Mortgage rates increased for a third consecutive week, pushing averages closer to 7% and adding pressure to buyers.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.96%, up from 6.90%. A year ago at this time, the 30-year FRM averaged 5.22%.
The 15-year fixed-rate mortgage also increased, up to 6.34% from 6.25%. A year ago, it averaged 4.59%.
“There is no doubt continued high rates will prolong affordability challenges longer than expected, particularly with home prices on the rise again,” said Sam Khater, Freddie Mac’s Chief Economist.“However, upward pressure on rates is the product of a resilient economy with low unemployment and strong wage growth, which historically has kept purchase demand solid.”
Demand has been sluggish…
Consumers are becoming more optimistic that the housing market will turn in their favor in the coming year, though affordability concerns continue to weigh them down.
Fannie Mae’s Home Purchase Sentiment Index (HPSI) jumped to its highest level since May 2022 in April, up 5.5 points to 66.8. This is the largest increase in more than two years.
Every component increased month-over-month as consumers start to see the light at the end of the tunnel for their homebuying struggles.
As the market is still seized by affordability concerns, the components remained negative, with the full index down 1.7 points YOY. However, more respondents say they expect the tide to turn in their favor.
The component associated with mortgage rate expectations…
Good Morning! Today is Wednesday, February 23. U.S. truckers plan to embark on a 2,500-mile cross-country drive to DC in protest of coronavirus restrictions. Germany put a stop to an $11 billion Russian natural gas pipeline that would link the two countries. The Supreme Court will hear a case from a web designer who objects to providing services for same-sex marriages. The Mortgage Note Reports Getting A Mortgage Online: Leaders at Bank of America say home loan applications initiated through their Digital Mortgage Experience accounted for 81% of total mortgage applications in 2021. That is up from 45% in 2020. FHFA HPI: Home price appreciation cooled slightly in Q4 2021, with prices rising 17.5% YOY and 3.3% from Q3 2021.…
Good Morning! Today is Wednesday, January 26. Federal prosecutors are reviewing fake Electoral College certifications that declared former President Donald Trump the winner of states that he lost. Former Boston Red Sox star David Ortiz has been elected to the National Baseball Hall of Fame. The Mortgage Note Reports House Price Index: House prices rose 1.1% nationwide in November, according to the latest FHFA House Price Index. HUNT COO: HUNT Mortgage Corporation has hired Bindiya Jain of Shrewsbury, Massachusetts as its Chief Operating Officer. And in other mortgage and housing news… The Fate Of Zillow: Zillow’s near-term fate “hinges upon a delicate market balance the likes of which we’ve never quite seen,” Laura Forman argues in the Wall Street Journal.…
