DIRS.INFO The most relevant business & tech news

Average 30-year mortgage rates started last week around 6.50% but quickly spiked up near 7%. Mortgage rates have climbed along with inflation over the past couple of years, and as inflation slows, rates are expected to drop. See more mortgage rates on Zillow Real Estate on ZillowMortgage CalculatorUse our free mortgage calculator to see how today's interest rates will affect your monthly payments. 30-Year Fixed Mortgage RatesThis week's average 30-year fixed mortgage rate is 6.90%, according to Freddie Mac. 15-Year Fixed Mortgage RatesThe average 15-year fixed mortgage rate is 6.25% this week, according to Freddie Mac data.

Persons: we'll, homebuyers, that's, you'll, Freddie Mac Organizations: CPI, Federal Reserve, Zillow Locations: Chevron

☆ Mortgage payments are 19% more expensive than last year as home prices continue surging, Redfin says
▼ + stars: | 2023-08-04 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +2 min

Mortgage payments are 19% more expensive than last year, Redfin data shows. The typical homebuyer's monthly mortgage payment was $2,605 during July. That's largely due to surging home prices and higher mortgage rates, which have raised the cost of borrowing. That's just below the all-time-high monthly mortgage payment of $2,637, which was notched in early July. Experts say affordability conditions are unlikely to improve until mortgage rates dial back more significantly, though that's unlikely to happen anytime soon.

Persons: That's, Redfin, Freddie Mac, Redfin's Organizations: Service, Mortgage, Association, American Enterprise Institute Locations: Wall, Silicon, That's

See more mortgage rates on Zillow Real Estate on ZillowMortgage CalculatorUse our free mortgage calculator to see how today's mortgage rates would impact your monthly payments. Mortgage Rates for Buying a Home30-year Fixed Mortgage Rates Increase (+0.21%)The current average 30-year fixed mortgage rate is 6.83%, up 21 basis points since this time last week. 20-year Fixed Mortgage Rates Climb (+0.39%)The average 20-year fixed mortgage rate is up from last week and sits at 6.47%. 15-year Fixed Mortgage Rates Go Up (+0.20%)The average 15-year fixed mortgage rate is 6.09%, a 20-basis-point increase from last week. Mortgage Refinance Rates30-year Fixed Refinance Rates Hold Steady (no change)The average 30-year refinance rate is 7.29%, which is exactly where it was last week.

Persons: Joel Kan, you'll, refinance, It's Organizations: Mortgage, Survey, Zillow Locations: Chevron

☆ Mortgage rates climb, edging closer to 7%
▼ + stars: | 2023-08-03 | by ( Anna Bahney | ) edition.cnn.com time to read: +4 min

Washington, DC CNN —US mortgage rates jumped this week, climbing closer to 7%. “This development, along with upcoming employment and inflation data, will determine how much mortgage rates may rise in the short term.”Should employment and inflation pick up steam, she said, mortgage rates are likely to continue climbing as markets anticipate further monetary tightening. Mortgage rates tend to track the yield on 10-year US Treasuries, which move based on a combination of anticipation about the Fed’s actions, what the Fed actually does and investors’ reactions. When Treasury yields go up, so do mortgage rates; when they go down, mortgage rates tend to follow. Many homeowners held off on listing their home for sale, largely in response to today’s high mortgage rates, Jones said.

Persons: Freddie Mac, Fannie Mae, ”, Sam Khater, Freddie Mac’s, Hannah Jones, Jones, ” Jones, “ Organizations: DC CNN, Federal Reserve, Fitch, U.S, Realtor.com, US Treasury, Treasury Locations: Washington, “

☆ Fitch downgrades Fannie Mae, Freddie Mac after US rating cut
▼ + stars: | 2023-08-02 | by ( ) www.reuters.com time to read: +1 min

A man walks through a plaza at the new Fannie Mae headquarters in Washington, U.S., October 4, 2022. REUTERS/Kevin LamarqueAug 2 (Reuters) - Ratings agency Fitch on Wednesday downgraded U.S. mortgage finance giants Fannie Mae and Freddie Mac Long-Term Issuer Default Ratings (IDR) and senior unsecured debt ratings to 'AA+' from 'AAA' after the U.S. rating downgrade on Tuesday. The agency said the cut was a result of Tuesday's downgrade and was "not being driven by fundamental credit, capital or liquidity deterioration at firms". "The downgrade to the ratings of Fannie and Freddie was a certainty after Fitch's downgrade of the US rating since the two ratings are linked," said Gennadiy Goldberg, Head of US Rates Strategy at TD Securities. The move to cut U.S ratings on Tuesday drew an angry response from the White House and surprised investors, coming despite the resolution of the debt ceiling crisis two months ago.

Persons: Fannie Mae, Kevin Lamarque, Fitch, Freddie Mac Long, Fannie, Freddie, Gennadiy Goldberg, Urvi, Megan Davies, Chris Reese, Sandra Maler Organizations: REUTERS, AAA, U.S, TD Securities, White, Thomson Locations: Washington , U.S, Bengaluru, New York

☆ Mortgage demand from homebuyers drops for the third straight week as interest rates rise
▼ + stars: | 2023-08-02 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +1 min

Mortgage rates have been holding at high levels for several weeks now, and that is taking its toll on homebuyers. Mortgage applications to purchase a home fell 3% last week compared with the previous week, according to the MBA's seasonally adjusted index. "The purchase index decreased for the third straight week to its lowest level since the beginning of June," said Joel Kan, an MBA economist. Mortgage rates began this week higher and could continue to rise ahead of the all-important monthly employment report expected to be released Friday. If those fears are realized, rates could be at 20-year highs by the end of this week," said Matthew Graham, chief operating officer at Mortgage News Daily.

Persons: Joel Kan, Matthew Graham Organizations: Mortgage Bankers Association, Mortgage News Locations: Hollywood , Florida

Buying a new home before you've sold the old one is hard, but planning early makes it easier. Lenders are salespeople, so it's a good idea to talk to an expert who can offer objective advice. Reduce your risk when you buy before you sell with a guaranteed backup offer from Calque. She offered this advice to anyone trying to sell their first home in order to afford a new one. Next Steps: Calculate how much equity you could convert into a down payment on your next home if you buy before you sell with Calque.

Persons: you've, Tammy Trenta, Trenta Organizations: Calque, Family Financial Locations: Calque

☆ Endgame for Fed's tightening cycle challenged by easing financial conditions
▼ + stars: | 2023-07-28 | by ( Michael S. Derby | ) www.reuters.com time to read: +5 min

Taking in to account everything from stock prices to measures of borrowing costs for the government, businesses and households, financial conditions matter to monetary policy. On Friday, the Federal Reserve reported that its Financial Conditions Impulse on Growth for June moved to 0.458, from May’s 0.603 reading. Meanwhile, Goldman Sachs’ closely watched Financial Conditions Index has been easing fairly steadily since May. An explicit goal has been to tighten financial conditions. Even as many key aspects of the economy have remained strong in the face of higher rates, inflation pressures are easing.

Persons: Benson Durham, Piper Sandler, Goldman Sachs ’, Jerome Powell, ” Powell, Piper Sandler's Durham, Michael S, Dan Burns, Matthew Lewis Organizations: Federal, Fed, Federal Reserve, Bank of America, Derby, Thomson Locations: Chicago, New York

☆ Soaring home prices mean first-time buyers need to be making 13% more money than a year ago to afford a 'starter' home
▼ + stars: | 2023-07-28 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +2 min

A first-time homebuyer needs to earn 13% more money to afford a starter home, per a Redfin analysis. The average starter home cost $243,000 in June, sending the income needed to afford it to $64,500 per year. "The most affordable homes for sale are no longer affordable to people with lower budgets" due to rising prices and rates. The average starter home cost $243,000 in June, up 2% from the average price last year and up 45% from before the pandemic. Experts say affordability won't improve until mortgage rates pull back more significantly, though that's unlikely to happen anytime soon.

Persons: Sheharyar Bokhari, Redfin, That's, Freddie Mac Organizations: Service Locations: Wall, Silicon

See more mortgage rates on Zillow Real Estate on ZillowMortgage CalculatorUse our free mortgage calculator to see how today's mortgage rates would impact your monthly payments. Mortgage Rates for Buying a Home30-year Fixed Mortgage Rates Decrease (-0.10%)The current average 30-year fixed mortgage rate is 6.40%, down 10 basis points since this time last week. 20-year Fixed Mortgage Rates Go Up (+0.20%)The average 20-year fixed mortgage rate is up from last week and sits at 6.25%. Mortgage Refinance Rates30-year Fixed Refinance Rates Inch Down (-0.07%)The average 30-year refinance rate is 6.76%, which is just 7 basis points lower compared to last week. 15-year Fixed Refinance Rates Fall (-0.22%)The average 15-year fixed refinance rate is 6.20%, a bit lower than it was last week.

Persons: Freddie Mac, homebuyers, Sam Khater, Freddie Mac's, you'll, refinance, It's Organizations: Federal Reserve, Conference, Zillow Locations: Chevron

Though they rose rapidly in the first half of July, mortgage rates plunged a couple of weeks ago and inched down further today. Average 30-year mortgage rates have been hovering in the 6.4% to 6.6% range this week. See more mortgage rates on Zillow Real Estate on ZillowMortgage CalculatorUse our free mortgage calculator to see how today's interest rates will affect your monthly payments. 15-Year Fixed Mortgage RatesThe average 15-year fixed mortgage rate is 6.06% this week, according to Freddie Mac data. Mortgage rates increased dramatically in 2022 and have been volatile so far in 2023, but they're expected to trend down later this year.

Persons: Jerome Powell, Selma Hepp, you'll, Freddie Mac Organizations: Federal Reserve, Fed, Zillow Locations: Chevron

☆ Government’s NatWest meddling crosses risky line
▼ + stars: | 2023-07-26 | by ( Liam Proud | ) www.reuters.com time to read: +4 min

Meddling ministers crossed a line, and may struggle to retreat back onto the right side of it. Its shares fell a modest 3% on Wednesday morning – compared with 1% on average for Lloyds Banking Group (LLOY.L), Barclays (BARC.L) and Virgin Money UK (VMUK.L). Rose’s strategy of cutting costs, continuing to scale back risky trading and focusing on core UK retail banking was working. Britain’s Economic Secretary to the Treasury Andrew Griffith said on social media site X, formerly known as Twitter, that “it is right that the NatWest CEO has resigned”. Domestic rivals Lloyds Banking Group, Barclays and Virgin Money UK were down 2% on average.

Persons: Alison Rose, Rose, Rishi Sunak, Jeremy Hunt, Nigel Farage, Andrew Griffith, Coutts, aren’t, Nigel Farage's, Paul Thwaite, George Hay, Pranav Kiran, Streisand Neto Organizations: Reuters, Economic, NatWest, BBC, Royal Bank of Scotland’s, UK Government Investments, . Mortgage, Lloyds Banking Group, Barclays, Virgin Money, Lloyds, Domestic, Thomson Locations: NatWest’s

See more mortgage rates on Zillow Real Estate on ZillowMortgage CalculatorUse our free mortgage calculator to see how today's mortgage rates would impact your monthly payments. Mortgage Rates for Buying a Home30-year Fixed Mortgage Rates Increase (+0.17%)The current average 30-year fixed mortgage rate is 6.60%, up 17 basis points since this time last week. 20-year Fixed Mortgage Rates Go Up (+0.45%)The average 20-year fixed mortgage rate is up from last week and sits at 6.46%. 15-year Fixed Mortgage Rates Rise (+0.25%)The average 15-year fixed mortgage rate is 5.93%, an increase from last week. Mortgage Refinance Rates30-year Fixed Refinance Rates Spike (+0.58%)The average 30-year refinance rate is 7.38%, which is 58 basis points higher compared to last week.

Persons: Freddie Mac, you'll, refinance, It's Organizations: Mortgage, Zillow Locations: Chevron

☆ Buyout barons feast on excesses of last boom
▼ + stars: | 2023-07-21 | by ( Jonathan Guilford | ) www.reuters.com time to read: +7 min

That opens up plenty of potential loopholes which could allow borrowers to keep their old loans even after a deal. Lenders explicitly allow a company’s so-called “permitted holders” - typically its management or long-time investors - to assume responsibility for the debt. For example, one definition of a change of control is where the majority of board seats change hands. That means the company’s debt can stay put, news service 9fin reported. Interest rates for loans provided by private lenders have risen from 6.2% to 11.6% over a similar time frame.

Persons: Clayton, Rice, Breakingviews, 9fin, Cooper’s, Blackstone, Datacenters, Murray, dealmakers, Peter Thal Larsen, Sharon Lam, Streisand Neto Organizations: YORK, Reuters, Partners, P, Reuters Graphics Reuters, Cornerstone, Focus Financial, Stone, Point, Smart, Securities, Exchange, NRG Energy, QTS Realty Trust, Foresight Energy, American Consolidated Natural Resources, Foresight, P Global Market Intelligence, Thomson, & $ Locations: Dubilier, Delaware

☆ June home sales drop to the slowest pace in 14 years as short supply chokes the market
▼ + stars: | 2023-07-20 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +3 min

Sales are unlikely to recover any time soon, as mortgage rates weigh heavy on affordability. Mortgage rates hung in the mid 6% range during that time and then shot up over 7% at the very end of May. The higher end of the market, however, appears to be recovering. While sales were down across all price points, they were down least at the higher end. Sales are unlikely to rebound soon in the existing home market, but sales of newly built homes are reaping the benefits.

Persons: Lawrence Yun, Yun, DR Horton, Donald Horton Organizations: National Association of Realtors, Realtors

☆ Mortgage rates drop, backing off 7%
▼ + stars: | 2023-07-20 | by ( Anna Bahney | ) edition.cnn.com time to read: +4 min

Washington, DC CNN —US mortgage rates dipped this week, backing off 7% as inflation slows ahead of the Federal Reserve’s rate decision meeting next week. The average mortgage rate is based on mortgage applications that Freddie Mac receives from thousands of lenders across the country. “As inflation slows, mortgage rates decreased this week,” said Sam Khater, Freddie Mac’s chief economist. When Treasury yields go up, so do mortgage rates; when they go down, mortgage rates tend to follow. But as a result, Jones said, mortgage rates are likely to remain elevated for the time being.

Persons: Freddie Mac, ”, Sam Khater, Freddie Mac’s, “, Hannah Jones, Jones, ‘ Organizations: DC CNN, ”, Treasury Locations: Washington, today’s, ’

☆ Why Britain’s Mortgage Holders Are Being Squeezed
▼ + stars: | 2023-07-19 | by ( Eshe Nelson | More About Eshe Nelson | ) www.nytimes.com time to read: +1 min

Many people in Britain have mortgages with a rate that is fixed for only a short period, commonly two or five years, unlike U.S. mortgage rates, which are often fixed for 30 years. At the end of the fixed period, mortgage holders can shop around for different offers, usually choosing between a variable-rate mortgage — which can move up and down whenever the lender decides or with interest rates — or another fixed-rate loan. In Britain, one of the most direct ways that higher interest rates affect people is through higher mortgage rates, but the impact varies greatly across the population. Just over a third of households own their home outright, so will be insulated from rising mortgage rates. On average, households with mortgages will pay almost 280 pounds (about $365) more each month, if mortgage rates stay at their current levels, compared with March 2022 rates, according to the Institute for Fiscal Studies.

Organizations: Institute for Fiscal Studies Locations: Britain

☆ Australia central bank hit pause as policy clearly restrictive, risking growth
▼ + stars: | 2023-07-18 | by ( ) www.cnbc.com time to read: +1 min

Reserve Bank of Australia (RBA) at the central bank's building in Sydney, Australia on May 2, 2022. Australia's central bank decided to keep interest rates steady this month as policy was clearly restrictive and there was a risk a squeeze on household finances could lead to a sharp downturn and higher unemployment. Minutes of the July 4 policy meeting out on Tuesday showed the Reserve Bank of Australia's, or RBA, board considered raising the cash rate by 25 basis points to 4.35%, before deciding on a pause, acknowledging that both set of arguments were strong. The stance of monetary policy was already restrictive and is set to tighten further given the significant resets of low-fixed rate loans ahead. Mortgage interest payments were already at a record share of household disposable income in May.

Organizations: Bank of Australia, Reserve Bank of Australia's Locations: Sydney, Australia, Australia's

☆ Angelo Mozilo, Countrywide Financial's former CEO, dies at 84
▼ + stars: | 2023-07-17 | by ( ) www.reuters.com time to read: +1 min

July 17 (Reuters) - Angelo Mozilo, who propelled Countrywide Financial Corp into the largest U.S. mortgage lender before its crash in the 2008 financial crisis, has died, his family foundation said. Mozilo, 84, died of natural causes, the foundation said in a statement on Sunday. In 2006, when Mozilo was the chief of the mortgage lender Countrywide Financial, the firm originated $461 billion worth of loans -- close to $41 billion of which were subprime. Subprime loans were responsible for the global financial crisis. Mozilo had defended himself several times against accusations that he was a key architect of the 2007-2009 financial crisis.

Persons: Angelo Mozilo, Mozilo, Conde Nast, Shubhendu Deshmukh, Nupur Anand, Franklin Paul, Deepa Babington Organizations: Countrywide Financial Corp, Countrywide Financial, Bank of America, Bloomberg, Thomson Locations: Bronx, United States, Bengaluru, New York

☆ The mortgage market isn't sending the signal homebuyers need on affordability
▼ + stars: | 2023-07-17 | by ( Tim Mullaney | ) www.cnbc.com time to read: +6 min

Usually around 1.75 percentage points, and as low as 1.3 in 2021, the so-called mortgage spread is hovering at more than 3 percentage points now. And that is propping up mortgage rates, keeping home owners from selling their homes and buying nicer ones, and hurting first-time buyers, Yun said. Why mortgage spreads should move lowerLogically, mortgage spreads should move down sharply from here, thanks to the recent spate of good economic news, and bring relief to home buyers who have seen affordability deteriorate sharply since 2020. But as the Fed began raising interest rates in March 2022, mortgage rates rose even faster than bond yields. Mortgage rates also dropped, to 6.89% last Friday from a recent peak of 7.22%, according to Mortgage News Daily.

Persons: Lawrence Yun, Yun, Logan Mohtashami, Fannie Mae, Freddie Mac, Rob Haworth, Banks, refinance, Haworth, Neel Kashkari Organizations: National Association of Realtors, Federal Reserve, Fed, Bank, Atlanta Federal Reserve, Mortgage News, HousingWire, Treasury, U.S . Bank, Minneapolis Federal Reserve Bank Locations: Stockton , California, treasuries, Silicon, U.S, Irvine , Calif, Seattle

To calculate 28% of your monthly income, multiply your gross monthly income (that's your income before taxes) by 0.28. If you like to spend a large chunk of your paycheck on traveling, for example, a large monthly mortgage payment might not fit into your lifestyle. 1,000 ÷ 5,000 = 0.2To get a conventional mortgage, the maximum DTI you can have is typically 50%, including your proposed monthly mortgage payment. How much house can I afford frequently asked questionsHow much do you have to make a year to afford a $400,000 house? Mortgage interest rates can have a big impact on how much house you can afford.

Persons: you've, You'll, it's, Freddie Mac, Fannie Mae, you'll, homebuyers Organizations: National Association of Insurance, PMI Locations: Chevron, Arkansas, North Carolina

☆ 15-Year vs. 30-Year Mortgage: How Do You Choose?
▼ + stars: | 2023-07-16 | by ( Aly J. Yale | ) www.wsj.com time to read: +8 min

15-year mortgage rates vs. 30-year mortgage ratesHowever, mortgage rates vary by term length, too. Pros and cons of a 15-year mortgageA 15-year mortgage has some perks. “A 15-year mortgage would be ill-advised if a customer is tight on their budget,” says Chuck Meier, mortgage director at Sunrise Banks. “You can make the 15-year payment on a monthly basis, receiving the benefits of a 15-year mortgage,” Lindner says. “If the higher payment becomes a challenge, you can revert to the lower 30-year mortgage payment.”

Persons: Aly J, Freddie Mac, Melissa Cohn, you’re, ”, Chuck Meier, ” Cohn, Scott Lindner, ” Lindner Organizations: Yale, it’s, PMI, William, Sunrise Banks, TD Bank Locations: —

See more mortgage rates on Zillow Real Estate on ZillowMortgage CalculatorUse our free mortgage calculator to see how today's mortgage rates would impact your monthly payments. Mortgage Rates for Buying a Home30-year Fixed Mortgage Rates Drop (-0.49%)The current average 30-year fixed mortgage rate is 6.43%, down 49 basis points since this time last week. 20-year Fixed Mortgage Rates Plummet (-0.79%)The average 20-year fixed mortgage rate is dramatically down from last week and sits at 6.01%. 15-year Fixed Mortgage Rates Fall (-0.49%)The average 15-year fixed mortgage rate is 5.68%, a decrease from last week. Mortgage Refinance Rates30-year Fixed Refinance Rates Drop (-0.52%)The average 30-year refinance rate is 6.80%, which is 52 basis points lower compared to last week.

Persons: they've, you'll, refinance Organizations: Zillow Locations: Chevron

☆ UK mortgage rates surge to 15-year high after surpassing 'mini-budget' peak
▼ + stars: | 2023-07-11 | by ( Suban Abdulla | ) www.reuters.com time to read: +3 min

The average two-year fixed residential mortgage rate climbed to 6.66%, narrowly exceeding the 6.65% touched on Oct. 20 and the highest since August 2008 when it stood at 6.94%, according to data provider Moneyfacts. Governor Andrew Bailey said last month there were signs of more persistent underlying inflation pressures after the BoE unexpectedly raised its Bank Rate to 5% in an effort to tame the highest inflation rate among the world's big rich economies. Swap rates, a key measure lenders use to determine the cost of mortgage borrowing, have also soared. The surge has prompted major mortgage lenders to repeatedly reprice home loan offerings. British homebuyers typically take out mortgages with an interest rate that is fixed for two or five years, and then remortgage on to a new fixed rate or accept a variable rate.

Persons: Liz Truss, Andrew Bailey, BoE, reprice, Andrew Asaam, Suban Adbulla, Sachin Ravikumar, William Schomberg, Kate Holton, Andy Bruce Organizations: Bank of England, Nationwide, Lloyds Bank, Santander, Tuesday, Treasury, Lloyds Banking Group, Thomson Locations: Britain's, British, Halifax

☆ Mortgage rates in Britain hit 15-year high — with many fearful there's more misery to come
▼ + stars: | 2023-07-11 | by ( Sam Meredith | ) www.cnbc.com time to read: +2 min

It means mortgage costs are now at their highest level since August 2008 during the global financial crisis. The average 5-year mortgage rate rose to 6.17% on Tuesday, Moneyfacts said, a marginal increase from Monday but still some way off the 6.51% level reached on Oct. 20. U.K. mortgage costs, which had staged a recovery in the months following the "mini-budget" crisis, have soared recently following 13 consecutive rate hikes by the Bank of England. Most recently, the central bank increased rates by 50 basis points to 5%, a bigger increase than many had expected. Renters, too, are likely to see their payments increase as buy-to-let landlords pass on higher mortgage repayments.

Persons: Kwasi, Moneyfacts, Andrew Bailey Organizations: Financial, Authority, London Borough, Finance, Bank of England Locations: Enfield, England, London

Search resuls for: ". Mortgage"

25 mentions found