The Fannie Mae Home Price Index (FNM-HPI) rose to its fastest annual pace ever on record in Q1 2022, measuring 20% YOY, the company reported. This is up from an annualized rate of 19.1% in Q4 2021, the fastest pace in the index’s 47-year history. Seasonally adjusted home prices rose 4.8% from last quarter. The FNM-HPI is a national, repeat-transaction home price index that measures average quarterly price change on all single-family properties in the U.S., excluding condos. The FNM-HPI will now be publicly available as a quarterly series with a start date of Q1 1975. “We’re pleased to begin sharing the Fannie Mae Home Price Index with external audiences. We have long used this index within the company, including…
Mortgage rates averaged 5% flat last week, up from 4.72%, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 5%. A year ago at this time, the 30-year FRM averaged 3.04%. “This week, mortgage rates averaged five percent for the first time in over a decade,” said Sam Khater, Freddie Mac’s Chief Economist. “As Americans contend with historically high inflation, the combination of rising mortgage rates, elevated home prices and tight inventory are making the pursuit of homeownership the most expensive in a generation.” Home prices continue growing despite hope for a cool down this year due to mortgage rate increases pricing many out of the market and reducing competition. For…
Second-home demand fell for a second straight month as rising rates and increased fees deter buyers, Redfin reported. Mortgage-rate locks for second homes dropped to their lowest level since May 2020 in March, though still remained 13% above pre-pandemic levels. “The pandemic-driven surge in sales of vacation homes is coming to an end as mortgage rates rise at their fastest pace in history, causing some second-home buyers to back off,” said Redfin Deputy Chief Economist Taylor Marr. “When rates and prices shoot up so much that a vacation home starts to look more like a burden than a good investment and a fun place to bring your family on the weekends, a lot of prospective buyers have second thoughts.” A…
Mortgage rates rose to an average of 4.72%, up from last week’s 4.67%, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 4.72%. A year ago at this time, the 30-year FRM averaged 3.13%. “Mortgage rates have increased 1.5 percentage points over the last three months alone, the fastest three-month rise since May of 1994,” said Sam Khater, Freddie Mac’s Chief Economist. “The increase in mortgage rates has softened purchase activity such that the monthly payment for those looking to buy a home has risen by at least 20 percent from a year ago.” The daily fixed rate crossed 5% this week for the first time since 2011, save two days…
Consumer sentiment towards home buying fell in March, pushed down by rising interest rates and difficult conditions generally, according to Fannie Mae’s Home Purchase Sentiment Index. The HPSI decreased by 2.1 points to 73.2, with four of its six components down month-over-month. The full index is down 8.5 points YOY. In March, 69% of respondents said they expect mortgage rates to keep rising, a survey-high. At the same time, the “Good Time To Buy” component tanked to a survey low, with 73% saying it’s a bad time to buy. “This month, we also saw a survey-high share of consumers expecting their financial situations to worsen over the next year; this was especially true among current homeowners,” said Mark Palim, Fannie…
Good Morning! Today is Friday, April 1. Russia’s defense ministry announced a cease-fire in Mariupol. The U.S. imposed new sanctions on Russian technology companies. The House passed a bill to limit the cost of insulin to $35 a month, sending it to the Senate. The Mortgage Note Reports Rates Rise: Mortgage rates jumped again to an average of 4.67%. Forbearances Up Slightly: Forbearances rose slightly again last week, though new plan starts dropped to 10,100, the lowest level in four months. And in other mortgage and housing news… Jobs Report: The unemployment rate fell to 3.6% in March, while payrolls saw big gains, according to Labor Department data. Listing In April: Homes listed for sale in the second half of…
Good Morning! Today is Tuesday, March 29. Biden said he was expressing “moral outrage”, not policy, when he said Putin “cannot remain in power.” A federal judge concluded that Donald Trump most likely committed felonies by trying to overturn the 2020 election. Will Smith apologized to Chris Rock for slapping him at the Oscars. The Mortgage Note Reports Russia’s Attack On Ukraine Felt By Builders In America: Some experts say there will be ramifications in the home and commercial markets, Chuck Green reports. Budget Response: The Biden administration’s budget proposal includes big money for housing, which the CHLA says reaffirms the need to scrap its Life of Loan policy. Condo Explosion: Condo prices have hit a record high – up…
Good Morning! Today is Friday, March 25. The U.S. imposed new sanctions on more than 300 members of Russia’s Parliament. Some journalists have quit jobs at Russian state media outlets, citing regret for promoting lies about the war. Arizona Republicans passed a bill banning most abortions after 15 weeks of pregnancy. The Mortgage Note Reports Rates Rise: Mortgage rates continued their upward march this week, averaging 4.42%. Forbearances Up: Forbearance plans rose for a second week, pushed up by plan re-starts, though new plan starts remained steady. And in other mortgage and housing news… Affordability Down: Homebuyer affordability decreased in February, with the national median payment applied for by applicants jumping 8.3% to $1,653. “We’re Concerned”: Liz Shuler, president of…
Mortgage rates continued their upward march this week, averaging 4.42%, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 4.42%. A year ago at this time, the 30-year FRM averaged 3.17%. “This week, the 30-year fixed-rate mortgage increased by more than a quarter of a percent as mortgage rates across all loan types continued to move up,” said Sam Khater, Freddie Mac’s Chief Economist. “Rising inflation, escalating geopolitical uncertainty, and the Federal Reserve’s actions are driving rates higher and weakening consumers’ purchasing power. In short, the rise in mortgage rates, combined with continued house price appreciation, is increasing monthly mortgage payments and quickly affecting homebuyers’ ability to keep up with the…
Good Morning! Today is Tuesday, March 22. The U.S. is opposing Poland’s idea of sending troops into Ukraine. President Biden warned companies that Russia was considering cyberattacks in retaliation for sanctions. Miami Beach officials issued a curfew after two shootings during spring break. The Mortgage Note Reports Invasion Of Ukraine, Inflation To Take Toll On U.S. Housing Sector: Russia’s invasion of Ukraine and its implications for the global economy has some experts saying the housing market in the United States will be impacted. Soaring Housing Costs: The average monthly asking rent in the U.S. rose 15% YOY but were once again outpaced by mortgage payment growth, up 31% YOY. AIMI Falls: The Freddie Mac Multifamily Apartment Investment Market Index fell …
