Average mortgage rates surpassed 7% for the first time in 2024 last week.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.1%, jumping from the week prior’s 6.88%. A year ago at this time, the 30-year FRM averaged 6.39%.
The daily rate shot up to 7.5% in the middle of this week.
The 15-year fixed rate increased from 6.16% to 6.39%. A year ago, it averaged 5.76%.
“As rates trend higher, potential homebuyers are deciding whether to buy before rates rise even more or hold off in hopes of decreases later in the year. Last week, purchase applications rose modestly, but it remains unclear how many homebuyers can withstand increasing rates in the future,” said Sam…
The number of renters who believe they’ll never afford a home has skyrocketed in the last year as rates rose and stock shortages lifted home prices out of their late-2023 spiral.
A recent Redfin survey found that close to 38% of renters believe they are unlikely to become homeowners, up from 27% at the same time last year.
Lack of affordability is the most cited reason for their pessimism, with almost half of respondents saying houses are simply too expensive.
Trouble saving for down payments (35%), inability to afford mortgage payments (33%) and high mortgage rates (32%) accounted for the rest. Just 14% said they don’t want to own a home.
The combination of price appreciation and near-7% rates has…
Mortgage rates slipped for a fifth consecutive week, spurring a boost in purchase activity.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.22%, down from the week prior’s 7.29%. A year ago at this time, the 30-year FRM averaged 6.49%.
The 15-year fixed rate fell to 6.56%% from 6.67%. A year ago, it averaged 5.76%.
“Market sentiment has significantly shifted over the last month, leading to a continued decline in mortgage rates. The current trajectory of rates is an encouraging development for potential homebuyers, with purchase application activity recently rising to the same level as mid-September when rates were similar to today’s levels,” said Sam Khater, Freddie Mac’s Chief Economist.
Purchase applications increased by 5% last…
Pending home sales were up in July, marking a second month of increases, but there is still lots of room for improvement.
NAR’s Pending Home Sales Index rose by 0.9% to a reading of 77.6 in July. An index of 100 is equal to the level of contract activity in 2001.
“The small gain in contract signings shows the potential for further increases in light of the fact that many people have lost out on multiple homebuying offers,” said NAR Chief Economist Lawrence Yun.
“Jobs are being added and, thereby, enlarging the pool of prospective home buyers. However, rising mortgage rates and limited inventory have temporarily hindered the possibility of buying for many.”
Only seven of the nation’s 200 largest…
Rate lock volumes sank in July as mortgage rates exceeded 7% for the first time since November 2022.
Black Knight’s Optimal Blue Mortgage Market Indices for July found that 30-year conforming rates cross 7% early in the month before bouncing down and up again, ultimately ending the month at 6.88%.
In line with rising rates, lock volumes dipped 7% from June.
“While they moved around a bit in July, there was no escaping the fact that conforming 30-year rates topped 7% in July for the first time since they spiked last fall,” said Andy Walden, vice president of enterprise research and strategy at Black Knight.
“On both a practical and psychological level, that put further downward pressure on mortgage demand.…
Just days ago, Inlanta Mortgage seemed poised to go under due to declining homebuyer demand. The Wisconsin-based company operates in 27 states. Leaders there announced plans to close next year, starting the winding down process immediately. The company cited “the dramatic and unanticipated drop in mortgage product demand” for its demise. In a letter to Wisconsin’s Department of Workforce Development, it said 62 employees would be let go. Some of those employees may now be saved from termination by Guild Mortgage, which announced it is acquiring Inlanta. Terms of the acquisition were not disclosed. In a press release, Guild CEO Mary Ann McGarry said the decision aligns with Guild’s expansion mindset. “Inlanta is a natural fit because of its almost…
This Halloween, mortgage brokers have more to fear than your typical ghosts and ghouls. Some economists say the market is rebalancing, while others say the housing slowdown is more severe than a correction. “Last year, sellers could seemingly list their home at any price and see multiple offers roll in above list price within days,” said Senior Economist Nicole Bachaud of Zillow. “Now, buyers have some negotiating power, and sellers are under pressure. Buyers are still out there and willing to buy when they find the right home at the right price, which will provide a floor for the price declines we are currently seeing.” Either way, mortgage brokers are facing a seriously spooky situation: dwindling home sales, decades-high interest rates,…
Mortgage Lenders lost money on every loan originated for the first time since 2018 in Q2, according to the Mortgage Bankers Association’s (MBA) Quarterly Mortgage Bankers Performance Report. Independent mortgage banks and mortgage subsidiaries of chartered banks lost an average of $82 on each loan they originated in the second quarter of 2022, down from gains of $223 per loan in Q1. The average pre-tax production loss was 5 bps, a complete turnaround from Q1’s average net production profit of 5 bps. Average production volume totaled $705 million per company, down from $808 million in Q1. Only three other quarters in the survey’s history saw net production losses: Q1 2014, Q1 2018, and Q4 2018. “The second quarter of 2022…
Fintech company nCino, Inc. is expanding its mortgage market reach by acquiring SimpleNexus for $1.2 billion in stocks and cash. SimpleNexus, a digital mortgage platform, was involved in more than one in seven mortgage originations in the US during the first nine months of 2021. It provides services for more than 300 mortgage companies and 41,000 loan originators across the country. “Just as nCino has transformed the process for commercial, small business and retail lending, treasury management and account opening, SimpleNexus has streamlined the many stages of the homeownership process into a single, seamless journey,” said Pierre Naudé, Chief Executive Officer of nCino. “Their innovative solution and deep subject matter expertise in consumer front-end technology will extend our capabilities to…
