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…
Mortgage rates rose slightly over the last week, up from an average of 3.10% to 3.12%, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 3.12%, rising slightly after a weeks-long pattern of hovering around 3.10% or 3.11%. A year ago at this time, the 30-year FRM averaged 2.67%. “Mortgage rates inched up as a result of economic improvement and a shift in monetary policy guidance,” said Sam Khater, Freddie Mac’s Chief Economist. “While house price growth is slowing, prices remain high due to solid housing demand and low supply. We expect rates to continue to increase into 2022 which may leave some potential homebuyers with less room in their budgets…
The Federal Open Market Committee (FOMC) announced it will double the pace of tapering its pandemic asset purchase program, and signaled it would likely raise interest rates next year. This would be its first rate hike since March 2020. The move comes in response to concerns about rising inflation. At its November meeting, the FOMC said it would reduce its purchases of Treasury securities from $80 billion to $70 billion and from $40 billion to $35 billion for mortgage-backed securities. Since then, inflation has reached a 39-year high and become a major sticking point for the American public. As to how this announcement affects the mortgage and real estate industries, analyst response has focused on rising costs. “Increasing mortgage rates…
The Federal Reserve outlined a plan to begin tapering its emergency bond purchases. The purchases of $120 billion per month in Treasuries and mortgage-backed securities (MBS) were a government effort to keep financial markets afloat after the economic fall out from Covid-19. The Federal Open Market Committee (FOMC) met for two days this week then released a statement saying the Fed will begin tapering those purchases later this month. It will reduce its purchases of Treasury securities from $80 billion to $70 billion and from $40 billion to $35 billion for mortgage-backed securities. “In light of the substantial further progress the economy has made toward the Committee’s goals since last December, the Committee decided to begin reducing the monthly pace…
Good Morning! Today is Monday, September 19. France recalled its ambassadors from Britain and the U.S. in protest of their secret negotiations with Australia. Natural gas prices are surging, prompting fears about winter shortages. The Biden administration began deporting thousands of Haitians awaiting immigration processing in Texas. And in mortgage and housing news… Will Fed Meeting Affect Interest Rates?: The FOMC is meeting September 21 and 22 to discuss next steps on monetary policy. It probably won’t affect interest rates. Home Sales Down: RE/MAX’s August Annual Housing Report suggests that while the market may still be hot, the busiest months of 2021 may be behind us. Consumer Sentiment Up: Consumer sentiment steadied in September after plunging to its lowest level…
