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☆ 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

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. 30-Year Fixed Mortgage RatesThis week's average 30-year fixed mortgage rate is 7.49%, according to Freddie Mac. 15-Year Fixed Mortgage RatesAverage 15-year mortgage rates are 6.78% 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're, they'll, you'll, Freddie Mac Organizations: of Labor Statistics, Federal Reserve, Fed, Zillow Locations: Chevron

☆ Is China really dumping Treasury bonds and sending yields higher? A former US official explains the mystery
▼ + stars: | 2023-10-06 | by ( Filip De Mott | ) www.businessinsider.com time to read: +4 min

China is not actually dumping its stockpile of US bonds, former Treasury official Brad Setser wrote. A large part of China's holdings are not accounted for in official US data, he said. While it has sold some Treasurys, Beijing has also bought up US debt in the form of agency bonds. Agency bonds are issued by government-sponsored enterprises, and some of the top issuers are US-backed firms like Fannie Mae and Freddie Mac. During 2022 and the first six months of 2023, China purchased over $100 billion agency debt and sold just $40 billion in Treasurys, he estimated.

Persons: Brad Setser, —, Torsten Sløk, Setser, Belgium's, China's, Fannie Mae, Freddie Mac Organizations: Treasury, Service, Council, Foreign Relations, Apollo, Treasury International Capital, Foreign, Administration of Foreign Exchange, Agency Locations: China, Beijing, Treasurys

Mortgage rates have started October significantly higher than they were a month ago. Last week, mortgage applications for home purchases dropped to their lowest level since 1995, the Mortgage Bankers Association reported on Wednesday. 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 RatesThis week, the average 30-year fixed mortgage rate is 7.49%, according to Freddie Mac. Mortgage rates started ticking up from historic lows in the second half of 2021 and increased over three percentage points in 2022.

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

However, there are some key differences between the mechanics of credit cards and Helocs. Still, Helocs have far lower rates than credit cards, even for borrowers with strong credit scores. If interest rates climbed to 7% a year later, your payment would rise to $58 a month until the end of the draw period—unless interest rates move again or you draw more from the line. (Secured credit cards are an option for people with limited credit history; they require a cash down payment.) Consolidating credit card debt is another common use, since rates on credit cards can be as much as double what they are on home-equity loans.

Persons: Tanza Loudenback, Aly J, Helocs, you’ve, Robert Heck, won’t, Knight, Freddie Mac, You’re, Scott Fligel, ”, Eric Alexander, Heck, “, ” Heck, Alexander Organizations: Yale, Federal, Federal Reserve, Northwestern Mutual, Income Locations: homeownership, Morty, Charlotte, N.C, Dallas

☆ 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

The collective impact of higher rates across the economy could also weaken the government's own finances. With borrowing rates high and inflation still relatively elevated, consumers, who drive about 70% of economic growth, are expected to spend more cautiously. “Those tighter, higher rates will have an impact on the economy.”Financial analysts point to several reasons for the rapid increase in lending rates. Overseas buyers have reduced their purchases, thereby forcing rates higher to attract buyers. “All of that is driving these fears of higher rates, and no one knows when it’s going to stop,” said Gennadiy Goldberg, head of US rates strategy at TD Securities.

Persons: Kevin McCarthy, Goldman Sachs, Goldman, Freddie Mac, Loretta Mester, ” Mester, it’s, ”, Gennadiy Goldberg, Benson Durham, Piper Sandler, Durham, Jerome Powell, ‘, we’re, ’ ”, Nancy Vanden Houten, David Page Organizations: WASHINGTON, United Auto Workers, Representatives, Republican, Treasury, Federal Reserve Bank of Cleveland, ”, Fed, Treasury Department, TD Securities, Oxford Economics, AXA Locations: U.S, ’ ” Durham, London

Mortgage rates have skyrocketed this week, with 30-year mortgage rates now well above 7% for many borrowers. 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. 15-Year Fixed Mortgage RatesAverage 15-year mortgage rates were 6.72% this 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.

Persons: homebuyers, Freddie Mac, it's Organizations: Zillow Locations: Chevron

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

☆ Government bonds are in a rout worldwide. Here's why you should care
▼ + stars: | 2023-10-04 | by ( Anna Cooban | ) edition.cnn.com time to read: +7 min

When official interest rates rise, so do investors’ expectations for returns on bonds, known as yields. In the United Kingdom, the yield on 30-year bonds also reached 5% this week, the highest level in more than two decades. Yields on Italy’s 10-year bonds hit 5% on Wednesday, the highest level since 2012, when that crisis was in full swing. Mortgage rates riseThe yields on local government bonds are usually used by banks to price mortgages. High official interest rates in America and Europe have also raised the cost of borrowing for businesses.

Persons: Saul Loeb, Liz Truss, —, Matt Cardy, Freddie Mac, Andrew Sheets, Morgan Stanley, Stocks, ” Russ Mould, AJ Bell, we’ve, ”, “, That’s, ” Susannah Streeter, Hargreaves Lansdown Organizations: London CNN, US Treasury Department, Getty, UK, CNN, Nasdaq, Federal Reserve, BlackRock, Hargreaves Locations: Washington ,, United Kingdom, Bath, England, United States, Europe, America

☆ Good news, homebuyers: This fall could finally be a 'sweet spot' in the US real-estate market, Zillow says
▼ + stars: | 2023-10-03 | by ( Huileng Tan | ) www.businessinsider.com time to read: +3 min

US homebuyers might see a "sweet spot" in the market this fall, said a Zillow economist. Zillow estimates that about 10% of home listings saw a price cut in the week ending September 16 — the most since November. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . AdvertisementAdvertisementUS home prices have risen in the last year due to higher mortgage rates, but Zillow thinks it's a good time to buy — if you have the budget. US home sales have slowed as houses have gotten less affordable, thanks to rising prices which have been driven higher by an inventory shortage and high mortgage rates.

Persons: —, Zillow, it's, Jeff Tucker, It's, homebuyers, Tucker, Freddie Mac Organizations: Service Locations: —

☆ US manufacturing sector eyes recovery; construction spending solid
▼ + stars: | 2023-10-02 | by ( Lucia Mutikani | ) www.reuters.com time to read: +6 min

A separate report from the Commerce Department showed construction spending increased 0.5% in August after rising 0.9% in July, lifted by outlays on single- and multi-family housing. Spending on private construction projects rose 0.5%, with investment in residential construction advancing 0.6% after increasing 1.6% in the prior month. The construction spending report showed outlays on multi-family housing projects rose 0.6% in August. Spending on new single-family construction projects rose 1.7%. Spending on manufacturing construction projects shot up 1.2%.

Persons: Kamil Krzaczynski, Paul Ashworth, outlays, Freddie Mac, Biden, Lucia Mutikani, Andrea Ricci Organizations: REUTERS, Institute for Supply Management, PMI, North America Economist, Capital Economics, Reuters, United Auto Workers, Treasury, Commerce Department, Thomson Locations: Normal , Illinois, U.S, WASHINGTON, Toronto, Panama, China, United States, State

☆ Want to build a tiny home in your backyard? Here's how you can finance it.
▼ + stars: | 2023-10-02 | by ( Kelsey Neubauer | ) www.businessinsider.com time to read: +7 min

Backyard tiny homes, called ADUs, are becoming increasingly popular. AdvertisementAdvertisementBackyard tiny homes, called accessory dwelling units or ADUs, are becoming more popular as some state and local governments roll back zoning restrictions. That's because government-backed mortgage providers Fannie Mae and Freddie Mac set the strict standard for all other mortgage lenders. Sometimes, when financing an ADU loan, programs like RCUs may consider the property's worth after the ADU is constructed when underwriting the loan. Clark and her husband moved into the main home, and Sandoval-Clark and her family live in the ADU.

Persons: —, Fannie Mae, Freddie Mac, Freddie, Ryan O'Connell, you've, Peter Bohler, Suszi Lurie McFadden, O'Connell, RCU, RenoFi, it's, Katie Sandoval Clark, Marshall, Barbara Clark, Mother Barbara Clark, Katie Sandoval, Clark, Sandoval Organizations: Service, CAST, —, Denver Post, Redwood Credit Union, ADUs, Area Locations: California, — New York , California, Vermont, Denver , Colorado, Napa County , California

☆ Wharton's Jeremy Siegel says the U.S. economy is 'cooking'
▼ + stars: | 2023-10-02 | by ( Brian Evans | ) www.cnbc.com time to read: +2 min

Even as higher bond yields rattle equity markets, the U.S. economy remains strong overall, said economist and Wharton professor Jeremy Siegel. "I think this economy is cooking," Siegel told CNBC's " Squawk on the Street " on Monday. "I know economic surprises, some of them have been negative but on the whole, we have a strong economy." Siegel added that higher bond yields have been pressuring the equity market, and investors now view them differently in an inflationary environment. He also pointed out that the latest jobless claims data, which showed initial claims of 204,000 for the week ending Sept. 23, still suggests strength in the economy.

Persons: Jeremy Siegel, Siegel, CNBC's, Freddie Mac, That's, — CNBC's Gina Francolla Organizations: Treasury, Federal Reserve Locations: U.S

Average 30-year mortgage rates are now well above 7%, crushing affordability for many would-be homebuyers. Mortgage rates could start inching down in the next couple of months and fall more significantly next year. 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 RatesAverage 15-year mortgage rates were 6.72% last 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: they're, you'll, Freddie Mac Organizations: Federal Reserve, Zillow Locations: Chevron

After spending most of the month hovering right around 7%, 30-year mortgage rates spiked above 7.30% this week. Mortgage rates were higher in September than they've been in nearly 23 years, according to Freddie Mac. 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 RatesLast week, the average 30-year fixed mortgage rate was 7.31%, according to Freddie Mac. 15-year Fixed Mortgage RatesAverage 15-year mortgage rates were 6.72% last week, an 18-point increase compared to the prior week, according to Freddie Mac data.

Persons: they've, Freddie Mac, you'll Organizations: Economic, Zillow, Federal Reserve 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

Average 30-year mortgage rates reached a 23-year high of 7.31% this week, according to Freddie Mac. "However, unlike the turn of the millennium, house prices today are rising alongside mortgage rates, primarily due to low inventory. 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. 30-Year Fixed Mortgage RatesThis week, the average 30-year fixed mortgage rate was 7.31%, according to Freddie Mac.

Persons: Freddie Mac, Sam Khater, Freddie Mac's, it's Organizations: Federal, Zillow Locations: Chevron

☆ 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

☆ US home prices rose in July to record-high levels
▼ + stars: | 2023-09-26 | by ( Anna Bahney | ) edition.cnn.com time to read: +2 min

Prices rose 0.6% from the month before, according to seasonally adjusted data from the S&P CoreLogic Case-Shiller US National Home Price Index released Tuesday. Compared to a year ago, the national composite index also rose, with prices up 1% from July 2022, the prior peak, according to Case-Shiller data. In July, prices rose in all 20 cities after seasonal adjustment. Prices in Las Vegas were down 7.2% from a year ago and in Phoenix prices were down 6.6%. The West, where prices are down 3.8% from a year ago, and the South, with prices down 3.6%, continue to see annual price declines.

Persons: ”, Craig Lazzara, Dow, Selma Hepp, Freddie Mac Organizations: DC CNN, Dow Jones, CoreLogic, Federal Reserve Locations: Washington, Chicago, Cleveland, New York, Las Vegas, Phoenix

Compared to recent months, September has been a relatively calm month for mortgage rates, with average 30-year mortgage rates hovering around 7%. 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 RatesAverage 15-year mortgage rates were 6.54% last 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: you'll, Freddie Mac Organizations: Federal Reserve, Consumer, Zillow Locations: Chevron

Once mortgage rates start to fall, home prices could rise even faster in response to increased competition over such limited inventory. 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 RatesLast week, the average 30-year fixed mortgage rate was 7.19%, according to Freddie Mac. 15-year Fixed Mortgage RatesAverage 15-year mortgage rates were 6.54% last week, a 3-point increase compared to the prior week, according to Freddie Mac data. Mortgage rates started ticking up from historic lows in the second half of 2021 and increased over three percentage points in 2022.

Persons: Lawrence Yun, you'll, Freddie Mac Organizations: National Association of Realtors . Sky, NAR, Zillow, Federal Reserve Locations: Chevron

Average 30-year mortgage rates increased just one basis point this week to 7.19%, according to Freddie Mac. 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. 30-Year Fixed Mortgage RatesThis week, the average 30-year fixed mortgage rate was 7.19%, according to Freddie Mac. 15-Year Fixed Mortgage RatesAverage 15-year mortgage rates were 6.54% this 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.

Persons: Freddie Mac, Sam Khater, Freddie Mac's, it's Organizations: Federal Reserve, Zillow Locations: Chevron

LOS ANGELES (AP) — Sales of previously occupied U.S. homes fell for the third month in a row in August, as higher mortgage rates, rising prices and a dearth of properties on the market shut out many would-be homebuyers. Would-be homebuyers are also seeing their purchasing power diminish as mortgage rates push higher. Mortgage rates have been echoing moves in the 10-year Treasury yield, which lenders use as a guide to pricing loans. The yield has been climbing amid expectations that the Federal Reserve will keep short-term interest rates higher for longer to fight inflation. “It's possible mortgage rates may go up to 8% in the short run,” Yun said.

Persons: ”, Lawrence Yun, Yun, Freddie Mac, “, ” Yun Organizations: ANGELES, National Association of Realtors, “, Buyers, NAR, Treasury, Federal Reserve, Federal Locations: U.S, It’s

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

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