Mortgage rates in the U.S. have risen this year and are expected to continue doing so, but the conflict between Russia and Ukraine could throw a wild card into those projections. The 30-year fixed-rate mortgage climbed by 37 basis points over the first two full weeks of February, according to Freddie Mac. But last week, as …
Tag: News
May 24
Rates Drop
Mortgage rates fell again this week amid Russia’s invasion of Ukraine, sparking uncertainty across the globe including in U.S. markets. The 30-year fixed-rate mortgage dropped to a 3.76% average this week, Freddie Mac reports. “Geopolitical tensions caused U.S. Treasury yields to recede this week as investors moved to the safety of bonds, leading to a …
May 23
Jumbo Loans Reach 16-Year High
Hoping to take advantage of mortgage rates that are still historically low, more Americans are pushing into higher mortgage levels to afford more expensive homes. Lenders reported that 2021 marked the highest dollar volume in jumbo loan origination’s since 2005. Jumbo loans are mortgages that exceed the loan limits of Fannie Mae and Freddie Mac. Rates …
May 22
Rising Mortgage Rates Could Hamper Affordability
About 87.5 million households are unable to afford a median-priced new home, according to data from the National Association of Home Builders. If the new-home market prices were to rise by just $1,000, an additional 117,932 would be priced out. Mortgage rates also could further hamper household affordability. Many economists have predicted rates will rise …
May 21
Mortgage Delinquencies Drop to Record Low
The percentage of homes with mortgages that have late payments or are in foreclosure has dropped to the lowest seen on record in more than two decades, according to CoreLogic’s data dating back to 1999. The nation’s overall delinquency dropped to 3.4% at the end of 2021, with the majority of states posting a year-over-year …
May 20
Millennials Fear More Debt
Debt is a significant concern for millennials, and their worries may be so great that they are reluctant to buy a home. Nearly half of the millennials surveyed in January by Rocket Mortgage said they had delayed their decision to purchase a home due to fear of falling into debt. They also reported wanting to save more money for …
May 17
Housing Wealth Skewed to Rich Homeowners
Homeowners across the board are feeling richer from rising home prices, but the wealthiest have enjoyed the largest gain, according to a report from the National Association of REALTORS®. From 2010 to 2020, about 71% of the increase in housing wealth was in high-income households. Low- and middle-income households received a smaller share of housing wealth gains, …
May 16
Mortgage Rates Rise This Week
Following two weeks of declines, mortgage rates edged up, and economists say that consumers should expect further increases over the coming weeks. The Federal Reserve will likely raise its short-term interest rates at its meeting next week. While the Fed’s benchmark rates do not have a direct effect on mortgage rates, they do often influence …
May 15
CFPB Urges Lenders to Help Homeowners Avoid Foreclosure
As many borrowers continue to emerge from forbearance due to pandemic-related aid, a government watchdog is encouraging lenders to help them avoid a potential foreclosure wave. The Consumer Financial Protection Bureau says that as of March 1, more than 768,000 mortgage borrowers remain in active forbearance. Many of these consumers are at risk of foreclosure …
May 14
What Fed’s Rate Hike Means for Mortgage Borrowers
Consumers can expect higher borrowing costs across the board after the Federal Reserve announced it would raise its short-term benchmark rate for the first time in three years, financial analysts say. The Fed increased its target federal funds rate by a quarter of a percentage point Wednesday after it had been near zero. The central …
May 13
Mortgage Rates Continue to Climb
As mortgage rates rise, levels below 4% for the most popular 30-year fixed-rate mortgage are likely to remain in the rearview mirror. The 30-year fixed-rate mortgage averaged 4.16% this week, Freddie Mac reports. “The 30-year fixed-rate mortgage exceeded 4% for the first time since May of 2019,” says Sam Khater, Freddie Mac’s chief economist. “The …
May 10
More Homeowners Cashing In on Their Equity
Despite increasing equity, fewer homeowners are taking out home equity lines of credit. A March 18 report from ATTOM Data Solutions shows the number of HELOCs issued in the fourth quarter of 2021 was down 5.5% from the previous quarter, and 4.2% below the level issued in the fourth quarter of 2020. HELOC mortgage originations fell …
