Average mortgage rates increased again last week, worsening affordability and setting the market up for a slump as the spring buying season progresses.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.17%, jumping from the week prior’s 7.1%. A year ago at this time, the 30-year FRM averaged 6.43%.
The 15-year fixed rate increased from 6.39% to 6.44%. A year ago, it averaged 5.71%.
“Despite rates increasing more than half a percent since the first week of the year, purchase demand remains steady. With rates staying higher for longer, many homebuyers are adjusting, as evidenced by this week’s report that sales of newly built homes saw the biggest increase since December 2022,” said Sam Khater, Freddie…
Analysis from the Federal Housing Finance Agency finds that, while U.S. mortgage rates are not historically high, the gap between the rates existing homeowners are paying and would-be home buyers are facing has reached a point not seen in decades.
The result is a “lock-in effect” that’s keeping the housing supply extremely tight, a problem that President Joe Biden’s proposed subsidies are unlikely to fix.
The findings are in a March 2024 working paper entitled “The Lock-In Effect of Rising Mortgage Rates” by Ross M. Batzer, Jonah R. Coste, William M. Doerner, and Michael J. Seiler.
“People can be ‘locked-in’ or constrained in their ability to make appropriate financial changes,” the authors write, pointing to obstacles like “being unable to…
Mortgage applications slipped again as rates stayed put in the high 6%s, keeping affordability at the forefront of buyers’ minds.
The Mortgage Bankers Association’s weekly survey shows that the adjusted Market Composite Index — a measure of mortgage loan application volume — decreased by 0.6%, following the week prior’s 0.7% slip.
Adjusted purchase applications slipped by 0.1%, while the unadjusted index was up 1% and 13% lower YOY.
Rates pulled back slightly, clocking in at 6.91% and the 15-year fixed rate fell to its lowest level in two months, 6.35%. But both are high enough to deter borrowers, according to MBA Vice President and Deputy Chief Economist Joel Kan.
“Elevated mortgage rates continued to weigh down on home buying. Purchase…
Mortgage rates inched up to a two-month high last week, putting pressure on hopeful spring homebuyers.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.94%, up from the week prior’s 6.90%. A year ago at this time, the 30-year FRM averaged 6.65%. This is the fourth consecutive week of increases.
The 15-year fixed fell, however, to 6.26% from 6.29%. A year ago, it averaged 5.89%.
“The recent boomerang in rates has dampened already tentative homebuyer momentum as we approach the spring, a historically busy season for homebuying,” said Sam Khater, Freddie Mac’s Chief Economist.
“While sales of newly built homes are trending in a positive direction, higher rates and elevated prices continue to pose affordability challenges…
Average mortgage rates jumped another 10 bps last week, edging closer to 8%.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.79%, up from 7.63%. A year ago at this time, the 30-year FRM averaged 7.08%.
The 15-year fixed-rate rose to 7.03% from 6.92%. A year ago, it averaged 6.36%.
“For the seventh week in a row, mortgage rates continued to climb toward eight percent, resulting in the longest consecutive rise since the Spring of 2022,” said Sam Khater, Freddie Mac’s Chief Economist.
“Rates have risen two full percentage points in 2023 alone and as we head into Halloween, the impacts may scare potential homebuyers. Purchase activity has slowed to a virtual standstill, affordability remains a…
Mortgage applications went up last week, benefitting from VA and FHA activity.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – increased by 0.9%, improving slightly after the week prior’s 4.4% decline. This week’s data includes an adjustment for the July 4th holiday.
Adjusted purchase applications rose by 2%, though the unadjusted index was down 19% from the week before and 26% lower YOY.
The bump in purchase activity is attributed to an increase in FHA and VA loan activity.
Both loan types offer major perks like low down payments and minimum closing costs to those who qualify, making them more attractive than conventional loans in the current…
By SCOTT KIMBLER Prices of single-family homes and rental costs continue to rise in the United States. But officials in China have been lowering interest rates and over the last few months, the Asian county has seen a drop in property price tags as well. Here in the U.S., many companies—including Bloomberg—are reacting by predicting a possible rally in 2022. Especially in the bond market. Bond prices have an inverse relationship with mortgage interest rates. As bond prices go up, mortgage interest rates go down and vice versa, according to an article on Rocket Mortgage’s website. “These sorts of events cause uncertainty,” said Elizabeth Rose of Mortgage 300 in Dallas, Texas. “Their (China) money is going to seek a better return, so we’ll potentially have more buying in the…
