Rates Slip For Third Week Straight

Mortgage rates slipped for a third consecutive week as Wall Street rallied around positive inflation data. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.44%, a modest decline from the week prior’s 7.5%. A year ago at this time, the 30-year FRM averaged 6.61%. The 15-year fixed rate fell from 6.81%% to 6.76%. A year ago, it averaged 5.98%. “For the third straight week, mortgage rates trended down, as new data indicates that inflationary pressures are receding,” said Sam Khater, Freddie Mac’s Chief Economist. “The combination of continued economic strength, lower inflation, and lower mortgage rates should likely bring more potential homebuyers into the market.” The consumer price index for October dipped by 0.1% month-over-month and…

Fannie Mae’s David Benson To Retire

Two high-level execs at Fannie Mae will retire in the next twelve months, leading to leadership changes, officials at the GSE announced. Fannie Mae President David C. Benson is retiring in 2024, while Chief Administrative Officer Jeffery Hayward will step down at the end of this year. “We’re deeply grateful to both Dave and Jeff for their leadership and decades of service,” said Michael Heid, Chair of Fannie Mae’s Board of Directors. “As they depart, we are implementing our succession plans and streamlining our leadership structure to continue advancing our strategy and our mission to serve homeowners, renters, and the housing market as a whole.” Benson served for 21 years in various roles at Fannie Mae, including Interim CEO, CFO,…

Home Prices Spiked Again In August

Data released today shows home price gains improved in August both annually and month-over-month. Year-over-year, prices rose 2.6%, up from 1% in July, according to the S&P CoreLogic Case-Shiller National Home Price NSA Index. Prices were up 0.4% month-over-month before seasonal adjustment and 0.9% after. This is the seventh consecutive month of increases. Home prices are now at all-time highs in the two composites and seven stand-alone cities, and prices rose in 19 of 20 cities after seasonal adjustment (13 of them before adjustment, as well). The National Composite surpassed its previous record high with this data. Craig Lazzara, managing director at S&P DJI, noted that regional differences remain “substantial.” “On a year-over-year basis, the three best-performing metropolitan areas in…

Rates Climb Higher

Mortgage rates climbed again last week amid the rippling impacts of war in the Gaza Strip. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.57%, jumping from 7.49%. A year ago at this time, the 30-year FRM averaged 6.92%. The 15-year fixed-rate rose to 6.89% from 6.78%. A year ago, it averaged 6.09% “For the fifth consecutive week, mortgage rates rose as ongoing market and geopolitical uncertainty continues to increase,” said Sam Khater, Freddie Mac’s Chief Economist.  “The good news is that the economy and incomes continue to grow at a solid pace, but the housing market remains fraught with significant affordability constraints. As a result, purchase demand remains at a three-decade low.” The Israel-Hamas war…

Mortgage Rates Overtake Home Prices As Main Buyer Concern

Consumer sentiment is stuck in the pits thanks to soaring mortgage rates. Fannie Mae’s Home Purchase Sentiment Index sank further in September, down by 2.4 points to 64.5. The full HPSI is up 3.7 points YOY, a decline from August. Five of the index’s six components fell month-over-month. The home price expectations component increased, resulting in a net negative outlook.  Only 16% of respondents say it’s a good time to buy a home, down from 18% last month, while 84% say it’s a bad time to buy. This is new survey high. The share of respondents who say it’s a good time to sell dropped as well, down to 63% from 66%. Driving this pessimistic streak are mortgage rates, which…

Rates Jump To 7.49%

Mortgage rates climbed again last week following treasury yield gains in the wake of political turmoil and an unexpected jobs report spike. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.49%, jumping from 7.31%. A year ago at this time, the 30-year FRM averaged 6.66%. The 15-year fixed-rate rose to 6.78% from 6.72%. A year ago, it averaged 5.90% “Mortgage rates maintained their upward trajectory as the 10-year Treasury yield, a key benchmark, climbed,” said Sam Khater, Freddie Mac’s Chief Economist. “Several factors, including shifts in inflation, the job market, and uncertainty around the Federal Reserve’s next move, are contributing to the highest mortgage rates in a generation. Unsurprisingly, this is pulling back homebuyer demand.” Chaos…

Rates Stay Above 7%

Mortgage rates stayed above 7% again last week. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.19%, up from 7.18%. A year ago at this time, the 30-year FRM averaged 6.29%. The 15-year fixed-rate rose to 6.54% from 6.51%. A year ago, it averaged 5.44% “Mortgage rates continue to linger above 7% as the Federal Reserve paused their interest rate hikes,” said Sam Khater, Freddie Mac’s Chief Economist.  “Given these high rates, housing demand is cooling off and now homebuilders are feeling the effect. Builder sentiment declined for the first time in several months and construction levels have dipped to a three-year low, which could have an impact on the already low housing supply.” August’s inventory…

Rates “Anchored” Above 7%

Mortgage rates increased last week, and despite a two-week streak of declines, will likely remain above 7%. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.18%, up from 7.12%. A year ago at this time, the 30-year FRM averaged 6.02%. The 15-year fixed-rate mortgage slipped, however, down to 6.51% from 6.52%. A year ago, it averaged 5.21%. “Mortgage rates inched back up this week and remain anchored north of seven percent. The reacceleration of inflation and strength in the economy is keeping mortgage rates elevated,” said Sam Khater, Freddie Mac’s Chief Economist.  The consumer price index saw its biggest monthly gain this year in August, coming in hotter than expected at +0.3% month-over-month. This heightens the…

Rates Dip But Remain Elevated

Mortgage rates dipped again last week but remain above the dreaded 7% threshold. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.12%, down from 7.18%. A year ago at this time, the 30-year FRM averaged 5.89%. This is the second week of declines but the fourth straight week of 7%-plus rates. The 15-year fixed-rate mortgage slipped to 6.52% from 6.55%. A year ago, it averaged 5.16%. “The economy remains buoyant, which is encouraging for consumers. Though while inflation has decelerated, firmer economic data have put upward pressure on mortgage rates which, in the face of affordability challenges, are straining potential homebuyers,”  said Sam Khater, Freddie Mac’s Chief Economist.  The median U.S. home sale price is up…

Consumer Sentiment Stuck Near Lows

Consumer sentiment is stuck in the pits as mortgage rates remain elevated. Fannie Mae’s Home Purchase Sentiment Index continues skimming its low-level plateau, increasing in August by 0.1 points to 66.9. The HPSI is up 4.9 points YOY. Half of the index’s six components rose from July while the others stayed stagnant, resulting in a net negative outlook. Only 18% of respondents say it’s a good time to buy a home. The share of respondents who say it’s a good time to sell rose, however, to 66%. Respondents largely believe that home prices will go up in the next 12 months (41%), though that number decreased by 2% from July. “Consumers remain pessimistic toward the housing market in general and…