Mortgage rates rose to an average of 4.72%, up from last week’s 4.67%, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 4.72%. A year ago at this time, the 30-year FRM averaged 3.13%. “Mortgage rates have increased 1.5 percentage points over the last three months alone, the fastest three-month rise since May of 1994,” said Sam Khater, Freddie Mac’s Chief Economist. “The increase in mortgage rates has softened purchase activity such that the monthly payment for those looking to buy a home has risen by at least 20 percent from a year ago.” The daily fixed rate crossed 5% this week for the first time since 2011, save two days…
Good Morning! Today is Thursday, April 7. More than 2,000 Ukrainians have made their way to the U.S. border from Mexico. Some Biden administration officials tested positive after attending a black-tie event in Washington. The Supreme Court reinstated a Trump administration rule limiting states’ power to enforce the Clean Water Act. The Mortgage Note Reports Love It Or List It? Americans Are Renovating Rather Than Moving: New data shows that 79% of Americans would rather renovate their current home than move to a different one and with $420 billion spent on remodeling projects in 2020 those in the mortgage, real estate, and building industries are taking notice. Editor Kimberley Haas reports. Housing Market Pessimism: Consumer sentiment towards home buying fell…
Homeowners facing foreclosure can now stall proceedings while waiting to receive federal aid. The Federal Housing Agency (FHA) announced that Freddie Mac and Fannie will require servicers to suspend foreclosure activities for up to 60 days if the servicer has been informed that the borrower applied for assistance through the Homeowner Assistance Fund. “FHFA is committed to sustainable homeownership. Today’s action will provide borrowers who need temporary mortgage assistance with additional time to be evaluated for relief through their state’s approved Homeownership Assistance Fund,” said FHFA Acting Director Sandra L. Thompson. The move is meant to help homeowners on the brink of foreclosure who may still be struggling to make on-time payments. The HAF provides up to $9.96 billion for…
Consumer sentiment towards home buying fell in March, pushed down by rising interest rates and difficult conditions generally, according to Fannie Mae’s Home Purchase Sentiment Index. The HPSI decreased by 2.1 points to 73.2, with four of its six components down month-over-month. The full index is down 8.5 points YOY. In March, 69% of respondents said they expect mortgage rates to keep rising, a survey-high. At the same time, the “Good Time To Buy” component tanked to a survey low, with 73% saying it’s a bad time to buy. “This month, we also saw a survey-high share of consumers expecting their financial situations to worsen over the next year; this was especially true among current homeowners,” said Mark Palim, Fannie…
Good Morning! Today is Wednesday, April 6. U.S. stock indexes dropped Tuesday over worries about the Federal Reserve’s plans to curb inflation. The European Commission proposed to ban Russian coal. Oklahoma lawmakers approved a near-total ban on abortion. The Mortgage Note Reports U.S. Mortgage Markets Heat Up As Interest Rates and Prices Rise: Writer Scott Kimbler reports that potential homebuyers are rushing to mortgage offices to make sure they get a loan before prices and interest rates go even higher. Funding Available To Combat COVID-19 Housing Discrimination: U.S. Department of Housing and Urban Development officials are making an additional $3,285,353 in American Rescue Plan funding available to help fight housing discrimination related to the COVID-19 pandemic. Loan Applications Sink Further: …
By KIMBERLEY HAAS Officials at the U.S. Department of Housing and Urban Development are making an additional $3,285,353 in American Rescue Plan funding available to help fight housing discrimination related to the COVID-19 pandemic. The announcement was made on Tuesday and according to a press release, this is the third round of American Rescue Plan funding that targets COVID-19 related discrimination. About $16.1 million in funding has been awarded to 62 HUD Fair Housing Initiatives Program agencies to address the impact the pandemic has had on communities of color, low-income communities, and other vulnerable populations. Demetria L. McCain, HUD’s Principal Deputy Assistant Secretary for Fair Housing and Equal Opportunity, said in a statement that the COVID-19 pandemic continues to reveal…
As homebuyer demographics change, Millennials and Gen Z are set to play a major role in the housing market this year, according to a new report from ServiceLink. ServiceLink’s 2022 State of Homebuying Report uses information from 1,000 homeowners who purchased a home in the last five years to analyze generational trends in homebuying. The report found that Millennials and Gen Z are making big moves in the housing market and are open to non-traditional routes to homeownership. “As bidding wars, low inventory and rising interest rates continue to intensify the competition, buyers have had to get creative in order to come out ahead in this challenging real estate market,” said Dave Steinmetz, president of origination services, ServiceLink. “Our study…
Mortgage loan application volume fell by 6.3% to its lowest level since the spring of 2019, the Mortgage Bankers Association’s (MBA) weekly survey shows. The adjusted Market Composite Index, a measure of mortgage loan application volume, dropped by 6.3%. The adjusted purchase index fell by 3%, while the unadjusted purchase index fell by 3% and was 9% lower YOY. The refinance index fell 10% and was down 62% YOY. Refinances made up just 38.8% of total applications, down from 40.6%. Mortgage rates hit 4.90% in their fourth straight week of increases, putting further pressure on dwindling refinances. Rates are now up 1.5 percentage points from the same time last year. “The hot job market and rapid wage growth continue to…
Stock shortages continue to drive home price appreciation, with February home prices rising 20% YOY and 2.2% from the prior month, according to CoreLogic’s Home Price Index. Annual appreciation of detached properties was 4.8 percentage points higher (21.1%) than attached properties (16.3%). Sun Belt states led the record high price appreciation. Naples, FL, saw the highest YOY price increase at 41.4%, with Cape Coral close behind at 40%. The four metros with the largest annual price gains were all on Florida’s Gulf Coast. Florida saw the strongest growth of all states at 29.1% YOY, followed by Arizona (28.6%) and Nevada (25.8%). CoreLogic says the record growth can be traced to record-low inventory, which forces buyers to compete for a limited…
Home prices rose 1.84% in February and 19.6% year-over-year, the largest annual gains on record, according to Black Knight’s Monthly Mortgage Monitor Report. The 1.84% increase is nearly four times the 25-year average for the month and marks the 14th consecutive month of greater than 1% price growth. The average home has now increased in value by more than 34% since February 2020. All of the markets analyzed by Black Knight experienced double-digit annual home price growth in February 2022. Three-quarters of them saw continued acceleration of appreciation. Home price growth cooled off briefly last fall but reaccelerated in winter despite rising rates. Affordability is now at its lowest ever point outside of 2004-2007. The monthly principal and interest payment…
