Mortgage rates stayed low for the final week of 2021, but housing analysts largely predict rates will be heading up in the coming weeks. “Mortgage rates have been effectively been moving sideways despite the increase in new COVID cases,” says Sam Khater, Freddie Mac’s chief economist. “This is because incoming economic data suggests that the …
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Jun 25
Higher Mortgage Loan Limits Take Effect
Conforming loan limits for mortgages backed by Fannie Mae and Freddie Mac have jumped in most of the country to $647,200, an increase of $98,950 from 2021’s limit of $548,250. The higher levels are in response to rising home prices over the past year. The new loan limits took effect Jan. 1. The Federal Housing …
Jun 24
2021 saw Mortgage Borrowing at Record High
The hot housing market fueled an all-time record for the amount Americans borrowed to buy homes in 2021. Mortgage lenders issued $1.61 trillion in purchase loans last year, according to preliminary data from the Mortgage Bankers Association. That tops a previous record set in 2005 of $1.51 trillion. Home prices have grown by double digits …
Jun 21
Mortgage Rates Higher Than at Any Point in 2021
Mortgage rates have taken a big leap at the start of the new year. In the first week of 2022, the 30-year fixed-rate mortgage jumped nearly 60 basis points higher than a year earlier, averaging 3.22% this week, Freddie Mac reports. “Mortgage rates increased during the first week of 2022 to the highest level since …
Jun 20
How Jobs, Inflation May Influence Borrowing Costs
The real estate industry is closely watching the so-called “Great Resignation,” a movement that started with the pandemic in which people are leaving the workforce in historically higher numbers. As more Americans quit their jobs, will they set out for greener pastures by moving to a new location? The trend is only growing: In November, …
Jun 19
Rising Rates Pressure Buyers
House hunters are watching mortgage rates closely. After all, every increase could have an impact on affordability, particularly given escalating home prices. Nearly half—47%—of home buyers recently surveyed say they would feel more pressure to buy a home if mortgage rates passed 3.5%, according to a new consumer survey conducted by Redfin. Mortgage rates are …
Jun 18
Buyers Rushing to Lock In Mortgages
he housing market doesn’t appear to be following its typical seasonal slowdown this winter. Home buyers appeared in a rush last week, with economists crediting rising mortgage rates. Mortgage rates moved to their highest level in more than a year, the Mortgage Bankers Association reports. Buyers who are already facing higher home prices are watching …
Jun 18
Mortgage Rates Post Big Jump This Week
Inflation continues to press on mortgage rates. The 30-year fixed-rate mortgage averaged 3.45% this week, up from last week’s 3.22% average, Freddie Mac reports. “Mortgage rates rose across all mortgage loan types, with the 30-year fixed-rate mortgage increasing by almost a quarter of a percent from last week,” says Sam Khater, Freddie Mac’s chief economist. …
Jun 17
Buyers May Find Opening With Mortgage Credit
Mortgage credit availability loosened in December, even as house hunters continue to face higher prices that are hampering affordability, according to the Mortgage Bankers Association. MBA’s Mortgage Credit Availability Index posted its highest reading since May 2021. However, credit availability is still 30% below pre-pandemic levels. “Credit supply increased in December, with growth across both …
Jun 14
Average Size of Mortgage Loan Hits Record High
The average dollar amount of a mortgage purchase application hit a record of $418,500 as higher home prices force buyers to borrow more, the Mortgage Bankers Association reported this week. “The continued rise in purchase loan application sizes is driven by high home price appreciation and the lack of housing inventory on the market—especially for …
Jun 14
Mortgage Rates Surge
Mortgage rates are on the rise in the new year, just like economists predicted. The 30-year fixed-rate mortgage, which is up 45 basis points in less than a month, averaged 3.56% this week compared to 3.11% in the last week of 2021. “Mortgage rates moved up again as the 10-year U.S. Treasury yield rose and …
Jun 13
Over 5M Borrowers Missed Refinancing Savings
The number of owners who can save by refinancing is down by more than half from the start of this year to 5.9 million, according to Black Knight data. Black Knight considers refinance candidates as 30-year mortgage holders who have a maximum 80% loan-to-value ratio, a credit score of 720 or higher, and a likelihood of …
