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Tuesday's CPI report suggests we may need to wait at least a few more months before we see rates start to fall. 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 6.64%, according to Freddie Mac. 15-Year Fixed Mortgage RatesAverage 15-year mortgage rates inched down to 5.90% last week, according to Freddie Mac data.

Persons: you'll, Freddie Mac, it's, they've Organizations: of Labor Statistics, Federal Reserve, Zillow Locations: Chevron

☆ Here's how ed-tech company 2U spiraled from $5 billion to 'going concern'
▼ + stars: | 2024-02-15 | by ( Jordan Novet | ) www.cnbc.com time to read: +2 min

Chip Paucek, co-founder and former CEO of 2U, appears at the company's headquarters in Lanham, Maryland on Nov. 17, 2021. When 2U went public a decade ago, the company was out to prove it could make a splash in the notoriously difficult $550 billion U.S. higher education market. The stock price ballooned from $13 at 2U's 2014 IPO to a high of $98.58 four years later as demand increased for the company's online education offerings. 2U's stock price has been trading below $1 for much of 2024 following a problematic forecast in November and indications that some universities were terminating their contracts. In a statement to CNBC, a 2U spokesperson said the company won't "speculate on potential outcomes."

Persons: Chip Paucek, Paul Lalljie, Needham, Cash Organizations: Revenue, CNBC Locations: Lanham , Maryland

☆ Mortgage rates surge higher again, causing homebuyers to pull back
▼ + stars: | 2024-02-14 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +2 min

After a brief reprieve in December and January, mortgage rates are moving higher again, and that is taking its toll on mortgage demand. Total mortgage application volume fell 2.3% last week compared with the previous week, according to the Mortgage Bankers Association's seasonally adjusted index. "That's because mortgage rates are climbing again and winter weather has been harsher than usual in much of the country, keeping some house hunters at home." Mortgage rates surged even higher Tuesday after a government report on inflation showed it was still stubbornly higher than expected. "The bond market (which underlies mortgage rates) reacted immediately and forcefully when the numbers came out.

Persons: Joel Kan, Chen Zhao, Bonds, Matthew Graham Organizations: Mortgage, Mortgage News Locations: Pico Rivera , California, Redfin

☆ A hot economy isn't a good reason for the Fed to 'drag its feet' on rate cuts, former central bank economist says
▼ + stars: | 2024-02-14 | by ( Filip De Mott | ) www.businessinsider.com time to read: +3 min

The Fed adds to recessionary risk if it stalls rate cuts, Claudia Sahm wrote in the Financial Times. AdvertisementStrong labor and inflation conditions shouldn't stall interest rate cuts, and a higher-for-longer policy only compounds distress in the US economy, Claudia Sahm wrote in the Financial Times. We are so close to unwinding the final Covid disruptions," the former central bank economist wrote. "Now it is not the time for the central bank to drag its feet on rate cuts. But the world has changed with notable disinflation, and the Fed is not changing its policy," she wrote.

Persons: Claudia Sahm, —, It's, Sahm Organizations: Financial Times, Service, Federal, Fed

This helped push mortgage rates and other consumer rates up. Now, the Fed is expected to start cutting rates this year, which should allow mortgage rates to go down. This means mortgage rates might not come down in time for the spring homebuying season, but they may be lower for summer buyers. 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. Once the Fed cuts rates, mortgage rates should fall even further.

Persons: January's, Jerome Powell, you'll, Freddie Mac, it's Organizations: Federal Reserve, Zillow Locations: Chevron

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 RatesThe average 30-year fixed mortgage rate was 6.64% last week, according to Freddie Mac. 15-Year Fixed Mortgage RatesAverage 15-year mortgage rates were 5.90% last week, according to Freddie Mac data, which is a four-basis-point decrease from the previous week. Now that the Fed has paused hiking rates, mortgage rates have come down a bit. Once the Fed starts cutting rates, which is likely to happen this year, mortgage rates should fall even further.

Persons: Freddie Mac Organizations: Federal Reserve, Zillow, Fed Locations: Chevron

☆ A German bank says it's preparing for the worst property crisis since '08 as commercial real estate distress spreads
▼ + stars: | 2024-02-13 | by ( Phil Rosen | ) www.businessinsider.com time to read: +3 min

Deutsche Pfandbriefbank AG said it's bracing for an ongoing decline in commercial real estate. It called the downturn "the greatest real estate crisis since the financial crisis." Shares of the German bank have declined about 25% year-to-date. AdvertisementSigns of commercial real estate distress continue to mount, with the latest warning coming from German lending giant Deutsche Pfandbriefbank AG. "Despite these expenses, pbb remains profitable thanks to its financial strength – even in the greatest real estate crisis since the financial crisis," the bank said in a statement February 7.

Persons: —, they've Organizations: Deutsche Pfandbriefbank AG, Service

☆ The 2008 housing bust suggests China's only halfway through its property crisis. Here's how the downturns compare.
▼ + stars: | 2024-02-13 | by ( Phil Rosen | ) www.businessinsider.com time to read: +4 min

"We estimate that real house prices in China declined 16% from the peak in 2021Q3 to 2023Q3," Goldman analysts said. For context, US real house prices peaked in early 2006 and bottomed in 2012. Goldman's derived measure of China's real house prices has only dropped by half as much as the US saw during its six-year collapse, as the chart shows below. Goldman Sachs"[O]verly loose mortgage lending standards and too much mortgage debt, which were at the center of the US subprime crisis, do not apply in China," Goldman analysts said. Foreclosures soared as homeowners couldn't afford to pay off or refinance their mortgages, which lowered house prices further.

Persons: —, Goldman Sachs, Goldman, Price Organizations: Service, International Monetary Fund, Business, Housing Locations: China, Beijing, 2021Q3

Fed officials have indicated they may cut rates at least three times this year, which should allow mortgage rates to decrease. Though mortgage rates aren't directly impacted by the Fed, investor expectations of how Fed changes will impact the overall economy can push mortgage rates up or down. Hopeful homebuyers waiting for lower rates may finally have some luck this summer — though those who wait until next year will likely see even lower rates. See more mortgage rates on Zillow Real Estate on ZillowToday's refinance ratesMortgage type Average rate today This information has been provided by Zillow. 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: Federal Reserve, Fed, Zillow, Mortgage, Association, Sky Locations: Chevron

☆ Spring homebuying and selling season just kicked off. Are you ready?
▼ + stars: | 2024-02-11 | by ( Anna Bahney | ) edition.cnn.com time to read: +9 min

So if you’re planning to be in the market this year, here’s what to expect this spring — and how to be ready to pounce. Don’t wait for better prices or ratesLast year was the least affordable housing market since the 1980’s as mortgage rates spiked to 23-year highs at the end of October. But a slightly brighter season is dawning this spring. This spring is offering a bit of rate and price stability said Betty Jans, an Annapolis, Maryland-based real estate agent. “If you wait, and all of the sudden we have a little dip in rates, you’re going to be competing with everyone else that wants to buy then, too,” Jans said.

Persons: it’s, Fannie Mae, Betty Jans, Tiffany Hagler, homebuyers, ”, Jans, Berkshire Hathaway, PenFed, ” Jans, “, Mike Mravca, Mravca, ” Mravca, “ I’ve, Hillary Nash, Nash, “ It’s, you’re Organizations: Washington CNN, NFL, Super, Geard, Bloomberg, Getty, Berkshire, Taylor Properties, NAR, District of Columbia, of Housing, Urban Development, National Housing Conference Locations: Annapolis , Maryland, Larchmont , New York, Virginia , Maryland, Delaware, Washington, Washington , DC, Maryland, Virginia

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 Jump Up (+0.43%)The current average 30-year fixed mortgage rate is 6.48%, up 43 points from where it was this time last week. 20-Year Fixed Mortgage Rates Increase (+0.39%)The average 20-year fixed mortgage rate is up quite a bit from last week, and is sitting at 6.22%. 15-Year Fixed Mortgage Rates Go Up (+0.37%)The average 15-year mortgage rate is 5.78%, up 37 points from last week. Mortgage Refinance Rates30-Year Fixed Refinance Rates Tick Up (+0.19%)The average 30-year refinance rate is 6.26%, just 19 basis points higher than last week.

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

☆ The commercial real estate crisis will prompt the Fed's first rate cut in May, top economist says
▼ + stars: | 2024-02-09 | by ( Yuheng Zhan | ) www.businessinsider.com time to read: +3 min

Yet, nearing mission-accomplished on inflation won't be the reason the central bank cuts rates, according to one top economist. Instead, Komal Sri-Kumar, president of Sri-Kumar Global Strategies, says that the ongoing commercial real estate crisis will force the Fed to cut rates as early as May. Lessons from the 2008 crisis show that the Fed should cut sooner rather than later to avoid the worst of the pain, Sri-Kumar said. The fears stem in part from exposure to commercial real estate. "The commercial real estate problem is also now in Europe.

Persons: —, Komal, Kumar, Lehman, Janet Yellen, it's, China's, Jerome Powell, Tom Lee Organizations: Service, Sri, Kumar, Business, Lehman Brothers, York Community Bank, Evergrande Locations: China, Europe, Japan

☆ How empty office space became the new bogeyman on Wall Street
▼ + stars: | 2024-02-09 | by ( Matt Egan | ) edition.cnn.com time to read: +6 min

And yet Wall Street is suddenly freaking out about bad real estate loans and empty office buildings. One regional lender — New York Community Bancorp — has seen its stock price implode and its credit rating slashed to junk in part because of its exposure to bad office loans. Japan’s Aozora Bank startled investors by blaming bad loans linked to US offices for a projected loss. That’s a major problem for an industry like real estate known for piling on debt. Importantly, Zandi said these bank failures will be limited to smaller lenders — the ones sitting on suddenly shaky office loans.

Persons: —, ” they’re, It’s, ”, Ed Mills, Raymond James, gameplan, Paul Volcker, That’s, Spencer Platt, ” Alessandro DiNello, NYCB, Powell, Janet Yellen, Jerome Powell, “, ” Mills, Mark Zandi, ” Zandi, Zandi, ” Banks Organizations: New, New York CNN, —, York Community Bancorp, Japan’s, Bank, Federal Reserve, Fed, Regulators, New York Community Bancorp, York Community Bank, Getty, Moody’s, CNN Locations: New York, sweatpants, Washington, Brooklyn, New York City

WASHINGTON (AP) — From Wall Street traders to car dealers to home buyers, Americans are eager for the Federal Reserve to start cutting interest rates and lightening the heavy burden on borrowers. Why, with inflation nearly conquered and interest rates at a 22-year high, isn't now the time to cut? High rates could also compound the struggles of banks that are saddled with bad commercial real estate loans, which would be harder to refinance at higher rates. “We need the government to address the interest rates ... and understand that they’ve accomplished their goal of lowering inflation," Kelleher said. If so, that might not just delay the Fed's rate cuts, but result in fewer of them.

Persons: isn't, ”, Steven Blitz, “ They’re, ” Loretta Mester, Mester, “, David Kelleher's Chrysler, Kelleher, ” Kelleher, Powell, ” Powell, we’re, Andrea Kugler, Eric Swanson Organizations: WASHINGTON, Federal Reserve, GlobalData, Lombard, Federal Reserve Bank of Cleveland, Jeep, Fed, University of California Locations: Wall, Philadelphia, Irvine

In spite of some fluctuations from day to day or week to week, mortgage rates have overall been holding relatively steady since mid-December. See more mortgage rates on Zillow Real Estate on ZillowMortgage CalculatorUse our free mortgage calculator to see how today's mortgage rates would impact your monthly payments. 30-year Fixed Mortgage RatesThe average 30-year fixed mortgage rate was 6.63% last week, according to Freddie Mac. 15-year Fixed Mortgage RatesLast week, average 15-year mortgage rates were 5.94%, a two-basis-point decrease from the previous week, according to Freddie Mac data. Once the Fed cuts rates, mortgage rates should fall even further.

Persons: Adriana Kugler, Kugler, you'll, Freddie Mac, it's Organizations: Brookings Institution, Zillow, Federal Reserve Locations: Chevron

☆ Office-to-residential conversions have surged 357% since 2021 as billions in commercial mortgages come due
▼ + stars: | 2024-02-07 | by ( Phil Rosen | ) www.businessinsider.com time to read: +3 min

Office-to-residential conversions are up 357% since 2021, according to a report from ResiClubThere's $150 billion in office mortgages set to come due in 2024. Last year, about $541 billion of commercial real estate debt officially matured. AdvertisementBy 2027, $2.2 trillion of commercial real estate debt is set to mature, Capital Economics said. ResiClub cofounder Lance Lambert pointed out that commercial buildings aren't all designed or constructed to be repurposed as living spaces. "It makes sense given the wave of expired leases and vacant office buildings," Lambert said.

Persons: —, Moody's, CommercialEdge, Lance Lambert, Lambert, " Lambert Organizations: Service, ResiClub, Federal Reserve, Washington DC, Dallas, Research, Capital Economics, Business Locations: RentCafe, ResiClub, Washington, New York

☆ Weekly mortgage demand from homebuyers is flattening as interest rates rise
▼ + stars: | 2024-02-07 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +2 min

Mortgage demand is struggling to contend with what appears to be another upswing in interest rates. Total mortgage application volume rose 3.7% last week compared with the previous week, according to the Mortgage Bankers Association's seasonally adjusted index. Together, those two jumps made for the third-biggest increase in mortgage rates since March 2020. The refinance share of mortgage activity increased to 35.4% of total applications from 34.2% the previous week. Mortgage rates fell back slightly on Tuesday, but the move higher was an adjustment to surprisingly strong economic data, according to Matthew Graham, chief operating officer at Mortgage News Daily.

Persons: Joel Kan, Matthew Graham, They've Organizations: Mortgage, U.S . Labor Department, Mortgage News Daily, Mortgage News, CNBC PRO

Hot economic data pushed mortgage rates back up at the end of last week, and they've inched even higher this week. Mortgage rates aren't directly impacted by Fed rate changes, but investor expectations of how Fed policy decisions will impact the overall economy can push mortgage rates up or down. 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 5.94% last week, according to Freddie Mac data, which is a two-basis-point decrease from the previous week. Now that the Fed has paused hiking rates, mortgage rates have come down a bit.

Persons: they've, Jerome Powell, Powell, Freddie Mac Organizations: of Labor Statistics, Fed, Zillow, Federal Reserve Locations: Chevron

Mortgage rates are expected to go down this year, but it may be a few months before we see them fall sustainably. Right now, average 30-year mortgage rates are up near last month's levels, when rates averaged around 6.34%, according to Zillow data. This means we could see mortgage rates start to trend down right as the homebuying season is heating up. 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. This is good news for mortgage rates — as inflation slows and the Federal Reserve is able to start cutting the federal funds rate, mortgage rates are expected to trend down as well.

Persons: Jerome Powell, Powell, Fannie Mae Organizations: Investors, Zillow, Federal Reserve, Mortgage, Association, ARM Locations: Chevron

It's time to buckle up: Investors holding these stocks could be in for a wild ride this week. A review of companies set to report earnings this week shows that some names may post sharp moves following their results, according to CNBC calculations based on FactSet data. For example, Snap , which reports Tuesday, could see its stock price move up or down about 17% following the news. Here are some other stocks that may move the most in response to news this week. Affirm , the buy now, pay later financial services company, could move up or down 15% following its earnings results, which are set for release Thursday.

Persons: John Butters, Morgan Stanley Organizations: CNBC, Ford Motor, Walt Disney Company, PepsiCo, Spirit Airlines, Palantir Technologies

Borrowers saw mortgage rates drop dramatically late last year, and experts have been calling for rates to go down this year as well. Mortgage rates are expected to fall this year once the Federal Reserve starts lowering the federal funds rate. The longer the Fed waits to start cutting rates, the longer borrowers will likely have to wait for lower mortgage rates. See more mortgage rates on Zillow Real Estate on ZillowToday's refinance ratesMortgage type Average rate today This information has been provided by Zillow. 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: of Labor Statistics, Federal Reserve, Fed, Zillow, Mortgage, Association, Sky Locations: Chevron

So as the Fed lowers its benchmark rate, mortgage rates are expected to trend down as well. 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 Fall (-0.31%)The current average 30-year fixed mortgage rate is 6.05%, down 31 points from where it was this time last week. 20-Year Fixed Mortgage Rates Decrease (-0.38%)The average 20-year fixed mortgage rate is down quite a bit from last week, and is sitting at 5.83%. 15-Year Fixed Mortgage Rates Go Down (-0.30%)The average 15-year mortgage rate is 5.41%, down 30 points from last week.

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

While mortgage rates are expected to go down in 2024, we'll likely experience some volatility getting there. Experts believe mortgage rates will fall as inflation continues to slow and the Federal Reserve is able to start cutting the federal funds rate, removing upward pressure off of mortgage rates. 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 inched down to 5.94% last week, according to Freddie Mac data.

Persons: we'll, Fannie Mae, Mark Palim, you'll, Freddie Mac, it's, they've Organizations: Federal Reserve, Fed, Zillow Locations: Chevron

☆ 3 ways real-estate investors can sidestep high mortgage rates when buying a new rental property, according to BiggerPockets' housing market expert
▼ + stars: | 2024-02-02 | by ( William Edwards | ) www.businessinsider.com time to read: +3 min

While 30-year mortgage rates have come down by more than a full percent to around 6.6%, they're still significantly more elevated than their 2021 low of less than 3%. Lower mortgage rates mean higher cash flows and a higher likelihood for appreciation, which is good for strategies like flipping. But there are ways for real-estate investors to get around higher rates, Meyer says. This means asking the seller if they can provide a cash payment that effectively lowers mortgage rates for the first few years of ownership. Given that rising mortgage rates have largely killed demand in the housing market, buyers have had more success recently getting deal-sweeteners like rate-buydowns, according to research from Redfin.

Persons: they're, Dave Meyer —, —, Molly Grace, Meyer, Welborn Organizations: Business

But borrowing money always comes with some risks, and home renovation loans can be particularly risky when used to purchase a fixer upper. Renovation loan eligibilityTo get a loan for a house renovation, you'll need to meet certain credit requirements. Cash-out refinances or renovation loans rolled into mortgages are typically the best renovation loan programs because they come with the lowest rates. Home renovation loans FAQsAre renovation loans a good idea? Renovation loans, or home improvement loans, can be a good idea for homeowners looking to make both essential and cosmetic changes to their homes.

Persons: —, It's, Fannie Mae's, Freddie Mac's, you'll, Douglas Boneparth Organizations: Service, Federal Housing Administration, Bone, reno, Chevron

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