Interest rates are always an issue when purchasing a home. This year, they may be an even bigger issue. “Mortgage brokers are telling buyers that rates are rising, and if they are planning on buying, they need to be doing it as soon as possible before rates go up,” says Linda McCoy, board president of National Association of Mortgage Brokers (NAMB). If you finance the purchase of a property, as opposed to paying for all of it with cash, a mortgage interest rate is what it costs you per month to finance your home/property. “Your interest rate is effectively the lender’s compensation for letting you use its money to purchase your property,” says Aly J. Yale in an article for…
Mortgage rates flattened out after weeks of steadily rising, averaging 3.55% last week, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 3.55%. A year ago at this time, the 30-year FRM averaged 2.73%. “Following a month-long rise, mortgage rates effectively stayed flat this week. Recent rate increases have yet to significantly impact purchase demand, as history demonstrates that potential homebuyers who are on the fence will often enter the market at the start of rate increase cycles,” said Sam Khater, Freddie Mac’s Chief Economist. “We do expect rates to continue to increase but at a more gradual pace. Therefore, a fair number of current homeowners could continue to benefit from…
Good Morning! Today is Thursday, January 27. Supreme Court Justice Stephen Breyer is retiring. Neil Young is removing his music from Spotify, saying it has become “the home of life-threatening Covid misinformation.” The U.S. rejected Russia’s demands that NATO retreat from Eastern Europe and bar Ukraine from ever joining, but offered other areas of negotiation. The Mortgage Note Reports Rate Increases Into 2023: At least one economist says the Federal Reserve is already behind the inflation curve, and the mortgage industry should expect interest rate increases into 2023. Down, Up, Then Back Down: Mortgage loan application volume fell 7.1% from last week, with refis tumbling 13%, MBA reported. “Appropriate Pricing Policies”: CHLA sent a letter to FHFA Acting Director Sandra…
At least one economist says the Federal Reserve is already behind the inflation curve, and the mortgage industry should expect interest rate increases into 2023. “Short-term interest rates will be pushed up by the Federal Reserve [in 2022], as the Fed announced,” writes Dr. Bill Conerly in Forbes. “They will raise rates in quarter-point increments three or four times this year. They will still be behind the curve, most likely, and will raise short rates more aggressively in 2023.” Predicting future Fed moves isn’t easy — not even for the Fed itself. Last summer, the Federal Reserve said it wouldn’t raise rates at all until 2023. That proved to be untrue. In a video news conference after their two-day meeting…
The Community Home Lenders Association (CHLA) sent a letter to FHFA Acting Director Sandra Thompson asking for adjustments to upcoming Fannie Mae and Freddie Mac fee increases. On January 5, the Federal Housing Finance Agency (FHFA) announced “targeted increases” on upfront fees for certain high balance loans and second home loans, to go into effect April 1. Its stated goal is to “minimize market and pipeline disruption.” “These targeted pricing changes will allow the Enterprises to better achieve their mission of facilitating equitable and sustainable access to homeownership, while improving their regulatory capital position over time,” Thompson said in a press release. “Today’s action represents another step FHFA is taking to strengthen the Enterprises’ safety and soundness and to ensure…
Mortgage loan application volume fell 7.1% from last week, the Mortgage Bankers Association’s (MBA) weekly survey reported. The adjusted Market Composite Index, a measure of mortgage loan application volume, decreased 7.1%. The adjusted purchase index fell 2%, while the unadjusted purchase index fell 5% and was 11% lower YOY. The refinance index fell 13% and was down 53% YOY. Refinances made up 55.8% of total applications. Mortgage rates continue to climb, with the 30-year fixed-rate reaching its highest level since March 2020 last week, 77 basis points above the same time last year. “Unsurprisingly, borrower demand for refinances subsided, with applications falling for the fourth straight week. After almost two years of lower rates, there are not many borrowers left…
Good Morning! Today is Wednesday, January 26. Federal prosecutors are reviewing fake Electoral College certifications that declared former President Donald Trump the winner of states that he lost. Former Boston Red Sox star David Ortiz has been elected to the National Baseball Hall of Fame. The Mortgage Note Reports House Price Index: House prices rose 1.1% nationwide in November, according to the latest FHFA House Price Index. HUNT COO: HUNT Mortgage Corporation has hired Bindiya Jain of Shrewsbury, Massachusetts as its Chief Operating Officer. And in other mortgage and housing news… The Fate Of Zillow: Zillow’s near-term fate “hinges upon a delicate market balance the likes of which we’ve never quite seen,” Laura Forman argues in the Wall Street Journal.…
Home prices across the country rose 1.1% month-over-month in November and 17.5% year-over-year, according to the latest Federal Housing Finance Agency House Price Index (FHFA HPI®). For the nine census divisions, seasonally adjusted monthly house price changes ranged from +0.5 percent in the West North Central division to +1.9 percent in the South Atlantic division. The 12-month changes ranged from +13.3 percent in the West North Central division to +22.8 percent in the Mountain division. “House price levels remained elevated in November, but the data indicate a pivot,” said Will Doerner, Ph.D., Supervisory Economist in FHFA’s Division of Research and Statistics. “The last four months reflect average gains of 1.0 percentage point, down from the larger prior changes during the…
HUNT Mortgage Corporation has hired Bindiya Jain as Chief Operating Officer, the company announced. As COO, Jain will be responsible for increasing overall revenue opportunities, building profitability, and ensuring efficiency within HUNT’s residential brokerage. She will report to president Linda Mallia regarding the overall operations of the company. “Our organization is built on a growth mindset. This is not solely based on volume, but also on the advancement of a diverse and inclusive team achieving its goals,” said Mallia. “Bindiya shares our vision for growth and will be instrumental in helping us achieve our fullest potential.” Jain is a native of New Delhi, India, where she graduated from Dehli University. She obtained her MBA from Anderson University in Indiana and attended…
Good Morning! Today is Tuesday, January 25. President Biden was caught cursing about a Fox News reporter on a hot mic. Stocks continued a selloff at the opening bell this morning as investors worry over Fed policies and global politics. The Supreme Court will hear cases challenging affirmative action, focused on Harvard and the University of North Carolina. In mortgage and housing news… The Mortgage Note Reports Victims of Mortgage Ponzi Scheme Can Seek Compensation: People who were victimized by what investigators have called the biggest Ponzi scheme in New Hampshire history can apply for compensation. Big Cities Making A Comeback: More expensive, populated housing markets appeared on the quarterly Wall Street Journal/Realtor.com® Emerging Housing Markets Index, which could signal…
