Non-conforming loans pushed rate lock dollar volumes up in February as homebuyers struggle to handle high rates.
While conforming, FHA, and VA loans all lost some share of the market last month, non-conforming loans increased across the spectrum, snagging 12.2% of the market, Black Knight reported in its latest Originations Market Monitor report.
Jumbo loans saw a boost last month as high interest rates made GSE products less attractive. Dollar volume flew up as a result, though locks fell.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances was 6.49% last week, while the conforming rate was 6.79%. Conforming rates finished the month 52 basis points above January’s levels.
Adjustable rate mortgages saw gains, accounting for…
Mortgage rates moved closer to 7% after bleak news from Federal Reserve Chair Jerome Powell this week.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage rate averaged 6.73%, up from 6.65% the week prior.
A year ago at this time, the 30-year FRM averaged 3.85%.
The 15-year fixed-rate mortgage rose from 5.89% to 5.95%. A year ago, it averaged 3.09%.
“Mortgage rates continue their upward trajectory as the Federal Reserve signals a more aggressive stance on monetary policy,” said Sam Khater, Freddie Mac’s Chief Economist.
“Overall, consumers are spending in sectors that are not interest rate sensitive, such as travel and dining out. However, rate-sensitive sectors, such as housing, continue to be adversely affected. As a result,…
Mortgage rates have increased again as new data suggests inflation is sticking harder than previously thought.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage rate averaged 6.65%, up from 6.50% the week prior.
A year ago at this time, the 30-year FRM averaged 3.76%.
The 15-year fixed-rate mortgage rose from 5.76% to 5.89%. A year ago, it averaged 3.01%.
“As we started the year, the 30-year fixed-rate mortgage decreased with expectations of lower economic growth, inflation, and a loosening of monetary policy. However, given sustained economic growth and continued inflation, mortgage rates boomeranged and are inching up toward seven percent,” said Sam Khater, Freddie Mac’s Chief Economist.
“Lower mortgage rates back in January brought buyers back into…
Mortgage rates jumped again this week, a third consecutive increase, pushing sub-6% rates further out of reach.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage rate averaged 6.50%, up from 6.32% the week prior.
A year ago at this time, the 30-year FRM averaged 3.89%.
The 15-year fixed-rate mortgage rose from 5.76% to 5.51%. A year ago, it averaged 3.14%.
“The economy continues to show strength, and interest rates are repricing to account for the stronger than expected growth, tight labor market and the threat of sticky inflation,” said Sam Khater, Freddie Mac’s Chief Economist.
“Our research shows that rate dispersion increases as mortgage rates trend up. This means homebuyers can potentially save $600 to $1,200 annually…
Mortgage rates rose again this week, a second consecutive increase, pushing sub-6% rates further out of reach.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage rate averaged 6.32%, up from 6.12% the week prior.
A year ago at this time, the 30-year FRM averaged 3.92%.
The 15-year fixed-rate mortgage rose to 5.51% to 5.25%. A year ago, it averaged 3.15%.
“The economy is showing signs of resilience, mainly due to consumer spending, and rates are increasing. Overall housing costs are also increasing and therefore impacting inflation, which continues to persist,” said Sam Khater, Freddie Mac’s Chief Economist.
Shelter inflation in particular is on the rise.
A blog post by Christian Zimmermann, Assistant Vice President of Research Information…
Mortgage purchase demand declined after seeing a boost last week, triggered by an increase in rates.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – fell by 7.7%, wiping out last week’s 7.4% increase.
The average interest rate for 30-year fixed loans rose to 6.39% from 6.28%. A year ago that rate was 4.05%.
Bad inflation news this week pushed rates higher. Inflation rose 0.5% in January, more than expected. Shelter costs accounted for roughly half of the month-over-month increase.
Retail sales also jumped in January, adding to the Fed’s big inflation headache as it tries to steer the economy to a 2% inflation rate.
“Mortgage rates increased…
Both purchase applications and refis saw increases as rates fell for a fifth consecutive week.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – rose by 7.4%.
Adjusted purchase applications increased by 3%, while the unadjusted index was up 4% from the week before and was 37% lower YOY.
Refinances saw a big upswing, rising 18% from the week prior. But they remain 75% lower than the same time last year, comprising only 33.9% of total applications.
In the past decade, refis averaged 58% of total activity.
“Both purchase and refinance applications increased last week and have shown gains in three of the past four weeks because of…
As economists predicted, the 30-year fixed rate fell again this week, moving closer to 6%.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.09%, down from 6.13% the week prior.
A year ago at this time, the 30-year FRM averaged 3.55%.
The 15-year fixed-rate mortgage fell from 5.17% to 5.14%. A year ago, it averaged 2.77%.
“Mortgage rates inched down again, with the 30-year fixed-rate down nearly a full point from November, when it peaked at just over seven percent,” said Sam Khater, Freddie Mac’s Chief Economist.
“According to Freddie Mac research, this one percentage point reduction in rates can allow as many as three million more mortgage-ready consumers to qualify and afford a $400,000 loan,…
By KIMBERLEY HAAS
After officials at the Federal Reserve raised rates by 25 basis points, Chair Jerome Powell said that the fight against inflation isn’t over and he does not see them cutting rates this year.
During a press conference on Wednesday afternoon, Powell said the disinflationary process has started in some sectors of the economy but they remain cautious.
“Certainty is just not appropriate here. Inflation, it’s just hard to forecast inflation. It may come down faster. It may take longer to come down, and yet, our job is to deliver inflation back to target and we will do that, but I think we’re going to be cautious about declaring victory and sending signals that we think that the…
The 30-year fixed rate slipped slightly again last week, prompting some pent-up buyers to lock in a purchase, Freddie Mac reported Thursday.
Freddie’s Primary Mortgage Market Survey found that the 30-year fixed-rate mortgage averaged 6.13%, down from 6.15% the week prior.
A year ago at this time, the 30-year FRM averaged 3.55%.
The 15-year fixed-rate mortgage fell from 5.28% to 5.17%. A year ago, it averaged 2.80%.
“Mortgage rates continue to tick down and, as a result, home purchase demand is thawing from the months-long freeze that gripped the housing market,” said Sam Khater, Freddie Mac’s chief economist. “Potential homebuyers remain sensitive to changes in mortgage rates, but ample demand remains, fueled by first-time homebuyers.”
Pending home sales have been…
