Mortgage Rates Increase Again Putting Pressure On Buyers

Mortgage rates increased slightly last week, inching up after falling the week prior. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.81%, up from 6.78%. A year ago at this time, the 30-year FRM averaged 5.30%. The 15-year fixed-rate mortgage also increased, up to 6.11% from 6.06%. A year ago, it averaged 4.58%. “Higher interest rates continue to dampen activity in interest rate-sensitive sectors, such as housing. However, overall U.S. consumer confidence is unwavering, surging to a two-year high in the Conference Board’s Consumer Confidence Index for July 2023,” said Sam Khater, Freddie Mac’s Chief Economist. “Rising consumer confidence often leads to greater spending, which could drive more consumers into the housing market.” Consumers believe that…

Opinion: Time For A Consumer Mortgage Bill Of Rights

By Taylor Stork, President CHLA and EVP, COO Developer’s Mortgage Company and Kelly Welch, Executive Vice President, Equity Resources, Inc. When a consumer goes into the market to obtain a mortgage loan, they enjoy consumer protections that are arguably more extensive and specific than any other financial product. A few examples: TRID requirements for disclosures which hold lenders to early fee estimates, RESPA prohibitions against charging for services not provided, and LO Comp prohibitions on loan originators steering loans or varying their fee based on how much they think the borrower would pay. The same is true for the servicing of mortgage loans. Servicers must follow detailed rules, and for the two-thirds of loans that are “federal agency loans” (FHA,…

Questions Linger Before Next Week’s FOMC Meeting

By PATRICK LAVERY When last we heard from the Federal Reserve on interest rates, on June 14, the Federal Open Market Committee agreed not to raise the target range for the federal funds rate for the first time in more than a year. With the Fed’s next meeting now less than a week away, could Chairman Jerome Powell be preparing to announce one of the hikes that he said in June might still be remaining for this year? Or will the FOMC stick to a holding pattern? And how are those developments going to impact a U.S. housing market that Powell has continuously characterized as sluggish throughout 2023? It is predicted that the central bank will deliver a quarter of…

Rates Drop By 10+ BPS As Prices Surge

Mortgage rates retreated last week, dropping more than ten basis points in a one-week period. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.78%, down from 6.96% the week prior. A year ago at this time, the 30-year FRM averaged 5.54%. The 15-year fixed-rate mortgage reversed course as well, down a whopping 24 bps from 6.30% to 6.06%. A year ago, it averaged 4.75%. “As inflation slows, mortgage rates decreased this week,” said Sam Khater, Freddie Mac’s Chief Economist. “Still, the ongoing shortage of previously owned homes for sale has been a detriment to homebuyers looking to take advantage of declining rates.” Existing-home sales saw their most sluggish levels in 14 years in June. At the…

Average Rate Comes Close To 7%

The average interest rates closed in on the 7% mark last week, pushing affordability further out of reach for many Americans. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.96%, up from 6.81% the week prior in the second week of 10+ bps jumps. A year ago at this time, the 30-year FRM averaged 5.51%. The 15-year fixed-rate mortgage shot up as well, from 6.24% to 6.30%. A year ago, it averaged 4.67%. “Incoming data suggest that inflation is softening, falling to its lowest annual rate in more than two years. However, increases in housing costs, which account for a large share of inflation, remain stubbornly high, mainly due to low inventory relative to demand,” said…

Rates Soar, Jumping 10 BPS

Mortgage rates reversed course last week, jumping 10 bps in one week to their highest point of the year so far. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.81%, up from 6.71% the week prior. A year ago at this time, the 30-year FRM averaged 5.30%. The 15-year fixed-rate mortgage shot up as well, from 6.06% to 6.24%. A year ago, it averaged 4.45%. “This upward trend is being driven by a resilient economy, persistent inflation, and a more hawkish tone from the Federal Reserve. These high rates combined with low inventory continue to price many potential homebuyers out of the market,” said Sam Khater, Freddie Mac’s Chief Economist. Minutes from the most recent FOMC…

Mortgage Rates Slip Again

Mortgage rates fell again, the third consecutive week of declines, but once again gave only an inch. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.67%, down from 6.69% the week prior. A year ago at this time, the 30-year FRM averaged 5.81%. The 15-year fixed-rate mortgage slipped as well, down from 6.10% to 6.03%. A year ago, it averaged 4.92%. “Mortgage rates slid down again this week but remain elevated compared to this time last year,” said Sam Khater, Freddie Mac’s Chief Economist.  “Potential homebuyers have been watching rates closely and are waiting to come off the sidelines. However, inventory challenges persist as the number of existing homes for sale remains very low. Though, a…

Mortgage Rates Tick Down Thanks To Fed Pause

Mortgage rates ticked down again, the second consecutive week of declines. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.69%, down from 6.71% the week prior. A year ago at this time, the 30-year FRM averaged 5.78%. The 15-year fixed-rate mortgage increased, however, up from 6.07% to 6.10%. A year ago, it averaged 4.81%. “Mortgage rates decreased slightly this week in anticipation of the pause in rate hikes by the Federal Reserve,” said Sam Khater, Freddie Mac’s Chief Economist.  The pause did come: after ten consecutive increases, the Fed declined to raise interest rates at its June meeting.  “We have been seeing the effects of our policy tightening on demand in the most interest-rate-sensitive sectors of…

Rates Fall, Breaking Upward Streak

Mortgage rates declined last week, breaking a three-week streak of increases. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.71%, down from 6.79% the week prior. A year ago at this time, the 30-year FRM averaged 5.23%. The 15-year fixed-rate mortgage also fell from 6.18% to 6.07%. A year ago, it averaged 4.38%. “Mortgage rates decreased after a three-week climb,” said Sam Khater, Freddie Mac’s Chief Economist. “While elevated rates and other affordability challenges remain, inventory continues to be the biggest obstacle for prospective homebuyers.” Elevated rates are keeping prospective home sellers locked in their current homes, unwilling to give up the super-low rates they scored during the pandemic housing boom. Builders are building, but not…

Capitol Hill News Pushes Rates Up

Mortgage rates increased again last week due to a heap of political and financial news. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.57%, up from 6.39% the week prior. A year ago at this time, the 30-year FRM averaged 5.10%. The 15-year fixed-rate mortgage rose from 5.75% to 5.97%. A year ago, it averaged 4.31%. Daily average rates even exceeded 7% on May 25, hitting their highest level since November. “The U.S. economy is showing continued resilience which, combined with debt ceiling concerns, led to higher mortgage rates this week,” said Sam Khater, Freddie Mac’s Chief Economist.  At the current rate, 6.57%, Redfin reported that the typical buyer’s monthly mortgage payment amounts to $2,614, a…