This year was one of the worst on record for affordability. But with the market at an all-time low, the only move now is up, according to a new analysis by Redfin.
A homebuyer with the median U.S. income needed to spend 41% of their earnings on monthly home costs in 2023, a record high in Redfin’s data (dating to 2012) and fully 10% more than just two years ago.
In some hot markets, like California’s Anaheim and San Francisco, that number jumps to more than 80%.
But Redfin expects mortgage rates and home prices to both cool in 2024, paving the way for more Americans to buy their dream home.
“A perfect storm of inflation, high prices, soaring mortgage…
The 30-year fixed rate mortgage fell nearly 20 bps in one week, almost hitting 7%.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.03%, down from the week prior’s 7.22%. A year ago at this time, the 30-year FRM averaged 6.33%.
It is now down nearly 80 bps in the last six weeks.
The 15-year fixed rate fell to 6.29%% from 6.56%. A year ago, it averaged 5.67%.
Mortgage applications overall increased by nearly 3% last week as refinances saw their biggest gains in two months thanks to cooling rates.
But purchase demand reversed course, slipping slightly.
“When rates began to rapidly drop, purchase applications rebounded initially, but this improvement in demand diminished in the last…
Mortgage applications increased again last week as cooling inflation and Fed rate expectations pushed mortgage rates down.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – increased by 2.8%, up from the week prior’s modest +0.3%.
Adjusted purchase applications fell by 0.3%, while the unadjusted index rose 35% from the week before and was 17% lower YOY.
Falling rates drove the jump, with the 30-year fixed-rate falling to 7.17%, its lowest since August 2023.
MBA Vice President and Deputy Chief Economist Joel Kan pinned the rate cooldown on disinflation and the dwindling possibility of further Fed rate hikes.
The FOMC will meet on December 12-13 and Wall Street…
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…
Mortgage applications rose for yet another week, though the increase was mild compared to previous weeks’ jumps.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – increased by a modest 0.3%.
Adjusted purchase applications rose by 5%, while the unadjusted index slipped 31% from the week before and was 19% lower YOY. An adjustment for Thanksgiving is included in the data.
Mortgage rates slipped to 7.37%, the fourth decline in five weeks and the lowest level in 10 weeks.
“There was a slight increase in applications overall, driven by a five percent increase in purchase applications, but refinance applications decreased over the week,” said Joel Kan, MBA’s Vice…
Mortgage rates slipped for a third consecutive week as Wall Street rallied around positive inflation data.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.44%, a modest decline from the week prior’s 7.5%. A year ago at this time, the 30-year FRM averaged 6.61%.
The 15-year fixed rate fell from 6.81%% to 6.76%. A year ago, it averaged 5.98%.
“For the third straight week, mortgage rates trended down, as new data indicates that inflationary pressures are receding,” said Sam Khater, Freddie Mac’s Chief Economist. “The combination of continued economic strength, lower inflation, and lower mortgage rates should likely bring more potential homebuyers into the market.”
The consumer price index for October dipped by 0.1% month-over-month and…
Mortgage applications jumped last week as rates retreated, sending buyers running to complete deals.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – increased by 2.8%.
Adjusted purchase applications rose by 3%, while the unadjusted index slipped 0.3% from the week before and was 12% lower YOY.
Rates held steady at 7.61% after seeing their largest single-week drop in more than a year the week prior, down 30 bps in three weeks.
But while buyers mid-sale benefitted from the cooldown, rates have not dropped enough to entice many off the sidelines.
“Both purchase and refinance applications increased to the highest weekly pace in five weeks but remain at…
Treasury yields sank for a second week, pushing mortgage rates down in their largest single-week decline since last November.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.5%, down a full quarter point from 7.76%. A year ago at this time, the 30-year FRM averaged 7.08%.
The 15-year fixed rate fell from 7.03% to 6.81%. A year ago, it averaged 6.38%.
But while this is undoubtedly good news for homebuyers, market headwinds continue to depress demand.
“Incoming data show that household debt continues to rise, primarily due to mortgage, credit card, and student loan balances,” said Sam Khater, Freddie Mac’s Chief Economist. “Many consumers are feeling strained by the high cost of living, so unless mortgage…
In a year of housing market horrors for buyers, now may be the best time to buy, according to a new analysis from Redfin.
In the last three weeks, rates have sunk from 8% to 7.4%, giving buyers breathing room after a succession of rate increases. Just last week, the 30-year fixed mortgage rate dropped by 25 bps, the largest single-week decline since July 2022.
At the same time, though inventory remains low it is on the rise. New listings were up 1.5% YOY at the beginning of November, only the second stock increase in more than a year.
Plus, with demand slowing as rates priced more buyers out of the market, the number of sellers cutting prices is on…
U.S. mortgage rates took their biggest one-week drop in more than a year last week.
The Mortgage Bankers Association reported the contract rate on a 30-year fixed mortgage fell 25 basis points to 7.61%. That’s the lowest level since the end of September.
Market watchers point to the Federal Reserve’s decision last week to hold interest rates steady as one reason for the slide in mortgage rates, adding to hopes the housing sector will improve in the coming months.
The MBA also reported mortgage applications for home sales rose 3%. Mortgage brokers say it’s no surprise that with a tight market and plenty of frustrated would-be buyers, there was a surge in demand.
Refinancing activity ticked up as the refinance…
