The 30-year fixed-rate mortgage reversed course this week and decreased to an average of 3.89%, Freddie Mac reports. However, with expectations of even higher inflation on the horizon, mortgage rates likely will resume their upward trek over the coming weeks, Nadia Evangelou, senior economist and director of forecasting at the National Association of REALTORS®, notes …
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May 29
Homeowners Tempted To Use Equity
Homeowners are seeing record levels of equity in their properties, and many plan to tap into some of that newfound wealth. Mortgage holders have an average of about $185,000 in home equity, according to research from Black Knight. That amount assumes retaining a 20% stake in the property. The options to draw money from a …
May 29
Mortgage Rates Rise After Preapproval
Buyers are getting preapproved for mortgages to better compete in a fast-paced housing market and to be mortgage-ready as soon as they are ready to make an offer. However, preapproval doesn’t lock in their mortgage rate, which can continue to rise . Some buyers are finding that after their offer is accepted, they must stretch their …
May 28
Fannie, Freddie Offer $1B To Boost Affordable Housing
Mortgage financing giants Fannie Mae and Freddie Mac are pledging to help increase affordable housing as they look to curb a nationwide housing shortage. The government-sponsored enterprises are offering their largest amount ever toward affordable housing, contributing $1.14 billion to the Housing Trust Fund and the Capital Magnet Fund. The “announcement of record funding for …
May 28
What May Impact Mortgage Rates
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 …
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 …
