Average mortgage rates surpassed 7% for the first time in 2024 last week.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.1%, jumping from the week prior’s 6.88%. A year ago at this time, the 30-year FRM averaged 6.39%.
The daily rate shot up to 7.5% in the middle of this week.
The 15-year fixed rate increased from 6.16% to 6.39%. A year ago, it averaged 5.76%.
“As rates trend higher, potential homebuyers are deciding whether to buy before rates rise even more or hold off in hopes of decreases later in the year. Last week, purchase applications rose modestly, but it remains unclear how many homebuyers can withstand increasing rates in the future,” said Sam…
The cost of buying a home hit another record high as rising rates intersected with home price growth.
The median U.S. home sale price increased 5% YOY to $380,250 during the four weeks ending April 14. This is just a few grand below June 2022’s all-time high.
At the same time, mortgage rates have jumped up over 7% in recent weeks as inflation data forced the Central Bank to walk back its talk of rate cuts. Some analysts who previously predicted three cuts from the Fed in 2024 now say there may be none at all.
“I think we’re still expecting a couple but clearly we continue to kick the can down the road on rate cuts, and it wouldn’t…
Mortgage rates are marching towards 7% again as inflationary pressures threaten their stability.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.88%, up from the week prior’s 6.82%. A year ago at this time, the 30-year FRM averaged 6.27%.
The 15-year fixed rate increased from 6.06% to 6.16%. A year ago, it averaged 5.54%.
Rates have primarily stuck between 6.5% and sub-7% as they moved up in the first quarter.
Freddie Mac Chief Economist Sam Khater noted that rates moved up as inflation stayed sticky and the Central Bank’s monetary policy shifted.
“While newly released inflation data from March continues to show a trend of very little movement, the financial market’s reaction paints a far different…
By ERIN FLYNN JAY
The concept of mortgage porting, or transferring the terms of an existing loan over to a new property, has gained popularity as Americans locked into low interest rates try to figure out ways to navigate the current housing market.
It is estimated that trading up to a 25% more expensive home would more than double the average mortgage holder’s monthly payment at current interest rates. Even moving to a similarly-priced home in the same neighborhood would increase principal and interest payments by 40%.
Advocates for portable mortgages say if homeowners could keep their current interest rates, they would be more likely to sell their homes and buy a new one. That, in turn, would help unfreeze…
Mortgage rates fell last week but remained in the high-6% range.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.79%, down from the week prior’s 6.87%. A year ago at this time, the 30-year FRM averaged 6.32%.
The 15-year fixed rate also dropped from 6.21% to 6.11%. A year ago, it averaged 5.56%.
“Mortgage rates moved slightly lower this week, providing a bit more room in the budgets of some prospective homebuyers,” said Sam Khater, Freddie Mac’s Chief Economist.
“We also are seeing encouraging data on existing home sales, which reflects improving inventory. Regardless, rates remain elevated near 7% as markets watch for signs of cooling inflation, hoping that rates will come down further.”
Both existing…
Rates took a turn for the worse last week, rising back to nearly 7%, as economic data soured analysts’ moods on easing rates.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.87%, up from the week prior’s 6.74%. A year ago at this time, the 30-year FRM averaged 6.42%.
This breaks a two-week streak of declines. Mortgage applications slipped this week as rate-sensitive Americans backed away from the market.
The 15-year fixed rate also rose from 6.16% to 6.21%. A year ago, it averaged 5.68%.
The Central Bank outlined cuts to come in 2024 but held the benchmark rate steady during their March meeting.
Inflation has eased over the past year but committee members do not…
By KIMBERLEY HAAS
In a move that was not surprising, members of the Federal Open Market Committee held the target range for the federal funds rate steady at 5.25% to 5.5% at their meeting this week.
Inflation has eased over the past year but committee members do not believe it will be appropriate to reduce rates until they have gained more confidence inflation is moving sustainably toward 2%, which has been their goal.
Federal Reserve Chair Jerome Powell said during a press conference on Wednesday afternoon that inflation may not reach 2% until 2026 but it is likely rates have hit their peak and the committee plans to start dialing them back at some point this year.
Powell did not…
By PATRICK LAVERY
Kicking the can down the road, moving the goalposts – whatever idiom you want to use – such an expression will likely be appropriate for this week’s meeting of the Federal Open Market Committee, which appears poised to hold the target range for the federal funds rate steady at 5.25% to 5.5%.
While that margin has not been raised since last summer, there has been hope that at some point in 2024, Federal Reserve Board chairman Jerome Powell will come to the microphone at the conclusion of one of the FOMC’s two-day summits and announce the beginning of a rollback of the series of rate hikes that steadily climbed from near-zero in early 2022 to their current…
Mortgage applications increased for a second week as rates retreated from 7%.
The Mortgage Bankers Association’s weekly survey shows that the adjusted Market Composite Index — a measure of mortgage loan application volume — increased by 7.1%, following the week prior’s 9.7% bump.
Adjusted purchase applications rose by 5%, while the unadjusted index was up 6% and 11% lower YOY.
“Mortgage rates dropped below 7% last week for most loan types because of incoming economic data showing a weaker service sector and a less robust job market, with an increase in the unemployment rate and downward revisions to job growth in prior months,” said Mike Fratantoni, MBA’s SVP and Chief Economist.
Nonfarm payrolls rose by 275,000 in February while the…
Mortgage rates broke a month-long upward streak, deflating for the first time in weeks and resulting in a purchase demand boost.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.88%, down from the week prior’s 6.94%. A year ago at this time, the 30-year FRM averaged 6.73%. This is the first decline in four weeks.
The 15-year fixed also fell, dropping to 6.22% from 6.26%. A year ago, it averaged 5.95%.
“Evidence that purchase demand remains sensitive to interest rate changes was on display this week, as applications rose for the first time in six weeks in response to lower rates,” said Sam Khater, Freddie Mac’s Chief Economist.
Mortgage loan applications were up nearly 10% from…
