As the country approaches D-Day for defaulting on its debts, analysts are breaking down the impact of such a scenario on the economy.
The Treasury Department said in January that the U.S. was close to its $31.4 trillion borrowing limit. As a result, it announced “extraordinary measures” to keep the government’s funding above water through spring.
Treasury Secretary Janet Yellen and other experts are now saying the U.S. could default on its debt as early as June in a worst-case scenario.
Dramatic as the news may be, it’s highly unlikely that Congress would actually allow a breach of the debt ceiling.
“While we have a highly polarized Congress negotiating, it isn’t in either party’s interest to let a default happen,”…
By CHUCK GREEN
Industry leaders and economists are sharing their opinions about changes to fees for loans backed by Fannie Mae and Freddie Mac after reports that homebuyers with good credit scores and substantial down payments will pay more so fees for borrowers limited by income or wealth can be reduced.
The changes to the loan-level price adjustment matrix by officials at the Federal Housing Finance Agency went into effect on May 1 and are the target of two bills in Congress.
Rep. Stephanie Bice of Oklahoma, vice chairwoman of the Republican Main Street Caucus, introduced the Free Market Mortgage Act. She said the changes will force homebuyers with good credit to pay more for their mortgages to subsidize loans…
Home sale prices went up last quarter due to high competition in budget-friendly markets.
The National Association of Realtors’ latest quarterly report found that single-family existing-home sales prices increased in 152 of 221 metros — about 70% — in Q1 2023.
The monthly mortgage payment on a typical existing single-family home with a 20% down payment was $1,859, up 33% YOY.
The divide in demand between affordable and expensive markets is the main factor in these numbers. High-end markets with the most expensive homes are seeing declines, while cheaper areas are seeing intense competition for the few affordable homes for sale, pushing prices up.
“Generally speaking, home prices are lower in expensive markets and higher in affordable markets, implying greater…
Zoomers are approaching homeownership from a different perspective than past generations, focusing more on their pets than their romantic partners.
A recent Zillow survey found that Gen Z adults consider a fenced backyard more essential than a double sink in the primary bathroom, a home office for their partner, or a kids’ playroom.
When asked whether it was more important to have a pet-friendly home or a kid-friendly home, features, 10% more Zoomers chose the former. At the same time, almost a full quarter of Gen Z pet owners would move if their home wasn’t working for their pets. Only 12% said the same about their partners’ preferences.
“Young adults may be delaying parenthood, but they’re not putting off pet…
The average mortgage rate ticked down again this week, but waning banking sector concerns have rates seesawing.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.32%, down from 6.42% the week prior.
A year ago at this time, the 30-year FRM averaged 4.67%.
The 15-year fixed-rate mortgage dipped from 5.68% to 5.56%. A year ago, it averaged 3.83%.
“Economic uncertainty continues to bring mortgage rates down,” said Sam Khater, Freddie Mac’s Chief Economist.
“Over the last several weeks, declining rates have brought borrowers back to the market but, as the spring homebuying season gets underway, low inventory remains a key challenge for prospective buyers.”
Some buyers returned to the market early in order to snag a…
Homebuyers lucked out again this week as rates continued sliding, falling by nearly twenty basis points.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage rate averaged 6.42%, down from 6.60% the week prior.
A year ago at this time, the 30-year FRM averaged 4.42%.
The 15-year fixed-rate mortgage dipped from 5.90% to 5.68%. A year ago, it averaged 3.63%.
“Mortgage rates continued to slide down as financial market concerns came to the fore over the last two weeks,” said Sam Khater, Freddie Mac’s Chief Economist.
“However, on the homebuyer front, the news is more positive with improved purchase demand and stabilizing home prices. If mortgage rates continue to slide over the next few weeks, look for a…
Existing-home sales exploded in February, breaking a full-year downward streak thanks to retreating interest rates.
Sales increased by 14.5% to a seasonally adjusted annual rate of 4.48 million from 4.02 million the month prior, according to the latest data from the National Association of Realtors.
It’s the largest monthly percentage increase since July 2020.
All four major regions saw sales increase month-over-month and decrease year-over-year. At the same time, the median price for an existing home slid YOY alongside rates, down 0.2% to $363,000. This is the first YOY decline in 131 consecutive months, the longest streak on record.
“Conscious of changing mortgage rates, homebuyers are taking advantage of any rate declines. Moreover, we’re seeing stronger sales gains in areas…
By PATRICK LAVERY
Speculation about what actions leaders at the Federal Reserve will take at their meeting starting Tuesday has been building for weeks, and opinions over the right course of action are varied.
Should they stay the course, steadily raising interest rates to try to continue to curb inflation? Should they be more aggressive? Or should they pull back, letting the United States slide into a recession?
These questions have been swirling for months but the sudden collapse of Silicon Valley Bank and New York-based Signature Bank changed the dynamics of the conversations seemingly overnight.
Nadia Evangelou, senior economist and director of real estate research for the National Association of Realtors, said prior to the bank collapses, she could…
By KIMBERLEY HAAS
Leaders at Rocket Pro TPO are extending their promotion on 30-year conventional purchase loans at or under $200,000 as they gear up to be more competitive in that market this year.
During an IGNITE: Live! webinar on Monday, Executive Vice President Mike Fawaz announced that they are continuing their 37.5 BPS credit on these loans.
Fawaz said they want to make sure that they listen to their broker partners and their feedback.
“This is something we have been extending every single month since December. And the feedback continues to be incredible and positive and broker partners want it,” Fawaz said.
Fawaz explained the philosophy behind the promotion.
“When you think about it, we are very competitive when…
The 2023 spring homebuying season may be cooler than in previous red-hot years, but competition will still be plentiful.
According to a new Zillow analysis, ongoing stock shortages mean that even as fewer buyers enter the market this year, those who do will be competing for many of the same homes.
Affordable markets like Cincinnati and St. Louis are likely to see the most competition, especially on lower-priced homes.
The number of homes for sale now is equal to the number in 2021, which set a record for scarcity at the time. So while homes may sit on the market a little longer and sellers may have to make concessions, the chances of selling a home are still good, so…
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