Mortgage rates averaged 5.11% last week, up from 5%, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 5.11%. A year ago at this time, the 30-year FRM averaged 2.97%. “Mortgage rates increased for the seventh consecutive week, as Treasury yields continued to rise,” said Sam Khater, Freddie Mac’s Chief Economist. “While springtime is typically the busiest homebuying season, the upswing in rates has caused some volatility in demand. It continues to be a seller’s market, but buyers who remain interested in purchasing a home may find that competition has moderately softened.” Mortgage rates have grown from 3.51% at the beginning of March while home prices remain elevated. The combo has…
Monthly mortgage payments are up by 19.5% from three months ago, and 38% YOY, according to Zillow’s March Real Estate Market Report. Annual home value growth set a new record for the 12th consecutive month. The typical home is now worth $337,560, up 20.6% YOY. At the same time, mortgage rates have grown from 3.51% at the beginning of March to breach the 5% mark at the end of the month. The combo has pushed monthly payments up 38% YOY on a home with a 30-year mortgage and 20% down payment. Despite this, Zillow reports that the pace and volume of sales picked up, “showing the depth of the pool of homebuyers willing and able to meet current asking prices.”…
Mortgage loan application volume fell by 6.3% to its lowest level since the spring of 2019, the Mortgage Bankers Association’s (MBA) weekly survey shows. The adjusted Market Composite Index, a measure of mortgage loan application volume, dropped by 6.3%. The adjusted purchase index fell by 3%, while the unadjusted purchase index fell by 3% and was 9% lower YOY. The refinance index fell 10% and was down 62% YOY. Refinances made up just 38.8% of total applications, down from 40.6%. Mortgage rates hit 4.90% in their fourth straight week of increases, putting further pressure on dwindling refinances. Rates are now up 1.5 percentage points from the same time last year. “The hot job market and rapid wage growth continue to…
Stock shortages continue to drive home price appreciation, with February home prices rising 20% YOY and 2.2% from the prior month, according to CoreLogic’s Home Price Index. Annual appreciation of detached properties was 4.8 percentage points higher (21.1%) than attached properties (16.3%). Sun Belt states led the record high price appreciation. Naples, FL, saw the highest YOY price increase at 41.4%, with Cape Coral close behind at 40%. The four metros with the largest annual price gains were all on Florida’s Gulf Coast. Florida saw the strongest growth of all states at 29.1% YOY, followed by Arizona (28.6%) and Nevada (25.8%). CoreLogic says the record growth can be traced to record-low inventory, which forces buyers to compete for a limited…
“Million-dollar cities” skyrocketed in 2021, with typical home values reaching at least $1 million in a record 146 new U.S. cities. Zillow found there are now 481 cities where the average home is worth $1 million or more, and an additional 49 cities could make the list by mid-2022 if home appreciation continues at its current rate. Typical home values jumped 19.6% in 2021 as homebuyers faced severe stock shortages, causing bidding wars that pushed prices up. Homeowners gained $2.6 trillion in tappable equity in 2021, up by 35% YOY for an aggregate total of almost $10 trillion. In Q4 2021 alone, tappable equity rose by nearly half a billion dollars. “Home price appreciation over the course of 2021 was…
