Rates Fall 20 BPS To 7.03%

The 30-year fixed rate mortgage fell nearly 20 bps in one week, almost hitting 7%. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.03%, down from the week prior’s 7.22%. A year ago at this time, the 30-year FRM averaged 6.33%. It is now down nearly 80 bps in the last six weeks. The 15-year fixed rate fell to 6.29%% from 6.56%. A year ago, it averaged 5.67%. Mortgage applications overall increased by nearly 3% last week as refinances saw their biggest gains in two months thanks to cooling rates. But purchase demand reversed course, slipping slightly.  “When rates began to rapidly drop, purchase applications rebounded initially, but this improvement in demand diminished in the last…

Freddie Mac Releases Standardized Docs For DPA Programs

Freddie Mac is streamlining down payment assistance programs with standardized mortgage documents. Leaders at the GSE say subordinate lien documents currently vary greatly by lender, causing confusion. These new documents will “increase clarity, consistency and accessibility” of DPA programs across the country, and can be used by lenders working with the HFAs at all levels. “We know that standardization has increased efficiency, lowered costs, and improved many areas of the mortgage industry,” said Danny Gardner, Single-Family Senior Vice President of Mission and Community Engagement at Freddie Mac. “By embracing standardization and creating a set of industry-wide documents, we are providing clarity and consistency that will enable more lenders to help more individuals and families leverage down payment assistance programs across…

Rates Fall For Fifth Week, Down To 7.22%

Mortgage rates slipped for a fifth consecutive week, spurring a boost in purchase activity. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.22%, down from the week prior’s 7.29%. A year ago at this time, the 30-year FRM averaged 6.49%. The 15-year fixed rate fell to 6.56%% from 6.67%. A year ago, it averaged 5.76%. “Market sentiment has significantly shifted over the last month, leading to a continued decline in mortgage rates. The current trajectory of rates is an encouraging development for potential homebuyers, with purchase application activity recently rising to the same level as mid-September when rates were similar to today’s levels,” said Sam Khater, Freddie Mac’s Chief Economist. Purchase applications increased by 5% last…

Rates Slip For Third Week Straight

Mortgage rates slipped for a third consecutive week as Wall Street rallied around positive inflation data. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.44%, a modest decline from the week prior’s 7.5%. A year ago at this time, the 30-year FRM averaged 6.61%. The 15-year fixed rate fell from 6.81%% to 6.76%. A year ago, it averaged 5.98%. “For the third straight week, mortgage rates trended down, as new data indicates that inflationary pressures are receding,” said Sam Khater, Freddie Mac’s Chief Economist. “The combination of continued economic strength, lower inflation, and lower mortgage rates should likely bring more potential homebuyers into the market.” The consumer price index for October dipped by 0.1% month-over-month and…

Rates Cool, Ending Weeks-Long Upward Streak

Borrowers struggling with rampant unaffordability are seeing some relief as mortgage rates cool, ending an upward swing. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.76%, down from 7.79%. A year ago at this time, the 30-year FRM averaged 6.95%. The 15-year fixed rate remained unchanged at 7.03%. A year ago, it averaged 6.29%. “The 30-year fixed-rate mortgage paused its multi-week climb but continues to hover under 8%,” said Sam Khater, Freddie Mac’s Chief Economist. “The Federal Reserve again decided not to raise interest rates but have not ruled out a hike before year-end. Coupled with geopolitical uncertainty, this ambiguity around monetary policy will likely have an impact on the overall economic landscape and may continue…

Can Technology Solve The Problem Of Racial Bias In Appraisals?

By KIMBERLEY HAAS The question of whether technology alone can eliminate racial bias during the home appraisal process came up during a hearing held in Washington, DC, on Wednesday. The Federal Financial Institutions Examination Council’s Appraisal Subcommittee was holding its third public hearing when the topic was discussed. Member JeanMarie Mattingly, who serves as deputy director of credit union resources and expansion, was asking questions of the panelists offering testimony. She started by asking about the work Freddie Mac and Fannie Mae are doing to monitor and assess appraisal reports for indications of bias. Danny Wiley, senior director of single-family valuation at Freddie Mac, said they have an entire team focused on appraisal quality monitoring. “We see problematic words in…

Rates Jump To 7.79%

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…

Fannie And Freddie Leaders Talk About Artificial Intelligence

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 Rates Creep Closer To 8%

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…

Rates Climb Higher

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…