Rates Fall On Cooling Inflation Data

Mortgage rates fell last week as positive inflation data has Wall Street reevaluating their predictions for rate cuts. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.89%, down from the week prior’s 6.95%. A year ago at this time, the 30-year FRM averaged 6.96%. The 15-year was down to 6.17% from 6.25%. A year ago at this time, it was 6.30%. “Following June’s jobs report, which showed a cooling labor market, the 10-year Treasury yield decreased this week and mortgage rates followed suit,” said Sam Khater, Freddie Mac’s Chief Economist. “We’re also seeing more inventory on the market, including a fair number of listings with price cuts, which is an encouraging sign for prospective buyers.” Since…

Current Homeowners Optimistic About Buying A New Home In 2024

High rates and soaring prices are preventing many Americans from achieving the dream of homeownership, but current homeowners are optimistic about the housing market. TD Bank surveyed nearly 2,000 homeowners across the nation and found that a majority (67%) think buying a home is still attainable, while 38% plan to buy a new house in the next year. Millennial and Gen Z homeowners were the most optimistic about homebuying, regardless of the ongoing affordability crisis, lagging existing and new home sales, and 7% rates. “Although many of the challenges impacting homeownership are leaving some homeowners weary about the market, it’s great to see borrowers, especially younger generations, remaining steadfast in navigating the market to find a home that works for…

Rate Increases Affect Mortgage Applications

Mortgage applications fell last week as rates hovered around 7%. The Mortgage Bankers Association’s weekly survey shows that the adjusted Market Composite Index — a measure of mortgage loan application volume — slipped by 0.2%. The results include an adjustment for the Fourth of July. Adjusted purchase applications increased by 1%, while the unadjusted index was down 19% and 13% lower YOY. Rates have increased in the last couple of weeks following a brief downward trend. The average 30-year fixed rate actually declined last week, down from 7.03% to 7% flat, but remains too high to entice buyers back to the table. “Purchase activity picked up slightly, driven primarily by increases in FHA and VA applications. Refinance applications decreased for…

Powell Acknowledges Putting Pressure On Housing While Teeing Up Rate Cut

By KIMBERLEY HAAS The chair of the Federal Reserve acknowledges that their tightening policies to bring down inflation have affected the housing market, and he is offering a glimmer of hope for analysts who expect a rate cut within the next few months. Jerome Powell testified before the Senate Banking, Housing and Urban Affairs Committee on Tuesday where he talked about the Fed’s semiannual Monetary Policy Report, which details the state of the U.S. economy. Powell was peppered with housing questions by Sen. Jon Tester, a Democrat from Montana. “Regardless of where I go in the state of Montana, housing is a big issue,” Tester said. “Larger towns, the medium-sized towns, to small towns, housing is a huge issue. And…

Rates Trend Down For Another Week

Mortgage rates inched down last week, reaching their lowest level in nearly three months. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.86%, down slightly from the week prior’s 6.87%. A year ago at this time, the 30-year FRM averaged 6.71%. The 15-year, however, rose to 6.16% from 6.13%. A year ago at this time, it was 6.06%. “By historical standards, the economy is in good shape, and we expect rates to continue to come down over the summer months, bringing additional homebuyers back into the market,” said Sam Khater, Freddie Mac’s Chief Economist. The next question is how quickly buyers will respond to cooling rates. Mortgage applications barely moved last week despite rates trending down. …

Rates Fall To 6.87%

Mortgage rates fell further last week as the market responded to positive inflation indicators. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.87%, down from the week prior’s 6.95%. A year ago at this time, the 30-year FRM averaged 6.67%. The 15-year also fell to 6.13% from 6.17%. A year ago at this time, it was 6.10%. “Mortgage rates fell for the third straight week following signs of cooling inflation and market expectations of a future Fed rate cut,” said Sam Khater, Freddie Mac’s Chief Economist.  “These lower mortgage rates coupled with the gradually improving housing supply bodes well for the housing market. Aspiring homeowners should remember it’s important to shop around for the best mortgage…

Rates Fall But Remain Near 7%

Mortgage rates fell further last week but remain near 7%, putting pressure on affordability. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.95%, down from the week prior’s 6.99%. A year ago at this time, the 30-year FRM averaged 6.69%. The 15-year also fell to 6.17% from 6.29%. A year ago at this time, it was 6.10%. “Mortgage rates continued to fall back this week as incoming data suggests the economy is cooling to a more sustainable level of growth,” said Sam Khater, Freddie Mac’s Chief Economist. “Top-line inflation numbers were flat but shelter inflation, which measures rent and homeownership costs, increased showing that housing affordability continues to be an ongoing impediment for buyers on the…

Federal Reserve Not Budging On Rates Yet

By PATRICK LAVERY For the seventh straight meeting, dating back to last September 20, the Federal Open Market Committee on Wednesday voted to maintain the target range for its federal funds rate at 5.25% to 5.5%. That officially means, as experts and prediction tools had almost unanimously agreed going into the week, that the earliest there will be a change to the key rate is after the next FOMC summit on the final two days of July, one year since the last quarter-point increase, and there is skepticism anything will happen then either. In a public statement released after the vote was taken, the FOMC was perhaps not as pessimistic as in the past that the rate might in fact…

Rates Move Back Up Over 7%

Homebuyers only enjoyed one week of sub-7% rates before the 30-year mortgage moved above that mark again. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.03%, up from the week prior’s 6.94%. A year ago at this time, the 30-year FRM averaged 6.79%. The 15-year also rose from 6.24% to 6.36%. A year ago at this time, it was 6.18%. Rates dipped below 7% the week prior for the first time in more than a month but reversed course on shifting market dynamics. “More hawkish commentary about inflation and tepid demand for longer-dated Treasury auctions caused market yields to rise across the board. This reality, as well as economic signals that have moved sideways over the…

Rates Dip Below 7%

Average mortgage rates dipped below 7% last week, giving buyers some breathing room as they navigate a high-priced housing market. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.94%, down from the week prior’s 7.02%. A year ago at this time, the 30-year FRM averaged 6.57%. The 15-year also fell, down from last week’s 6.24% to 6.38%. A year ago at this time it was 5.97%. “Spring homebuyers received an unexpected windfall this week, as mortgage rates fell below the 7% threshold for the first time in over a month,” said Sam Khater, Freddie Mac’s Chief Economist. “Although this week’s data on previously owned home sales showed a decline, total inventory of both new and existing…