Mortgage rates jumped again this week, a third consecutive increase, pushing sub-6% rates further out of reach.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage rate averaged 6.50%, up from 6.32% the week prior.
A year ago at this time, the 30-year FRM averaged 3.89%.
The 15-year fixed-rate mortgage rose from 5.76% to 5.51%. A year ago, it averaged 3.14%.
“The economy continues to show strength, and interest rates are repricing to account for the stronger than expected growth, tight labor market and the threat of sticky inflation,” said Sam Khater, Freddie Mac’s Chief Economist.
“Our research shows that rate dispersion increases as mortgage rates trend up. This means homebuyers can potentially save $600 to $1,200 annually…
Existing-home sales dropped for the twelfth straight month in January, down .07% from December and 36.9% YOY, though the declines are milder than in previous months.
Sales fell to a seasonally adjusted annual rate of 4.02 million from 4.00 million the month prior, according to the latest data from the National Association of Realtors. The South and West saw increased sales month-over-month, while the East and Midwest experienced declines.
All four regions saw annual declines.
“Home sales are bottoming out. Prices vary depending on a market’s affordability, with lower-priced regions witnessing modest growth and more expensive regions experiencing declines,” said NAR Chief Economist Lawrence Yun.
“Inventory remains low, but buyers are beginning to have better negotiating power. Homes sitting on…
Rent price growth is finally slowing, a positive sign for the housing market.
The median asking rent rose 2.4% YOY in January, the smallest increase since May 2012 and the lowest level in almost a year, Redfin reported.
Month-over-month, rents decreased by 1.9% and were down 5.4% from August’s peak.
Eleven U.S. metros saw rents dip, with both Phoenix and Oklahoma City seeing declines of more than 6%.
Though prices are retreating, rents are still 22.5% higher than in January 2020.
Redfin analysts say rents are cooling because of increasing supply and lack of demand. Inflation, economic uncertainty, and low household formation have stalled demand.
“We’re watching closely to see whether rents start falling year-over-year. That would be a welcome…
Pending home sales rose for the first time since May, breaking a six-month streak of declines, according to the National Association of Realtors.
The Pending Home Sales Index increased by 2.5% between November and December. Year-over-year it dropped by 33.8%, an improvement over November’s 37%.
All four regions saw pending sales fall YOY, but the South and West saw gains month-over-month.
“This recent low point in home sales activity is likely over,” said NAR Chief Economist Lawrence Yun. “Mortgage rates are the dominant factor driving home sales, and recent declines in rates are clearly helping to stabilize the market.”
Mortgage rates fell again last week to 6.13%, drawing some buyers back to the market.
Purchase loan applications increased again as…
Existing-home sales dropped for the eleventh straight month in December, down 1.5% from November and 34% YOY, according to the latest data from the National Association of Realtors. Sales fell to a seasonally adjusted annual rate of 4.02 million from 4.09 million the month prior. Three of the four major regions saw declines month-over-month, though the West’s sales were unchanged from November. All four regions saw annual declines. “December was another difficult month for buyers, who continue to face limited inventory and high mortgage rates,” said NAR Chief Economist Lawrence Yun. “However, expect sales to pick up again soon since mortgage rates have markedly declined after peaking late last year.” The 30-year fixed rate fell to 6.15% last week. Limited…
Existing-home sales dropped for the tenth straight month in November, down 7.7% from October and 35.4% YOY, according to the latest data from the National Association of Realtors. Sales fell to a seasonally adjusted annual rate of 4.09 million from 4.43 million the month prior. All four major regions saw declines. “In essence, the residential real estate market was frozen in November, resembling the sales activity seen during the COVID-19 economic lockdowns in 2020,” said NAR Chief Economist Lawrence Yun. “The principal factor was the rapid increase in mortgage rates, which hurt housing affordability and reduced incentives for homeowners to list their homes. Plus, available housing inventory remains near historic lows.” Inventory of unsold homes fell 6.6% from October to…
Mortgage interest rates dipped modestly again last week, the fifth consecutive week of decline, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey found that the 30-year fixed-rate mortgage averaged 6.31%, down from 6.33% the week prior. A year ago at this time, the 30-year FRM averaged 3.12 percent. The 15-year fixed-rate mortgage fell from 5.67% to 5.54%. A year ago, it averaged 2.34%. “Mortgage rates continued their downward trajectory this week, as softer inflation data and a modest shift in the Federal Reserve’s monetary policy reverberated through the economy,” said Sam Khater, Freddie Mac’s Chief Economist. “The good news for the housing market is that recent declines in rates have led to a stabilization in purchase demand. The bad…
Mortgage interest rates slipped again last week, marking the fourth consecutive week of decline, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey found that the 30-year fixed-rate mortgage averaged 6.33%, down from 6.49% the week prior. A year ago at this time, the 30-year FRM averaged 3.10 percent. The 15-year fixed-rate mortgage fell from 5.76% to 5.67%. A year ago, it averaged 2.38%. “Over the last four weeks, mortgage rates have declined three-quarters of a point, the largest decline since 2008,” said Sam Khater, Freddie Mac’s Chief Economist. “While the decline in rates has been large, homebuyer sentiment remains low with no major positive reaction in purchase demand to these lower rates.” Fannie Mae’s Home Purchase Sentiment Index broke…
Pending home sales fell for the fifth consecutive month in October, with three of the four regions seeing month-over-month declines, according to the National Association of Realtors. The Pending Home Sales Index dropped by 4.6% between September and October. Year-over-year it tanked by 37%. All four regions saw pending sales drop year-over-year. The Midwest, however, experienced a small uptick month-over-month, up by 3.3%. The Northeast PHSI fell by 4.3% from September, while the South fell 6.4% and the West saw a major decline of 11.3%. “October was a difficult month for home buyers as they faced 20-year-high mortgage rates. The West region, in particular, suffered from the combination of high interest rates and expensive home prices. Only the Midwest squeaked out…
Housing construction fell sharply in October, another miss for the rapidly constricting housing market. Starts for both single- and multi-family units dropped by 4.2% month-over-month to an annualized rate of 1.425 million units, according to data from the U.S. Census Bureau. Economists surveyed by MarketWatch had expected housing starts to register a 1.41 million rate after seasonal adjustment. Single-family starts fell by 6.1% from September, and single-family completions were down 8.3%. Building permits dipped 2.4%, an indicator of builders’ pessimism moving into winter, the slowest season for real estate. Permits offer an indication of how many homes will be built in the coming months. Housing is desperately needed, especially single-family units. Some experts say it could take a decade to…
