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…
By KIMBERLEY HAAS With the average mortgage rate hitting over 7% for the first time in 20 years, people are talking about what the 2023 housing market will look like. Freddie Mac reported Thursday that their Primary Mortgage Market Survey found 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%, and in 2021, existing-home sales hit 6.12 million, their highest level since 2006. Zillow’s Home Value and Sales Forecast now calls for 5.2 million existing home sales in 2022, up slightly from September’s expectations for 5.1 million sales following a better-than-expected August. The outlook from there is cloudier and recent declines in mortgage applications and pending home…
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…
The Federal Housing Finance Agency has made significant changes meant to improve lending access to low-income and first-time homebuyers. At the Mortgage Bankers Association’s 2022 Annual Convention & Expo, FHFA Director Sandra L. Thompson announced that the agency had validated and approved the FICO 10T credit score model and the VantageScore 4.0 credit score model for use by Fannie Mae and Freddie Mac. The two models will replace the Classic FICO, which the GSEs have used for two decades. Thompson said the models will take multiple years and significant effort to introduce to the industry. But will the end result will be “improved accuracy and a more inclusive approach to evaluating borrowers.” The new models improve accuracy by accounting for…
Mortgage rates inched up last week, slowing to a crawl as they get closer to a 7% average, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey found that the 30-year fixed-rate mortgage averaged 6.94%, up from 6.92%. This is a slowdown for rates, which the week prior jumped from 6.66% to 6.92%. A year ago at this time, the 30-year FRM averaged 3.09%. “Mortgage rates slowed their upward trajectory this week,” said Sam Khater, Freddie Mac’s Chief Economist. “The 30-year fixed-rate mortgage continues to remain just shy of seven percent and is adversely impacting the housing market in the form of declining demand. Additionally, homebuilder confidence has dropped to half what it was just six months ago and construction,…
Freddie Mac Multifamily has promoted two new underwriting vice presidents, the GSE announced in a press release. Caitlin Myhre has been promoted to vice president, Risk Distribution & Credit, where she will also oversee underwriting for structured offerings. She has worked for Freddie Mac since 2010, serving in multiple underwriting positions. In 2018, she left to work for Redwood Trust, a mortgage REIT, where she focused on its multifamily investment portfolio. In 2020, she came back to Freddie Mac as senior director of Underwriting & Credit for structured products. Myhre holds a Bachelor of Science in Real Estate from DePaul University. Adam Monti will now serve as vice president, Conventional Underwriting. He will oversee underwriting and credit for conventional loans…
After shrinking slightly the week prior, mortgage rates shot back up last week to a 20-year high, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey found that the 30-year fixed-rate mortgage averaged 6.92%, up from 6.66%. A year ago at this time, the 30-year FRM averaged 3.05%. “Rates resumed their record-setting climb this week, with the 30-year fixed-rate mortgage reaching its highest level since April of 2002,” said Sam Khater, Freddie Mac’s Chief Economist. “We continue to see a tale of two economies in the data: strong job and wage growth are keeping consumers’ balance sheets positive, while lingering inflation, recession fears, and housing affordability are driving housing demand down precipitously. The next several months will undoubtedly be important…
Despite an upwardly revised Q3 GDP estimate, Fannie Mae’s Economic & Strategic Research Group has predicted a recession in 2023 and warned it could be worse than expected. The group estimates Q3 GDP will be 2.3% annualized, up from its earlier prediction of 1.3%. However, it says that the boost “is likely to prove temporary” and forecasts Q4 growth to be -0.7% annualized. The revision accounts for “partial normalization in global trade following a historically large trade deficit in the first half of 2022,” which will be overcome by Q4. Unemployment is expected to exceed 5% by the end of 2023 as a result of the recession. The group noted that labor market tightness– which typically contributes to inflationary pressure…
Mortgage rates shrunk slightly last week, giving borrowers a little breathing room as they inch towards 7%, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey found that the 30-year fixed-rate mortgage averaged 6.66%, down from 6.70% just last week. A year ago at this time, the 30-year FRM averaged 2.99%. “Mortgage rates decreased slightly this week due to ongoing economic uncertainty,” said Sam Khater, Freddie Mac’s Chief Economist. “However, rates remain quite high compared to just one year ago, meaning housing continues to be more expensive for potential homebuyers.” Mortgage loan application volume tumbled last week, falling to its slowest pace since 1997 as the looming 7% interest rate scared buyers off the market. A recent survey found that…
Loosening lending standards are making it easier than ever for gig workers to finance homes. These workers often make enough money to qualify for a loan, but often have a difficult time proving that to lenders. “It is a phenomenon with this gig economy where people can drop in and have an Amazon play, and they’re pulling in $10,000 a month from it. So, these are not traditional type borrowers,” Eric Morgenson, VP of business development at Angel Oak, said on a panel discussing loans for gig workers. Self-employed borrowers are typically asked for contract work 1099s, copies of the last 12 to 24 months of business and personal bank statements, and year-to-date profit-and-loss statements that report revenue, expenses, and…
