Mortgage rates hovered near record lows again this week, with the 30-year fixed-rate mortgage averaging 3.21 percent, according to Freddie Mac’s Primary Mortgage Market Survey released Thursday. “The rebound in homebuyer demand continued this week, driven by mortgage rates that hover near record lows,” said Sam Khater, Freddie Mac’s Chief Economist. “This turnaround in demand, particularly by those who have higher incomes than the typical household, also reflects deferred sales from the spring.” The survey found that for the week ending June 11: 30-year fixed-rate mortgage averaged 3.21 percent with an average 0.9 point, up slightly from last week when it averaged 3.18 percent and down from 3.82 percent a year ago.15-year fixed-rate mortgage averaged 2.62 percent with an average…
Federal Reserve Chairman Jerome Powell said Wednesday that the Fed is committed to “using our full range of tools to support the economy and to help assure that the recovery from this difficult period will be as robust as possible.” That includes keeping interest rates very low. “In March, we quickly lowered our policy interest rate to near zero, where we expect to keep it until we are confident that the economy has weathered recent events and is on track to achieve our maximum employment and price stability goals,” he said. In speaking with reporters after the Fed meeting, Powell stressed the public health crisis caused by the coronavirus pandemic is far from over – and the economic impacts will…
Interest rates didn’t set yet another new record this week, but they are still hovering at historically low levels. Freddie Mac’s Primary Mortgage Market Survey found that the 30-year fixed-rate mortgage increased to 3.18 percent this week. “While the economy is slowly rebounding, all signs continue to point to a solid recovery in home sales activity heading into the summer as prospective buyers jump back into the market. Low mortgage rates are a key factor in this recovery,” said Sam Khater, Freddie Mac’s Chief Economist. “While homebuyer demand is up and has been broad-based across most geographies, supply has been slower to improve. In fact, the gap between supply and demand has widened even further than the large gap that…
Interest rates are parked at a super low level, with no signs of budging. Freddie Mac said Thursday that the 30-year fixed-rate mortgage averaged 3.28 percent for the week ending May 14, the seventh consecutive week that it has been below 3.35 percent. “Mortgage rates have stabilized at very low levels over the last few weeks as homebuyer demand slowly improves,” said Sam Khater, Freddie Mac’s Chief Economist. “Although purchase applications reached a new low in mid-April, today purchase demand is only down ten percent from one year ago. While demand is improving, inventory is low and declining with no signs of a turnaround yet.” The Primary Mortgage Market Survey found: The 30-year fixed-rate mortgage averaged 3.28 percent with an…
By Jim Perskie Economic difficulties caused by the coronavirus are making it harder for borrowers to obtain mortgage credit, even as interest rates have plunged to historic lows. The Mortgage Bankers Association announced Thursday that the Mortgage Credit Availability Index (MCAI) dropped 12.2 percent in April, reflecting a tightening of the lending standards in the market. “The abrupt weakening of the economy and job market – and the uncertainty in the outlook – drove credit availability down in April for the second consecutive month,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “The overall index fell to its lowest level since December 2014, and the sub-indexes pointed to tightened credit supply for all loan types. The…
Freddie Mac announced Thursday that the 30-year fixed-rate mortgage fell to 3.23 percent, the lowest rate in the survey’s 50-year history. “The size and depth of the secondary mortgage market is helping to keep rates at record lows,” Freddie Mac chief economist Sam Khater said. “These low rates are driving higher refinance activity and have modestly helped improve purchase demand from their extremely low levels in mid-April.” Despite the low rates, however, there are clear signs that the credit market is tightening amid the coronavirus pandemic, meaning fewer and fewer people are able to take advantage of the historically low rates. Redfin announced Wednesday that its Mortgage Credit Availability Index dropped 16 percent in March and is at its lowest level in…
Good morning! Today is Monday, April 20. Democrats and the White House are close to a deal to help small businesses hurt by the coronavirus. Shake Shack plans to return its $10 million paycheck protection loan after getting needed capital on its own. Neiman Marcus is preparing to seek bankruptcy protection this week. And in mortgage and housing news … GSE FORBEARANCE: FHFA Director Mark Calabria appears to have misjudged the number of mortgages projected to be in forbearance. INDEPENDENT MORTGAGE BANKS: The lending business was significantly more profitable for independent mortgage banks in 2019, though 2020 is going to be another story. LUMP SUM: Realtors are advising clients that they may owe missed monthly payments in a lump sum at the end of the forbearance period. HOUSING COUNSELORS: Coronavirus…
