Mortgage rates inched up last week, slowing to a crawl as they get closer to a 7% average, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey found that the 30-year fixed-rate mortgage averaged 6.94%, up from 6.92%. This is a slowdown for rates, which the week prior jumped from 6.66% to 6.92%. A year ago at this time, the 30-year FRM averaged 3.09%. “Mortgage rates slowed their upward trajectory this week,” said Sam Khater, Freddie Mac’s Chief Economist. “The 30-year fixed-rate mortgage continues to remain just shy of seven percent and is adversely impacting the housing market in the form of declining demand. Additionally, homebuilder confidence has dropped to half what it was just six months ago and construction,…
Existing-home sales dropped for the eighth straight month in September, down 1.5% from August and 23.8% YOY, according to the most recent data from the National Association of Realtors. Sales fell to a seasonally adjusted annual rate of 4.71 million and declined in three of the four major regions. The West saw no change. “Despite weaker sales, multiple offers are still occurring with more than a quarter of homes selling above list price due to limited inventory,” said NAR Chief Economist Lawrence Yun. “The current lack of supply underscores the vast contrast with the previous major market downturn from 2008 to 2010, when inventory levels were four times higher than they are today.” Inventory of unsold homes fell 2.3% from…
Mortgage loan application volume has now seen four months of decline and fallen to its lowest level since 1997, according to the Mortgage Bankers Association’s weekly survey. Interest rates rose to 6.94%, their highest point since 2002. The adjusted Market Composite Index, a measure of mortgage loan application volume, dropped by 4.5%. The adjusted purchase index fell 4%, while the unadjusted purchase index decreased 3% and was 38% lower YOY. The refinance index dropped by 7% and was 86% lower than at the same time last year. Refis made up 28.3% of total applications. “The speed and level to which rates have climbed this year have greatly reduced refinance activity and exacerbated existing affordability challenges in the purchase market. Residential…
New home mortgage applications dropped sharply in September as buyers backed away from decades-high interest rates. The Mortgage Bankers Association’s Builder Application Survey for September 2022 found that applications for new home purchases fell 13.2% YOY and 7% from August. Based on that data, MBA predicts that new single-family home sales ran at a seasonally adjusted rate of 637,000 in September. “New home purchase activity declined in September as prospective homebuyers pulled back in response to higher mortgage rates, increased concern about an impending recession, and a broader slowdown in home-price growth,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “The average 30-year fixed mortgage rate increased almost a full percentage point in the last month, greatly reducing…
The third quarter of 2022 brought the slowest quarterly price growth since Q4 2011, showing just how quickly home prices are changing as the market rebalances. Single-family home prices rose 13.8% YOY in Q3 2022, slowing from last quarter’s 19.1%, according to Fannie Mae’s Home Price Index. The Index measures average quarterly price change for all single-family U.S. properties except condos. Prices were up only 0.2% from Q2, their slowest quarter since 2011. “Year-over-year home price growth decelerated in the third quarter, as the sharp rise in mortgage rates – and declining housing affordability – appears to have weighed further on demand,” said Doug Duncan, Fannie Mae Senior Vice President and Chief Economist. He added that many homeowners who might…
Most Americans want their parents to age comfortably in their own homes, but it can be a challenge for both families and the housing market. Three out of four adults want their parents to be able to age in their own homes, but more than half of Gen Xers don’t feel financially prepared to assist their parents in old age, according to a new study from American Advisors Group. AAG surveyed 1,500 adults aged 40-55 who have senior parents. “The retirement savings crisis is real, and many Gen X adult children are telling us that caring for their parents will be extremely difficult and potentially unattainable,” said Eddie Herda, AAG VP of Brand Strategy. Herda said there is interest in…
With rates rising and home price appreciation still high, Americans are looking for cheap places to buy homes. September’s hottest housing markets are known for their affordability. Rochester, NY, and Manchester, NH, tied for the country’s hottest market, according to new data from Realtor.com. Manchester has been popular for over a year, partly because New Hampshire is known for low taxes and affordable property. Rochester may not benefit from incredibly low taxes, but the cost of housing speaks for itself: the median list price is $223,000, far less than the national average. “They’re equally hot, but for different reasons. Manchester properties see higher demand, but homes in Rochester spend five days less on the market,” Hannah Jones, an economic data…
After shrinking slightly the week prior, mortgage rates shot back up last week to a 20-year high, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey found that the 30-year fixed-rate mortgage averaged 6.92%, up from 6.66%. A year ago at this time, the 30-year FRM averaged 3.05%. “Rates resumed their record-setting climb this week, with the 30-year fixed-rate mortgage reaching its highest level since April of 2002,” said Sam Khater, Freddie Mac’s Chief Economist. “We continue to see a tale of two economies in the data: strong job and wage growth are keeping consumers’ balance sheets positive, while lingering inflation, recession fears, and housing affordability are driving housing demand down precipitously. The next several months will undoubtedly be important…
Mortgage loan application volume fell another 2% last week, according to the Mortgage Bankers Association’s weekly survey. Interest rates rose to 6.81%, their highest point since 2006. The adjusted Market Composite Index, a measure of mortgage loan application volume, dropped by 2%. The adjusted purchase index fell 2%, while the unadjusted purchase index decreased 2% and was 39% lower YOY. The refinance index dropped by 2% and was 86% lower than the same time last year. Refis made up 29% of total applications. The ARM share of activity dipped slightly from last week as the 5/1 interest rate jumped 20 basis points from 5.36% to 5.56%. “The ARM share of applications remained quite high at 11.7%– just below last week’s…
Austin, TX, has been ranked the best city for working from home, leading a list full of Southern and Western metros. A new SmartAsset study looked at factors such as the number of remote workers, housing costs, and income taxes to determine what U.S. cities offer the most to work-from-homers. Remote work has risen in prevalence from around 5% in 2016 to 17.9% in 2021. In 13 cities, more than a third of the workforce is remote. Some employers are even using remote work as a bargaining chip to offer lower salaries while inflation is high. This type of work is changing how Americans view moving and shifting their priorities when searching for a new home. And it’s not going…
