Mortgage rates rose slightly over the last week, up from an average of 3.10% to 3.12%, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 3.12%, rising slightly after a weeks-long pattern of hovering around 3.10% or 3.11%. A year ago at this time, the 30-year FRM averaged 2.67%. “Mortgage rates inched up as a result of economic improvement and a shift in monetary policy guidance,” said Sam Khater, Freddie Mac’s Chief Economist. “While house price growth is slowing, prices remain high due to solid housing demand and low supply. We expect rates to continue to increase into 2022 which may leave some potential homebuyers with less room in their budgets…
The Federal Open Market Committee (FOMC) announced it will double the pace of tapering its pandemic asset purchase program, and signaled it would likely raise interest rates next year. This would be its first rate hike since March 2020. The move comes in response to concerns about rising inflation. At its November meeting, the FOMC said it would reduce its purchases of Treasury securities from $80 billion to $70 billion and from $40 billion to $35 billion for mortgage-backed securities. Since then, inflation has reached a 39-year high and become a major sticking point for the American public. As to how this announcement affects the mortgage and real estate industries, analyst response has focused on rising costs. “Increasing mortgage rates…
Good Morning! Today is Wednesday, December 15. Congress passed a measure raising the government’s borrowing limit by $2.5 trillion. Mr. Trump lost his bid to shield his tax returns from the House Ways and Means Committee after a federal judge dismissed the case. Britain’s antitrust regulator said Apple and Google hold a “vise-like grip” over how people use mobile devices, limiting innovation and choice and leading to higher prices. And in mortgage and housing news… Thompson Tapped For Full Term…: President Biden will nominate Sandra Thompson, currently the acting director of the Federal Housing Finance Agency, to a full term at the regulator, the White House announced. …And The Industry Responds: The industry’s response has been largely positive. Mortgage App…
Mortgage loan application volume dropped 4% last week, overwhelming a 2% increase from the week prior, the Mortgage Bankers Association’s (MBA) weekly survey reported. The seasonally adjusted Market Composite Index, a measure of mortgage loan application volume, rose 4%. The seasonally adjusted purchase index rose 1%, while the unadjusted purchase index fell 4% and was 9% lower YOY. The refinance index fell 6% and was down 41% YOY. Refinances made up 63.3% of total applications. The report noted that refinances fell even though rates remained steady week to week. Interest rates are 40 basis points higher year-over-year, however, in line with the 41% drop in refinances from the same period in 2020. “Fewer homeowners have a strong incentive to refinance…
Good Morning! Today is Tuesday, December 14. Members of the Federal Open Market Committee begin their two-day policy-setting meeting today. Larry Nassar’s victims reached a $380 million settlement. The Supreme Court turned down emergency requests by New York healthcare workers for a religious exemption from state requirements to vaccinate against Covid-19. And in mortgage and housing news… Rental Rates Skyrocket: More than a quarter of the states in the country have experienced a rental price increase of 20% or more in 2021 and a senior research analyst says people moving out of cities and into more rural communities are partially to blame. November 2021 Originations: Rate lock volume fell 4.7% month-over-month in November, Black Knight’s latest Originations Market Monitor report…
Rate lock volume fell 4.7% month-over-month in November, Black Knight’s latest Originations Market Monitor report found. It is the third straight month of overall declines. The drop was driven by rate/term refinance originations, which fell 9.4% from October and almost 65% year-over-year (YOY), its lowest level since February 2020. Rate/term refinance dropped in eight out of eleven months in 2021. Locks on purchase and cash-out refinance fell 3.9% and 2.5% from October, respectively. However, they are still higher than 2020, with purchase locks up 13% YOY and cash-outs up 36% YOY. “While 30-year rates ended November relatively flat from where they were at the start of the month, there was some volatility in rate offerings throughout the month,” said Black…
Good Morning! Today is Monday, December 13. At least 90 people are dead after tornadoes leveled 250 miles across six states. Stock buybacks hit a record $234.5 billion in Q3 as companies responded to pandemic hardship. Chris Wallace is leaving Fox News to join CNN. And in mortgage and housing news… Reality Check: There will be more houses on the market in 2022 because of the number of people who have died due to COVID-19 and its variants, a sobering reality was highlighted during the National Association of Real Estate Editors conference in Miami, Fla., last week. Mortgage Credit Down: Mortgage credit availability shrank in November, falling by 0.6% to 124.9, according to MBA’s Mortgage Credit Availability Index. OCC Reports…
Good Morning! Today is Friday, December 10. The Senate voted to allow Congress to raise the debt ceiling with a simple majority vote. The FDA authorized Pfizer boosters for 16- and 17-year-olds. Workers at a Buffalo Starbucks voted to unionize, making them the first of 9,000 stores to do so. And in mortgage and housing news… Rates Stay The Same: Mortgage rates once again remained basically the same over the last week, averaging 3.10%, Freddie Mac reported. Forbearances Plunge: Forbearances plan exits surged during the first week of December, though plan starts grew for another week. Equity Continues To Soar: Homeowners with a mortgage gained over 31% in equity YOY in Q3, according to CoreLogic. Inflation Up To 39-Year-High: U.S. inflation reached a nearly four-decade high in November, as…
Mortgage loan application volume rose 2% last week, the Mortgage Bankers Association’s (MBA) weekly survey reported. The seasonally adjusted Market Composite Index, a measure of mortgage loan application volume, rose 2%. The seasonally adjusted purchase index fell 5%, while the unadjusted purchase index rose 28% and was 8% lower YOY. The share of refinance applications rose 9% and was down 37% YOY. Refinances made up 53.9% of total applications, up from 59.4% the previous week. The report noted that mortgage rates fell after rising for several weeks, which resulted in the surge of refinances. “While the 30-year fixed mortgage rate and 15-year fixed mortgage rate both declined only one basis point, the FHA rate fell 7 basis points, driving the…
Good Morning! Today is Friday, December 3. Congress averted a shutdown by passing a bill funding the government through February. The FTC is suing to stop a $40 billion merger between Nvidia and Arm. Florida Governor Ron DeSantis proposed a civilian military force overseen by him rather than the Pentagon. And in mortgage and housing news… Rates Flat: Mortgage rates remained basically the same over the last week, averaging 3.11%, Freddie Mac reported Thursday. “The Drop-Off Is Significant”: Mortgage lending declined at an unusually fast pace during Q3 2021, falling during peak buying season for the first time since 2000, ATTOM reported. Construction Still “Hobbled”: A new Zillow report found that despite construction companies’ best efforts, the completion of new…
