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☆ With housing, Buffett chooses a great location
▼ + stars: | 2023-08-30 | by ( Ben Winck | ) www.reuters.com time to read: +4 min

WASHINGTON, Aug 30 (Reuters Breakingviews) - Mortgages are pricey, but Warren Buffett seems to think that’s a good thing for homebuilders. Horton (DHI.N), Lennar (LEN.N) and NVR (NVR.N), just as mortgage rates hit the highest level in nearly 23 years. That’s 3% less than last year, and 7% less than the average used-home price today. Horton, NVR and Lennar on Aug. 14. The conglomerate, run by billionaire investor Warren Buffett, purchased $726 million, $71 million and $17 million of DR Horton, NVR and Lennar shares, respectively, throughout the second quarter, according to a Securities and Exchange Commission filing.

Persons: Warren Buffett, Berkshire Hathaway, D.R . Horton, Horton, NVR, Lauren Silva Laughlin, Sharon Lam Organizations: Reuters, U.S . Bureau of Labor Statistics, Buffett, Berkshire, Securities and Exchange Commission, Mortgage Bankers Association, Census, Thomson Locations: . Berkshire, D.R ., Horton, U.S, New York, Los Angeles, Berkshire, that’s, homebuilders D.R, DR

Mortgage rates remain elevated, with 30-year mortgage rates around a half a percentage point higher than they were at the start of the month. According to Fannie Mae's latest housing forecast, 30-year mortgage rates may fall to 6.7% by the end of 2023 and hit 6% in 2024. 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.

Persons: Fannie Mae's, Fannie Mae Organizations: Zillow, Federal Reserve, Mortgage, Association, Sky, ARM Locations: Chevron

☆ Zillow offers a 1% down payment loan program
▼ + stars: | 2023-08-25 | by ( Anna Bahney | ) edition.cnn.com time to read: +4 min

Zillow Home Loans pays an additional 2%, bringing the total down payment to 3%, which is typically the minimum payment required for a conventional home loan. Currently the program is only available to buyers in Arizona, according to Zillow, with plans to expand. With mortgage rates crossing over 7% in recent weeks and home prices rising, home sales have plummeted over the past year. Offering a low down payment program is in line with Zillow’s return to its core business after a short-lived expansion into the ibuying business. Zillow also offers a down payment assistance tool to see if you are eligible for other programs.

Persons: Zillow, Rich Barton, haven’t, Orphe Divounguy, ” Organizations: DC CNN, Mortgage, Association, US Department of Agriculture, Department of Veterans Affairs, Consumer Financial Locations: Washington, Arizona, homeownership, Phoenix

☆ Home affordability is the worst it has been since 1984
▼ + stars: | 2023-08-24 | by ( Anna Bahney | ) edition.cnn.com time to read: +5 min

Washington, DC CNN —Buying a house requires a much bigger slice of people’s income now — making this the most unaffordable housing market since 1984, by one measure. The number of cost-burdened renters increased by 1.2 million, to a record 21.6 million households, between 2019 and 2021. In all, 40.6 million households were housing-cost burdened in 2021, including 20.3 million who were severely burdened. Affordability picture remains grim this yearHopeful house hunters continued to face challenging affordability conditions in July as rising mortgage rates and historically low housing inventory pushed prices higher, said Edward Seiler, the Mortgage Bankers Association’s associate vice president for housing economics. “Unfortunately, given today’s lack of inventory and affordability levels, it may take years before home affordability returns to more ‘normal’ levels,” he said.

Persons: Black Knight, Knight, “, ”, Andy Walden, Edward Seiler, Seiler, Joel Kan, Walden, ” It’s Organizations: DC CNN, Federal Reserve, Black, Joint Center for Housing Studies of Harvard University, Mortgage, Moody’s Investors Service Locations: Washington

Aug 24 (Reuters) - Shares in online mortgage lender Better's (BETR.O) new public listing plummeted on Thursday as investors fretted over record-high mortgage rates. In the interim, roughly 95% of Aurora shareholders redeemed their holdings, leaving the trust account with just about $24 million at the end of June from about $283 million. Aurora went public in March 2021. Better is going public as U.S. mortgage rates continue to surge, with the popular 30-year fixed rate last week hitting the highest level since December 2000, helping drive mortgage applications to a 28-year low, the Mortgage Bankers Association said on Wednesday. Reporting by Hannah Lang and Lance Tupper in Washington; Editing by Mark Porter and Jonathan OatisOur Standards: The Thomson Reuters Trust Principles.

Persons: Aurora, Vishal Garg, Hannah Lang, Lance Tupper, Mark Porter, Jonathan Oatis Organizations: Nasdaq, Aurora Acquisition Corp, U.S . Securities, Exchange Commission, Aurora, refinancings, Mortgage Bankers Association, Thomson Locations: SoftBank, Washington

☆ Mortgage demand from homebuyers drops to a 28-year low as interest rates soar
▼ + stars: | 2023-08-23 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +2 min

Mortgage rates jumped last week to the highest level in 23 years, pushing mortgage demand from homebuyers to the lowest level in 28 years. Total mortgage application volume fell 4.2% last week, compared with the previous week, according to the Mortgage Bankers Association's seasonally adjusted index. Potential buyers are dealing not only with high interest rates and high prices, but extremely low supply. "Some homebuyers are looking to lower their monthly payments by accepting some interest rate risk after the initial fixed period," noted Kan. Mortgage rates continued to climb this week and are now right around 7.5% according to Mortgage News Daily.

Persons: Joel Kan, Kan Organizations: Mortgage, Treasury, National Association of Realtors, Mortgage News Locations: homebuyers

☆ Americans are applying for mortgages at the lowest rate in 28 years
▼ + stars: | 2023-08-23 | by ( Phil Rosen | ) www.businessinsider.com time to read: +3 min

US mortgage applications for home purchases fell to their lowest mark in 28 years, Mortgage Bankers Association data showed. Wednesday data from the Mortgage Bankers Association showed that mortgage applications for homes fell for the sixth straight week to hit the lowest level since 1995. AdvertisementAdvertisementThe MBA's survey covers 75% of all US retail residential mortgage applications, and it's been conducted every week for over three decades. Today's housing market is even more unaffordable than it was at the peak leading up to the 2008 financial crisis. A separate data release on Tuesday from the National Association of Realtors showed existing home sales decreased 2.2% in July, falling to the lowest level since the start of 2023.

Persons: omebuyers, Joel Kan, it's, Goldman Sachs Organizations: Mortgage, Association, Service, Atlanta, National Association of Realtors Locations: Wall, Silicon

☆ Mortgage rates hit their highest point since 2000
▼ + stars: | 2023-08-21 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +3 min

Mortgage rates jumped Monday, following a rise in bond yields driven by investors' concerns that high interest rates and inflation will linger longer than expected. The average rate on the popular 30-year fixed mortgage hit 7.48%, the highest level since November 2000, according to Mortgage News Daily. Higher mortgage rates exacerbate the supply situation. The nation's homebuilders have been trying to offset higher mortgage rates by either buying down those rates for short or long terms, or by lowering home prices. Homebuilder sentiment in August, however, dropped sharply, with builders citing higher interest rates as the main reason.

Persons: Matthew Graham Organizations: Mortgage News, Federal Reserve, ARM, Mortgage, Association

☆ Heloc vs Home Equity Loan: When Are They a Good Idea?
▼ + stars: | 2023-08-18 | by ( Aly J. Yale | ) www.wsj.com time to read: +10 min

And might a home-equity loan or Heloc work for your financial needs? How home-equity loans and Helocs workHome-equity loans and Helocs—home equity lines of credit—are tools for borrowing from your home equity, or the portion of your property you actually own. To use a home-equity loan or Heloc, you need to start with a good amount of equity. Lenders generally require that you maintain at least 20% equity in the home after taking out a home-equity loan or Heloc. “With a home-equity loan or Heloc—depending on the amount of equity you have in the home—much higher amounts are available.”Home-equity loan or Heloc?

Persons: Aly J, Jeff Levinsohn, Helocs, “ We’ve, ”, Susan Waite, don’t, Zillow, Alex Madonna, Louis, ” Levinsohn, Kyle Enright, ” Madonna Organizations: Yale, Point Breeze Credit Union, Center for Joint Housing Studies, Mortgage, Association, New, ”, Federal Reserve Bank of St, “ Locations: Hunt Valley, Md, “

Mortgage rates and home prices have spiked over the past couple of years, making homebuying more expensive than ever. High mortgage rates coupled with high home prices have made buying a house significantly more expensive than it's been in previous years. 5 advantages of buying a house when mortgage rates are highThere's no perfect time to buy a house. But mortgage rates are expected to drop throughout the next couple of years. According to the Mortgage Bankers Association's latest forecast, mortgage rates could drop below 5% by the end of 2024.

Persons: Freddie Mac, they're, Sarah Alvarez, You'll, Melissa Cohn, they've, Cohn, Alvarez, it's Organizations: Service, Privacy, Finance, Gallup, Census Bureau, Department of Housing, Urban, William, Mortgage Locations: Wall, Silicon

☆ Homeowners are tapping into home equity to get cash
▼ + stars: | 2023-08-16 | by ( Anna Bahney | ) edition.cnn.com time to read: +5 min

That means homeowners are now collectively sitting on nearly $30 trillion in home equity, according to the St. Louis Federal Reserve. Other reasons that borrowers gave for taking out a HELOC or home equity loan included debt consolidation and emergency cash management. Hidden source of valueA homeowner’s equity in their home can be a tremendous source of wealth. A homeowner’s equity will fluctuate over time as they make payments on their mortgage and real estate market dynamics impact the current value of the home. Mortgage balances stay high because of home equity loansNationally, mortgage balances remain near record highs as some people turn to home equity loans, rather than HELOCs, according to a quarterly report from TransUnion.

Persons: ”, Marina Walsh, ” Walsh, HELOC originations, Joe Mellman, Freddie Mac, Mellman Organizations: DC CNN, Louis Federal Reserve, Equity Lines of, Mortgage, Association, TransUnion, “, refinances Locations: Washington, originations, U.S

The average 30-year mortgage rate is 6.96% according to Freddie Mac, which is six basis points higher than last week. Rising inflation could keep mortgage rates high, since the Federal Reserve has been increasing rates to try to push inflation down. Although higher inflation could keep mortgage rates high, it shouldn't cause rates to spike. 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.

Persons: Freddie Mac, It's, Fannie Mae, they've Organizations: Labor Statistics, Index, Federal Reserve, Zillow, Mortgage, Association, ARM Locations: Chevron

☆ The worst of the housing affordability crisis may be over, but that doesn't mean it'll get easier to buy a home soon
▼ + stars: | 2023-08-10 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +3 min

The worst of the housing affordability crisis has already passed, Morgan Stanley said. Mortgage rates are expected to see a small decline while the inventory shortage improves only slightly. "Affordability remains very challenged. "Supply remains incredibly tight, but it's not getting tighter." Mortgage rates are expected to decline through the end of the year as interest rate volatility in the economy winds down.

Persons: Morgan Stanley, it's, Jim Egan, Morgan Stanley's, Egan, Price Organizations: Service, Mortgage Bankers Association, Black, National Association of Realtors Locations: Wall, Silicon

Average 30-year mortgage rates remain slightly lower compared to last week, but they're still elevated overall. High mortgage rates have kept many would-be homebuyers out of the market during the peak buying season. If the Federal Reserve can get price growth down to its target rate of 2% and stop hiking the federal funds rate, mortgage rates should start to recede. 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.

Persons: you'll, Fannie Mae Organizations: Mortgage, Federal Reserve, Zillow, Association, Sky Locations: Chevron

☆ US mortgage delinquency rates fall to all-time low
▼ + stars: | 2023-08-10 | by ( Safiyah Riddle | ) www.reuters.com time to read: +3 min

REUTERS/Lucas Jackson/File PhotoAug 10 (Reuters) - U.S. mortgage delinquency rates fell to a record low in the second quarter due to a strong job market and low interest rates prevailing on most home loans despite the big jump in mortgage rates over the last two years, a report on Thursday said. Delinquency rates fell to 3.37% at the end of the second quarter, according to the Mortgage Bankers Association’s National Delinquency Survey, their lowest since the MBA began collecting data in 1979 and down from 3.64% year-on-year. Economists are watching mortgage delinquency rates closely for signs of weakness amidst the Federal Reserve's aggressive 525 basis point interest rate increase since March 2022, which increased the cost of borrowing across the board. Despite the historically low delinquency rate, the MBA said not every borrower has been able to withstand the recent stress of hiked interest rates. “Home sales were down due to higher mortgage rates and limited inventory,” said NAR chief economist Lawrence Yun.

Persons: Lucas Jackson, ”, Lawrence Yun, Safiyah Riddle, Dan Burns, Marguerita Choy Organizations: REUTERS, Mortgage, National Delinquency Survey, Federal Housing Administration, National Association of Realtors, “, Thomson Locations: York County , South Carolina, U.S

☆ U.S. mortgage rates spike to highest since November, approach 22-year high
▼ + stars: | 2023-08-09 | by ( Safiyah Riddle | ) www.reuters.com time to read: +1 min

New townhomes are seen under construction while building material supplies are in high demand in Tampa, Florida, U.S., May 5, 2021. REUTERS/Octavio JonesAug 9 (Reuters) - The average U.S. 30-year mortgage rate jumped to a nine-month peak on Wednesday and hit the second-highest rate since 2001, as interest rates reacted sharply to a downgrading of U.S. government debt. Rates have not been that high since November 2022, which were then the highest levels since 2001. Recent data has suggested that the home price cooling engineered by the Federal Reserve's aggressive interest rate hiking campaign could be slowing down. But the recent data showing higher mortgage rates and crimped demand could be welcome news for overall shelter costs and the U.S. central bank's effort to bring inflation down.

Persons: Octavio Jones, Joel Kan, Safiyah Riddle, Andrea Ricci Organizations: REUTERS, Mortgage, Association, Association's, Federal, Thomson Locations: Tampa , Florida, U.S

☆ Mortgage demand drops again after FHA loan interest rate hits 21-year high
▼ + stars: | 2023-08-09 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +2 min

Mortgage interest rates soared across the board last week, with the rate on the government's low down payment option increasing to the highest level in 21 years. That hit mortgage demand hard, with total application volume dropping 3.1% last week compared with the previous week, according to the Mortgage Bankers Association's seasonally adjusted index. The average rate for jumbo loans hit 7.04%. High mortgage rates are not only making it harder to afford a home, they're keeping current homeowners in place. Mortgage rates have held over 7% to start this week, according to a separate survey from Mortgage News Daily.

Persons: Joel Kan Organizations: Mortgage, Federal Housing Administration, Treasury, Mortgage News Locations: Parkland , Florida

☆ Qualifying for a mortgage is getting harder, as credit availability is the tightest in a decade
▼ + stars: | 2023-08-08 | by ( Anna Bahney | ) edition.cnn.com time to read: +2 min

A decline in the Mortgage Credit Availability Index indicates that lending standards are tightening, while increases in the index would indicate loosening credit. Mortgage credit availability has been tightening since the spring, according to MBA, with a slight uptick in availability in June, when levels were essentially unchanged. Credit availability then fell again in July, to a decade low. In July, the conventional loan index, which examines non-government loan programs, decreased 0.5%. The government loan index, which examines Federal Housing Administration, Department of Veterans Affairs and US Department of Agriculture loan programs, was down by 0.1%.

Persons: Joel Kan, Freddie Mac, Fannie Mae, Kan, ” Kan Organizations: DC CNN, Mortgage Bankers Association, ICE Mortgage Technology, Mortgage, Housing Administration, Department of Veterans Affairs, US Department of Agriculture Locations: Washington

☆ Mortgage credit availability sinks to decade low
▼ + stars: | 2023-08-08 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +1 min

As if higher mortgage rates weren't enough, it was harder even to qualify for a mortgage in July than it has been in a decade, according to the Mortgage Bankers Association. While availability for all loan types dropped, the component of the index for jumbo loans decreased the most, as banks face increasing liquidity issues. Jumbo loans cannot be sold to Fannie Mae and Freddie Mac, so they are usually held on bank balance sheets. Higher mortgage rates have caused demand for home loans to drop. A drop in cash-out refinance programs was a major component of the overall drop in credit availability.

Persons: Fannie Mae, Freddie Mac, Joel Kan Organizations: Mortgage, Association

Mortgage rates are down slightly today, but 30-year mortgage rates are still up around 45 basis points from where they started the week. When the data shows that the economy is still running hot, mortgage rates tend to go up. This latest report is good news for mortgage rates, because it means the labor market is continuing to soften. 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.

Persons: Fannie Mae, they'll Organizations: Federal Reserve, of Labor Statistics, Zillow, Fed, Mortgage, Association, Sky, ARM Locations: Chevron

For the second week in a row, average 30-year mortgage rates have jumped — they are now at 6.90%, according to Freddie Mac. Average 15-year mortgage rates also increased to 6.25%. See more mortgage rates on Zillow Real Estate on ZillowToday's refinance ratesMortgage type Average rate today This information has been provided by Zillow. 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.

Persons: Freddie Mac, Sam Khater, Freddie Mac's, you'll, Fannie Mae Organizations: Federal Reserve, Mortgage, Zillow, Association, Sky Locations: Chevron

☆ Mortgage payments are 19% more expensive than last year as home prices continue surging, Redfin says
▼ + stars: | 2023-08-04 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +2 min

Mortgage payments are 19% more expensive than last year, Redfin data shows. The typical homebuyer's monthly mortgage payment was $2,605 during July. That's largely due to surging home prices and higher mortgage rates, which have raised the cost of borrowing. That's just below the all-time-high monthly mortgage payment of $2,637, which was notched in early July. Experts say affordability conditions are unlikely to improve until mortgage rates dial back more significantly, though that's unlikely to happen anytime soon.

Persons: That's, Redfin, Freddie Mac, Redfin's Organizations: Service, Mortgage, Association, American Enterprise Institute Locations: Wall, Silicon, That's

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 (+0.21%)The current average 30-year fixed mortgage rate is 6.83%, up 21 basis points since this time last week. 20-year Fixed Mortgage Rates Climb (+0.39%)The average 20-year fixed mortgage rate is up from last week and sits at 6.47%. 15-year Fixed Mortgage Rates Go Up (+0.20%)The average 15-year fixed mortgage rate is 6.09%, a 20-basis-point increase from last week. Mortgage Refinance Rates30-year Fixed Refinance Rates Hold Steady (no change)The average 30-year refinance rate is 7.29%, which is exactly where it was last week.

Persons: Joel Kan, you'll, refinance, It's Organizations: Mortgage, Survey, Zillow Locations: Chevron

Average 30-year mortgage rates are currently a bit lower than they were a month ago, and they may drop further. 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 interest rates will affect your monthly payments. 15-Year Fixed Mortgage RatesThe average 15-year fixed mortgage rate is 6.11% this week, according to Freddie Mac data. Mortgage rates increased dramatically in 2022 and have been volatile so far in 2023, but they're expected to trend down later this year.

Persons: we'll, you'll, Freddie Mac Organizations: Federal, Mortgage, Zillow, Federal Reserve Locations: decelerate, Chevron

☆ Mortgage demand from homebuyers drops for the third straight week as interest rates rise
▼ + stars: | 2023-08-02 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +1 min

Mortgage rates have been holding at high levels for several weeks now, and that is taking its toll on homebuyers. Mortgage applications to purchase a home fell 3% last week compared with the previous week, according to the MBA's seasonally adjusted index. "The purchase index decreased for the third straight week to its lowest level since the beginning of June," said Joel Kan, an MBA economist. Mortgage rates began this week higher and could continue to rise ahead of the all-important monthly employment report expected to be released Friday. If those fears are realized, rates could be at 20-year highs by the end of this week," said Matthew Graham, chief operating officer at Mortgage News Daily.

Persons: Joel Kan, Matthew Graham Organizations: Mortgage Bankers Association, Mortgage News Locations: Hollywood , Florida

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