Good Morning! Today is Friday, March 18. Moderna asked the FDA to authorize a second COVID booster dose for all adults. Russian forces remain stalled outside Kyiv, taking heavy casualties. A 13-year-old was driving the truck that hit a van in Texas, killing nine people. The Mortgage Note Reports Race-Based Lending: The Right Way to Promote Social Justice? The Neighborhood Assistance Corporation of America (NACA) has announced a lending program for minority-owned businesses it calls “Economic Justice Loans.” Rates Break 4%:Mortgage rates averaged 4.16% this week, exceeding 4% for the first time since May 2019. Forbearances Rise: In a familiar pattern, forbearance rose by 8,000 last week (1%) after dropping to a post-pandemic low the week before. And in other…
Mortgage rates broke 4% for the first time since May 2019, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 4.16%. A year ago at this time, the 30-year FRM averaged 3.09%. “The 30-year fixed-rate mortgage exceeded four percent for the first time since May of 2019,” said Sam Khater, Freddie Mac’s Chief Economist. “The Federal Reserve raising short-term rates and signaling further increases means mortgage rates should continue to rise over the course of the year. While home purchase demand has moderated, it remains competitive due to low existing inventory, suggesting high house price pressures will continue during the spring homebuying season.” The Federal Reserve raised interest rates by a…
The Federal Reserve raised interest rates for the first time since 2018 on Wednesday in an effort to combat rising inflation, and economists have mixed feelings about its impact on the housing market. The Consumer Price Index rose 0.8% in February, up 7.9% over the last year, to its highest rate in 40 years. As Americans spend more on less, the impact is becoming apparent. Retail sales rose 0.3% in February, a slowdown in the pace of spending that suggested inflation was taking its toll on American consumers. But while rising prices for gas and groceries may burden American households, it’s things like health insurance and housing that are the “silent killers,” according to Justin Wolfers, University of Michigan professor…
Good Morning! Today is Friday, March 11. President Biden will call for suspending normal trade relations with Russia, which would raise tariffs for many Russian products. Baseball players and owners struck a deal on a new contract, ending a lockout. The federal government extended the mask mandate on airplanes and other public transportation through mid-April. The Mortgage Note Reports Rate Reversal: Mortgage rates rose to 3.85%, reversing a brief period of declines brought on by uncertainty surrounding Ukraine. Forbearances Down: Forbearance plans dropped to a post-pandemic low this week, falling by 49,800 (-6.5%), according to Black Knight. And in other mortgage and housing news… Inflation Wreaks Havoc: The consumer price index for February rose 7.9% YOY, the highest level since…
Mortgage rates rose last week, reversing a brief period of declines brought on by uncertainty surrounding Ukraine, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 3.85%. A year ago at this time, the 30-year FRM averaged 3.05%. “Following two weeks of declines, mortgage rates rose this week as U.S. Treasury yields increased,” said Sam Khater, Freddie Mac’s Chief Economist. “Over the long-term, we expect rates to continue to rise as inflation broadens and shortages increasingly impact many segments of the economy. However, uncertainty about the war in Ukraine is driving rate volatility that likely will continue in the short-term.” The Consumer Price Index reached another high this week, standing at…
Good Morning! Today is Wednesday, March 9. Major U.S. businesses pulled out of Russia and President Biden banned Russian oil imports. Intelligence officials said Vladimir Putin showed no signs of changing course. A jury found Guy Reffitt, the first Jan. 6 defendant to go on trial, guilty of leading a mob against the police. The Mortgage Note Reports $1M Or More: A record 8.2% of U.S. homes (6 million) were valued at $1 million or more in February, with California leading the pack in share. Rate Slide Pushes Refis Up: Refinances bounced up last week due to a brief drop in interest rates, while overall mortgage loan application volume rose 8.5%. And in other mortgage and housing news… Above Asking:…
Refinances bounced up last week due to a brief drop in interest rates, the Mortgage Bankers Association’s (MBA) weekly survey found. Overall, mortgage loan application volume rose 8.5% last week, reversing a weeks-long downward trend. This is likely the result of spring inventory trickling into the market, though the lower rates may have played a role. The adjusted purchase index rose 9%, while the unadjusted purchase index rose 11% and was 7% lower YOY. The refinance index jumped 9% and was down 50% YOY. Refinances made up 49.5% of total applications, a slight dip as overall volume increased. Government refinances made big gains in particular. “Mortgage rates dropped for the first time in 12 weeks, as the war in Ukraine…
By JARED WHITLEY Divorce is the number two most stressful event in a person’s life, leading lady Leslie Knope reveals in one episode of “Parks and Recreation,” adding “Of course, marriage is number seven. So, watch out, everyone. It’s all bad.” We face a similar conundrum in the housing market right now. Housing prices have been out of control the last year, and in response, the Fed has announced it will raise interest rates this month. Rates have already surged to their highest point since March 2020 – the start of the coronavirus and its accompanying government damaging overreactions – showing that the salad days of 2% rates on a traditional home loan are over. The question for housing experts to answer…
Mortgage rates fell again last week, dropping to an average of 3.76% from 3.89%, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 3.76%. A year ago at this time, the 30-year FRM averaged 3.02%. “While inflationary pressures remain, the cascading impacts of the war in Ukraine have created market uncertainty,” Freddie Mac Chief Economist Sam Khater said. “Consequently, rates are expected to stay low in the short term but will likely increase in the coming months.” The Fed said that it still plans to raise rates later this month despite uncertainty surrounding the Ukraine conflict. Fed Chairman Jerome Powell said the central bank would stick to its plan to reduce…
Good Morning! Today is Thursday, March 3. Russia has continued to attack major cities in Ukraine, creating a humanitarian crisis. The Jan. 6 committee said there was evidence to conclude that Donald Trump may have committed crimes to try to stay in office. Fitbit is recalling its Ionic smartwatch after reports of overheating batteries. The Mortgage Note Reports Loan Factory’s Nguyen Says UWM Ultimatum ‘Has Divided Our Community’: In a one-on-one interview with The Mortgage Note, Nguyen explains why he chose to stop doing business with Mat Ishbia’s company rather than agree to it’s ‘All In’ ultimatum. Weak App Activity: Mortgage loan application volume fell 0.7% last week, faring slightly better than the prior week’s 13.1% drop but continuing a trend…
