By KIMBERLEY HAAS
Leaders at Rocket Mortgage have been rolling out programs to serve potential homebuyers in underserved communities.
They announced last week that the company is the first national lender to offer Freddie Mac’s BorrowSmart Access program, which has a $3,000 credit for first-time homebuyers to use toward their down payment.
To qualify for this program, the buyer must have an income equal to or less than 140% of the area median income and meet all other Freddie Mac lending guidelines. The purchase must take place in an eligible county within one of 10 metropolitan areas.
The cities include Detroit, where Rocket is headquartered, Atlanta, Chicago, El Paso, Houston, McAllen, Memphis, Miami, Philadelphia, and St. Louis.
In December, Purchase…
Mortgage rates moved closer to 7% after bleak news from Federal Reserve Chair Jerome Powell this week.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage rate averaged 6.73%, up from 6.65% the week prior.
A year ago at this time, the 30-year FRM averaged 3.85%.
The 15-year fixed-rate mortgage rose from 5.89% to 5.95%. A year ago, it averaged 3.09%.
“Mortgage rates continue their upward trajectory as the Federal Reserve signals a more aggressive stance on monetary policy,” said Sam Khater, Freddie Mac’s Chief Economist.
“Overall, consumers are spending in sectors that are not interest rate sensitive, such as travel and dining out. However, rate-sensitive sectors, such as housing, continue to be adversely affected. As a result,…
Mortgage rates have increased again as new data suggests inflation is sticking harder than previously thought.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage rate averaged 6.65%, up from 6.50% the week prior.
A year ago at this time, the 30-year FRM averaged 3.76%.
The 15-year fixed-rate mortgage rose from 5.76% to 5.89%. A year ago, it averaged 3.01%.
“As we started the year, the 30-year fixed-rate mortgage decreased with expectations of lower economic growth, inflation, and a loosening of monetary policy. However, given sustained economic growth and continued inflation, mortgage rates boomeranged and are inching up toward seven percent,” said Sam Khater, Freddie Mac’s Chief Economist.
“Lower mortgage rates back in January brought buyers back into…
Mortgage rates jumped again this week, a third consecutive increase, pushing sub-6% rates further out of reach.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage rate averaged 6.50%, up from 6.32% the week prior.
A year ago at this time, the 30-year FRM averaged 3.89%.
The 15-year fixed-rate mortgage rose from 5.76% to 5.51%. A year ago, it averaged 3.14%.
“The economy continues to show strength, and interest rates are repricing to account for the stronger than expected growth, tight labor market and the threat of sticky inflation,” said Sam Khater, Freddie Mac’s Chief Economist.
“Our research shows that rate dispersion increases as mortgage rates trend up. This means homebuyers can potentially save $600 to $1,200 annually…
By TOBIAS PETER
Last month, at the behest of the Federal Housing Finance Agency, Fannie Mae and Freddie Mac, the government-sponsored enterprises, announced new risk-based pricing guidelines that loosen mortgage credit for higher-risk loans. Since the Federal Housing Administration traditionally serves higher-risk borrowers, this move represented the latest salvo in a renewed battle for such borrowers.
As a response, FHA is rumored to announce today (2/22/2023) a 30 bps mortgage insurance premium cut that will expose taxpayers and not help prospective homebuyers.
The last time FHFA imposed credit loosening on the GSEs in 2014, FHA responded shortly thereafter in kind with a large 50 bps MIP cut. At the time, FHA predicted that this cut would lead to 250,000 new…
Mortgage rates rose again this week, a second consecutive increase, pushing sub-6% rates further out of reach.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage rate averaged 6.32%, up from 6.12% the week prior.
A year ago at this time, the 30-year FRM averaged 3.92%.
The 15-year fixed-rate mortgage rose to 5.51% to 5.25%. A year ago, it averaged 3.15%.
“The economy is showing signs of resilience, mainly due to consumer spending, and rates are increasing. Overall housing costs are also increasing and therefore impacting inflation, which continues to persist,” said Sam Khater, Freddie Mac’s Chief Economist.
Shelter inflation in particular is on the rise.
A blog post by Christian Zimmermann, Assistant Vice President of Research Information…
By CHUCK GREEN
As the average mortgage rates decline and markets slow in parts of the country that were red-hot during the pandemic, we at The Mortgage Note decided to ask who is currently in favor during negotiations – the buyer or the seller?
It seems that the current consensus on the ground is that there are benefits to being either.
Aaron Kozikowski is a loan officer at Ross Mortgage Corporation. The company is headquartered in Troy, Michigan, and serves customers in Michigan, Kentucky, Florida, and Virginia.
Kozikowski said “in this market, we’ve been seeing homes sit on the market longer, which allows buyers to take their time instead of having to put in an offer immediately. Sellers are also…
As economists predicted, the 30-year fixed rate fell again this week, moving closer to 6%.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.09%, down from 6.13% the week prior.
A year ago at this time, the 30-year FRM averaged 3.55%.
The 15-year fixed-rate mortgage fell from 5.17% to 5.14%. A year ago, it averaged 2.77%.
“Mortgage rates inched down again, with the 30-year fixed-rate down nearly a full point from November, when it peaked at just over seven percent,” said Sam Khater, Freddie Mac’s Chief Economist.
“According to Freddie Mac research, this one percentage point reduction in rates can allow as many as three million more mortgage-ready consumers to qualify and afford a $400,000 loan,…
The 30-year fixed rate slipped slightly again last week, prompting some pent-up buyers to lock in a purchase, Freddie Mac reported Thursday.
Freddie’s Primary Mortgage Market Survey found that the 30-year fixed-rate mortgage averaged 6.13%, down from 6.15% the week prior.
A year ago at this time, the 30-year FRM averaged 3.55%.
The 15-year fixed-rate mortgage fell from 5.28% to 5.17%. A year ago, it averaged 2.80%.
“Mortgage rates continue to tick down and, as a result, home purchase demand is thawing from the months-long freeze that gripped the housing market,” said Sam Khater, Freddie Mac’s chief economist. “Potential homebuyers remain sensitive to changes in mortgage rates, but ample demand remains, fueled by first-time homebuyers.”
Pending home sales have been…
The 30-year fixed rate continued to slip last week, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey found that the 30-year fixed-rate mortgage averaged 6.15%, down from 6.33% the week prior. A year ago at this time, the 30-year FRM averaged 3.56 percent. The 15-year fixed-rate mortgage fell from 5.52% to 5.28%. A year ago, it averaged 2.79%. “As inflation continues to moderate, mortgage rates declined again this week,” said Sam Khater, Freddie Mac’s Chief Economist. “Declining rates are providing a much-needed boost to the housing market, but the supply of homes remains a persistent concern.” Housing construction slid in December to a five-month low. Residential starts fell 1.4% from November to an annualized rate of 1.38 million, while…
