Average mortgage rates jumped another 10 bps last week, edging closer to 8%.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.79%, up from 7.63%. A year ago at this time, the 30-year FRM averaged 7.08%.
The 15-year fixed-rate rose to 7.03% from 6.92%. A year ago, it averaged 6.36%.
“For the seventh week in a row, mortgage rates continued to climb toward eight percent, resulting in the longest consecutive rise since the Spring of 2022,” said Sam Khater, Freddie Mac’s Chief Economist.
“Rates have risen two full percentage points in 2023 alone and as we head into Halloween, the impacts may scare potential homebuyers. Purchase activity has slowed to a virtual standstill, affordability remains a…
By KIMBERLEY HAAS
Leaders at Fannie Mae and Freddie Mac say they are using artificial intelligence to improve operational efficiencies.
Fannie Mae CEO Priscilla Almodovar and Freddie Mac President Mike Hutchins talked about the benefits of using AI during an on-stage conversation last week at the Mortgage Bankers Association’s annual convention and expo in Philadelphia.
Moderator Mark Jones, president of Union Home Mortgage and 2024 MBA Chairman, asked how the government-sponsored enterprises are thinking about using AI and what opportunities could arise as a result.
Hutchins said they have embraced the use of AI for quite a while.
“It’s an important part of our operations and we’re probably at the forefront of embedding AI into our models and into our…
Average mortgage rates are creeping closer to 8%, piling more lousy news on top of recent sales declines and price spikes.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.63%, up from 7.57%. A year ago at this time, the 30-year FRM averaged 6.94%.
On Wednesday, the daily rate hit 8%, pointing to further average increases next week.
The 15-year fixed-rate rose to 6.92% from 6.89%. A year ago, it averaged 6.23%.
“Not only are homebuyers feeling the impact of rising rates, but home builders are as well. Incoming data shows that the construction of new homes rebounded in September but as rates keep rising, home builders appear to be losing confidence,” said Sam Khater, Freddie…
Mortgage rates climbed again last week amid the rippling impacts of war in the Gaza Strip.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.57%, jumping from 7.49%. A year ago at this time, the 30-year FRM averaged 6.92%.
The 15-year fixed-rate rose to 6.89% from 6.78%. A year ago, it averaged 6.09%
“For the fifth consecutive week, mortgage rates rose as ongoing market and geopolitical uncertainty continues to increase,” said Sam Khater, Freddie Mac’s Chief Economist.
“The good news is that the economy and incomes continue to grow at a solid pace, but the housing market remains fraught with significant affordability constraints. As a result, purchase demand remains at a three-decade low.”
The Israel-Hamas war…
Mortgage rates climbed again last week following treasury yield gains in the wake of political turmoil and an unexpected jobs report spike.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.49%, jumping from 7.31%. A year ago at this time, the 30-year FRM averaged 6.66%.
The 15-year fixed-rate rose to 6.78% from 6.72%. A year ago, it averaged 5.90%
“Mortgage rates maintained their upward trajectory as the 10-year Treasury yield, a key benchmark, climbed,” said Sam Khater, Freddie Mac’s Chief Economist. “Several factors, including shifts in inflation, the job market, and uncertainty around the Federal Reserve’s next move, are contributing to the highest mortgage rates in a generation. Unsurprisingly, this is pulling back homebuyer demand.”
Chaos…
Mortgage rates hit a more than two-decade high last week, exacerbating creeping financial troubles for many would-be buyers.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.31%, jumping from 7.19%. A year ago at this time, the 30-year FRM averaged 6.70%.
The 15-year fixed-rate rose to 6.72% from 6.54%. A year ago, it averaged 5.96%
“The 30-year fixed-rate mortgage has hit the highest level since the year 2000,” Sam Khater, Freddie Mac’s Chief Economist, said.
“However, unlike the turn of the millennium, house prices today are rising alongside mortgage rates, primarily due to low inventory. These headwinds are causing both buyers and sellers to hold out for better circumstances.”
Pending home sales tanked in August, reversing…
Mortgage rates stayed above 7% again last week.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.19%, up from 7.18%. A year ago at this time, the 30-year FRM averaged 6.29%.
The 15-year fixed-rate rose to 6.54% from 6.51%. A year ago, it averaged 5.44%
“Mortgage rates continue to linger above 7% as the Federal Reserve paused their interest rate hikes,” said Sam Khater, Freddie Mac’s Chief Economist.
“Given these high rates, housing demand is cooling off and now homebuilders are feeling the effect. Builder sentiment declined for the first time in several months and construction levels have dipped to a three-year low, which could have an impact on the already low housing supply.”
August’s inventory…
Mortgage rates increased last week, and despite a two-week streak of declines, will likely remain above 7%.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.18%, up from 7.12%. A year ago at this time, the 30-year FRM averaged 6.02%.
The 15-year fixed-rate mortgage slipped, however, down to 6.51% from 6.52%. A year ago, it averaged 5.21%.
“Mortgage rates inched back up this week and remain anchored north of seven percent. The reacceleration of inflation and strength in the economy is keeping mortgage rates elevated,” said Sam Khater, Freddie Mac’s Chief Economist.
The consumer price index saw its biggest monthly gain this year in August, coming in hotter than expected at +0.3% month-over-month.
This heightens the…
Mortgage rates dipped again last week but remain above the dreaded 7% threshold.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.12%, down from 7.18%. A year ago at this time, the 30-year FRM averaged 5.89%.
This is the second week of declines but the fourth straight week of 7%-plus rates.
The 15-year fixed-rate mortgage slipped to 6.52% from 6.55%. A year ago, it averaged 5.16%.
“The economy remains buoyant, which is encouraging for consumers. Though while inflation has decelerated, firmer economic data have put upward pressure on mortgage rates which, in the face of affordability challenges, are straining potential homebuyers,” said Sam Khater, Freddie Mac’s Chief Economist.
The median U.S. home sale price is up…
Mortgage rates cooled last week after a weeks-long run of increases.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.18%, down from 7.23%. A year ago at this time, the 30-year FRM averaged 5.66%.
The 15-year fixed-rate mortgage remained the same at 6.55%. A year ago, it averaged 4.98%.
“Mortgage rates leveled off this week but remain elevated. Despite continued high rates, low inventory is keeping house prices steady,” said Sam Khater, Freddie Mac’s Chief Economist.
Active inventory shrank YOY in August. But Realtor.com reported an “unusual increase” in newly listed homes month-over-month, which might suggest homeowners are adjusting to the high-rate environment and preparing to sell come fall.
Any significant change in stock will be…
