Economists from Fannie Mae’s Economic and Strategic Research (ESR) group anticipate that mortgage rates and home prices will increase in 2022, according to the group’s October 2021 Forecast commentary. The group cites inflation, tightening monetary policy, and continuing home stock shortages as drivers of higher prices in 2022. Fannie Mae’s October economic forecast predicts the 30-year fixed-rate mortgage will average 3.3% in 2022. It raised its prediction of 3.1% last month in anticipation of the Federal Reserve tapering its purchase of mortgage-backed securities, which is expected to start by the end of this year. “While we still view the supply chain disruptions and, to a lesser extent, labor market tightness as largely transitory, we now expect both to last even…
Good Morning! Today is Thursday, October 14. Interior Secretary Deb Haaland announced plans to line U.S. coastlines with wind farms. The Energy Information Administration predicts that home heating costs will go up because fuel prices are rising and fuel demand has increased over the previous winter. Democrats are still butting heads over what to cut from President Biden’s $3.5 trillion legislation, with Bernie Sanders saying Medicare benefits are non-negotiable. And in mortgage and housing news… Interest Rates Top 3%: Mortgage rates rose their highest point since April, hitting 3.05% over the past week, Freddie Mac reported.“Forbearance Cliff?”: Housing advocates have warned of a flood of forbearance filings. So far there’s no sign of it, and analysts don’t see it coming.Homeownership…
Good Morning! Today is Wednesday, October 13. IMF’s latest World Economic Outlook report listed Covid-19 vaccination as a top priority. Texas Gov. Gregg Abbott banned vaccine requirements for employees, including in hospitals. President Biden hasn’t nominated anyone to replace Randal Quarles as The Fed’s vice chairman. And in mortgage and housing news… Refis Down, Loans Up: Mortgage loan application volume ticked up 0.2% last week, as refinance applications fell 16% year-over-year, according to the MBA. MCAI Rises: Mortgage credit availability rose by 1.5% in September, according to MBA’s Mortgage Credit Availability Index. Delinquencies Leveling Out: Delinquencies are closing in on pre-pandemic levels, with serious delinquencies at their lowest level since May 2020, CoreLogic reported. Closing Costs: The average closing cost…
Mortgage loan application volume ticked up 0.2% last week, the Mortgage Bankers Association’s (MBA) weekly survey reported. The Market Composite Index, which measures application volume, rose 0.2% on an adjusted basis. On an unadjusted basis, they rose 0.4% from the week before. The Refinance Index fell 1% and was 16% lower than a year ago. The seasonally adjusted Purchase Index rose 2%, while the unadjusted Purchase Index rose 2% compared to the week before, down 10% from the previous year. “Mortgage rates reached their highest level since June 2021, but application activity changed little this week. An increase in home purchase applications offset a slight decline in refinances,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “The increase…
Good Morning! Today is Friday, October 8. Senate Republicans and Democrats reached a deal to temporarily extend the debt ceiling through December. Tokyo was hit by a 6.1 magnitude earthquake. Ireland signed onto a global agreement to set a minimum 15% corporate tax rate. And in mortgage and housing news… Black Knight: The number of plans in active forbearance fell by 11% since last Tuesday, the largest weekly decline in twelve months. HPSI Drops: Fannie Mae’s HPSI fell 1.2 points to 74.5 in September, as consumers continued to report that housing prices make it a bad time to buy a home. Housing Affordability Concerns Nationwide…: The latest Market Pulse report shows troubling trends in housing affordability. …And in California: A …
Good Morning! Today is Thursday, October 7. Facebook has slowed the release of new products for “reputational reviews.” GM wants to double its revenue by 2030 with battery-electric models and auto services. WHO approved the first Malaria vaccine. A federal judge issued a preliminary injunction blocking the Texas abortion ban. And in mortgage and housing news… Freddie: Mortgage rates fell slightly to 2.99% over the past week, Freddie Mac reported. Non-QM Tech: Angel Oak Mortgage Solutions is focusing on streamlining the process of closing non-QM loans so that it more closely resembles closing an agency loan. Averages Rise: The average homebuyer’s monthly mortgage payment rose $50 over the last six weeks. Hispanic Homeowners: Hispanic homeowners are driving the U.S. market.…
Mortgage rates fell slightly to 2.99% over the past week, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 2.99%. A year ago at this time, the 30-year FRM averaged 2.90 percent. “Mortgage rates continue to hover at around three percent again this week due to rising economic and financial market uncertainties,” said Sam Khater, Freddie Mac’s Chief Economist. “Unfortunately, with the expectation that both mortgage rates and home prices will continue to rise, competition remains high and housing affordability is declining.” Additional findings from Thursday’s report: 30-year fixed-rate mortgage averaged 2.99 percent with an average 0.7 point for the week ending October 7, 2021, down slightly from last week when it averaged 3.01…
Monthly mortgage payments for the average homebuyer rose $50 over the last six weeks. Redfin’s Housing Market Update reported that, despite concerns about affordability and price, homes are still selling fast, with about half being sold within two weeks. The $50 increase is a result of prices increasing 12% year-over-year. Homes are on average selling about 1% above asking price, though listings with price drops are increasing slightly. The number of homes sold above list price was up 13% year-over-year to 47%, but the smallest share since April. “Mortgage rates and asking prices are both on the rise, which translates to higher housing costs,” said Redfin Chief Economist Daryl Fairweather. “For now, mortgage rates are still hovering near 3%, and…
Huge equity increases for homeowners might not be enough to prevent foreclosures, according to Black Knight’s latest Mortgage Monitor Report. “An analysis of our McDash loan-level mortgage performance dataset back to 2007 shows that holding equity in one’s home might not be a blanket backstop to foreclosure activity,” said Black Knight Data & Analytics President Ben Graboske. He explained that for homeowners who were 120 or more days late, having high equity did not significantly change the likelihood of being recommended for foreclosure. While borrowers are considerably less likely to have their homes involuntarily liquidated if they have high equity, it does happen. Thirty percent of borrowers recommended for foreclosure with 40% equity stakes lost their homes. “What the data…
Good Morning! Today is Tuesday, October 5. Prices for West Texas Intermediate (WTI) crude oil shot to their highest levels since 2014. Facebook whistleblower Frances Haugen is testifying today before a Senate consumer protection panel. An international group of journalists released the “Pandora Papers,” more than 11.9 million documents showing celebrities and world leaders have used offshore tax havens to conceal their financial activities. And in mortgage and housing news… Forbearances Keeping Falling: Forbearances fell to 2.89%, continuing to trend down as relief plans expire, according to MBA’s latest survey. Debt Ceiling: President Joe Biden warned of ominous outcomes if efforts to raise the debt ceiling didn’t pass. Is that true? New Treasury Guidelines: Grantees that haven’t utilized at least…
