Mortgage applications turned around after four weeks of declines as rates dipped slightly.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – increased by 7.2%.
Adjusted purchase applications rose by 8%, while the unadjusted index was up 17% from the week before and 27% lower YOY.
The average interest rate for 30-year fixed loans fell for a second week from 6.81% to 6.77%.
Though it’s not a huge drop, any dip will pull some rate-sensitive buyers off the sidelines.
“Rates that are still more than a percentage point higher than a year ago, and low for-sale inventory continue to constrain homebuying activity in many markets. The average loan…
Mortgage applications fell for a fourth consecutive week, even as rates retreated from near-7% highs.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – decreased by 1.4%.
Adjusted purchase applications fell by 2%, while the unadjusted index was down 13% from the week before and 27% lower YOY.
Rates took a turn, however, with the average interest rate for 30-year fixed loans falling 10 bps from 6.91% to 6.81%. Though that’s good news for home shoppers who can’t wait for a major shift in rates, it’s still the second-highest rate of 2023.
“Overall applications were more than 30% lower than a year ago, as borrowers continue to grapple…
First-time buyers are still living in last year’s housing market thanks to limited affordable inventory, leading to tight competition and soaring prices.
A new report from Zillow found that typical home values for the least-expensive one-third of houses rose by 8% YOY, or $13,000.
In comparison, mid-level homes saw a 3% YOY increase, and the most expensive one-third of houses lost value, experiencing a 1% drop. This is the first loss of value for the top tier since at least 2012.
“Buyers shopping for the least-expensive homes this spring aren’t noticing much difference from the pandemic-era market heat,” said Skylar Olsen, Zillow’s chief economist.
“Competition is fierce, but there aren’t many homes for sale, so buyers should be patient but…
Salt Lake City was a pandemic hot spot but as the housing market evens out across the nation, one senior loan officer who works in the metropolitan area says buyers are seeing some relief.
According to data from Redfin, home prices in Salt Lake City were down 8.5% in March compared to last year, selling for a median price of $540,000.
The city was ranked fifth on a recent Realtor.com list of the 10 U.S. cities where home sales were down the most, in part because fewer out-of-state buyers are relocating to the “Silicon Slopes.” In November 2021, there were 1,506 sales, compared to 708 in November of 2022.
Cory Ure works at SecurityNational Mortgage Company in Salt Lake City.…
The average mortgage rate declined for another week, giving buyers planning to finance a home this spring a little more bang for their buck.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.28%, down from 6.32% the week prior.
A year ago at this time, the 30-year FRM averaged 4.27%.
The 15-year fixed-rate mortgage increased, however, from 5.56% to 5.64%. A year ago, it averaged 3.91%.
“Mortgage rates continue to trend down entering the traditional spring homebuying season,” said Sam Khater, Freddie Mac’s chief economist.
Retreating rates aren’t enough to bring buyers priced out of the market back.
Mortgage application volume, which had ticked up when rates first began declining, is dropping again as buyers contend…
CrossCountry Mortgage launched a new cost-saving program for first-time homebuyers.
The Freddie Mac BorrowSmart Access program provides borrowers in specific metros with up to $3,000 that can be put towards a down payment or closing costs.
“In today’s competitive market, first-time homebuyers face many obstacles including trying to save for a down payment,” said Jenn Stracensky, CCM Chief Operating Officer.
“BorrowSmart Access supports our mission of making every mortgage feel like a win by giving homebuyers extra purchasing power and putting homeownership within reach, especially in underrepresented communities.”
Borrowers in Atlanta, Chicago, Detroit, Houston, Philadelphia, and Miami, along with several other high-cost metros in the South, are eligible to receive aid. At least one borrower must be a first-time homebuyer,…
Investors are backing away from the home purchase market as price appreciation continues to cool.
Investor home purchases declined 45.8% YOY in Q4 2022, according to a new Redfin analysis of 40 U.S. metros. This is a record drop, besting 2008’s 45.1% dip during the subprime mortgage crisis.
Quarter-over-quarter, investment purchases fell 27%, the largest decline excluding the beginning of the pandemic.
Pandemic boomtowns in particular saw massive dips, with investor purchases in Las Vegas and Phoenix dropping by more than 60%.
High borrowing costs and declining home values have “made real estate investing less attractive,” Redfin said.
Home prices have risen less than 1% YOY, down significantly from 15% growth last year. Investors who bought homes at a premium…
New American Funding is launching a new initiative for first-time homebuyers.
Officials at the company announced the Pathway to Homeownership program on Monday.
Qualified borrowers in select areas can receive up to $8,000 in assistance to help them buy a new home.
The money distributed through Pathway to Homeownership is a grant, not a loan. Those who receive it do not need to pay it back, according to the announcement.
“One of the pillars of our company is helping members of underserved communities become homeowners,” said Patty Arvielo, Co-Founder and President of New American Funding.
“The Pathway to Homeownership initiative helps people from all walks of life who are otherwise qualified clear the initial hurdles that come with buying a…
First Home Mortgage is launching a rate discount program for first-time homebuyers, the company announced in a press release. The program, First Home Advantage, gives eligible first-time homeowners access to lower interest rates. “We are excited to provide such a timely program,” said First Home Mortgage founder and CEO David Waters. “The First Home Advantage program levels the playing field for those who may have been overlooked in the past due to credit score issues.” Eligibility is based on annual income and geography, with different income limits in different areas. Borrowers in high-cost regions could be eligible with incomes as high as $168,600 a year. First Home says it created the program because more than 40% of loans it originated…
Home prices rose in Q1 2022 for the majority of Opportunity Zones, with the pace of gains in half of all zones besting quarterly and annual increases across the nation, ATTOM reported. Opportunity Zones are areas targeted for economic improvement, defined in the Tax Act legislation as census tracts in or alongside low-income neighborhoods that meet specific criteria for redevelopment. ATTOM analyzed 5,092 zones in the U.S. that had at least five home sales in Q1 2022. The report found that median single-family home and condo prices increased in 55% of zones between Q4 2021 and Q1 2022. In 50%, prices rose by at least 20%, despite the fact that the pace of increases slowed in Q1. “Home price trends…
