rate has remained within a very narrow range over the last month, settling in at 6.69% this week,” said Sam Khater, Freddie Mac’s Chief Economist.
“Given this stabilization in rates, potential homebuyers with affordability concerns have jumped off the fence back into the market. Despite persistent inventory challenges, we anticipate a busier spring homebuying…
New home sales spiked in December as cooling rates encouraged purchase-shy buyers to make the leap.
That’s according to data from the U.S. Census Bureau and the Department of Housing and Urban Development, which reported sales up by 8% from October to a seasonally adjusted annual rate of 664,000, a jump from the month priors’ revised rate of 615,000.
December saw rates cool to the mid-6’s, a process that began in November but needed time to bear out fully. The data suggests potential buyers who were cautious at first eventually came to terms with slightly lower rates and jumped into the market.
New home sales were up 4.4% from the same time last year.
There were 453,000 new homes for…
By ERIN FLYNN JAY
Foreclosure numbers are up by double-digit numbers and industry leaders say they will continue to rise this year.
Earlier this month, ATTOM, a curator of land, property, and real estate data, released its Year-End 2023 U.S. Foreclosure Market Report, which shows foreclosure filings — default notices, scheduled auctions, and bank repossessions — were reported on 357,062 U.S. properties in 2023, up 10% from 2022 and 136% from 2021.
CEO Rob Barber told The Mortgage Note several elements may be contributing to the rise in foreclosures.
“Key among them is the increase in interest rates, especially for adjustable-rate mortgages, leading to higher monthly payments for homeowners. Additionally, escalating unemployment rates are a concern,” Barber said.
Barber said…
