By KIMBERLEY HAAS As interest rates climb towards seven percent and loan applications fall to their slowest pace since 1997, leaders at Rocket Mortgage say they have a solution and it has a name: Inflation Buster. Rocket’s new Inflation Buster program was announced on Sept. 16. It gives homebuyers a reprieve by reducing their monthly mortgage payment by one percentage point for the first year of their loan, according to a press release. Bill Banfield, EVP of Capital Markets at Rocket Mortgage, sat down for an interview with The Mortgage Note to explain how the program is the result of leaders at the company listening to the needs of their clients. “You, me, everybody is talking about inflation. You can’t…
Home price appreciation cooled in July though growth remained elevated from a year earlier, according to new data. The S&P CoreLogic Case-Shiller National Home Price NSA Index saw home prices decelerate, posting a 15.8% annual gain in July, down from 18.1% in the previous month. This is the largest monthly deceleration in the history of the index. “Although U.S. housing prices remain substantially above their year-ago levels, July’s report reflects a forceful deceleration,” said Craig J. Lazzara, Managing Director at S&P DJI. The 10-City Composite reported a 14.9% increase YOY, down from 17.4% in June, while the 20-City Composite rose by 16.1% YOY, down from 18.7%. July’s gains were less than June’s for each of the 20 cities analyzed. Tampa…
Affordability is at a 15-year low, with mortgage payments up in 45 of the 50 largest U.S. metros, according to Zillow’s latest market report. Buying a typical U.S. home with interest rates of 5.78% would result in monthly payments of $2,127. That’s up 36% year to date, and 51% YOY. Those monthly payments would account for 28% of homeowners’ monthly income, inching closer to the 30% benchmark that means homeowners are cost-burdened. The report noted that since rates have risen above the April data it references, homeowners may already be at that 30% threshold. Rising interest rates and soaring home prices have pushed mortgages out of reach for many Americans, leading to diminishing demand that has economists worried that recession…
