Economists and housing industry experts are keeping a close eye on Washington D.C.’s debate over raising the debt ceiling and what it might mean for interest rates. Congressional Democrats are heading into what even Speaker Nancy Pelosi acknowledges is a turbulent week or two, in which her party will attempt to use its narrow majorities to pass two massive spending bills. At the same time, Washington’s about to hit the limit of debt it can issue to keep paying its bills. Treasury Secretary Janet Yellen says the nation will run up against the debt ceiling sometime in October. Democrats are demanding the GOP follow the tradition of previous debt-ceiling votes and support an increase. Republicans, angry over the Democrats’ decision…
New legislation introduced in the Senate, known as the “Low-income First Time Homebuyer (LIFT) Act,” proposes creating a new 20-year-fixed-rate mortgage program through Ginnie Mae, subsidized by taxpayers. First-time, first-generation homebuyers with an income equal to or less than 120% of the area median income would qualify. Ginnie Mae, along with the Department of the Treasury, would subsidize the interest rate and origination fees for these 20-year mortgages. The result would be a monthly bill in line with a new 30-year FHA-insured mortgage. The bill is sponsored by Sens. Mark Warner (D-VA), Tim Kaine (D-VA), Chris Van Hollen (D-MD), Raphael Warnock (D-GA), and Jon Ossoff (D-GA). All except Sen. Kaine are members of the Senate Committee on Banking, Housing, and…
Mortgage rates remained essentially unchanged over the past week, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) reports the 30-year fixed-rate mortgage (FRM) averaged 2.88 percent. A year ago at this time, the 30-year FRM averaged 2.90 percent. “The slowdown in economic growth around the world has caused a flight to the quality of the U.S. financial markets,” said Sam Khater, Freddie Mac’s Chief Economist. “This has led to a rise in foreign investor purchases of U.S. Treasuries, causing mortgage rates to remain in place, despite the increasing dispersion of inflation across different consumer goods and services.” Khater continued, “On the housing front, homebuyers continue to snap up available inventory, which has improved modestly, and home price growth…
Good Morning! Today is Wednesday, September 22. The House passed a bill to keep the government open and prevent a debt default, but Senate Republicans will likely block it. The Taliban asked to participate in the U.N. General Assembly this week to gain international representation. The DOJ and six states are challenging American Airline’s partnership with JetBlue, alleging it violates anti-trust laws. And in mortgage and housing news… Mortgage Loan Apps Up: Mortgage loan application volume rose 4.9% last week, the MBA weekly survey found. Anthony Casa Abuse: The case of Anthony Casa, the AIME Chair who threatened and sexually harassed a competitor’s wife last year, perfectly demonstrates the difficulty of holding individuals accountable, Christine Lenzo writes. August Housing Starts: …
Mortgage loan application volume rose 4.9% last week, the Mortgage Bankers Association’s (MBA) weekly survey reports. Unadjusted, the purchase index increased 16% over last week. Mortgage application volume fell by 1.9%, with purchase applications rising 2%. On an unadjusted basis, purchase applications increased 12% over the week before, 13% lower than the year before. The share of refinance applications rose 7% and was 5% lower year-over-year. The numbers are in line with an upward trend that began last week when loan applications bounced back from a low point. “There was a resurgence in mortgage applications the week after Labor Day, with activity overall at its highest level in over a month, and purchase applications jumping to a high last seen…
Good Morning! Today is Tuesday, September 21. The U.S. is easing travel bans, but will require foreign nationals to show proof of vaccination before entering the country. The Biden administration is raising the cap on refugee admissions to 125,000. A doctor who publicly admitted to performing an abortion after six weeks is being sued, the first case filed under Texas’ controversial abortion law. And in mortgage and housing news… New Home Purchases Down: MBA’s Builder Application Survey data for August 2021 shows mortgage applications for new home purchases increased from July but fell year-over-year. Commissions Under Investigation: Home sale commissions are under investigation by the Biden administration, which has asked the Federal Trade Commission to adopt rules to address any…
Good Morning! Today is Monday, September 19. France recalled its ambassadors from Britain and the U.S. in protest of their secret negotiations with Australia. Natural gas prices are surging, prompting fears about winter shortages. The Biden administration began deporting thousands of Haitians awaiting immigration processing in Texas. And in mortgage and housing news… Will Fed Meeting Affect Interest Rates?: The FOMC is meeting September 21 and 22 to discuss next steps on monetary policy. It probably won’t affect interest rates. Home Sales Down: RE/MAX’s August Annual Housing Report suggests that while the market may still be hot, the busiest months of 2021 may be behind us. Consumer Sentiment Up: Consumer sentiment steadied in September after plunging to its lowest level…
The Federal Open Market Committee (FOMC) is meeting September 21 and 22 to discuss the next steps on broad issues related to monetary policy. But in the mortgage industry, there’s only one question on brokers’ minds: What’s going to happen to interest rates? As of today, the best guess is: Not much. Fed-watching is an industry unto itself, and the phrase that’s caught their attention is “substantial further progress.” That’s how Fed Chairman Jerome Powell described the conditions under which the institution would begin reducing its monthly bond purchases — currently $120 billion — as part of his regime of “qualitative easing.” Shrinking the money supply, or even talk of shrinking the supply, is expected to lead to higher interest rates and,…
Good Morning! Today is Thursday, September 16. The FDA found that an additional shot of Pfizer boosts immune response, but the typical two-shot regimen is still effective. The U.S., Britain, and Australia are teaming up to launch nuclear-powered submarines to patrol the South China Sea. Olympic gymnasts abused by Larry Nasser blamed the F.BI., USA Gymnastics, and the U.S. Olympic & Paralympic Committee for not responding to accusations in 2015. And in mortgage and housing news… Interest Rates Flat Again: Freddie Mac’s PMMS showed interest rates barely moved for another week, with 30-year fixed-rates averaging 2.86%. “Middlemen”: Mat Ishbia says UWM’s in-house appraisal program will speed things up by removing AMCs, which needlessly hinder closing times. Non-banks Non-primes Down: Fitch…
Freddie Mac’s Primary Mortgage Market Survey (PMMS) showed rates stayed basically flat for yet another week, with 30-year fixed-rate mortgage averaging 2.86%. It was 2.87% this week a year ago. Last week it inched up 0.1% to 2.88%. This week it dropped 0.2%. Overall, it’s been months since it moved significantly. Rates on 15-year fixed-rate mortgages dropped to 2.12%, down from 2.19% last week. Fifteen-year rates averaged 2.35% a year earlier. Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 2.51%, increasing from last week’s 2.42%. Last year it was 2.96%. “It’s Groundhog Day for mortgage rates, as they have remained virtually flat for over two months. The holding pattern in rates reflects the markets’ view that the prospects for the economy…
