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☆ Mortgage rates climb to the highest level in a month
▼ + stars: | 2023-04-20 | by ( Anna Bahney | ) edition.cnn.com time to read: +3 min

Washington, DC CNN —Mortgage rates rose this week, after five weeks of falling. “For the first time in over a month, mortgage rates moved up due to shifting market expectations,” said Sam Khater, Freddie Mac’s chief economist. The average mortgage rate is based on mortgage applications that Freddie Mac receives from thousands of lenders across the country. When Treasury yields go up, so do mortgage rates; when they go down, mortgage rates tend to follow. “Last week’s jump in mortgage rates led to a pullback in mortgage applications, as homebuyers remain sensitive to rate movements,” said Bob Broeksmit, CEO of the Mortgage Bankers Association.

☆ Mortgage demand from homebuyers drops 10% as interest rates jump
▼ + stars: | 2023-04-19 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +2 min

Today's homebuyers appear to be increasingly sensitive to weekly moves in mortgage rates. Buyer demand was 36% lower than the same week one year ago when the 30-year fixed rate mortgage averaged 5.20%. Banks had been offering better rates on jumbo loans, but that spread between jumbo and conforming loans is much tighter now, compared with last year. "As banks reduce their willingness to hold jumbo loans, we expect this narrowing trend to continue," added Kan. Mortgage rates moved significantly higher to start this week, according to another rate survey from Mortgage News Daily.

☆ Homebuyer mortgage demand jumps after interest rates drop to two-month low
▼ + stars: | 2023-04-12 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +1 min

Today's housing market is so pricey that homebuyers are highly sensitive to any distinct moves in mortgage rates. They were, however, 31% lower than the same week one year ago, when interest rates were significantly lower. Buyers have been up against not only higher rates and higher home prices, but very limited supply. At today's interest rates, there are very few borrowers who can benefit from a refinance. Mortgage rates moved higher to start this week, and they could move decidedly in either direction after the government's monthly report on inflation is released Wednesday.

☆ Housing is so unaffordable that banks are losing money for each mortgage they finance for the first time ever
▼ + stars: | 2023-04-10 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +3 min

Housing is so unaffordable banks lost money for each mortgage they financed last year, according to a new report. Mortgage banks and subsidiaries lost an average $301 per loan, the first negative profit recorded by the Mortgage Bankers Assocation. In 2022, mortgage banks and mortgage subsidiaries within banks lost an average $301 for every mortgage they financed, the MBA said in a recent report. Banks and other mortgage companies each financed an average $2.6 billion in loans in 2022, roughly half of the $5 billion figure for 2021. Banks and mortgage companies spent an average $10,624 to finance each home loan in 2022, representing a 23% cost increase from 2021.

☆ The dollar's dominance on the world stage isn't going away. Here's why.
▼ + stars: | 2023-04-06 | by ( Phil Rosen | ) www.businessinsider.com time to read: +6 min

The move makes sense, given Russia's growing status as a pariah state, but it also highlights a push to unseat the dollar as a dominant force in global trade. But to strategists at the Carson Group, a scenario where the dollar isn't the world's primary reserve currency simply isn't in the cards in the near future. Are you convinced that the dollar won't lose its status as a dominant global reserve currency? Some companies in this batch of oil stocks have upsides of up to 180%, according to strategists at Bank of America. An expert from the World Gold Council pointed out that history says gold performs well in a recession.

☆ Lack of home listings is taking a toll on mortgage demand
▼ + stars: | 2023-04-05 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +2 min

Mortgage rates fell last week, but demand for home loans didn't move higher as a result. Other aspects of today's housing market are outweighing the benefit of lower mortgage rates right now, namely a lack of supply. Mortgage applications to purchase a home, however, dropped 4% last week compared with the previous week, according to the Mortgage Bankers Association's seasonally adjusted index. "Although the mortgage rate for conforming balance loans declined by five basis points over the week to 6.40%, the mortgage rate for jumbo loans increased by nine basis points to 6.36%," added Fratantoni. The refinance share of mortgage activity decreased to 28.6% of total applications from 29.1% the previous week.

☆ Zillow's chief economist explains why the party is over for short-term real-estate investing tactics like house-flipping — and says long-term strategies designed to generate cash flow are an investor'
▼ + stars: | 2023-04-04 | by ( William Edwards | ) www.businessinsider.com time to read: +4 min

You know, long run mortgage rates are expected to be around five-and-a-half, six." Economists at other real-estate firms share similar views to Olsen's in respect to mortgage rates, at least for the rest of 2023. Plus, when mortgage rates eventually fall, one can refinance into a lower rate, improving an investor's positive cash flow. In the meantime, there's a way that buyers can get around high mortgage rates, Olsen said. Many sellers are offering concessions, like paying for repairs and helping pay for a rate buydown.

"Economic uncertainty continues to bring mortgage rates down," Sam Khater, Freddie Mac's chief economist, said in a press release. Just keep in mind that HELOC rates are variable, so if rates start to trend up further, yours will likely increase, as well. But whether mortgage rates will drop in 2023 hinges on if the Federal Reserve can get inflation under control. If the Fed acts too aggressively and engineers a recession, mortgage rates could fall further than what current forecasts expect. This means your entire monthly mortgage payment, including taxes and insurance, shouldn't exceed 28% of your pre-tax monthly income.

☆ The US housing market is tanking - and the banking fiasco could make things worse, RH CEO Gary Friedman says
▼ + stars: | 2023-03-30 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +3 min

The US housing market has slowed dramatically over the past year, RH CEO Gary Friedman said. Soaring interest rates have hit housing demand, and the banking fiasco is a fresh blow, he said. Friedman said the outlook is less clear now than in 2008, and he urged the Fed not to tank the economy. "The fact is, we've been in a massive housing recession for the past year," Friedman continued, adding that "accelerating weakness" in the sector could weigh on his company's revenue and profits for several quarters. Several experts have sounded the alarm on the housing market and economy.

☆ Mortgage rates fall for the third week in a row
▼ + stars: | 2023-03-30 | by ( Anna Bahney | ) edition.cnn.com time to read: +4 min

Washington, DC CNN —Homebuyers saw another week of falling mortgage rates, with the average rate dropping last week for the third week in a row, according to data from Freddie Mac released Thursday. “Economic uncertainty continues to bring mortgage rates down,” said Sam Khater, Freddie Mac’s chief economist. When Treasury yields go up, so do mortgage rates; when they go down, mortgage rates tend to follow. “Pent-up housing demand is evident with every gain in affordability, whether it be softening prices or lower mortgage rates,” said Jones. “The mortgage market has seen a partial revival in March, with the recent decline in mortgage rates boosting borrower demand,” said Bob Broeksmit CEO of the Mortgage Bankers Association.

Mortgage rates have inched down and remain relatively low compared to the highs we saw in early March. 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. If the Fed acts too aggressively and engineers a recession, mortgage rates could fall further than what current forecasts expect. This means your entire monthly mortgage payment, including taxes and insurance, shouldn't exceed 28% of your pre-tax monthly income.

☆ US mortgage refinancings hit 6-month high on rates drop, MBA says
▼ + stars: | 2023-03-29 | by ( ) www.reuters.com time to read: +3 min

The Mortgage Bankers Association's weekly index of overall home loan application volumes climbed 2.9% to notch a fourth week of gains, the longest up-streak in four years. The average contract rate for a 30-year, fixed-rate mortgage, the most popular home loan, fell to a six-week low of 6.45%, MBA said. That also led the U.S. central bank to adopt a more cautious policy footing at its latest meeting last week. Refinance activity hit the lowest level since 2000 in the final week of 2022 and with the latest increase has now rebounded by more than 60%. "Most homeowners still have rates significantly lower than current levels, leaving only a small pool of borrowers with an incentive to refinance," Kan said.

☆ US pending home sales rise for third straight month; loan demand increases
▼ + stars: | 2023-03-29 | by ( Lucia Mutikani | ) www.reuters.com time to read: +3 min

WASHINGTON, March 29 (Reuters) - Contracts to buy U.S. previously owned homes increased for a third straight month in February, raising cautious optimism that the housing market slump could be bottoming out. Economists polled by Reuters had forecast contracts, which become sales after a month or two, would fall 2.3%. The surprise increase occurred despite a rise in mortgage rates from early February through early March, according to data from mortgage finance agency Freddie Mac. Before the recent rise, mortgage rates had mostly been on the decline since November. The housing market outlook is, however, uncertain because the financial market stress has caused banks to tighten lending standards, which could make it harder for prospective homebuyers to borrow.

☆ The 30-year fixed mortgage rate drops to a 6-week low as banking turmoil sent bond yields tumbling in March
▼ + stars: | 2023-03-29 | by ( Carla Mozée | ) www.businessinsider.com time to read: +3 min

The 30-year fixed mortgage rate fell to its lowest in six weeks, tracking falling bond yields. The rate fell to 6.45%, helping fuel another week of increases in mortgage applications. The 30-year fixed mortgage rate fell to 6.45% from 6.48% in the week ended March 24 for loans meeting government-agency limits of $726,200 or less, according to figures released by the Mortgage Bankers Association on Wednesday. The 30-year rate fell as investors rushed into US government debt, looking for shelter from the turmoil over deposits at regional banks. Powell later said policy makers had considered pausing rate hikes because of the banking turmoil but decided to deliver a steady rate hike of 25 basis points, to 4.75%-5%.

☆ A senior economist at Interactive Brokers shares why home prices across the country will fall another 11% over the next year — and why a 2008-size crash he had expected won't come after all
▼ + stars: | 2023-03-29 | by ( William Edwards | ) www.businessinsider.com time to read: +5 min

Interactive Brokers Senior Economist José Torres says home prices will drop 15% peak-to-trough. The weakening in the housing market will continue into Q4 of this year or Q1 of 2024, according to José Torres, a senior economist at Interactive Brokers. Affordability is measured by home prices and mortgage rates relative to incomes. Yardeni ResearchTorres thinks affordability will stay at relatively depressed levels in the months ahead because he sees mortgage rates staying high. As for mortgage rates, consensus among firms like Goldman Sachs, the Mortgage Bankers Association, Moody's, and others is that 30-year rates will remain above 5%.

☆ Mortgage demand gets a boost from bank volatility, but it may be short-lived
▼ + stars: | 2023-03-29 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +2 min

Stress in the banking system turned out to be a boon for the U.S. mortgage market. Mortgage rates followed. Mortgage demand, consequently, rose 2.9% compared with the previous week, according to the Mortgage Bankers Association's seasonally adjusted index. Mortgage applications to purchase a home increased 2% for the week but were 35% lower than the same week one year ago. Mortgage rates, however, moved more than 20 basis points higher to start this week, according to a separate survey from Mortgage News Daily.

Mortgage rates decreased again this week and are now the lowest they've been in five weeks. If mortgage rates continue to slide over the next few weeks, look for a continued rebound during the first weeks of the spring homebuying season." But whether mortgage rates will drop in 2023 hinges on if the Federal Reserve can get inflation under control. If the Fed acts too aggressively and engineers a recession, mortgage rates could fall further than what current forecasts expect. This means your entire monthly mortgage payment, including taxes and insurance, shouldn't exceed 28% of your pre-tax monthly income.

Mortgage rates dropped again this week, marking the second week in a row rates have decreased, 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. But whether mortgage rates will drop in 2023 hinges on if the Federal Reserve can get inflation under control. If the Fed acts too aggressively and engineers a recession, mortgage rates could fall further than what current forecasts expect. This means your entire monthly mortgage payment, including taxes and insurance, shouldn't exceed 28% of your pre-tax monthly income.

☆ What the banking crisis means for mortgage rates
▼ + stars: | 2023-03-24 | by ( Anna Bahney | ) edition.cnn.com time to read: +6 min

Generally, home buyers can anticipate mortgage rates to move down through the rest of this year as the banking crisis drags on, which could cool down inflation. Neither the actions of the Federal Reserve nor the bank failures directly impact mortgage rates. When Treasury yields go up, so do mortgage rates; when they go down, mortgage rates tend to follow. Following the Fed’s announcement on Wednesday, bond yields — and the mortgage rates that usually follow them — fell. “Homebuyers in 2023 have shown themselves to be quite sensitive to any changes in mortgage rates,” Fratantoni said.

☆ Mortgage rates fall for a second week
▼ + stars: | 2023-03-23 | by ( Anna Bahney | ) edition.cnn.com time to read: +4 min

Washington, DC CNN —Mortgage rates dropped again this week for the second week in a row amid lingering concerns about bank failures and uncertainty in the financial markets. The average mortgage rate is based on mortgage applications that Freddie Mac receives from thousands of lenders across the country. When Treasury yields go up, so do mortgage rates; when they go down, mortgage rates tend to follow. “Each downward tick in mortgage rates is met with increased buyer demand, as many eager home shoppers take advantage of the slightly lower cost of financing a home,” she said. “At the current price and mortgage rate level, the typical housing payment on a median-priced home is 43% higher than one year ago,” said Jones.

☆ KB Home expects Q2 net orders to fall amid tough year-ago comparisons
▼ + stars: | 2023-03-22 | by ( ) www.reuters.com time to read: +1 min

March 22 (Reuters) - U.S. homebuilder KB Home (KBH.N) said on Wednesday net orders in the first two-and-a-half weeks of the ongoing second quarter fell 24% from last year, issuing a rare mid-quarter update due to the ongoing market volatility fueled by a banking crisis. The California-based company expects net orders for the second quarter, which began in March, between 3,000 and 3,700, a 14% decline when compared with the midpoint of the range from a year earlier, when steady employment and wage growth were fueling housing demand. "The banking crisis could lead to a little bit of injection of life into the housing market by lowering mortgage rates," said Lisa Sturtevant, chief economist at Bright MLS. KB Home reported better-than-expected first-quarter revenue, sending its shares up by 3% after the bell. Reporting by Priyamvada C and Kannaki Deka in Bengaluru; Editing by Rashmi AichOur Standards: The Thomson Reuters Trust Principles.

☆ Mortgage demand increases again, but interest rates are rising
▼ + stars: | 2023-03-22 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +2 min

Mortgage demand has increased for three straight weeks now, as interest rates dropped in response to the recent bank failures. "However, mortgage rates have not dropped as much as Treasury rates due to increased MBS market volatility." Refinance demand is highly sensitive to weekly rate moves, but there are precious few borrowers right now who can still benefit from a refinance at today's higher interest rates. Today's homebuyers may be less influenced by weekly interest rate moves and more influenced by the state of the economy. Mortgage rates don't follow the Fed exactly, but they do respond to its perception of the overall economy.

☆ US mortgage rates tumble by the most in 4 months in SVB's wake, MBA says
▼ + stars: | 2023-03-22 | by ( ) www.reuters.com time to read: +2 min

March 22 (Reuters) - Last week's banking sector turmoil had at least one silver lining for U.S. home buyers: lower mortgage interest rates. The lower rates drove a jump in loan application volumes, with applications for both new purchases and refinancing of existing loans hitting a six-week high, MBA said. Kan attributed that to increased volatility in the market for mortgage-backed securities, which prevented consumer borrowing costs from dropping even more. Mortgage rates had soared to more than 7% last October as the Federal Reserve raised its benchmark policy rate in 2022 at the fastest pace in 40 years to combat inflation. With the U.S. central bank seen as likely to raise interest rates again later on Wednesday and with market turbulence having subsided so far this week, it's not clear how long the recent interest rate relief will last.

☆ Mortgage giant Fannie Mae tackles climate risk, but changes to underwriting may take several years
▼ + stars: | 2023-03-20 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +4 min

But the housing market currently doesn't price that climate risk into home values. The mortgage giant's chief climate officer, Tim Judge, says mortgage underwriting does not currently account for climate risk. To help, Judge is hiring climate risk modeling firms, such as First Street Foundation and Jupiter Intelligence, as well as others, to figure out just how to factor climate risk into home values and mortgage underwriting. First Street, for example, looks at climate risk from floods, fire and wind, and brings it down to an individual property level. But Fannie Mae is not yet rejecting any mortgages based solely on climate risk.

The collapse of Silicon Valley Bank sent shockwaves throughout the economy that have pushed mortgage rates down after several weeks of increases. But some investors believe no hike is also a possibility, which could push mortgage rates down even further. But whether mortgage rates will drop in 2023 hinges on if the Federal Reserve can get inflation under control. If the Fed acts too aggressively and engineers a recession, mortgage rates could fall further than what current forecasts expect. This means your entire monthly mortgage payment, including taxes and insurance, shouldn't exceed 28% of your pre-tax monthly income.

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