The 30-year fixed-rate mortgage rose sharply this week, averaging 3.05%. That marks the highest average since April, according to Freddie Mac’s mortgage market survey. “As inflationary pressure builds due to the ongoing pandemic and tightening monetary policy, we expect rates to continue a modest upswing,” says Sam Khater, Freddie Mac’s chief economist. “Historically speaking, rates are …
Category: Real Estate Tips
Jul 15
Squeeze on Renters
U.S. needs to put attention on rental, first-time buyer markets. Just as the for-sale market is starting to moderate, the rental market is heating up, which will put added pressure on people trying to save for their first home. Rental listings are attracting multiple offers, and apartment vacancy rates are approaching record lows. Consequently, rents …
Jul 15
Home Sales Jump as Buyers Aim to Beat Rising Rates
Existing-home sales rebounded in September as buyers may have felt a sense of pressure as mortgage rates started to inch up. Existing-home sales rose by 7% in September compared to August. All major regions of the country posted increases last month, the National Association of REALTORS® reported Thursday. “Some improvement in supply during prior months …
Jul 12
Freddie Initiative Adds Rent Payments to Credit Reports
Freddie Mac announced a new program to help renters build up their credit profiles and help make them more creditworthy. The initiative provides a means for owners or managers of multifamily properties to report on-time rental payments to the three major credit bureaus. The move aims to help a portion of the more than 45 …
Jul 12
How Will Higher Mortgage Rates Impact Home Buying?
Mortgage rates are expected to continue to rise after the Federal Reserve’s announcement Wednesday that it would taper its purchases of bonds and mortgage-backed securities. Will those anticipated higher rates price out more home buyers? While some would-be buyers may back off, analysts say, that would allow more persistent buyers to push through. Higher mortgage …
Jul 11
Mortgage Rates Post Temporary Drop
Offering slight relief to home buyers this week, the 30-year fixed-rate mortgage fell to a 3.09% average. But rates may rise again soon. Housing analysts largely expect mortgage rates to increase in the following months due to the Federal Reserve’s announcement this week that it will slowly reduce its monthly bond purchases. “While mortgage rates fell …
Jul 11
Mortgage Delinquencies at Lowest Level Since Pandemic
Homeowners are keeping up with their mortgage payments or arranging for loan modifications with their service providers. But housing analysts say that while the real estate market still faces pandemic-related fears about a wave of delinquencies, higher home prices are helping to alleviate some of those concerns. The overall delinquency rate fell to the lowest …
Jul 10
Mortgage Rates Dip Back
Home buyers and homeowners got another chance this week to lock in historically low rates. The 30-year fixed-rate mortgage averaged 2.98%, Freddie Mac reports. “Despite the re-acceleration of economic growth, the recent bond rally drove mortgage rates down for the second consecutive week,” says Sam Khater, Freddie Mac’s chief economist. “These low mortgage rates, combined with …
Jul 10
Fannie, Freddie Expected to Back Mortgages of Nearly $1 Million
The rapid rise in home prices over the past year is prompting Fannie Mae and Freddie Mac to revisit the maximum size of home mortgages they will back for 2022, possibly increasing to nearly $1 million in some areas, The Wall Street Journal reports. That would mark a sharp jump compared to this year: The …
Jul 09
How Buyers With VA Loans Can Better Compete
Military families with Veterans Affairs loans are losing out in the competitive housing market. Sellers are showing preference to buyers with more conventional financing or all-cash offers that they believe will offer a faster and smoother closing. Ninety-four percent of real estate professionals surveyed said sellers are most likely to accept an offer with conventional …
Jul 09
Mortgage Applications Climb, Even as Rates Rise
Rising mortgage rates don’t seem to be scaring off home buyers. Mortgage applications to purchase a home, viewed as a gauge of homebuying demand, increased 2% last week, the Mortgage Bankers Association reported Wednesday. Homebuilders are reporting stronger buyer traffic too after a brief lull earlier this fall, according to a recent builder sentiment report released …
Jul 08
Inflation Drives Mortgage Rates
The 30-year fixed-rate mortgage was back above 3% this week, and economists believe rates will continue to increase over the next few months. “The combination of rising inflation and consumer spending is driving mortgage rates higher,” says Sam Khater, Freddie Mac’s chief economist. “Shoppers looking to buy a home are fueling a strong demand while …
