Rates Shrink Slightly

Mortgage rates shrunk slightly last week, giving borrowers a little breathing room as they inch towards 7%, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey found that the 30-year fixed-rate mortgage averaged 6.66%, down from 6.70% just last week. A year ago at this time, the 30-year FRM averaged 2.99%. “Mortgage rates decreased slightly this week due to ongoing economic uncertainty,” said Sam Khater, Freddie Mac’s Chief Economist.  “However, rates remain quite high compared to just one year ago, meaning housing continues to be more expensive for potential homebuyers.” Mortgage loan application volume tumbled last week, falling to its slowest pace since 1997 as the looming 7% interest rate scared buyers off the market. A recent survey found that…

Rates Shoot Up To Nearly 7%

Mortgage rates skyrocketed again this week, nearing 7% as the affordability crisis escalates, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey found that the 30-year fixed-rate mortgage averaged 6.70%, up from 6.29% just last week. A year ago at this time, the 30-year FRM averaged 3.01%. “The uncertainty and volatility in financial markets is heavily impacting mortgage rates. Our survey indicates that the range of weekly rate quotes for the 30-year fixed-rate mortgage has more than doubled over the last year. This means that for the typical mortgage amount, a borrower who locked in at the higher end of the range would pay several hundred dollars more than a borrower who locked in at the lower end of the…

Priscilla Almodovar Named Fannie Mae CEO

Priscilla Almodovar has been named Fannie Mae’s CEO and member of the Board of Directors, the GSE announced in a press release. Almodovar will succeed former interim CEO David C. Benson, who will remain in the role of President. “It’s an honor to join Fannie Mae and lead the company as it carries out its vital role in the housing finance market and works to help ensure that equitable, affordable housing is available to people in communities across the country,” Almodovar said.  “I look forward to working with the Board, Management, and my new colleagues at Fannie Mae to continue this important work, which has benefited so many people over the company’s more than 80-year history.” She offers three decades…

Mortgage Rates Up Full Quarter Point Over One Week

Mortgage rates jumped by a quarter point this week in the wake of another 75-point rate hike from the Central Bank, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 6.29%, up from 6.02% just last week. A year ago at this time, the 30-year FRM averaged 2.88%. “The housing market continues to face headwinds as mortgage rates increase again this week, following the 10-year Treasury yield’s jump to its highest level since 2011,” said Sam Khater, Freddie Mac’s Chief Economist.  “Impacted by higher rates, house prices are softening, and home sales have decreased. However, the number of homes for sale remains well below normal levels.” Existing-home sales dropped for the…

Rates And Inflation Both Up Ahead of FOMC Meeting

Mortgage rates exceeded 6% last week for the first time since 2008, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 6.02%, up from 5.89% last week. A year ago at this time, the 30-year FRM averaged 2.86%. “Mortgage rates continued to rise alongside hotter-than-expected inflation numbers this week, exceeding six percent for the first time since late 2008,” said Sam Khater, Freddie Mac’s Chief Economist.  Inflation rose more than expected in August, up 8.3% YOY, though prices are down some from record highs earlier this year. Analysts had anticipated an 8.1% YOY increase. “Today’s evidence of a peak in US CPI might be welcome but the figure of 8.3% was…

Former Fannie Mae Attorney Named loanDepot CRO

Joseph Grassi has been appointed as chief risk officer of loanDepot, the company announced in a press release. Grassi reports directly to loanDepot CEO Frank Martell. He is responsible for the company’s risk management program, enterprise and loan-level risk governance policies, and potential operations risks. “I look forward to working with Frank and his entire leadership team at loanDepot to deliver on the company’s vision of becoming an increasingly purpose-driven organization,” said Grassi. “loanDepot has both an incredible reputation for fostering innovation and a deep commitment to its customer-first philosophy. I’m excited to leverage the strengths of the Company and team to help make the American dream of homeownership a reality for more families.” Grassi brings more than three decades…

Rates Reach Highest Point In More Than A Decade

Mortgage rates hit their highest point in almost 14 years last week, up from 5.66% to 5.89%, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 5.89%. A year ago at this time, the 30-year FRM averaged 2.88%. “Mortgage rates rose again as markets continue to manage the prospect of more aggressive monetary policy due to elevated inflation,” said Sam Khater, Freddie Mac’s Chief Economist. “Not only are mortgage rates rising but the dispersion of rates has increased, suggesting that borrowers can meaningfully benefit from shopping around for a better rate. Our research indicates that borrowers could save an average of $1,500 over the life of a loan by getting one…

Affordability Falling Further As Interest Rates Move Back Up

Mortgage rates continued rising last week, up from 5.55% to 5.66%, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 5.66%, continuing its trek towards 6% after a few weeks of reprieve in the low 5’s. A year ago at this time, the 30-year FRM averaged 2.87%. “The market’s renewed perception of a more aggressive monetary policy stance has driven mortgage rates up to almost double what they were a year ago,” said Sam Khater, Freddie Mac’s Chief Economist.  “The increase in mortgage rates is coming at a particularly vulnerable time for the housing market as sellers are recalibrating their pricing due to lower purchase demand, likely resulting in continued price…

Home Prices Decelerated In June

Home prices decelerated in June as buyers left the market, driven by historically high prices and rising interest rates. Both the S&P CoreLogic Case-Shiller Indices and Federal Housing Finance Agency House Price Index (FHFA HPI) saw price growth moderate in June. The HPI saw prices rise only 0.1% from May, while Case-Shiller reported an 18% YOY gain in June, down from 19.9% in May. FHFA’s data suggests prices are just now beginning to moderate. From Q1 2022 to Q2, prices rose 17.7% YOY and 4% quarter-over-quarter, with the only deceleration appearing in June. “Housing prices grew quickly through most of the second quarter of 2022, but a deceleration has appeared in the June monthly data. The pace of growth has…

Rates Shoot Back Up

Mortgage rates shot back up, rising from 5.13% last week to an average of 5.55%, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 5.55%, continuing a rollercoaster few weeks that has seen both a 30-point rate decrease and a 20-point increase. A year ago at this time, the 30-year FRM averaged 2.87%. “The combination of higher mortgage rates and the slowdown in economic growth is weighing on the housing market,” said Sam Khater, Freddie Mac’s Chief Economist.  “Home sales continue to decline, prices are moderating, and consumer confidence is low. But, amid waning demand, there are still potential homebuyers on the sidelines waiting to jump back into the market.” All…