Rates Dip Below 7%

Average mortgage rates dipped below 7% last week, giving buyers some breathing room as they navigate a high-priced housing market. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.94%, down from the week prior’s 7.02%. A year ago at this time, the 30-year FRM averaged 6.57%. The 15-year also fell, down from last week’s 6.24% to 6.38%. A year ago at this time it was 5.97%. “Spring homebuyers received an unexpected windfall this week, as mortgage rates fell below the 7% threshold for the first time in over a month,” said Sam Khater, Freddie Mac’s Chief Economist. “Although this week’s data on previously owned home sales showed a decline, total inventory of both new and existing…

Cooling Rates Boosts Refis Again

Mortgage applications rose again as rates slipped for a third week and refis rallied. The Mortgage Bankers Association’s weekly survey shows that the adjusted Market Composite Index — a measure of mortgage loan application volume — rose by 1.9%, adding to last week’s 0.5% increase. Adjusted purchase applications declined, however, by 1%, while the unadjusted index was down 2% and 11% lower YOY. Refinances once again drove the rising data this week. Rates declined to 7.01%, their lowest level in seven weeks. “Rates coming down from recent highs spurred some borrowers to act, with increases across both conventional and government refinance applications. VA refinances had a double-digit increase for the third consecutive week, although the current level of refinancing is…

Millennials, Gen Z Dominate Mortgage Market

More mortgages are being taken out by Millennial and Gen Z buyers than their older counterparts, a trend boosted by Zoomers’ thirst for homeownership. A new analysis from Redfin found that two in five — just shy of 40% — of new mortgages issued in 2023 went to homebuyers under 35, while an additional 26.5% went to buyers in the 35-44 age range. Middle-aged buyers between 45 and 54 grabbed just 16.1% of new mortgages, followed by 55-64-year-olds (10.8%) and 65-74-year-olds (5.4%). Younger buyers are dominating the mortgage market due to two major factors: prime homebuying years and the prevalence of cash among older buyers. Younger Americans are always primed to take these top spots because people tend to take…

Rates Cool For Second Week

Average mortgage rates declined for a second week as inflation moderated in the Fed’s preferred inflation indicator. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.02%, down from the week prior’s 7.09%. A year ago at this time, the 30-year FRM averaged 6.39%. The 15-year also fell, down from last week’s 6.38% to 6.28%. A year ago at this time it was 5.75%. “Mortgage rates decreased for the second consecutive week,” said Sam Khater, Freddie Mac’s Chief Economist. “Given the news that inflation eased slightly, the 10-year Treasury yield dipped, leading to lower mortgage rates. The decrease in rates, albeit small, may provide a bit more wiggle room in the budgets of prospective homebuyers.” Even a…

Zillow Launches “BuyAbility” Tool For Home Shoppers

Zillow Home Loans launched a new tool to help buyers gauge whether they can afford a home. Users input their income, credit score, and monthly budget. BuyAbility then offers buyers a real-time estimate of the price and monthly payment on a home they’re considering, personalized to their specific budget. It also gives users an idea of whether they could qualify for a loan on a specific property. The program operates on real-time mortgage rates from Zillow Home Loans, so users can check back regularly to see how their finances stack up as the market changes. “What many people don’t realize is that your mortgage rate is highly dependent on your credit score. The better your credit score, the lower the…

Rates Cool For The First Time In Five Weeks

Average mortgage rates declined for the first time in five weeks following cooling employment, a sign of easing inflation. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.09%, down from the week prior’s 7.22%. A year ago at this time, the 30-year FRM averaged 6.35%. This is the first reversal after a multi-week upward streak that sent rates to their highest point since November 2023. Those weeks of increases pushed the median monthly housing payment to a new record high of $2,894 during the four weeks ending May 5, up 14% YOY. Recent government data found that the U.S. economy added 175,000 in April, below expectations of 240,000, while unemployment increased to 3.9%. This was good…

Rates Fall 11 BPS, Applications Rally

Mortgage applications rallied last week as a slowing jobs market and positive indications from the Central Bank led to rates plummeting.  The Mortgage Bankers Association’s weekly survey shows that the adjusted Market Composite Index — a measure of mortgage loan application volume — rose by 2.6%, reversing last week’s 2.3% dip. Adjusted purchase applications increased by 2%, while the unadjusted index was up 2% and 17% lower YOY.  Rates declined for the first time since March, falling a full 11 bps to 7.18%. FHA loans drove the upward push, jumping 5%, as their rates plummeted to 6.92%. It’s been weeks since these rates were last below 7%. “First-time homebuyers account for roughly half of purchase loans, and the government lending…

Rates Up For Fifth Week Straight

Average mortgage rates increased for a fifth consecutive week just as spring buying season entered its peak months. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.22%, up from the week prior’s 7.17%. A year ago at this time, the 30-year FRM averaged 6.39%. The 15-year fixed rate increased from 6.44% to 6.47%. A year ago, it averaged 5.76%.  “On average, more than one-third of home sales for the entire year occur between March and June. With two months left of this historically busy period, potential homebuyers will likely not see relief from rising rates anytime soon,” said Sam Khater, Freddie Mac’s Chief Economist. Home sellers enjoy the biggest premiums in May as buyers take advantage…

Rates Shoot Up To 7.17%

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…

Applications Slip As Rates Reach 7.24%

Mortgage applications declined last week as rates soared to a new high for 2024. The Mortgage Bankers Association’s weekly survey shows that the adjusted Market Composite Index — a measure of mortgage loan application volume — fell by 2.7%. Adjusted purchase applications slipped by 1%, while the unadjusted index was up 0.2% and 15% lower YOY.  Homebuyers are facing the highest rates of the year, with the 30-year fixed rate jumping to 7.24%. This is their highest point since late 2023. “Purchase applications declined, as homebuyers delayed their purchase decisions due to strained affordability and low supply,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. Notably, the share of ARM applications shot up to 7.6% as buyers looked…