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The latest decline brought the average rate on a 30-year mortgage down to 7.22% from 7.29% last week, mortgage buyer Freddie Mac said Thursday. The average rate on a 30-year mortgage is now at the lowest level it’s been in 10 weeks, when it was 7.19%. “Market sentiment has significantly shifted over the last month, leading to a continued decline in mortgage rates,” said Sam Khater, Freddie Mac’s chief economist. The average rate on a 30-year home loan climbed above 6% in September 2022 and has remained above that threshold since. The elevated mortgage rates and a near-historic-low supply of homes on the market have held back the housing market this year.
Persons: Freddie Mac, , Sam Khater, Freddie Mac’s, Organizations: ANGELES, Mortgage Bankers Association, Treasury, Federal Reserve Locations: U.S
Mortgage rates fall for fourth week but stay above 7%
  + stars: | 2023-11-22 | by ( Anna Bahney | ) edition.cnn.com   time to read: +2 min
Washington, DC CNN —Mortgage rates fell again in the most recent week, as inflation showed signs of slowing. It’s the fourth consecutive week of tumbling rates after rising for seven straight weeks. The average rate rose above 7% in mid-August and since then reached as high as 7.79% at the end of October. “In a few short weeks, mortgage rates have largely erased the sharp climb traversed in October,” said Danielle Hale, Realtor.com’s chief economist. Meanwhile, she added, existing home sales slid to their worst reading since 2010 as home prices rose and mortgage rates pushed the cost of buying even higher.
Persons: Freddie Mac, , , Sam Khater, Freddie Mac’s, Danielle Hale, Hale, homebuyers, ” Hale Organizations: DC CNN — Locations: Washington
The latest decline brought the average rate on a 30-year mortgage down to 7.29% from 7.44% last week, mortgage buyer Freddie Mac said Wednesday. “In recent weeks, rates have dropped by half a percent, but potential homebuyers continue to hold out for lower rates and more inventory,” said Sam Khater, Freddie Mac’s chief economist. Political Cartoons View All 1265 ImagesThe average rate on a 30-year home loan climbed above 6% in September 2022 and has remained above that threshold since. Just four weeks ago, it averaged 7.79% — the highest average on record going back to late 2000. The average rate is now at the lowest level it’s been in nine weeks, when it was 7.19%.
Persons: Freddie Mac, , , Sam Khater, Freddie Mac’s Organizations: ANGELES, Treasury, Federal Reserve Locations: U.S
Mortgage rates have cooled in recent weeks as markets absorbed the latest economic indicators, including an improving inflation picture. “For the third straight week, mortgage rates trended down, as new data indicates that inflationary pressures are receding,” 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. “The gap between the 10-year Treasury yield and the 30-year fixed rate mortgage rate is historically around 180 basis points,” she said. “While the gap has narrowed somewhat, the 30-year mortgage rate remains 280 basis points higher than the bond yield.”By historical norms, she said, mortgage rates should be under 6.5%.
Persons: Freddie Mac, , Sam Khater, Freddie Mac’s, Price, Jiayi Xu, Jerome, Powell, ” Xu, Bob Broeksmit, Lawrence Yun, ” Yun, , Lisa Sturtevant, ” Sturtevant Organizations: DC CNN —, Mortgage, Association, Federal Reserve, Treasury, Consumer, , National Association of Realtors, Bright MLS Locations: Washington
Washington, DC CNN —Mortgage rates tumbled this week in the biggest one-week drop since last November. “Many consumers are feeling strained by the high cost of living, so unless mortgage rates decrease significantly, the housing market will remain stagnant.”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. But while mortgage rates remain relatively high, the difference between rates now and what they were a year ago has narrowed, said Lisa Sturtevant, chief economist at Bright Multiple Listing Service. “We are in a new era for mortgage rates, where prospective homebuyers can expect rates to settle above 6%,” said Sturtevant.
Persons: It’s, Freddie Mac, , Sam Khater, Freddie Mac’s, Joel Kan, Jiayi Xu, Xu, Realtor.com, Lisa Sturtevant, Sturtevant Organizations: DC CNN —, , Treasury, Mortgage, Association Locations: Washington
The decline brought the average rate on a 30-year mortgage down to 7.76% from 7.79% last week, mortgage buyer Freddie Mac said Thursday. As mortgage rates rise, they can add hundreds of dollars a month in costs for borrowers, limiting how much they can afford in a market already out of reach for many Americans. The average rate on a 30-year home loan climbed above 6% in September 2022 and has remained above that threshold since. And higher yields on 10-year Treasurys tend to push up mortgage rates. The average rate was unchanged from last week at 7.03%.
Persons: Freddie Mac, , Sam Khater, Freddie Mac’s, it’s, Lisa Sturtevant, Bob Broeksmit Organizations: ANGELES, Treasury, U.S, Federal Reserve, Bright MLS, , Treasury Department, Mortgage, Association, Locations: U.S
LOS ANGELES (AP) — The cost of financing a home surged again this week with the average long-term U.S. mortgage rate at its highest level since December 2000. The average rate on the benchmark 30-year home loan rose to 7.63% from 7.57% last week, mortgage buyer Freddie Mac said Thursday. The average rate rose to 6.92% from 6.89% last week. The average rate on a 30-year mortgage is now more than double what it was two years ago, when it was just 3.09%. The weekly average rate on a 30-year mortgage has remained above 7% since mid-August and is now at the highest level since Dec. 1, 2000, when it averaged 7.65%.
Persons: Freddie Mac, , Sam Khater, Freddie Mac’s, Bob Broeksmit Organizations: ANGELES, , Mortgage, Association, , Treasury, U.S Locations: U.S
Mortgage rates climb to 7.49%, hurting home sales
  + stars: | 2023-10-05 | by ( Anna Bahney | ) edition.cnn.com   time to read: +1 min
Washington, DC CNN —US mortgage rates climbed even higher this week, hitting 7.49% and pushing homeownership further out of reach for would-be homebuyers. “Unsurprisingly, this is pulling back homebuyer demand.”Mortgage rates have spiked during the Federal Reserve’s historic inflation-curbing campaign. The central bank has indicated it may keep rates higher for longer, due to stubborn inflation. That has pushed up the 10-year Treasury yield, a key benchmark for mortgage rates. The average mortgage rate is based on mortgage applications that Freddie Mac receives from thousands of lenders across the country.
Persons: homeownership, Freddie Mac, , Sam Khater, Freddie Mac’s Organizations: DC CNN, Federal, , Treasury, National Association of Realtors Locations: Washington
LOS ANGELES (AP) — The cost of financing a home surged again this week as the average long-term U.S. mortgage rate climbed to its highest level since December 2000, further dimming the affordability outlook for many would-be homebuyers. The average rate on the benchmark 30-year home loan rose to 7.49% from 7.31% last week, mortgage buyer Freddie Mac said Thursday. The average rate on a 30-year mortgage is now more than double what it was two years ago, when it was just 2.99%. The weekly average rate on a 30-year mortgage has remained above 7% since mid-August and is now at the highest level since Dec. 8, 2000, when it averaged 7.57%. Mortgage rates have been climbing along with the 10-year Treasury yield, which lenders use as a guide to pricing loans.
Persons: Freddie Mac, , Sam Khater, Freddie Mac’s Organizations: ANGELES, Mortgage, Association, Federal, Treasury, Federal Reserve, U.S Locations: U.S
These are tough times for the housing market. Meanwhile on Wednesday, the Mortgage Bankers Association said mortgage applications have plunged 28% since last year and are now at the lowest level since late 1996. After two years of a pandemic-fueled housing market frenzy and another year of rising rates and tight inventory, consumers are weary. During the pandemic, as the Federal Reserve moved to lower interest rates, mortgage rates fell to 3% and below, prompting a wave of refinancings. “Mortgage applications declined to the lowest level since December 1996, despite a drop in mortgage rates,” said Joel Kan, deputy chief economist at the Mortgage Bankers Association.
Persons: Freddie Mac’s, , Lisa Sturtevant, ” Sturtevant, Joel Kan, Redfin, Niko Voutsinas Organizations: Mortgage Bankers Association, National Association of Home Builders, Housing, Bright MLS, , Federal Reserve, Mortgage, Association Locations: Washington, Chicago
US mortgage rates soar to 7.23%, a 22-year high
  + stars: | 2023-08-24 | by ( Anna Bahney | ) edition.cnn.com   time to read: +1 min
Washington, DC CNN —US mortgage rates continued to surge this week, rising to their highest level since 2001. The 30-year fixed-rate mortgage averaged 7.23% in the week ending August 24, up from 7.09% the week before, according to data from Freddie Mac released Thursday. Indications of ongoing economic strength will likely keep mortgage rates where they are or send them higher in the short term, said Sam Khater, Freddie Mac’s chief economist. This week’s average rate is the highest the 30-year, fixed-rate mortgage has been since June 2001, when it was 7.24%. Mortgage rates have spiked during the Federal Reserve’s historic inflation-curbing campaign, sending home affordability to its lowest level in several decades.
Persons: Freddie Mac, Sam Khater, Freddie Mac’s Organizations: DC CNN Locations: Washington
Mortgage rates rise to just short of 7%
  + stars: | 2023-08-10 | by ( Anna Bahney | ) edition.cnn.com   time to read: +2 min
Washington, DC CNN —US mortgage rates remained elevated this week, rising for the third week in a row, but stayed just under the market’s 7% threshold. The 30-year fixed-rate mortgage averaged 6.96% in the week ending August 10, up from 6.90% the week before, according to data from Freddie Mac released Thursday. “However, upward pressure on rates is the product of a resilient economy with low unemployment and strong wage growth, which historically has kept purchase demand solid.”The average mortgage rate is based on mortgage applications that Freddie Mac receives from thousands of lenders across the country. Markets had been waiting for July’s inflation report, released Thursday morning, which showed consumer price hikes rose 3.2% annually, the first increase in 12 months. The Fed also will consider the forthcoming August employment and inflation data prior to the next policy meeting, in September.
Persons: Freddie Mac, , Sam Khater, Freddie Mac’s, Jiayi Xu, Xu Organizations: DC CNN, Federal Reserve, Index, Fed Locations: Washington
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,
CNN —The credit ratings of US mortgage giants Freddie Mac and Fannie Mae were downgraded by Fitch Ratings on Wednesday, the day after Fitch cut the US sovereign rating from the top-ranked AAA to AA+. The firm downgraded the mortgage giants’ Long-Term Issuer Default Ratings (IDR) and senior unsecured debt ratings from AAA to AA+. The ratings agency said that as government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac benefit from implicit government support. But this flow of funds could be disrupted if the United States defaults on its debt, Fitch warned. It also said that should the US sovereign debt rating be raised, the GSEs’ rating would move in tandem.
Persons: Freddie Mac, Fannie Mae, Fitch, , Freddie, Fannie, Fannie Mae’s, Freddie Mac’s, Organizations: CNN, Fitch, AAA, AA, Congress, Federal Housing Finance Agency, U.S, Treasury’s Locations: United States
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,
Mortgage rates jump higher, closing in on 7%
  + stars: | 2023-07-13 | by ( Anna Bahney | ) edition.cnn.com   time to read: +4 min
Washington, DC CNN —US mortgage rates climbed higher this week, inching closer to 7% and reaching their highest level since November. The average mortgage rate is based on mortgage applications that Freddie Mac receives from thousands of lenders across the country. Mortgage rates have remained over 5% for all but one week during the past year and even went as high as 7.08%, last reached in November. “The strong job market will continue to drive demand in the economy, fuel price increases and contribute to higher inflation,” Xu said. Strong labor market encourages some buyersEven as the average mortgage rate pushed toward 7%, reaching its highest level this year last week, mortgage applications still ticked up a bit, according to the Mortgage Bankers Association.
Persons: Freddie Mac, , Sam Khater, Freddie Mac’s, Jiayi Xu, ” Xu, Bob Broeksmit, Xu, Organizations: DC CNN, Mortgage, Association Locations: Washington
Washington, DC CNN —Renters and homeowners are experiencing inflation differently, according to new data from Bank of America — and, unsurprisingly, renters are taking the hit. Secondly, even if a typical mortgage payment is higher than a typical monthly rent payment, because renters’ income tends to be less than homeowners, more renters put a larger share of their income toward rent than homeowners put toward mortgage payments. Restaurants are the only sector where homeowners and renters are both still showing an increase in spending from last year, and homeowners significantly outpace renters. Even controlling for income — which is necessary because renters tend to have lower incomes than homeowners — renters are showing less spending strength than homeowners in their same income group in most spending categories. Looking ahead, however, this wedge between the spending of renters and homeowners may narrow, the report points out.
Persons: Bank of America —, Freddie Mac’s, , Freddie Mac Organizations: DC CNN, Bank of America, Consumer, Federal Reserve, Joint Center for Housing Studies, Harvard University Locations: Washington
Washington, DC CNN —US mortgage rates jumped up this week as recent economic data showed inflation remains sticky and the job market is still red hot. The 30-year fixed-rate mortgage averaged 6.81% in the week ending July 6, up from 6.71% the week before, according to data from Freddie Mac released Thursday. “Mortgage rates continued their upward trajectory again this week, rising to the highest rate this year so far,” said Sam Khater, Freddie Mac’s chief economist. These high rates combined with low inventory continue to price many potential homebuyers out of the market.”The average mortgage rate is based on mortgage applications that Freddie Mac receives from thousands of lenders across the country. Rates ticked up last week, mirroring the trend of the yield on 10-year Treasuries, which are reacting to economic data that suggests stubborn inflation may be stuck at an elevated level.
Persons: Freddie Mac, , Sam Khater, Freddie Mac’s, Jiayi Xu, , Xu, homebuyers, Joel Kan Organizations: DC CNN, , Federal Reserve, Realtor.com, , Mortgage, Association Locations: Washington,
Mortgage rates fall for the first time in three weeks
  + stars: | 2023-06-08 | by ( Anna Bahney | ) edition.cnn.com   time to read: +4 min
Washington, DC CNN —Mortgage rates dropped this week after a three-week climb, as rates remain volatile amid conflicting economic indicators. Mortgage rates topped 5% for the first time since 2011 a little more than a year ago and have remained over 5% for all but one week during the past year. The average mortgage rate is based on mortgage applications that Freddie Mac receives from thousands of lenders across the country. 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.
Persons: Freddie Mac, , Sam Khater, Freddie Mac’s, Jiayi Xu, Xu, ” Xu, Bob Broeksmit, Organizations: DC CNN —, Fed, Federal, Treasury, , Mortgage, Association Locations: Washington
Warren Buffett – he invests just like us!
  + stars: | 2023-06-07 | by ( Jeffrey Goldfarb | ) www.reuters.com   time to read: +7 min
NEW YORK, June 7 (Reuters Breakingviews) - “Do as I say, not as I do” sounds like the kind of pithy thing Warren Buffett might say to his adoring throngs. The conglomerate was an investor for a dozen years, until Buffett got spooked by Freddie Mac’s overly rosy earnings growth projections. The $1.3 billion stake it finished accumulating in 1994 was worth $25 billion last month. A $13 billion stake in IBM (IBM.N) came and went, as did $8 billion of JPMorgan (JPM.N) and almost $3 billion of biopharmaceutical company AbbVie (ABBV.N). Warren Buffett, Berkshire’s chairman and CEO, said that geopolitical tensions contributed to the decision to sell most of the $4.1 billion TSMC stake just a few months after buying it, the Nikkei reported on April 11.
Persons: Warren Buffett, can’t, There’s, Buffett, Freddie Mac, Freddie Mac’s, Coke, Benjamin Moore, TSMC, , Wells, ” Buffett, Berkshire Hathaway, John Foley, Sharon Lam Organizations: YORK, Reuters, Berkshire Hathaway, Home Loan Mortgage, U.S ., Berkshire, BNSF, Taiwan Semiconductor Manufacturing, Buffett, ” Morningstar, Treasury, New York Stock Exchange, American Express, IBM, JPMorgan, Activision, Occidental Petroleum, Paramount Global, Oracle, Reuters Graphics Reuters, Nikkei, Thomson Locations: Berkshire, U.S, TSMC . Berkshire, Japan, Taiwan, Omaha, China
Washington CNN —US mortgage rates jumped higher last week as uncertainty about the debt ceiling standoff sent bond yields rising. Mortgage rates tend to be pegged to US Treasury yields, which had been heading higher as America grows ever closer to default. Although the Fed doesn’t have direct control over mortgage rates, higher interest rates tend to push bond yields higher, which also can nudge mortgage rates up. “If the U.S. defaults on its debt, bond investments become riskier, resulting in increased yields and potentially higher mortgage rates. But if mortgage rates remain elevated, sellers looking to wrap up a move during the summer months may be motivated to cut prices.
Persons: Freddie Mac, , Sam Khater, Freddie Mac’s, Jiayi Xu, Joe Biden, Xu, , George Ratiu, ” Ratiu, Bob Broeksmit, today’s, ” Xu Organizations: Washington CNN, Treasury, Federal, , Realtor.com, Mortgage, Association Locations: America, U.S
Washington, DC CNN —The credit ratings of US mortgage giants Freddie Mac and Fannie Mae were put on watch for possible downgrade by Fitch Ratings late Thursday. The warning came because the ratings for Fannie Mae and Freddie Mac are linked to the sovereign rating of the United States. The aim of Freddie and Fannie is to provide liquidity into the mortgage market and enable a reliable flow of affordable funds to mortgage lenders. “The housing GSEs continue to benefit from meaningful financial support from the U.S. government,” the Fitch statement said. “While politics are at play, the ratings watch is a just that — a watch,” she said.
Mortgage rates tick down for the second week in a row
  + stars: | 2023-05-11 | by ( Anna Bahney | ) edition.cnn.com   time to read: +4 min
Washington, DC CNN —Mortgage rates ticked down last week for the second week in a row, as progress on inflation is keeping rates calmer. “This week’s decrease continues a recent sideways trend in mortgage rates, which is a welcome departure from the record increases of last year,” said Sam Khater, Freddie Mac’s chief economist. Mortgage rates topped 5% for the first time since 2011 a little more than a year ago, and have remained over 5% for all but one week during the past year. But over the last month rates have averaged about 6.37% and have been going up and down, but staying under 6.5%. “This should bode well for the trajectory of mortgage rates over the long term.”The average mortgage rate is based on mortgage applications that Freddie Mac receives from thousands of lenders across the country.
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.
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.
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