Mortgage rates rose to their highest level since May 2020, up to an average of 3.22%, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 3.22%, significantly higher than last week’s 3.11%. It disrupts a trend of rates hovering around 3.10% or 3.11%. A year ago at this time, the 30-year FRM averaged 2.65%. “Mortgage rates increased during the first week of 2022 to the highest level since May 2020 and are more than half a percent higher than January 2021,” said Sam Khater, Freddie Mac’s Chief Economist. “With higher inflation, promising economic growth, and a tight labor market, we expect rates will continue to rise. The impact of higher rates…
Good Morning! Today is Thursday, January 6. It’s the anniversary of the January 6 riot, and President Biden will speak today on steps to strengthen democracy in the US. A Philadelphia fire left at least thirteen dead and two hospitalized. The CDC recommended Pfizer boosters for children aged twelve and up. And in mortgage and housing news… Check Out The Photos!: These are the most expensive homes in 2022’s hottest housing markets. Second Home Demand Stays High: December demand for vacation homes topped pre-pandemic levels by 77% as affluent Americans continue to take advantage of remote work and low-interest rates. But it’s so hard to get into the game, some people are comparing it to finding their way into an…
Good Morning! Today is Wednesday, January 5. A snowstorm in Virginia left hundreds of drivers stranded for more than 24 hours. Chicago canceled school today amid a clash with teachers about remote schooling during the Omicron surge. Walmart and Kroger are raising prices for BinaxNOW at-home Covid tests after a White House deal to sell them at cost expired. And in mortgage and housing news… UWM Under Fire: United Wholesale Mortgage is under scrutiny from both state and county health officials in the wake of complaints about the company’s handling of Covid. Loan Applications Down: Mortgage loan application volume dropped 2.7% from the week ending December 31, with refis down 2% as interest rates reached their highest point since April…
Good Morning! Today is Tuesday, January 4. Apple became the first U.S. company to reach $3 trillion in market value. Chuck Schumer threatened to change Senate filibuster rules if Republicans did not allow a vote on voting rights measures. Elizabeth Holmes was found guilty on four counts of fraud related to her failed company, Theranos. And in mortgage and housing news… Bond Market Rally In 2022?: Could a drop in Chinese interest rates spark a bond rally in the US? Some companies think so. Americans On The Move: Vermont, South Dakota, South Carolina, and Florida were the top states to move to in 2021, with most movers saying they chose their new home based on proximity to family, according to…
Alanna McCargo has officially been sworn in as the 18th president of Ginnie Mae, becoming the first Senate-confirmed president in five years and the first woman to hold the position. The position has remained empty since 2017 when Obama-appointed president Toed Tozer stepped down. The interim presidents who followed him, Michael Bright and Maren Kasper, both stepped down to take other positions in the private sector. McCargo was nominated in September of 2021 and confirmed by the Senate in December 2021. “It is an honor to lead Ginnie Mae through its next phase of transformation, ensuring our MBS remains a secure, nimble, and reliable vehicle to support the U.S. mortgage market and continues to make affordable homeownership and rental housing…
Good Morning! Today is Monday, January 3. We hope you had a wonderful holiday and wish you the best in 2022!For today’s newsletter, we had Scott Kimbler look into the migration from U.S. metros to suburban and rural areas. Is It A Trend Or Here To Stay? Metros See Migration From Cities: Metros are seeing a migration away from urban areas, and those watching this trend say landlords shouldn’t hold their breath hoping a younger generation of renters will replace them. Affordability Reaches 13 Year Milestone: In Q4 2021, median-priced single-family homes were less affordable in 77% of U.S. counties analyzed by ATTOM Data Solutions, a 13-year high, the company found. New Record For Home Prices: The median home sale…
Good Morning! Today is Thursday, December 23. The F.D.A. authorized Pfizer’s Covid treatment pill for high-risk patients. The Biden administration extended a moratorium on student loan repayments until May 1. Authorities in Texas are investigating a “major industrial accident” at an Exxon Mobil plant.And in mortgage and housing news… A New Home For The Holidays?: It may be the week before Christmas, but that doesn’t mean potential homebuyers aren’t out searching for their perfect piece of real estate. Guaranteed Rate Leadership: Guaranteed Rate has appointed two new Divisional Managers, Ryan Ogata and Tim Sorenson. Existing-Home Sales Up: Existing-home sales rose 1.9% in November to a seasonally adjusted annual rate of 6.46 million, while inventory fell 13.3% YOY, NAR reported. Potential…
Good Morning! Today is Wednesday, December 22. In yesterday’s speech, President Biden praised Donald Trump’s recent comments about boosters and promised to distribute 500 million free testing kits. The Kellogg strike ended, with workers ratifying a new contract. Southwest Alaska experienced a 5.9 magnitude earthquake. And in mortgage and housing news… MBA: Mortgage loan application volume dropped 0.6% last week, though the average purchase loan reached its second-highest amount ever, MBA reported. Homeowners Gain $9.1T: The value of U.S. homes soared 31% YOY to $38 trillion in November, outpacing last year’s 10% gain, according to a new Redfin report. Lifestyle Matters:Better Homes and Gardens Real Estate released a market trends report, examining how and why lifestyle is leading homebuyers’ decision-making. “The Biggest Opportunity Of Our Generation”: MetaSpace Real…
Good Morning! Today is Tuesday, December 21. President Biden will give a speech today outlining his plans to combat the Omicron variant. Omicron accounts for about 75% of new cases in the US. The E.P.A. will require new cars to get 55 miles per gallon starting in 2026. And in mortgage and housing news… Forbearances Improved In November: The total number of loans in forbearance fell from 2.06% of servicers’ portfolio volume to 1.67% in November, according to MBA’s Loan Monitoring Survey. ESR Expectations Change: Commentary from Fannie’s ESR Group showed the year ending on a strong note, with 2021 total home sales for rising 7.1%, but lowered its prediction for 2022’s GDP due to inflation concerns. CFPB, DOJ Warning…
The Fannie Mae Economic and Strategic Research (ESR) Group boosted its expectation for full-year 2021 economic growth to 5.5% in its December commentary, up 0.7% from November’s projection. The group cited “stronger-than-anticipated consumer spending and inventory investment data” as the reason for its revised projection. Total home sales are now expected to increase 7.1% in 2021 rather than 5.3%. Total mortgage originations are expected to be $4.5 trillion, up from $4.4 trillion. But it also revised its 2022 expectations, downgrading its 2022 growth forecast from 3.7% to 3.2%. Though recent data appears strong, the group noted it “likely reflects a pull-forward of activity from the first half of 2022 and is unlikely to be sustained.” Inflation is the primary reason…
