Homebuyers are feeling slightly more optimistic about the market as mortgage rates ease. Fannie Mae’s Home Purchase Sentiment Index (HPSI) rose 3.7 points in December. Three of its six components improved from the month prior as more consumers said they expect rates and home prices to drop. After weeks of declines, rates inched up in the first week of 2023 but remain well below 7%. Economists at Freddie Mac expect them to fall further as inflationary pressures ease. But home purchase sentiment remains near its all-time low, set in October, and is down 13.2 points YOY. Only 21% of respondents believe it’s a good time to buy a home. And the possibility of additional rate hikes from the Federal Reserve…
Mortgage interest rates dipped modestly again last week, the fifth consecutive week of decline, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey found that the 30-year fixed-rate mortgage averaged 6.31%, down from 6.33% the week prior. A year ago at this time, the 30-year FRM averaged 3.12 percent. The 15-year fixed-rate mortgage fell from 5.67% to 5.54%. A year ago, it averaged 2.34%. “Mortgage rates continued their downward trajectory this week, as softer inflation data and a modest shift in the Federal Reserve’s monetary policy reverberated through the economy,” said Sam Khater, Freddie Mac’s Chief Economist. “The good news for the housing market is that recent declines in rates have led to a stabilization in purchase demand. The bad…
By KIMBERLEY HAAS A Los Angeles broker convicted of defrauding lenders to obtain more than $8 million in mortgage loans has been sentenced to five years and four months in prison. Alex Ashod Dadourian, 61, was a licensed mortgage loan broker whose company, Success Funding, doing business as Pride Funding, was located in Northridge, California. Investigators claim that Dadourian received more than $254,000 in fees and commissions by taking out 17 mortgage loans based on fraudulent applications and supporting documentation between 2017 and 2019. Dadourian was convicted on 91 felony charges of mortgage fraud, grand theft, identity theft, and conspiracy, according to a press release issued on Dec. 7. “We won’t stand idly by when bad actors take advantage of…
Mortgage interest rates fell again last week to 6.49%, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey found that the 30-year fixed-rate mortgage averaged 6.49%, down from 6.58% the week prior. Weeks of decline have made some analysts optimistic that rates have peaked. “We probably have seen peak mortgage rates unless there is some other major shock to the economy,” Cris deRitis, deputy chief economist at Moody’s Analytics, told NextAdvisor. The 15-year fixed-rate mortgage also fell from 5.90% to 5.76%. A year ago, it averaged 2.39%. “Mortgage rates continued to drop this week as optimism grows around the prospect that the Federal Reserve will slow its pace of rate hikes,” said Sam Khater, Freddie Mac’s Chief Economist. “Even as…
Home price appreciation continued to cool in September though growth remained elevated from a year earlier, according to new data. The S&P CoreLogic Case-Shiller National Home Price NSA Index saw home prices decelerate, posting a 10.6% annual gain in August, down from 12.9% in the previous month. Craig J. Lazzara, Managing Director at S&P DJI, said all three composites are above their historical medians but peaked about six months ago. “As has been the case for the past several months, our September 2022 report reflects short-term declines and medium-term deceleration in housing prices across the U.S.,” he said. “As the Federal Reserve continues to move interest rates higher, mortgage financing continues to be more expensive and housing becomes less affordable. Given the…
Mortgage interest rates sank to 6.60% last week, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey found that the 30-year fixed-rate mortgage averaged 6.60%, down from 7.08% the week prior. This is the largest weekly drop in 40 years. The 15-year fixed-rate mortgage also fell from 6.38% to 5.98%. A year ago, it averaged 2.39%. As a result, the typical monthly mortgage payment declined by $100, giving a typical homebuyer with a $2,500 budget $12,000 more purchasing power over the course of just one week. “Mortgage rates tumbled this week due to incoming data that suggests inflation may have peaked,” said Sam Khater, Freddie Mac’s Chief Economist. “While the decline in mortgage rates is welcome news, there is still…
Mortgage interest rates tipped back over 7% last week, continuing to yo-yo back and forth from the high 6.90s, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey found that the 30-year fixed-rate mortgage averaged 7.08%, up from 6.95% the week prior. A year ago at this time, the 30-year FRM averaged 2.98%. “As the housing market adjusts to rapidly tightening monetary policy, mortgage rates again surpassed 7%,” said Sam Khater, Freddie Mac’s Chief Economist. “The housing market is the most interest-rate sensitive segment of the economy, and the impact rates have on homebuyers continues to evolve. Home sales have declined significantly and, as we approach year-end, they are not expected to improve.” Purchase loans ticked up recently after a…
Ravi Shankar has joined Freddie Mac as senior VP and head of Single-Family Portfolio and Servicing, the GSE announced in a press release. Shankar is returning to Freddie Mac, having served as an executive for the GSE from 2013 to 2019. In that period, he served as SVP for Single-Family Portfolio Management and deputy head of Investments and Capital Markets, respectively. He is a member of the company’s senior operating committee and reports to its president, Mike Hutchins. “Ravi Shankar brings substantial experience to the company as a respected financial services leader, portfolio manager, and Freddie Mac alum. I am pleased to welcome him back to the company,” said Mike Hutchins, President of Freddie Mac. “I look forward to working…
Mortgage interest rates softened last week after shooting above 7%, falling back to 6.95%, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey found that the 30-year fixed-rate mortgage averaged 6.95%, down from 7.08% the week prior. A year ago at this time, the 30-year FRM averaged 3.09%. “Mortgage rates continue to hover around 7%, as the dynamics of a once-hot housing market have faded considerably,” said Sam Khater, Freddie Mac’s Chief Economist. “Unsure buyers navigating an unpredictable landscape keep demand declining while other potential buyers remain sidelined from an affordability standpoint. Yesterday’s interest rate hike by the Federal Reserve will certainly inject additional lead into the heels of the housing market.” The Federal Reserve approved another 75 BPS interest…
It’s finally happened: average mortgage rates topped 7% for the first time in 20 years, after hovering just under it for several weeks, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey found that the 30-year fixed-rate mortgage averaged 7.08%, up from 6.94% the week prior. A year ago at this time, the 30-year FRM averaged 3.14%. “The 30-year fixed-rate mortgage broke 7% for the first time since April 2002, leading to greater stagnation in the housing market,” said Sam Khater, Freddie Mac’s Chief Economist. “As inflation endures, consumers are seeing higher costs at every turn, causing further declines in consumer confidence this month. In fact, many potential homebuyers are choosing to wait and see where the housing market will…
