The fear of missing out, or “FOMO” as it’s called on social media, could prove to be a strong motivation for potential home buyers to enter the market quickly as mortgage rates rise. The potential loss of homebuying power may “supercharge the housing market ahead of the spring homebuying season,” says Mark Fleming, chief economist …
Tag: tips
Jun 11
Mortgage Rates Level Out
Mortgage rates held steady overall this week, a welcome relief to home shoppers who may have been watching them rise week after week since the beginning of the year. The 30-year fixed-rate mortgage averaged 3.55% this week, Freddie Mac reports. “Following a month-long rise, mortgage rates effectively stayed flat this week,” says Sam Khater, Freddie …
Jun 10
Take the Good With the Bad
Investors and move-up buyers will keep home sales humming, but inflation and other issues could be hurdles. Key Takeaways: “It was the best of times, it was the worst of times … it was the spring of hope, it was the winter of despair.” Those are the words of Charles Dickens in A Tale of …
Jun 07
30-Year Mortgage Rate Surge
Mortgage rates continue to rise and are nearly a full percentage point higher than a year ago. House hunters should brace themselves for rates near 4% before the end of the year, economists say. “The normalization of the economy continues as mortgage rates jumped to the highest level since the emergence of the pandemic,” says …
Jun 06
Mortgage Payments Jump
Housing affordability is tightening as home prices continue to climb faster than incomes. The median family income rose by 4.5% year over year in December 2021, while the monthly mortgage payment rose 22.5%, the National Association of REALTORS® reports. The threat of rising mortgage rates could pose another challenge to housing affordability in the coming …
Jun 05
Freddie Mac Tool Aims to Ease Mortgage Paperwork
Freddie Mac is launching an automated method for lenders to assess prospective borrowers’ income that is paid through direct deposits. The tool is intended to help reduce the paper documentation burden on borrowers so loans can close faster, Freddie Mac says. The income assessment tool will be available to mortgage lenders nationwide and can be …
Jun 04
Mortgage Amounts Break Record Again
Rising home prices are prompting more borrowers to take out supersized home loans. Borrowers are taking out the largest mortgages ever on record. The average purchase loan size reached an all-time high of $453,000, the Mortgage Bankers Association reports. Loan sizes have continuously been hitting new record highs over recent weeks. Home prices are up …
Jun 03
Mortgage Rates past and present.
Borrowing costs are climbing: The 30-year fixed-rate mortgage rose to a 3.92% average this week, Freddie Mac reports. “Mortgage rates jumped again due to high inflation and stronger than expected consumer spending,” says Sam Khater, Freddie Mac’s chief economist. “The 30-year fixed-rate mortgage is nearing four percent, reaching highs we have not seen since May …
May 31
Lenders Considers Student Debt Relief for First-Time Buyers
Maine lawmakers are weighing a proposal that could forgive up to $40,000 in student loan debt for first-time buyers in the state. The Maine Smart Buy bill would pay off student debt of at least $5,000 over five years as long as the buyer lived in the home for that long. Buyers must meet credit …
May 30
Mortgage Rates Dip
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 …
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 …
