The Luck Of The Irish: Average Rate Down, Daily Rate Below 6%

Prospective homebuyers may be benefiting from the luck of the Irish this week as mortgage rates fall. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage rate averaged 6.60%, down from 6.73% the week prior. A year ago at this time, the 30-year FRM averaged 4.16%. The 15-year fixed-rate mortgage dipped from 5.95% to 5.90%. A year ago, it averaged 3.39%. “Mortgage rates are down following an increase of more than half a percent over five consecutive weeks,” said Sam Khater, Freddie Mac’s Chief Economist.  “Turbulence in the financial markets is putting significant downward pressure on rates, which should benefit borrowers in the short term. During times of high mortgage rate volatility, homebuyers would greatly benefit from shopping…

Rates Up For A Second Week

Mortgage rates rose again this week, a second 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 6.32%, up from 6.12% the week prior. A year ago at this time, the 30-year FRM averaged 3.92%. The 15-year fixed-rate mortgage rose to 5.51% to 5.25%. A year ago, it averaged 3.15%. “The economy is showing signs of resilience, mainly due to consumer spending, and rates are increasing. Overall housing costs are also increasing and therefore impacting inflation, which continues to persist,” said Sam Khater, Freddie Mac’s Chief Economist. Shelter inflation in particular is on the rise. A blog post by Christian Zimmermann, Assistant Vice President of Research Information…

Are We Moving Toward A Buyer’s Market? Maybe

By CHUCK GREEN As the average mortgage rates decline and markets slow in parts of the country that were red-hot during the pandemic, we at The Mortgage Note decided to ask who is currently in favor during negotiations – the buyer or the seller? It seems that the current consensus on the ground is that there are benefits to being either. Aaron Kozikowski is a loan officer at Ross Mortgage Corporation. The company is headquartered in Troy, Michigan, and serves customers in Michigan, Kentucky, Florida, and Virginia. Kozikowski said “in this market, we’ve been seeing homes sit on the market longer, which allows buyers to take their time instead of having to put in an offer immediately. Sellers are also…

Average Mortgage Rate Moves Closer To 6%

As economists predicted, the 30-year fixed rate fell again this week, moving closer to 6%. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.09%, down from 6.13% the week prior. A year ago at this time, the 30-year FRM averaged 3.55%. The 15-year fixed-rate mortgage fell from 5.17% to 5.14%. A year ago, it averaged 2.77%. “Mortgage rates inched down again, with the 30-year fixed-rate down nearly a full point from November, when it peaked at just over seven percent,” said Sam Khater, Freddie Mac’s Chief Economist.  “According to Freddie Mac research, this one percentage point reduction in rates can allow as many as three million more mortgage-ready consumers to qualify and afford a $400,000 loan,…

Mortgage Applications Sink To Lowest In 25 Years As Rates Creep Up

As the average 30-year fixed-rate mortgage rate rose to 6.48% from 6.42% in the last week of 2022, mortgage applications sunk to a 25-year low, according to officials at Freddie Mac.  “Mortgage application activity sunk to a quarter-century low this week as high mortgage rates continue to weaken the housing market,” said Sam Khater, Freddie Mac’s Chief Economist. “While mortgage market activity has significantly shrunk over the last year, inflationary pressures are easing and should lead to lower mortgage rates in 2023.” Khater continued, “Homebuyers are waiting for rates to decrease more significantly, and when they do, a strong job market and a large demographic tailwind of Millennial renters will provide support to the purchase market. Moreover, if rates continue…

Home Sales See Biggest YOY Drop On Record

Home sales plummeted by 35% in November but there are early signs that demand may be picking up. Redfin’s latest data found that home sales dropped 35.1% YOY in November on a seasonally-adjusted basis. High buying costs kept both buyers and sellers on the sidelines. “Rates have declined significantly over the past six weeks, which is helpful for potential homebuyers, but new data indicates homeowners are hesitant to list their homes,” Sam Khater, Freddie Mac’s Chief Economist, noted. “Many of those homeowners are carefully weighing their options as more than two-thirds of current homeowners have a fixed mortgage rate of below four percent.” Sellers have hesitated to put their homes on the market, knowing they’ll have to buy a new…

Rates Dip Under 7%, But “Serene Stretch” Likely To End In Coming Days

Mortgage interest rates softened last week after shooting above 7%, falling back to 6.95%, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey found that the 30-year fixed-rate mortgage averaged 6.95%, down from 7.08% the week prior. A year ago at this time, the 30-year FRM averaged 3.09%. “Mortgage rates continue to hover around 7%, as the dynamics of a once-hot housing market have faded considerably,” said Sam Khater, Freddie Mac’s Chief Economist.  “Unsure buyers navigating an unpredictable landscape keep demand declining while other potential buyers remain sidelined from an affordability standpoint. Yesterday’s interest rate hike by the Federal Reserve will certainly inject additional lead into the heels of the housing market.” The Federal Reserve approved another 75 BPS interest…

Rates And Inflation Both Up Ahead of FOMC Meeting

Mortgage rates exceeded 6% last week for the first time since 2008, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 6.02%, up from 5.89% last week. A year ago at this time, the 30-year FRM averaged 2.86%. “Mortgage rates continued to rise alongside hotter-than-expected inflation numbers this week, exceeding six percent for the first time since late 2008,” said Sam Khater, Freddie Mac’s Chief Economist.  Inflation rose more than expected in August, up 8.3% YOY, though prices are down some from record highs earlier this year. Analysts had anticipated an 8.1% YOY increase. “Today’s evidence of a peak in US CPI might be welcome but the figure of 8.3% was…

Consumer Sentiment On Housing Hits Lowest Level Since May 2020

By KIMBERLEY HAAS Consumers across the country continue to report difficult homebuying conditions due to inflation, higher mortgage rates, and home price appreciation. Doug Duncan, Fannie Mae Senior Vice President and Chief Economist, says that in April their Home Purchase Sentiment Index fell to its lowest level since the spring of 2020. The percentage of respondents who said it is a good time to buy a home decreased from 24% to 19%, while the percentage who said it is a bad time to buy increased from 73% to 76%. As a result, the net share of those who say it is a good time to buy decreased 8 percentage points month over month, according to the survey. “The current lack…

Rates Shoot Back Up After One-Week Reversal

Mortgage rates shot back up after a one-week reversal of their upward trend, averaging 5.29% last week, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 5.29%, up from 5% last week. A year ago at this time, the 30-year FRM averaged 2.96%. “Mortgage rates resumed their climb this week as the 30-year fixed reached its highest point since 2009,” said Sam Khater, Freddie Mac’s Chief Economist. “While housing affordability and inflationary pressures pose challenges for potential buyers, house price growth will continue but is expected to decelerate in the coming months.” Affordability dropped in Q1 2022, with monthly mortgage payments on the typical home rising to $1,383 (+30% YOY). Homeowners…