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☆ Americans are about to feel the impact of soaring bond yields, Blackstone president says
▼ + stars: | 2023-10-19 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +3 min

Consumers are about to feel the impact of soaring bond yields, Blackstone president Johnathan Gray told the FT. Higher bond yields are raising borrowing costs all over the economy, from mortgages to personal loans. AdvertisementAdvertisementAmerican consumers are about to feel the sting of soaring bond yields, Blackstone president Johnathan Gray said. Bond yields, which impact borrowing costs for all kinds of loan products, moved higher this week as investors fretted over higher-for-longer interest rates. In some corners of the economy, rising yields and higher borrowing costs have already been acutely felt.

Persons: Blackstone, Johnathan Gray, —, Bond, Gray, Morgan Stanley Organizations: Treasury, Service, Financial Times, Mortgage, Federal, Federal Reserve, Consumers, San Francisco Fed

☆ U.S. mortgage application flow plunges to lowest since 1995
▼ + stars: | 2023-10-18 | by ( Dan Burns | ) www.reuters.com time to read: +2 min

The Mortgage Bankers Association's weekly index of mortgage application activity fell 6.9% in the week ended Oct. 13 to 166.9, the lowest since May 1995. Applications for loans to buy a home fell 5.6% to the lowest since February 1995 and applications to refinance an existing mortgage tumbled 9.9% to the lowest since January. Residential borrowing costs have risen roughly by half a percentage point since the beginning of September. Barring an about-face in the bond market that brings yields lower, borrowing costs look unlikely to pull back in the near term. In addition to high borrowing costs, sales are being restrained by very low inventory of homes on the market.

Persons: Sarah Silbiger, they've, Dan Burns, Chizu Organizations: REUTERS, Mortgage Bankers, Federal Reserve, National Association of Realtors, Reuters, ARM, Thomson Locations: Washington , U.S

☆ The 30-year fixed mortgage rate just hit 8% for the first time since 2000 as Treasury yields soar
▼ + stars: | 2023-10-18 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +2 min

The average rate on the popular 30-year fixed mortgage rate hit 8% Wednesday morning, according to Mortgage News Daily. Mortgage rates follow loosely the yield on the 10-year U.S. Treasury . Rates rose sharply this week and last week, as investors digest more reads on the economy. On Wednesday, it was housing starts, which rose in September, though not as much as expected, according to the U.S. Census Bureau. These higher rates have caused mortgage demand to plummet, as applications fell nearly 7% last week from the previous week, according to the Mortgage Bankers Association.

Persons: Matthew Graham, Horton Organizations: Mortgage News, Treasury, . Census, Federal, Mortgage, Association, CNBC

☆ The 30-year mortgage rate hits a new 23-year high, pushing closer to 8%
▼ + stars: | 2023-10-17 | by ( Phil Rosen | ) www.businessinsider.com time to read: +2 min

Rates on the 30-year fixed mortgage hit 7.92% on Tuesday, Mortgage News Daily's Rate Index showed. High mortgage rates, expensive home prices, and low inventory have strained the US housing market. AdvertisementAdvertisementThe average rates on the 30-year fixed mortgage hit 7.92% on Tuesday, according to Mortgage News Daily's index. Rates on the 30-year fixed mortgage hit 7.92% on October 17. It's helped fuel a lock-in effect for current homeowners unwilling to move homes due to having previously secured a lower mortgage rate, keeping both sellers and buyers off the market.

Persons: —, they've, Redfin Organizations: Mortgage, Service, Mortgage News Daily Mortgage, Federal

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 Inch Down a Tiny Bit (-0.04%)The current average 30-year fixed mortgage rate is 7.45%, down four basis points since this time last week. 20-Year Fixed Mortgage Rates Tick Down (-0.03%)The average 20-year fixed mortgage rate is down just three basis points from last week and sits at 7.18%. 15-Year Fixed Mortgage Rates Essentially Flat (-0.01%)The average 15-year mortgage rate is 6.63%, a single basis point decrease from last week. Mortgage rates have been volatile so far in 2023, and they're higher than they were in October 2022.

Persons: they're, Patrick Harker, Harker, you'll, refinance Organizations: Federal Reserve, Philadelphia Fed, Delaware State Chamber of Commerce, Zillow, FHA Locations: Delaware, Chevron

The average rate on the benchmark 30-year home loan rose to 7.57% from 7.49% last week, mortgage buyer Freddie Mac said Thursday. The average rate on a 30-year home loan climbed above 6% in September 2022 and has remained above that threshold since. This marks the first 12-month period that the benchmark mortgage rate has been at 6% or higher since the early 2000s. It's now at the highest level since Dec. 1, 2000, when it averaged 7.65%. "With mortgage rates well above 7%, some prospective homebuyers are turning to ARMs to lower their monthly payment in the short term amidst these high mortgage rates,” said Bob Broeksmit, the MBA's CEO.

Persons: Freddie Mac, It's, ”, Hannah Jones, there's, Bob Broeksmit Organizations: ANGELES, —, Mortgage, Association, Treasury, U.S Locations: U.S

☆ The days of rising interest rates could soon be over
▼ + stars: | 2023-10-11 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

What’s happening: US Treasury rates are white hot — 10-year Treasury yields are near their highest levels since 2007. It also means more expensive mortgage rates. Mortgage rates tend to track the yield on 10-year US Treasuries. When Treasury yields go up, so do mortgage rates; when they go down, mortgage rates tend to follow. US mortgage rates are at 23 year-highs, and home affordability is at its lowest level since 1984.

Persons: haven’t, Philip Jefferson, ” That’s, Lorie Logan, Raphael Bostic, ”, “, ” Bostic, Mary Daly, Bonds, What’s, Birkenstock, Elisabeth Buchwald, Megan Penick, Robinson, Rachel Ramirez, It’s, they’re Organizations: CNN Business, Bell, New York CNN, Federal Reserve, Fed, Financial, CME, Treasury, New York Federal Reserve, Federal Reserve Bank of New, Consumer, Dallas, Federal Reserve Bank of Atlanta, American Bankers Association, San Francisco Fed, Index, PPI, CPI, New York Stock Exchange, Renaissance, Nature Communications Locations: New York, Germany, Czech Republic, Slovenia

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 7.49%, up 17 basis points since this time last week. 20-Year Fixed Mortgage Rates Go Up (+0.37%)The average 20-year fixed mortgage rate is up 37 basis points from last week and sits at 7.21%. 15-Year Fixed Mortgage Rates Tick Up a Bit (+0.11%)The average 15-year mortgage rate is 6.64%, an 11-basis-point increase from last week. Mortgage rates have been volatile so far in 2023, and they're higher than they were in September 2022.

Persons: you'll, It's, refinance Organizations: Federal Reserve, Zillow, FHA Locations: Chevron

☆ Why your mortgage rate is probably different from the ‘average’
▼ + stars: | 2023-10-08 | by ( Anna Bahney | ) edition.cnn.com time to read: +6 min

Washington, DC CNN —The average US mortgage rate hit 7.49% this week, the highest level in 23 years. The lower risk you present, the lower your mortgage rate will be. Another way people who are quoted a certain mortgage rate can lower it is by buying down the rate with discount points. A borrower with a $400,000 loan can buy down a 7.5% mortgage rate to 7.25% for $4,000. By reducing the mortgage rate upfront, the monthly costs will be smaller for the life of the loan.

Persons: homebuyers, “, Freddie Mac, homebuyer, who’ve Organizations: DC CNN, Consumer Financial, Bureau, National Association of Realtors, Equal, Consumer, Companies Locations: Washington

☆ Here's how BlackRock's Rick Rieder is navigating the bond market sell-off in his outperforming ETF
▼ + stars: | 2023-10-08 | by ( Jesse Pound | In Jesse-Pound | ) www.cnbc.com time to read: +3 min

BlackRock global fixed income CIO Rick Rieder said Friday that this year's bond market volatility has created opportunities to buy high quality yields on the cheap. The result is his new fund outperforming some of the biggest bond ETFs during the most recent sell-off. Aggregate Bond ETF (AGG) and 2.2% for the Vanguard Total Bond Market ETF (BND) , the two biggest bond ETFs. BINC 1M mountain BlackRock's BINC has held up better than major bond ETFs over the past month. "I think what people underestimate is the long end of the bond market, the 30-year Treasury, is about the same volatility as the stock market," he said.

Persons: Rick Rieder, Rieder, We've Organizations: BlackRock, Rieder, Aggregate Bond, Vanguard, Bond Market, CNBC, Treasury, Corporate Bond Fund, Fed, AAA, Mortgage, SEC Locations: BlackRock, Mexico, Brazil, Japan, iShares, United States, U.S

☆ There won't be a housing crash, just some 'turbulence,' says Bank of America
▼ + stars: | 2023-10-05 | by ( Samantha Subin | ) www.cnbc.com time to read: +2 min

A higher-for-longer rate environment could signal a rough patch ahead for the housing market, according to Bank of America. "No crash in sight, but potential turbulence ahead," wrote economist Jeseo Park in a Thursday note to clients, noting that recent developments in the housing market have been cause for concern. Meanwhile, a "lock-in effect" is leading many homeowners to hold onto their properties, contributing to a "squeezed" existing homes market into next year. "At first blush this difference may seem concerning, but one explanation is that the speed of home price growth has exceeded income growth over the years," Park wrote. "Nevertheless, we remain cautious of potential turbulence ahead," Park wrote.

Persons: Jeseo, — CNBC's Michael Bloom Organizations: Bank of America, Federal Reserve

☆ The odds the US will avoid a recession may be dwindling, top economist Mohamed El-Erian says
▼ + stars: | 2023-10-05 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +4 min

The US's chances of avoiding a recession just got smaller, according to Mohamed El-Erian. The New York Fed has priced in a 56% chance of a recession happening by September 2024. AdvertisementAdvertisementThere are two reasons why America's odds of avoiding a recession may be dwindling, according to top economist Mohamed El-Erian. There is a material risk of this leading to higher inflation for a broader range of goods and services," El-Erian wrote. "While markets are adjusting fast to higher rates, that of the real economy is at much earlier phase with now a much bumpier road ahead."

Persons: Mohamed El, —, Erian, there's, they've Organizations: New York Fed, Service, Allianz, Federal Reserve, Financial, Treasury, West Texas, Energy, of Labor Statistics Locations: El, Brent

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

☆ Soaring Treasury yields ignite turbulence throughout markets
▼ + stars: | 2023-10-05 | by ( Saqib Iqbal Ahmed | ) www.reuters.com time to read: +4 min

Because the $25-trillion Treasury market is considered the bedrock of the global financial system, soaring yields on U.S. government bonds have had wide-ranging effects. Higher Treasury yields can curb investors' appetite for stocks and other risky assets by tightening financial conditions as they raise the cost of credit for companies and individuals. With some Treasury maturities offering far above 5% to investors holding the bonds to term, rising yields have also dulled the allure of equities. Reuters GraphicsWith Treasury yields surging, credit market spreads have widened as investors demand a higher yield on riskier assets, such as corporate bonds. The MOVE index (.MOVE), a measure of expected volatility in U.S. Treasuries, has surged to a 4-month high, signaling expectations for continued Treasury market ructions.

Persons: Andrew Kelly, That's, Saqib Iqbal Ahmed, Davide Barbuscia, Ira Iosebashvili, Nick Zieminski Organizations: United States Department of, Washington , D.C, REUTERS, Treasury, Federal Reserve, Bank of America Global Research, Reuters, Traders, Reuters Graphics, Silicon Valley Bank, Signature Bank, Thomson Locations: Washington ,, U.S, Silicon

☆ Mortgage rates reach highest since November 2000 - MBA
▼ + stars: | 2023-10-04 | by ( Amina Niasse | ) www.reuters.com time to read: +2 min

REUTERS/Sarah Silbiger/File Photo Acquire Licensing RightsNEW YORK, Oct 4 (Reuters) - U.S. mortgage interest rates rose to the highest since November 2000 last week, helping to drive home loan application volumes to the lowest in 27 years, a report on Wednesday said. “Mortgage rates continued to move higher last week as markets digested the recent upswing in Treasury yields," said Joel Kan, the MBA's vice president and deputy chief economist. Yields on the 10-year Treasury note , which is the main benchmark for determining mortgage rates, have climbed to their highest since the global financial crisis, hitting 4.8% this week. Moreover, the spread between 10-year note yields and 30-year mortgage rates are near record-wide levels, which has also exacerbated the rise in borrowing costs for prospective homebuyers. Last week also marked the fourth consecutive week that mortgage rates rose.

Persons: Sarah Silbiger, Joel Kan, Kan, Amina Niasse, Andrea Ricci Organizations: REUTERS, Mortgage Bankers Association, “, Federal Reserve, Thomson Locations: Washington , U.S

☆ Bankman-Fried circus will be a singular clown show
▼ + stars: | 2023-10-04 | by ( Anita Ramaswamy | ) www.reuters.com time to read: +3 min

NEW YORK, Oct 4 (Reuters Breakingviews) - All eyes are on Sam Bankman-Fried as the cryptocurrency founder’s criminal trial gets underway this week. The high-profile case bears similarities to past scandals such as Enron and Countrywide Financial, when regulation followed investigations. Lawmakers hauled Wall Street analysts up to Capitol Hill to grill them about their “buy” ratings. Importantly, legislators passed the Dodd-Frank Wall Street Reform and Consumer Protection Act, forcing banks to hold more capital, among other stipulations. It also is less prevalent – less than 20% of Americans have invested in crypto, according to the Pew Research Center.

Persons: Sam Bankman, FTX’s, Ken Lay, Arthur Andersen, Dodd, Frank Wall, Tom Brady, Bill Clinton, Fried, Lauren Silva Laughlin, Sharon Lam Organizations: Reuters, Enron, Countrywide Financial, Countrywide, Bank of America, Lawmakers, Sarbanes, Oxley, Frank Wall Street Reform, Consumer, The Securities, Exchange Commission, Pew Research Center, Louis Federal Reserve, Southern, Thomson Locations: Manhattan, New

☆ Why Wall Street investors are freaking out
▼ + stars: | 2023-10-04 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +8 min

Here’s why investors are freaking out:Rates and the Fed: A surge in corporate debt sales and rising bond yields have sent stocks lower. Moody’s, the only major credit rating firm to keep a perfect score for the United States, has warned that a government shutdown would be “credit negative” for the United States. Geopolitical risks are still elevated as Russia’s war on Ukraine continues and relations between the United States and China remain tense. October also marks the end of the fiscal year for many mutual funds in the United States. Statistical evidence doesn’t quite support the phenomenon, but the level of superstitious caution on Wall Street is real.

Persons: Kevin McCarthy, ”, Michael Reinking, Mark Twain, ” Sam Bankman, Sam Bankman, Allison Morrow, Judge Lewis Kaplan, “, ” Kaplan, SFB, SBF, Caroline Ellison, Bernie Madoff, Chris Isidore, Vanessa Yurkevich Organizations: CNN Business, Bell, New York CNN, Dow, Federal Reserve, Fed, Markets, Republicans, “, Prosecutors, GM, Ford, Motors, United Auto Workers, Michigan Assembly, Jeep, Dodge, Chrysler, UAW Locations: New York, America’s Congress, United States, Ukraine, China, Manhattan, Fairfax, Kansas City , Kansas, Toledo, Lockport, Michigan, Wayne , Michigan, Kokomo , Indiana

As inflation slows and the Fed is able to stop hiking rates — and, ultimately, start cutting them — mortgage rates should start trending down. 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 a Bit (+0.08%)The current average 30-year fixed mortgage rate is 7.32%, up just 8 basis points since this time last week. 15-Year Fixed Mortgage Rates Tick Up Very Slightly (+0.04%)The average 15-year mortgage rate is 6.53%, a 4-basis-point increase from last week. Mortgage rates have been volatile so far in 2023, and they're higher than they were in September 2022.

Persons: you'll, It's, refinance Organizations: Mortgage Bankers Association, Zillow, FHA Locations: Chevron

☆ These are the 10 best cities for apartment dwellers as mortgage rates stay oppressively high — and the 3 housing markets where buying a home is actually cheaper than renting
▼ + stars: | 2023-09-30 | by ( James Faris | ) www.businessinsider.com time to read: +4 min

Lower rent prices and multi-decade-high mortgage rates mean that it's smarter to rent than buy in most large US cities right now, according to Realtor.com. Disparities between buying and renting stemmed from a split in how median costs changed in the last 12 months. "The advantage of renting became more pronounced in all rent-favoring markets," Xu and Hale wrote. But there were three cities where buying was actually cheaper than renting in August, according to Realtor.com: Memphis, Tennessee; Pittsburgh, Pennsylvania; and Birmingham, Alabama. Below are the 10 metro areas where renting makes more sense than buying right now, along with the median rent, the median monthly cost of buying and how it compares to renting, and the year-over-year changes for renting and buying.

Persons: Jiayi Xu, Danielle Hale, Xu, Hale, Realtor.com, Freddie Mac Locations: Realtor.com, Memphis , Tennessee, Pittsburgh , Pennsylvania, Birmingham , Alabama

☆ US new home sales tumble in August
▼ + stars: | 2023-09-26 | by ( ) www.reuters.com time to read: +3 min

New home sales plunged 8.7% to a seasonally adjusted annual rate of 675,000 units last month, the Commerce Department said on Tuesday. July's sales pace was revised higher to 739,000 units from the previously reported 714,000 units. Economists polled by Reuters had forecast new home sales, which account for a small share of U.S. home sales, falling to a rate of 700,000 units. New home sales are counted at the signing of a contract, making them a leading indicator of the housing market. At August's sales pace it would take 7.8 months to clear the supply of houses on the market, up from 7.0 months in July.

Persons: Octavio Jones, Freddie Mac, Lucia Mutikani, Andrea Ricci Organizations: REUTERS, Rights, U.S, Commerce Department, Reuters, Treasury, Federal Reserve, Data, National Association of Home Builders, Thomson Locations: Tampa , Florida, U.S, Wells Fargo, West, Midwest, Northeast

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 (-0.12%)The current average 30-year fixed mortgage rate is 6.98%, down 12 basis points since this time last week. 20-Year Fixed Mortgage Rates Barely Inch Down (-0.04%)The average 20-year fixed mortgage rate is down just 4 basis points from last week and sits at 6.89%. 15-Year Fixed Mortgage Rates Tick Up Very Slightly (+0.08%)The average 15-year mortgage rate is 6.41%, an 8-basis-point increase from last week. Mortgage rates have been volatile so far in 2023, and they're higher than they were in September 2022.

Persons: you'll, It's, refinance Organizations: Zillow, FHA Locations: Chevron

☆ Opinion | The Fed Drove up Mortgage Rates. Why Doesn’t That Count as Inflation?
▼ + stars: | 2023-09-22 | by ( Peter Coy | ) www.nytimes.com time to read: +2 min

From March 2022, when the Fed began raising rates, through this July, personal interest payments, excluding those on mortgage loans, rose 69 percent, according to Bureau of Economic Analysis data. Mortgage interest was in the C.P.I. But if you own and the price of your house goes up, that’s kind of good. To put it another way, interest is fundamentally different from the goods and services in the Bureau of Labor Statistics’ marketbasket. Taking out a 30-year mortgage loan allows you to move into a house now.

Persons: ” Robert Gillingham, Walter Lane, ”, homeownership Organizations: Fed, Bureau of Labor Statistics, bureau’s, Labor, of Labor Statistics ’

LOS ANGELES (AP) — The average long-term U.S. mortgage rate edged up again this week, another setback for would-be homebuyers navigating an increasingly less affordable housing market. The average rate on the benchmark 30-year home loan rose to 7.19% from 7.18% last week, mortgage buyer Freddie Mac said Thursday. The average rate rose to 6.54% from 6.51% last week. Mortgage rates have been echoing moves in the 10-year Treasury yield, which lenders use as a guide to pricing loans. The average rate on a 30-year mortgage is now more than double what it was two years ago, when it was just 2.88%.

Persons: Freddie Mac, ”, Lisa Sturtevant Organizations: ANGELES, Bright MLS, Treasury, Federal Reserve, Federal, U.S, National Association of Realtors Locations: It’s, U.S

Mortgage rates are down across the board, and 30-year mortgage rates have dropped 16 basis points from where they were a week ago. 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 (-0.16%)The current average 30-year fixed mortgage rate is 6.89%, down 16 basis points since this time last week. 15-Year Fixed Mortgage Rates Essentially Flat (+0.01%)The average 15-year mortgage rate is 6.29%, a single basis point increase from last week. Mortgage rates have been volatile so far in 2023, and they're higher than they were in September 2022.

Persons: Jerome Powell's, Powell, you'll, It's, refinance Organizations: Federal, Zillow, FHA Locations: Chevron

☆ Bank of America says now is the time to buy these three home improvement stocks
▼ + stars: | 2023-09-19 | by ( Lisa Kailai Han | ) www.cnbc.com time to read: +2 min

Cooling inflationary pressures and strengthening home values are likely to spell a recovery for home improvement retailers sooner rather than later, according to Bank of America. Although the firm's indicator for the home improvement industry still came in negative for August 2023, the signal ticked up from its July reading. "Strength in home values should lend longer-term stability for home improvement demand," Suzuki wrote. Suzuki's $114 price target for Floor & Décor suggests almost 24% upside from its closing price of $92 Monday. BofA cited FND's growing number of stores and improved same-store sales growth.

Persons: Elizabeth Suzuki, Lowe, BofA, Suzuki, — CNBC's Michael Bloom Organizations: Bank of America, U.S . Mortgage, Finance Research Locations: 1H23, 2H23, Monday's

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