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…
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 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…
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…
Mortgage rates dropped to an average 5.13% last week from 5.22% the week prior, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 5.13%, following a rollercoaster couple of weeks that saw both a 30-point rate decrease and a 20-point increase. A year ago at this time, the 30-year FRM averaged 2.86%. “Inflation appears to be beyond its peak, which has stopped the rapid increase in mortgage rates that the housing market was experiencing earlier this year,” said Sam Khater, Freddie Mac’s Chief Economist. “The market continues to absorb the cumulative impact of the large price and rate increases that led to a plunge in affordability. As a result, over the rest…
Active listings posted a record-high growth rate in July, an indication that balance is returning to the housing market, Realtor.com reported. July’s Monthly Housing Trends Report found that the national inventory of active listings rose by 30.7% YOY, while the total inventory of unsold homes, including pending listings, increased for the first time since September 2019. This means there were 176,000 more homes actively for sale on a typical day in July than at the same time last year. However, the bump in total unsold inventory amounted to only a modest 3.5% due to a dip in pending inventory. And listings are still far behind their pre-pandemic and even early pandemic levels. Active listings were 15.7% below 2020 and 45.4%…
Loan subservicer and wholesale bank Cenlar FSB has appointed Dave Applegate as Chairman of the Board of Directors, the company announced in a press release. He is replacing former Chairman of the Board, President, and CEO Greg Tornquist, who is retiring. At the same time, EVP and COO Robert Lux has been named co-CEO with Dr. James Daras, who will also serve as president. Applegate has been a board member since 2020 and brings three decades of experience in real estate, mortgage banking, and housing finance to the role of Chairman. His past experience includes CEO of Common Securitization Solutions, LLC, a joint venture of Fannie Mae and Freddie Mac; Homeward Residential, Radian Mortgage Insurance, and GMAC Mortgage and Bank.…
Mortgage rates nosedived by 31 basis points last week, dropping below 5% for the first time since April, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 4.99%. Last week it averaged 5.30%, and a year ago at this time, the 30-year FRM averaged 2.77%. “Mortgage rates remained volatile due to the tug of war between inflationary pressures and a clear slowdown in economic growth,” said Sam Khater, Freddie Mac’s Chief Economist. “The high uncertainty surrounding inflation and other factors will likely cause rates to remain variable, especially as the Federal Reserve attempts to navigate the current economic environment.” Recession fears are adding to a dip in homebuyer demand spurned on…
Mortgage and real estate companies are releasing their earnings reports for Q2 2022, providing information on the state of the housing market and where it might be headed. NPR’s David Gura noted on Morning Edition that earnings reports “can shape our understanding of what the economy may look like in the future.” “So while earnings reports and calls executives do with analysts may seem dry, not relevant to most people, they are worth paying attention to because companies have access to tons of data about themselves, their customers, talking about customer spending patterns, how they’re feeling,” he said. Some major players in the mortgage industry released their reports this week. Freddie Mac said its earnings fell by 33% YOY, netting…
Mortgage rates plunged by 24 basis points last week, averaging 5.30%, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 5.30%. A year ago at this time, the 30-year FRM averaged 2.80%. “Purchase demand continues to tumble as the cumulative impact of higher rates, elevated home prices, increased recession risk, and declining consumer confidence take a toll on homebuyers,” said Sam Khater, Freddie Mac’s Chief Economist. “It’s clear that over the past two years, the combination of the pandemic, record low mortgage rates, and the opportunity to work remotely spurred greater demand. Now, as the market adjusts to a higher rate environment, we are seeing a period of deflated sales activity…
