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☆ US home prices fall by most in 11 years but sales are down
▼ + stars: | 2023-05-18 | by ( Anna Bahney | ) edition.cnn.com time to read: +4 min

Sales had shown some life, rising in February after a full year of declines due to surging mortgage rates, but that momentum has since cooled. Annually, sales were down 23% from a year ago and the seasonally adjusted annualized sales pace dropped from 5.57 million units a year ago to 4.28 million in April. Mortgage rates were rising in February and pushing toward 7% in March when many of these April closings went into contract. But the current sales pace is down 33% from the cyclical peak of a 6.34 million unit pace in January 2022. In the South prices were down 0.6% to $357,900 and in the West prices have fallen 8% from a year ago to $578,200.

☆ U.S. debt drama and data hoist dollar
▼ + stars: | 2023-05-17 | by ( Tom Westbrook | ) www.reuters.com time to read: +4 min

The dollar hit a two-week peak of 136.69 yen overnight and hovered just below that at 136.54 in the Asia day. Expectations for U.S. interest rate cuts any time soon were dampened by the solid increase in April consumer spending, and by hawkish comments from Federal Reserve officials. "We expect some modest further increases in the dollar as markets continue to take out pricing for rate cuts," said Commonwealth Bank of Australia strategist Joe Capurso. "A rate hike is possible this year, though the hurdle is high." The New Zealand dollar was broadly steady at $0.6244, with investors looking ahead to a 25 bp interest rate hike next week and perhaps one more after that.

☆ Data and debt ceiling hoist dollar
▼ + stars: | 2023-05-17 | by ( Tom Westbrook | ) www.reuters.com time to read: +3 min

Data showed U.S. consumer spending appeared to have increased solidly in April, which together with hawkish remarks from Federal Reserve officials weighed on bonds and against expectations that interest rate cuts are coming soon. Interest rate futures pricing implies no chance of a rate cut in June, down from about a 17% chance seen a month ago. "Market participants continue to lower pricing for near term rate cuts by the FOMC," said Commonwealth Bank of Australia strategist Joe Capurso. "We expect some modest further increases in the dollar as markets continue to take out pricing for rate cuts. The New Zealand dollar was broadly steady at $0.6239, with investors looking ahead to a 25 bp interest rate next week and perhaps one more after that.

It's possible to buy a house with bad credit, but you may end up with a high mortgage rate. Unlike conforming mortgages, which require a good credit score to qualify, loans that are available to those with lower credit scores typically have higher mortgage rates. You can also use our guide to the best low credit score mortgage lenders to see which lenders accept borrowers with lower scores. Get copies of your credit reportUnderstanding your credit history is key to understanding what's affecting your credit score. Review your credit report again to see what is impacting your credit score, then take steps to improve it.

☆ Home buying costs could spike by 22% if US defaults on its debt
▼ + stars: | 2023-05-11 | by ( Anna Bahney | ) edition.cnn.com time to read: +5 min

Housing costs would spike by 22% with the rate for 30-year, fixed rate mortgages rising above 8%. “While we don’t expect a debt default to occur, if it did, it would have unprecedented effects on the financial system,” said Jeff Tucker, a senior economist at Zillow. If there were to be a debt default, the biggest projected deficit would come in September, with an estimated 23% fewer existing home sales. Mortgage rates tend to follow yields on 10 year Treasury bonds and would likely rise, too. “It is a looming risk about a month away, so it isn’t yet wreaking havoc on 30-year mortgage rates.

Average 30-year mortgage rates are down slightly today, though they're still elevated compared to last week. See more mortgage rates on Zillow Real Estate on ZillowToday's Refinance RatesMortgage type Average rate today This information has been provided by Zillow. See more mortgage rates on Zillow Real Estate on ZillowMortgage CalculatorUse our free mortgage calculator to see how today's mortgage rates will affect your monthly and long-term payments. But whether mortgage rates will drop in 2023 hinges on if the Federal Reserve can get inflation under control. This means your entire monthly mortgage payment, including taxes and insurance, shouldn't exceed 28% of your pre-tax monthly income.

☆ Mortgage demand surged after Fed signaled potential pause in rate hikes
▼ + stars: | 2023-05-10 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +2 min

Mortgage rates fell slightly last week after the Federal Reserve chairman suggested a potential end to a historic string of interest rate hikes. The drop wasn't substantial, but it was enough to boost demand from current homeowners hoping to refinance their mortgages to lower rates. Mortgage rates for all surveyed loan types decreased over the week. Mortgage rates rose sharply to start this week, according to a separate survey from Mortgage News Daily. Any large divergence from expectations, in either direction, could move bond yields, and consequently mortgage rates, decisively.

☆ Mortgage rates remain volatile, tick down after climbing for two weeks
▼ + stars: | 2023-05-04 | by ( Anna Bahney | ) edition.cnn.com time to read: +4 min

Washington, DC CNN —The only thing consistent about mortgage rates right now is that they are volatile in the wake of mixed economic signals and recent bank failures. Mortgage rates ticked down this week, after climbing for two weeks in a row. When Treasury yields go up, so do mortgage rates; when they go down, mortgage rates tend to follow. Analysts have said that recent bank failures are doing some of the Fed’s work on reducing inflation for it. The move is unlikely to have a big impact on mortgage rates, as the move was already factored in for most investors said Xu.

ECB chief Christine Lagarde said the central bank for the 20 countries that share the euro was not pausing. "This is a very restrictive policy and it will turn into credit tightening and that will bring a recession." The ECB has now increased its key deposit rate by some 375 bps since last July, from -0.5%. U.S. rates have jumped 500 bps, with the Federal Reserve hiking again on Wednesday while opening the door to a pause. Gareth Rudd, a European equity fund manager at Chelverton Asset Management, said he was negative on European bank stocks because regulators will want them to conserve capital instead of paying dividends.

☆ Homebuilder ETFs could get another boost if the Fed stops after one more rate hike
▼ + stars: | 2023-05-03 | by ( Jesse Pound | In Jesse-Pound | ) www.cnbc.com time to read: +3 min

Mortgage rates are tied indirectly to the Fed through the yield on the 10-year Treasury note, and could still move around while the central bank is paused. The ETFs that track the industry have already outperformed this year, rebounding from dramatic declines in 2022. The rapid Fed rate hikes last year appeared to spook consumers, who saw their future monthly payments climb sharply just while they were in the midst of searching for new homes. ITB YTD mountain Homebuilder ETFs like the ITB have outperformed in 2023. And a relatively stable interest rate outlook should make it easier for the homebuilders to hit those raised estimates, according to their own executives.

☆ An explosion of hidden 'junk fees' is making every home more expensive
▼ + stars: | 2023-05-03 | by ( James Rodriguez | ) www.businessinsider.com time to read: +15 min

The fee goes by many names: an administrative fee, a transaction fee, or even a "regulatory compliance" fee. Despite the controversy, all signs indicate that brokerages large and small have increasingly embraced the admin fee in recent years. The vast majority of real-estate agents are independent contractors who rely on commissions to earn a living. Admin fees may be one of the most polarizing topics among real-estate agents today. "I'm in a place in my business right now where I can justify paying that," the Las Vegas agent told me.

☆ The Fed could deliver the final rate hike of a historically aggressive cycle today. Here's what to know.
▼ + stars: | 2023-05-03 | by ( Phil Rosen | ) www.businessinsider.com time to read: +6 min

All eyes are on the Fed today as officials ready their decision on what could be the final rate hike of the cycle. We'll hear from central bank chief Jerome Powell today at 2 p.m. The last time the fed funds rate hit that level was during the housing boom in 2006, in the run up to the 2008 crisis. Broadly, markets are acting as if today's potential rate hike will be the final one of the Fed's lengthy, aggressive cycle that's brought so far nine consecutive raises, the last of which was a 25 basis-point move in February. "The market is telling you, in terms of forward yield curves, that they expect the Fed to make a mistake."

☆ Real estate agents are tacking ludicrous 'junk fees' on to every home purchase
▼ + stars: | 2023-05-03 | by ( James Rodriguez | ) www.businessinsider.com time to read: +15 min

Aftter dropping dramatically in March and early April, mortgage rates have been inching back up the last two weeks. Mortgage rates are rising in anticipation of this increase. See more mortgage rates on Zillow Real Estate on ZillowMortgage Refinance Rates TodayMortgage type Average rate today This information has been provided by Zillow. See more mortgage rates on Zillow Real Estate on ZillowMortgage CalculatorUse our free mortgage calculator to see how today's mortgage rates will affect your monthly and long-term payments. But whether mortgage rates will drop in 2023 hinges on if the Federal Reserve can get inflation under control.

☆ Mortgage rates tick up for the second week in a row
▼ + stars: | 2023-04-27 | by ( Anna Bahney | ) edition.cnn.com time to read: +2 min

Washington, DC CNN —Mortgage rates inched up again this week. Even though rates ticked up for the second week in a row, with the rate of inflation decelerating, mortgage rates should gently decline over the course of the rest of this year, said Sam Khater, Freddie Mac’s chief economist. Still, despite slightly higher rates last week, purchase applications increased last week from the week before, according to the Mortgage Bankers Association. When Treasury yields go up, so do mortgage rates; when they go down, mortgage rates tend to follow. Buyers who need to buy this spring are going ahead with their mortgage applications, said Broeksmit.

☆ Mortgage rates climb to the highest level in a month
▼ + stars: | 2023-04-20 | by ( Anna Bahney | ) edition.cnn.com time to read: +3 min

Washington, DC CNN —Mortgage rates rose this week, after five weeks of falling. “For the first time in over a month, mortgage rates moved up due to shifting market expectations,” said Sam Khater, Freddie Mac’s chief economist. The average mortgage rate is based on mortgage applications that Freddie Mac receives from thousands of lenders across the country. When Treasury yields go up, so do mortgage rates; when they go down, mortgage rates tend to follow. “Last week’s jump in mortgage rates led to a pullback in mortgage applications, as homebuyers remain sensitive to rate movements,” said Bob Broeksmit, CEO of the Mortgage Bankers Association.

☆ Home sales fell in March, reversing gains
▼ + stars: | 2023-04-20 | by ( Anna Bahney | ) edition.cnn.com time to read: +4 min

Washington, DC CNN —US home sales fell in March, after a turnaround in February that followed a full year of declining home sales due to surging mortgage rates, according to a National Association of Realtors report released Thursday. Sales of existing homes in March — which include single-family homes, townhomes, condominiums and co-ops — dropped 2.4% from February. Mortgage rates remain volatile — so far this year average rates have ranged from 6.09% to 6.73%. “Home sales are trying to recover and are highly sensitive to changes in mortgage rates,” said Lawrence Yun, NAR chief economist. Many potential sellers feel “locked in” by their ultra-low existing mortgage rates that they bought or refinanced into over the past few years.

☆ UK house prices rise 5.5% year-on-year in February
▼ + stars: | 2023-04-19 | by ( ) www.reuters.com time to read: 1 min

LONDON, April 19 (Reuters) - British house prices increased by 5.5% in the 12 months to February, the Office for National Statistics (ONS) said on Wednesday, slowing from January’s upwardly revised 6.5% rise. London was the region with the lowest annual growth, the ONS said, with prices there up 2.9%. More recent gauges of Britain’s housing market have shown a mixed picture. Mortgage lender Nationwide last month reported a 3.1% fall in house prices in the year to March, while rival Halifax said prices rose 1.6% in year-on-year terms. Reporting by Suban Abdulla, editing by Andy BruceOur Standards: The Thomson Reuters Trust Principles.

☆ Today's homebuyers have their mortgage rate tipping point, and it's artificially low
▼ + stars: | 2023-04-14 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +4 min

Today's homebuyers are exceptionally sensitive to mortgage rates with house prices so high — and they've found their tipping point. After years of government intervention following the great recession and the first years of the Covid-19 pandemic that kept mortgage rates artificially low, today's buyers have a skewed view of what "normal" mortgage rates are. In addition, 62% of buyers said they believed that a "historically normal mortgage rate" was below 5.5%. "Today's homebuyers are extremely sensitive to fluctuating interest rates, and a significant drop in mortgage rates would likely make the market more competitive." Nearly two-thirds of respondents said they've had to reduce their housing budgets due to the current level of mortgage rates.

☆ UK housing market weakness continues, improvement on the horizon - RICS
▼ + stars: | 2023-04-12 | by ( Suban Abdulla | ) www.reuters.com time to read: +2 min

RICS's gauges of buyer demand, sales, new listings and house prices were all in negative territory last month. However, its indicators looking ahead pointed to hints of stability in Britain's housing market in the coming 12 months. The sales expectations balance for 12 months' time rose to +1, its highest since March 2022. Mortgage lender Nationwide reported a 3.1% drop in house prices in the year to March - the fastest annual fall since July 2009 - while rival Halifax said prices grew 1.6% year-on-year. Its non-seasonally adjusted monthly tenant demand growth indicator hit a five-month high, with a net balance of +46.

☆ The dollar's dominance on the world stage isn't going away. Here's why.
▼ + stars: | 2023-04-06 | by ( Phil Rosen | ) www.businessinsider.com time to read: +6 min

The move makes sense, given Russia's growing status as a pariah state, but it also highlights a push to unseat the dollar as a dominant force in global trade. But to strategists at the Carson Group, a scenario where the dollar isn't the world's primary reserve currency simply isn't in the cards in the near future. Are you convinced that the dollar won't lose its status as a dominant global reserve currency? Some companies in this batch of oil stocks have upsides of up to 180%, according to strategists at Bank of America. An expert from the World Gold Council pointed out that history says gold performs well in a recession.

☆ Mortgage rates fall for the fourth week in a row
▼ + stars: | 2023-04-06 | by ( Anna Bahney | ) edition.cnn.com time to read: +3 min

Washington, DC CNN —Homebuyers benefited from another week of falling mortgage rates, with the average rate dropping for the fourth week in a row, according to data from Freddie Mac released Thursday. The 30-year fixed-rate mortgage averaged 6.28% in the week ending April 6, down from 6.32% the week before. “Mortgage rates continue to trend down entering the traditional spring homebuying season,” said Sam Khater, Freddie Mac’s chief economist. Mortgage rates tend to move with the 10-year Treasury yield, which ticked up this week, but the spread between the two narrowed as mortgage rates moved down and the market continued to navigate ongoing economic uncertainty.”“Potential buyers continue to face elevated mortgage rates and home prices, making buying less accessible than a year ago,” said Jones. Pent-up housing demand is evident with every gain in affordability, whether it be softening prices or lower mortgage rates.”

☆ A hidden time bomb? A 'Big Short' investor sees financial disaster brewing in housing markets
▼ + stars: | 2023-04-06 | by ( Sam Meredith | ) www.cnbc.com time to read: +7 min

Josh Edelson | Afp | Getty ImagesMore than a decade after a U.S. mortgage meltdown threatened to destroy the international financial system, a "Big Short" investor once again sees financial disaster brewing in the real estate market. Now, Burt believes an overlooked climate risk could see history repeating itself. U.S. housing market overvalued? watch now"The biggest reason why it matters from our perspective is that climate risk isn't being priced into the housing market," Jeremy Porter, head of climate implications at First Street Foundation, told CNBC. 'A humanitarian crisis'Far from a domestic issue, Burt stressed the climate risks associated with the U.S. housing market posed a major problem for countries worldwide.

☆ Home prices suddenly jump after several months of declines
▼ + stars: | 2023-04-03 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +3 min

Home prices nationally rose 0.16% in February, when seasonally adjusted, according to Black Knight. By fall, the rate shot over 7%, and home prices began cooling more quickly. In December and January, however, mortgage rates began pulling back, and homebuyers were quick to take advantage. "Conscious of changing mortgage rates, home buyers are taking advantage of any rate declines," Lawrence Yun, NAR's chief economist, said in the February sales release. Mortgage rates began rising again in February and then fell back slightly in March due to market fears over the U.S. banking system, amid several bank collapses.

The Federal Reserve slows inflation by raising the federal funds rate, which can indirectly impact mortgages. The Fed and mortgage rates frequently asked questionsDo mortgage rates go up when the Fed raises rates? Mortgage rates may decrease when the Fed cuts the federal funds rate, but again, this depends on other economic trends. No, mortgage rates aren't tied to the Federal Reserve's federal funds rate. If you have a fixed-rate mortgage, your mortgage rate will stay the same until you sell your home, refinance your mortgage, or pay off the loan in full.

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