Odeta Kushi

Rates Drop By 10+ BPS As Prices Surge

Posted on by TMN Editor
Mortgage rates retreated last week, dropping more than ten basis points in a one-week period. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.78%, down from 6.96% the week prior. A year ago at this time, the 30-year FRM averaged 5.54%. The 15-year fixed-rate mortgage reversed course as well, down a whopping 24 bps from 6.30% to 6.06%. A year ago, it averaged 4.75%. “As inflation slows, mortgage rates decreased this week,” said Sam Khater, Freddie Mac’s Chief Economist. “Still, the ongoing shortage of previously owned homes for sale has been a detriment to homebuyers looking to take advantage of declining rates.” Existing-home sales saw their most sluggish levels in 14 years in June. At the…

Analysts Respond To FOMC Tapering Announcement

Posted on by TMN Editor
The Federal Open Market Committee (FOMC) announced it will double the pace of tapering its pandemic asset purchase program, and signaled it would likely raise interest rates next year. This would be its first rate hike since March 2020. The move comes in response to concerns about rising inflation. At its November meeting, the FOMC said it would reduce its purchases of Treasury securities from $80 billion to $70 billion and from $40 billion to $35 billion for mortgage-backed securities. Since then, inflation has reached a 39-year high and become a major sticking point for the American public. As to how this announcement affects the mortgage and real estate industries, analyst response has focused on rising costs. “Increasing mortgage rates…