Rates Jump To 7.49%

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…

Rates Soar To 23-Year High

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…

Rates Stay Above 7%

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…

Rates “Anchored” Above 7%

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…

Rates Dip But Remain Elevated

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 Pull Back

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…

It’s Been 15 Years Since Fannie Mae, Freddie Mac Conservatorship

By CHUCK GREEN Back in 2008, Fannie Mae and Freddie Mac were in trouble. In fact, without government intervention, they faced imminent collapse, and on Sept. 6 of that year, both were placed in conservatorship by the director of the Federal Housing Finance Agency. With those conservatorships hitting their 15th anniversary, William Emmons, an adjunct lecturer at Washington University in St. Louis, said the takeover was historically significant because they were the first large-scale government interventions in what came to be known as the Global Financial Crisis. “In other words, their collapse was a bellwether of things to come. Lehman Brothers failed one week later, which triggered the chain reaction of collapsing banks, AIG, and market confidence,” Emmons told The…

Dreams Of Affordability Crushed As Rates Rise Again

Mortgage rates spiked again last week, contributing to housing becoming less affordable than before the bubble burst in the 2000s. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.23%, up from 7.09%. A year ago at this time, the 30-year FRM averaged 5.55%. The 15-year fixed-rate mortgage also increased to 6.55% from 6.46%. A year ago, it averaged 4.85%. “The economy continues to do better than expected and the 10-year Treasury yield has moved up, causing mortgage rates to climb,” said Sam Khater, Freddie Mac’s Chief Economist. Khater expects economic strength to keep rates elevated in the short term, leading to further declines in home resale. A strong jobs report recently sent treasury yields higher, putting…

Average Rates Hit Over 20-Year High

Mortgage rates hit their highest level in more than 20 years last week, breaking 7% on average and adding extra weight to Americans’ heavy housing burden. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.09%, up from 6.96%. A year ago at this time, the 30-year FRM averaged 5.13%. The 15-year fixed-rate mortgage also increased, up to 6.46% from 6.34%. A year ago, it averaged 4.55%. “The economy continues to do better than expected and the 10-year Treasury yield has moved up, causing mortgage rates to climb,” said Sam Khater, Freddie Mac’s Chief Economist. These are the highest rates since April of 2002. In October and November of last year, rates reached 7.08%. “The last time…

Rates Average Close To 7% As Market Prepares For Fall Slowdown

Mortgage rates increased for a third consecutive week, pushing averages closer to 7% and adding pressure to buyers. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.96%, up from 6.90%. A year ago at this time, the 30-year FRM averaged 5.22%. The 15-year fixed-rate mortgage also increased, up to 6.34% from 6.25%. A year ago, it averaged 4.59%. “There is no doubt continued high rates will prolong affordability challenges longer than expected, particularly with home prices on the rise again,” said Sam Khater, Freddie Mac’s Chief Economist.“However, upward pressure on rates is the product of a resilient economy with low unemployment and strong wage growth, which historically has kept purchase demand solid.” Demand has been sluggish…