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☆ U.S. mortgage interest rates jump to highest level since November - MBA
▼ + stars: | 2023-02-22 | by ( ) www.reuters.com time to read: +2 min

That has caused a spike in U.S. Treasury yields, and a second straight weekly increase in mortgage rates after several weeks of declines. The yield on the 10-year note acts as a benchmark for mortgage rates. The renewed rise on mortgage rates caused more potential buyers to sit on the sidelines. The MBA's Purchase Composite Index, a measure of all mortgage loan applications for purchase of a single family home, dropped 18.1% from the prior week to its lowest level since 1995. The MBA's Market Composite Index, a measure of overall mortgage loan application volume, also declined 13.3% from a week earlier.

☆ Wells Fargo lays off mortgage bankers days after rewarding some with California retreat
▼ + stars: | 2023-02-22 | by ( Hugh Son | ) www.cnbc.com time to read: +1 min

Wells Fargo laid off hundreds of mortgage bankers this week as part of a sweeping round of cuts triggered by the bank's recent strategic shift, CNBC has learned. Under CEO Charlie Scharf, Wells Fargo is pulling back from parts of the U.S. mortgage market, an arena it once dominated. The shift comes after sharply higher interest rates led to a collapse in loan volumes, forcing Wells Fargo, JPMorgan Chase and other players to cut thousands of mortgage positions in the past year. Those cut this week at Wells Fargo included mortgage bankers and home loan consultants, a workforce spread around the country who are compensated mostly on sales volume, according to the people, who declined to be identified speaking about personnel matters. The company cut bankers who operated in areas outside of its branch footprint and who therefore didn't fit in the new strategy of catering to existing customers, the people said.

☆ The US housing market could be close to bottoming out as existing home sales plunge to their lowest level since 2010, National Association of Realtors says
▼ + stars: | 2023-02-21 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +2 min

The housing market could be close to bottoming as existing home sales are continuing to fall, National Association of Realtors said. Monthly existing home sales slipped another 0.7% in January, bringing sales to their lowest level since 2010. Monthly existing home sales slipped 0.7% in January to a seasonally adjusted rate of 4 million units a year, the organization said in a note on Tuesday. The latest drop brings existing home sales to their lowest level since October 2010, when housing activity was still reeling from the mortgage crisis of 2008. Meanwhile, other market commentators have warned the US housing market is on the verge of a crash akin 2008.

☆ In this volatile housing market, here's how to know when the bottom is in
▼ + stars: | 2023-02-18 | by ( Tim Mullaney | ) www.cnbc.com time to read: +13 min

"People for the most part have come to terms with interest rates." No return of 2008, or 3% mortgage rate The biggest reason why housing prices aren't plunging like they did after 2008? At current levels, the Housing Affordability Index says the median buyer can afford the median U.S. home — but barely. Having seen 6 percent interest rates when she bought her first place in 2007, she's not daunted by today's rates, she said. "People have wrapped their heads around where interest rates are, and they have adapted," Fisher said.

☆ Inflation pushes up mortgage rates for second week in a row
▼ + stars: | 2023-02-16 | by ( Anna Bahney | ) edition.cnn.com time to read: +4 min

Washington, DC CNN —Mortgage rates climbed higher for the second consecutive week, following four weeks of declines. After climbing for most of 2022, mortgage rates had been trending downward since November, as various economic indicators indicated inflation may have peaked. Inflation is keeping mortgage rates volatile, 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. Last week, applications fell 7.7% from one week earlier, according to the Mortgage Bankers Association.

☆ Central banks' inflation fall-guy lives Down Under
▼ + stars: | 2023-02-16 | by ( Antony Currie | ) www.reuters.com time to read: +4 min

MELBOURNE, Feb 16 (Reuters Breakingviews) - If any central bank governor was to feel the heat from the past year’s multiple interest-rate increases, the smart money might have been on the U.S. Federal Reserve’s Jerome Powell. Fast forward and Philip Lowe, governor at the Reserve Bank of Australia, looks most exposed. It would be unfair for Lowe to be the fall guy for central banks’ general inflation failure. The head of the central bank made his comments in front of the Senate Economics Legislation Committee. When questioned about his future at the bank, Lowe said he intended to serve out his seven-year term as governor, which ends in September.

☆ The Outlook for Home Buyers This Spring: Not Terrible
▼ + stars: | 2023-02-15 | by ( Veronica Dagher | ) www.wsj.com time to read: 1 min

The cutthroat pandemic-fueled home-buying frenzy is over, but hopeful home buyers shouldn’t expect an easy process this spring. Working against buyers is a continued affordability crunch given the median single-family existing-home price rose 4% in the past year to $378,700, according to the National Association of Realtors. Mortgage rates are hovering above 6%, with more rate increases to come. In addition, inventory levels remain low since about 70% of homeowners have a locked-in lower mortgage rate.

☆ How Buyers Can Up Their Chances in a Thawing Housing Market This Spring
▼ + stars: | 2023-02-15 | by ( Veronica Dagher | ) www.wsj.com time to read: 1 min

The pandemic-fueled home-buying frenzy is over, but hopeful home buyers shouldn’t expect an easy process this spring. Working against buyers is a continued affordability crunch given the median single-family existing-home price rose 4% in the past year to $378,700, according to the National Association of Realtors. Mortgage rates are hovering above 6%, with more rate increases to come. In addition, inventory levels remain low since about 70% of homeowners have a locked-in lower mortgage rate.

☆ Here are 5 ETFs that offer more than 10% yield right now to beat inflation
▼ + stars: | 2023-02-13 | by ( Ganesh Rao | ) www.cnbc.com time to read: +3 min

JPMorgan Equity Premium Income ETF (Ticker: JEPI) The ETFs that showed up on the screen included JPMorgan's actively managed equity and equity derivative ETF , known by its ticker JEPI. The 30-day SEC yield shows the dividends and interest earned after expenses. VanEck Mortgage REIT Income ETF (Ticker: MORT) The rise in risk-free rates led to the dramatic re-rating of real estate investment trusts in 2022. The ETF tracks the ICE BofA CCC and Lower U.S. High Yield Constrained Index and currently offers a 30-day SEC yield of 13.26%. JPMorgan Nasdaq Equity Premium Income ETF (Ticker: JEPQ) The JPMorgan Nasdaq Equity Premium Income ETF appears to be a riskier alternative to the defensive-leaning JEPI.

☆ Here's what's happening with home prices as mortgage rates fall
▼ + stars: | 2023-02-10 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +4 min

According to two separate indices existing home prices rose to the highest level in 6 years. Joe Raedle | Getty ImagesThe U.S. housing market cooled off pretty dramatically last year, after mortgage rates more than doubled from historic lows. Now, as demand appears to be coming back into the market, due to a slight drop in mortgage rates, prices are pushing back. But mortgage rates began to fall in December, and prices reacted immediately. Lower mortgage rates are driving the new demand.

☆ Here's what you can do now to be ready to buy a home this spring
▼ + stars: | 2023-02-09 | by ( Anna Bahney | ) edition.cnn.com time to read: +8 min

Mortgage rates have been ticking down, yet remain volatile. If you are ready and able to buy a home, the day-to-day movements of rates should matter less than finding a home you can afford. Borrowers can also lower monthly payments by paying more upfront to buy down their mortgage rate. Buyers can then use that money to buy down the interest rate on their mortgage and reduce their payments. Mortgage rates are trending down, but it’s not going to be a perfect downward curve, said Melissa Cohn, regional vice president of William Raveis Mortgage.

☆ Dallas, Las Vegas, and these 13 other cities are the best markets for homebuyers as prices continue to decline in 2023
▼ + stars: | 2023-02-08 | by ( James Faris | ) www.businessinsider.com time to read: +3 min

Here are the 15 most attractive markets for homebuyers in 2023, according to Knock. US home prices are widely expected to fall in 2023 as the housing market's historic boom fades. Mortgage rates have fallen significantly in recent months but remain far higher than they were during the housing market's glory days. "Home shoppers will not see significant price declines in a majority of the 100 largest housing markets," Knock's report read. Below are the 15 best markets for homebuyers in 2023, according to Knock, along with the median price, expected changes in sale prices and growth, months of available supply, and expected sale price-to-list price ratio.

☆ One of the most active homebuyers on Wall Street just predicted the demise of Opendoor and other iBuyers that have made housing so volatile
▼ + stars: | 2023-02-08 | by ( Alex Nicoll | ) www.businessinsider.com time to read: +3 min

In an interview with Bloomberg, Mullen doesn't see nearly as much chaos in today's housing woes, though pitfalls and opportunities still abound. In today's market, with most homeowners paying substantially lower mortgage rates than prevailing levels and mortgage delinquencies low, regular people aren't likely to sell. Homebuilders, representing another industry that's highly sensitive to housing market swings, are under pressure but can survive, Mullen said. Stepping back, Mullen's read is that too many institutions got in at the top of the housing market. "The most obvious example is iBuyers," Mullen said.

☆ Chinese savers stashed away $2.6 trillion last year but property crash will cool ‘revenge spending’
▼ + stars: | 2023-02-07 | by ( Laura He | ) edition.cnn.com time to read: +6 min

Burberry (BBRYF) said last month that it’s seeing “very promising” signs in China, according to Reuters. Since real estate accounts for 70% of household wealth in China, “revenge spending” will be limited, analysts said. They expect household consumption growth to rebound to 9.5% in 2023 from about 3% in 2022, fueling annual GDP growth of more than 5%. Morgan Stanley analysts expect to see some “revenge spending” mostly from household with stable incomes. They’re expecting household consumption growth to rebound to 8.5% in 2023, contributing to full-year economic growth of 5.7%.

Most major forecasts have predicted that mortgage rates will drop in 2023, and so far that prediction has been correct. Mortgage rates typically increase when the economy is good, but slowing inflation has helped them come down. But whether mortgage rates will drop in 2023 hinges on if the Federal Reserve can get inflation under control. If the Fed acts too aggressively and engineers a recession, mortgage rates could fall further than what current forecasts expect. This means your entire monthly mortgage payment, including taxes and insurance, shouldn't exceed 28% of your pre-tax monthly income.

During the pandemic, mortgage rates plummeted below 3%, flooding the real estate market with homebuyers trying to snag a good rate. "Mortgage rates have trended down in the past couple of months," he says. So... [for] someone waiting for a 3% or 4% mortgage rate, it's not going to happen." For example, Rocket Mortgage is currently offering a mortgage rate buydown program called Inflation Buster. Evaluate whether you're buying for the right reasons and determine if you and your budget are ready for this important milestone.

☆ Mortgage rates fall for fourth week in a row
▼ + stars: | 2023-02-02 | by ( Anna Bahney | ) edition.cnn.com time to read: +4 min

Washington, DC CNN —Mortgage rates fell slightly this week, as a smaller rate hike by the Federal Reserve signaled promising improvement on inflation. Mortgage rates have not been this low since September and are now nearly a full point below last year’s peak of 7.08%, last reached in early November. When Treasury yields go up, so do mortgage rates; when they go down, mortgage rates tend to follow. “The Federal Reserve controls short-term rates, but long-term rates, including 30-year mortgage rates, are a function of market expectations for the path of the economy,” said Mike Fratantoni, senior vice president and chief economist at the Mortgage Bankers Association. Even with lower rates in recent weeks, mortgage applications dropped 9% last week from the week before, according to MBA.

Mortgage rates are expected to fall this year, and further Fed increases shouldn't push rates back up significantly. 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. 30-Year Fixed Mortgage RatesThe current average 30-year fixed mortgage rate is 6.13%, according to Freddie Mac. 15-Year Fixed Mortgage RatesThe average 15-year fixed mortgage rate is 5.17%, a decrease from the prior week, according to Freddie Mac data. But average 30-year fixed rates will likely remain somewhere in the 5% to 6% range throughout 2023.

Mortgage rates are expected to fall this year as a result. 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. 15-year fixed mortgage ratesThe average 15-year fixed mortgage rate is 5.17%, a decrease from the prior week, according to Freddie Mac data. Mortgage rates started ticking up from historic lows in the second half of 2021 and increased significantly in 2022. Inflation remains elevated, but has started to slow, which is a good sign for mortgage rates and the broader economy.

☆ Here's what the Federal Reserve's 25 basis point interest rate hike means for your money
▼ + stars: | 2023-02-01 | by ( Jessica Dickler | ) www.cnbc.com time to read: +7 min

The federal funds rate, which is set by the U.S. central bank, is the interest rate at which banks borrow and lend to one another overnight. "Credit card interest rates are already as high as they've been in decades," said Matt Schulz, chief credit analyst at LendingTree. As the federal funds rate rises, the prime rate does, as well, and your credit card rate follows suit within one or two billing cycles. "A 0% balance transfer credit card remains one of the best weapons Americans have in the battle against credit card debt," Schulz advised. The average interest rate for a 30-year fixed-rate mortgage is now around 6.4% — up almost 3 full percentage points from 3.55% a year ago.

☆ Why US home prices could fall 20% this year — and which cities and regions will see the largest declines, according to KPMG
▼ + stars: | 2023-01-31 | by ( William Edwards | ) www.businessinsider.com time to read: +4 min

KPMG economist Yelena Maleyev said home prices could fall 20% in 2023. Maleyev, who focuses on the housing market, told Insider last week that she believes home prices around the US could fall as much as 20%. Underpinning Maleyev's call is the destabilization in the market that has occurred thanks to rising mortgage rates. Mortgage rates have more than doubled in the last year while home prices hit record highs, resulting in a significant drop in demand. And that means an even more activist Fed, that means even more monetary tightening, that means even higher mortgage rates."

☆ The Federal Reserve is likely to hike interest rates again. What that means for you
▼ + stars: | 2023-01-30 | by ( Jessica Dickler | ) www.cnbc.com time to read: +5 min

What the Fed's rate hike means for youThe federal funds rate, which is set by the central bank, is the interest rate at which banks borrow and lend to one another overnight. As the federal funds rate rises, the prime rate does, too, and credit card rates follow suit. After rising at the steepest annual pace ever, the average credit card rate is now 19.9%, on average — an all-time high. Student loans Federal student loan rates are also fixed, so most borrowers won't be impacted immediately by a rate hike. Savings accounts On the upside, the interest rates on some savings accounts are higher after a run of rate hikes.

☆ 3 real-estate investing strategies to use — and 2 cities to invest in — as home prices around the country take a hit, according to BiggerPockets' housing-market guru
▼ + stars: | 2023-01-27 | by ( William Edwards | ) www.businessinsider.com time to read: +5 min

For those looking to break into real-estate investing, this uncertainty can be paralyzing. But according to Dave Meyer, a real-estate investor and BiggerPockets' vice president of data and analytics, there are still ways to make money in this market. On a recent episode of the BiggerPockets Podcast, Meyer shared three strategies he thinks will work best right now. 3 real-estate investing strategies to use in the current environmentThe first strategy Meyer recommended is becoming a private lender. Meyer said "hybrid" cities would likely perform better in the coming years than high-appreciation cities, and listed a couple that fit that description.

☆ Now may be a great time for buyers to score their dream homes as mortgage rates dip back towards 6% and desperate sellers are willing to accept most offers
▼ + stars: | 2023-01-27 | by ( Kelsey Neubauer | Robert Davis | ) www.businessinsider.com time to read: +4 min

More buyers have gotten back into the market as mortgage rates dip from last year's high. But the real estate market was quickly moving against them as mortgage rates skyrocketed over 7%, and home prices were stubbornly high. "We went from sellers controlling everything, to now being more of a neutral, and even almost a buyer's market." Those looking for a new home are in a good place to cash-in on the perks of a buyer's market right now, Shupe said. In negotiating deals for buyers, she said she's asking sellers to pay fees that result in lower mortgage rates for the buyer.

☆ Mortgage rates tick down ahead of Fed meeting next week
▼ + stars: | 2023-01-26 | by ( Anna Bahney | ) edition.cnn.com time to read: +5 min

Washington, DC CNN —Mortgage rates fell slightly this week, staying almost flat ahead of the Federal Reserve’s closely watched interest rate-setting meeting next week. 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. Mortgage applications riseThe downward trend for mortgage rates since November has had a positive impact on home affordability for mortgage borrowers. “Borrower demand, thanks to lower mortgage rates, continues to rise in early 2023,” said Bob Broeksmit, MBA president and CEO.

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