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☆ Homebuilder D.R. Horton results miss estimates as demand shrinks
▼ + stars: | 2022-11-09 | by ( ) www.reuters.com time to read: +1 min

Horton Inc (DHI.N) on Wednesday missed Wall Street estimates for quarterly profit and revenue as demand for houses tapered following a spike in mortgage rates amid roaring inflation. U.S. mortgage rates have doubled with aggressive rate hikes by the Federal Reserve to contain decades-high inflation, making borrowing less affordable. In another blow to homebuilders, who have enjoyed elevated home prices for a long time due to tight supply, prices slowed in August from the record pace reached in March. "Beginning in June and continuing through today, we have seen a moderation in housing demand caused by significant increases in mortgage interest rates and general economic uncertainty," Chairman Donald R. Horton said in a statement. "While these pressures may persist for some time, the supply of homes at affordable price points remains limited, and demographics supporting housing demand remain favorable."

☆ Weekly mortgage demand flattens, as interest rates climb higher to 7.14%
▼ + stars: | 2022-11-09 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +2 min

Mortgage rates rose again last week, throwing even more cold water on demand from both current homeowners and potential homebuyers. "Mortgage rates edged higher last week following news that the Federal Reserve will continue raising short-term rates to combat high inflation. Mortgage rates started this year around 3%, so there are very few borrowers left who could benefit from a refinance at today's higher rates. Purchase demand, however, is still down 41% from a year ago and close to a seven-year low. ARMs offer lower interest rates, and while they are considered riskier loans, their rates can be fixed for up to 10 years.

☆ Credit card rates hit a record high as Fed fights inflation
▼ + stars: | 2022-11-09 | by ( Matt Egan | ) edition.cnn.com time to read: +2 min

It’s never a great time to carry credit card debt. The spike comes after credit card balances rose sharply earlier this year amid high inflation, according to Federal Reserve research. Credit card debt can be punishing, even at lower rates. The good news is that despite high inflation, Americans are largely paying their credit card bills. Rossman recommends Americans struggling with credit card debt consider either taking out a low-rate personal loan or transferring their balance to a 0% balance transfer card.

☆ Binance just bought FTX. Here's how rumors of insolvency and fears of contagion led Sam Bankman-Fried into a deal.
▼ + stars: | 2022-11-09 | by ( Phil Rosen | ) www.businessinsider.com time to read: +8 min

Here's the short of it: The once-top-dog crypto firm, FTX, helmed by 30-year-old billionaire Sam Bankman-Fried, is being bought by Binance amid significant liquidity issues and rumors of insolvency. But Binance CEO Changpeng "CZ" Zhao seemed to think saving a floundering FTX was worth the risk of any future downside. CoinDesk published a revealing report on November 2 about the crypto trading firm Alameda Research, another branch of Sam Bankman-Fried's empire. It turns out that the trading firm held billions of dollars' worth of FTX's native token, FTT. Anthony Georgiades, co-founder of blockchain company Pastel Network told me he doesn't think Binance is too concerned about making those investors whole again at this point.

☆ Here’s how much equity U.S. homeowners have lost since May
▼ + stars: | 2022-11-08 | by ( Diana Olick | ) www.nbcnews.com time to read: +3 min

The historic run-up in home prices during the first two years of the pandemic gave homeowners record amounts of new home equity. Homeowner equity peaked at $17.6 trillion collectively last May, after home prices jumped 45% since the start of the pandemic. At the end of September, prices were still up 41%, and equity was still quite strong. Home prices fell in September on a month-to-month basis for the third month in a row, though the decline wasn’t as steep as in July and August. As of the end of September, the amount of collective equity available to borrowers while still keeping 20% equity in the home fell by $1.17 trillion since May.

☆ Here's how much equity U.S. homeowners have lost since May
▼ + stars: | 2022-11-07 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +3 min

The historic run-up in home prices during the first two years of the pandemic gave homeowners record amounts of new home equity. The average borrower has lost $30,000 in equity. Homeowner equity peaked at $11.5 trillion collectively last May, after home prices jumped 45% since the start of the pandemic. Home prices fell in September on a month-to-month basis for the third month in a row, though the decline wasn't as steep as in July and August. As of the end of September, the amount of collective equity available to borrowers while still keeping 20% equity in the home fell by $1.17 trillion since May.

☆ Wells Fargo, Ford and Apple are in the news. Here's our take on the Club stocks
▼ + stars: | 2022-11-02 | by ( Paulina Likos | ) www.cnbc.com time to read: +4 min

Club holdings Wells Fargo (WFC), Ford (F) and Apple (AAPL) are in the news Wednesday, with potential implications for our investment outlook. Wells Fargo The news: Wells Fargo could initiate another round of layoffs at its home mortgage division amid a collapse in homebuyer demand, according to a CNBC report . In its fiscal-third quarter, revenue from Wells Fargo's home lending unit fell 52% year-over-year, due to lower mortgage originations. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. A pedestrian walks by a Wells Fargo home mortgage office in San Francisco.

☆ What Cramer is watching Wednesday — Fed day, AMD signs of life, China hits Estee Lauder
▼ + stars: | 2022-11-02 | by ( Jim Cramer | ) www.cnbc.com time to read: +5 min

While missing lowered expectations in the third quarter, Club holding AMD did see a year-over-year revenue growth. Club holding Estee Lauder (EL) beats on fiscal first-quarter earnings and matches on revenue. Club holding Devon Energy (DVN): Very strong quarter . Club holding Humana (HUM) sees membership growth. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.

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In 2020 and 2021, mortgage interest rates fell to record lows. This year, with rent prices skyrocketing and mortgage interest rates hovering around 7%, people wonder if I regret my decision. Here are the five reasons I'm glad I didn't buy a home during the pandemic when interest rates were low. Mortgage interest rates will drop againOne argument friends tried to use, when convincing me to buy a house, was that mortgage interest rates were so low and they might never be this low again. However, mortgage interest rates are always fluctuating.

☆ U.S. mortgage demand flat even as rates dropped
▼ + stars: | 2022-11-02 | by ( Diana Olick | ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailU.S. mortgage demand flat even as rates droppedCNBC's Diana Olick joins 'Squawk Box' to break down the latest mortgage demand data from the Mortgage Bankers Association.

☆ Opendoor slashed prices and paid buyers' agents $3,500 a house in a rush to off-load thousands of homes in the third quarter
▼ + stars: | 2022-11-01 | by ( Daniel Geiger | ) www.businessinsider.com time to read: +7 min

Opendoor cut prices and gave incentives in the third quarter, losing cash on much of its inventory. Opendoor has been offering buyers $15,000 credits and their brokers $3,500 bonuses. A decelerating housing market poses a challenge for iBuying companies like Opendoor, which use home-pricing algorithms to purchase homes. In the third quarter, Opendoor sold between 8,100 and 8,550 homes, according to an estimate by Datadoor, a startup that catalogs Opendoor's acquisition and sales activity across the country. The high end of Datadoor's estimate, 8,550 home sales, would be an 18% decrease in the number of sales Opendoor reported for the second quarter and 32% below the first quarter.

☆ Premarket stocks: Why America's job market hasn't imploded
▼ + stars: | 2022-11-01 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +6 min

Mortgage rates are at their highest levels since 2002, consumer spending and business investment is falling and the Federal Reserve is fighting persistent inflation with higher interest rates. “While job openings should continue to fall in the months ahead, the fact that they remain well above normal levels should continue to support strong job growth, possibly all the way into 2023,” said David Kelly, chief global strategist at JPMorgan Funds. The job market is good for workers but it’s not good for inflation. The problem is that this time around, the shape of the job market is different. Oil stocks and health care companies are leading the market, with Chevron (CVX), Merck (MRK) and Amgen (AMGN) topping the Dow leaders list.

Here is a quick primer on what a steep, flat or inverted yield curve means, how it has predicted recession, and what it might be signaling now. The yield curve, which plots the return on all Treasury securities, typically slopes upward as the payout increases with the duration. read more read moreWHAT DOES AN INVERTED CURVE MEAN? Before this year, the last time the 2/10 part of the curve inverted was in 2019. When the yield curve steepens, banks can borrow at lower rates and lend at higher rates.

An inverted yield curve occurs when yields on shorter-dated Treasuries rise above those for longer-term ones. Here is a quick primer on what an inverted yield curve means, how it has predicted recession, and what it might be signaling now. The yield curve, which plots the return on all Treasury securities, typically slopes upward as the payout increases with the duration. "It's not unusual to get a yield curve inversion but it is unusual to get one of this magnitude. When the yield curve steepens, banks can borrow at lower rates and lend at higher rates.

☆ Another interest rate hike from the Federal Reserve is on the way: Here's how it may affect you
▼ + stars: | 2022-10-31 | by ( Jessica Dickler | ) www.cnbc.com time to read: +5 min

watch nowWhat a rate hike means to 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. From your credit card and car loan to mortgage rate, student debt and savings, here's a breakdown of some of the major ways rate increases impact you:1. Still, it's not the interest rate but the sticker price of the vehicle that's causing an affordability crunch, McBride said. It won't budge until next summer: Congress sets the rate for federal student loans each May for the upcoming academic year based on the 10-year Treasury rate. Of course, anyone with existing education debt should see where they stand with federal student loan forgiveness.

☆ U.S. Mortgage Rates Top 7%, Highest in More Than 20 Years
▼ + stars: | 2022-10-27 | by ( Ben Eisen | ) www.wsj.com time to read: 1 min

Mortgage rates topped 7% for the first time in 20 years, the latest milestone in a rapid climb that has all but paralyzed the housing market. The rate on a 30-year fixed mortgage averaged 7.08% this week, according to a survey of lenders by mortgage giant Freddie Mac . Just seven weeks ago, the rate was below 6%. A year ago it was just over 3%.

☆ U.S. Mortgage Rates Hit 7.08%, Highest in More Than 20 Years
▼ + stars: | 2022-10-27 | by ( Ben Eisen | ) www.wsj.com time to read: 1 min

☆ U.S. mortgage interest rates jump to 7.16%, highest since 2001
▼ + stars: | 2022-10-26 | by ( ) www.reuters.com time to read: +1 min

Oct 26 (Reuters) - The average interest rate on the most popular U.S. home loan rose to its highest level since 2001 as tightening financial conditions weigh on the housing sector, data from the Mortgage Bankers Association (MBA) showed on Wednesday. The average contract rate on a 30-year fixed-rate mortgage rose by 22 basis points to 7.16% for the week ended Oct. 21 while the MBA's Market Composite Index, a measure of mortgage loan application volume, fell 1.7% from a week earlier. Mortgage rates have more than doubled since the beginning of the year, as the Federal Reserve pursues an aggressive path of interest rate hikes to rein in stubbornly high inflation. The central bank is expected to raise rates by 75 basis points for a fourth straight time at the conclusion of its next policy meeting on Nov. 1-2. The yield on the 10-year note acts as a benchmark for mortgage rates.

☆ If you're considering buying or selling a home, you might want to wait until next year
▼ + stars: | 2022-10-25 | by ( Alcynna Lloyd | ) www.businessinsider.com time to read: +4 min

The fight against inflation has led to a surge in mortgage rates. An increase in interest rates led to a run up in mortgage rates, which has slowed home sales and therefore price growth. It all comes down to the fact that the higher mortgage rates rise, the less affordable homeownership is for borrowers. Indeed, homebuying activity is slowing the higher that mortgage rates rise. According to the organization's researchers, if a recession were to materialize "mortgage rates would fall around 30 basis points from the baseline forecast level of 5.2%."

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 6.94%, according to Freddie Mac. 15-year fixed mortgage ratesThe average 15-year fixed mortgage rate is 6.23%, an increase from the prior week, according to Freddie Mac data. Mortgage rates started ticking up from historic lows in the second half of 2021 and have increased significantly so far in 2022. Inflation remains elevated, but has started to slow, which is a good sign for mortgage rates and the broader economy.

☆ Mortgage rates rise again, creeping closer to 7%
▼ + stars: | 2022-10-20 | by ( Anna Bahney | ) edition.cnn.com time to read: +4 min

Mortgage rates have more than doubled since the beginning of this year as the Federal Reserve pushed ahead with its unprecedented campaign of hiking interest rates in order to tame soaring inflation. Mortgage rates tend to track the yield on 10-year US Treasury bonds. As investors see or anticipate rate hikes, they make moves which send yields higher and mortgage rates rise. This week, the 10-year US Treasury hit a high not seen since 2008, an indication that mortgage rates could rise even further. Affordability remains a challengeHigher mortgage rates are making it even harder for prospective buyers to afford a home.

☆ Homebuilders aren't helping to lower home prices because they too are sitting on the sidelines waiting for inflation and mortgage rates to fall
▼ + stars: | 2022-10-19 | by ( Alcynna Lloyd | Ben Winck | ) www.businessinsider.com time to read: +4 min

Like prospective homeowners, homebuilders aren't happy with the housing market, either. The housing market isn't working for most Americans. In September, residential homebuilding slowed as housing starts decreased 8.1% from August levels, according to a report from the US Census Bureau that was released on Wednesday. During the month, single-family housing starts decreased 4.7% to a seasonally adjusted annualized rate of 892,000. "This will be the first year since 2011 to see a decline for single-family starts," Robert Dietz, the chief economist for the National Association of Homebuilders, said.

☆ Multigenerational Hispanic households are under pressure as rates surge and homes remain costly
▼ + stars: | 2022-10-19 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +5 min

Mortgage rates have also surged as the Federal Reserve tightens monetary policy to curb inflationary pressures not seen in about 40 years. Roughly a quarter of Asian, Black and Hispanic Americans each lived in multigenerational households in 2021, compared to 13% of those who are white. "Latinos are more likely to live in multigenerational households," said Gary Acosta, co-founder and CEO of the National Association of Hispanic Real Estate Professionals. "But being a larger multigenerational family comes with complications if you're trying to be a homeowner," he said. For the Espinoza family, the ideal home would have at least three bedrooms, a backyard and proximity to employment and schools in Santa Ana.

☆ The US economy is still running on a post-COVID sugar high that's about to run out and make 2023 feel miserable
▼ + stars: | 2022-10-19 | by ( Ben Winck | Madison Hoff | ) www.businessinsider.com time to read: +7 min

The Federal Reserve started raising interest rates this March, making all forms of borrowing more expensive and hitting the brakes on economic growth. Experts see 2023 featuring even higher interest rates, still-elevated inflation, rising unemployment, and a tougher job market for workers. American companies are trimming their hiring plans amid soaring interest rates and fears of a near-term recession. The Fed's benchmark rate now sits between 3% and 3.25%, well above the threshold at which rates constrain, not boost, economic growth. Inflation is still running at a 8.2% year-over-year pace, leaving lawmakers incredibly wary of pumping more cash into the economy.

☆ UK PM Liz Truss says she’s a ‘fighter not a quitter’ as lawmakers plot to oust her
▼ + stars: | 2022-10-19 | by ( Jenni Reid | ) www.cnbc.com time to read: +1 min

British Prime Minister Liz Truss departs 10 Downing Street for the weekly Prime Minister's Questions (PMQs) in the House of Commons in London, United Kingdom on October 19, 2022. LONDON — British Prime Minister Liz Truss insisted Wednesday she was a "fighter not a quitter" as she was grilled by parliamentarians for the first time since being forced to scrap almost all of her flagship fiscal policies. Mortgage deals were also pulled as interest rate hike expectations rose rapidly. Full details of the government's new economic policies are expected Oct. 31, along with an independent economic forecast. "I had to take the decision because of the economic situation to adjust our policies," Truss said.

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