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☆ Home prices this summer have hit a new all-time high in a majority of the US
▼ + stars: | 2023-08-08 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +2 min

Home prices hit a new-all-time high across the US in June as the shortage in inventory drags on. Prices reached fresh peaks in 30 out of 50 housing markets tracked by Black Knight, the firm said in a new report. Meanwhile, the housing market is short around 3.8 million units, per an estimate from Freddie Mac. Across all markets, prices grew 0.8% year-per-year in June, surging from just a 0.2% increase reported in May. The average 30-year fixed mortgage rate inched higher to 6.9% the last week, according to Freddie Mac.

Persons: Black Knight, Freddie Mac, We've, Andy Walden, That's Organizations: Service, Knight Locations: Wall, Silicon

☆ 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

☆ Over 80% of Americans think it's a bad time to buy a house
▼ + stars: | 2023-08-08 | by ( George Glover | ) www.businessinsider.com time to read: +2 min

Americans don't feel good about the prospect of buying a house right now. 82% think it's a "bad time to buy" a new home, according to a Fannie Mae survey. Affordability has plunged due to soaring mortgage rates and low inventory levels. And just 64% of the people surveyed by Fannie Mae believe it's a good time to sell a house. "Unsurprisingly, consumers continue to attribute the challenging conditions to high home prices and unfavorable mortgage rates," he added.

Persons: Fannie Mae, Fannie, Black Knight, Freddie Mac, Fannie Mae's, Doug Duncan Organizations: Service, Housing Survey, Federal Locations: Wall, Silicon, Fannie Mae's, Black

☆ 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

But while it may be hard to believe, there is a light at the end of the tunnel when it comes to mortgage rates. See more mortgage rates on Zillow Real Estate on ZillowCurrent Refinance RatesMortgage 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 would impact your monthly payments. 30-year Fixed Mortgage RatesThe current average 30-year fixed mortgage rate is 6.9%, according to Freddie Mac. 15-year Fixed Mortgage RatesThe average 15-year fixed mortgage rate is 6.25%, up 14 points from the prior week, according to Freddie Mac data.

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

Though mortgage rates ended July relatively low, they spiked back up in the first week of August, with average 30-year mortgage rates nearing 7%. But with the latest Consumer Price Index data slated for release later this week, mortgage rates could soon moderate. 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 is currently 6.9%, according to Freddie Mac. This is a dramatic slowdown compared to recent months, and a sign that mortgage rates will likely start falling soon.

Persons: Freddie Mac, it's Organizations: Zillow 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

☆ Mortgage rates climb, edging closer to 7%
▼ + stars: | 2023-08-03 | by ( Anna Bahney | ) edition.cnn.com time to read: +4 min

Washington, DC CNN —US mortgage rates jumped this week, climbing closer to 7%. “This development, along with upcoming employment and inflation data, will determine how much mortgage rates may rise in the short term.”Should employment and inflation pick up steam, she said, mortgage rates are likely to continue climbing as markets anticipate further monetary tightening. Mortgage rates tend to track the yield on 10-year US Treasuries, which move based on a combination of anticipation about the Fed’s actions, what the Fed actually does and investors’ reactions. When Treasury yields go up, so do mortgage rates; when they go down, mortgage rates tend to follow. Many homeowners held off on listing their home for sale, largely in response to today’s high mortgage rates, Jones said.

Persons: Freddie Mac, Fannie Mae, ”, Sam Khater, Freddie Mac’s, Hannah Jones, Jones, ” Jones, “ Organizations: DC CNN, Federal Reserve, Fitch, U.S, Realtor.com, US Treasury, Treasury Locations: Washington, “

How much do you need for a down payment on a house? On a $200,000 home, a 3% down payment means you'll need $6,000. FHA mortgage: 3.5%To get an FHA mortgage, you'll need at least a 3.5% down payment. It depends on what type of loan you're getting, but you may need between $9,000 and $60,000 for a down payment on a $300,000 house. A 20% down payment on a house allows you to avoid paying for private mortgage insurance, meaning you'll have a lower monthly mortgage payment and likely a lower mortgage rate as well.

Persons: you'll, Fannie Mae, Freddie Mac, you've Organizations: Service, Phoenix, Fort, Oklahoma, PMI, National Association of Realtors Locations: Oklahoma City, San Jose , California, Wall, Silicon, Government, York City, NY, Angeles, LA, Chicago, Houston, AZ, Philadelphia, Antonio, Diego, Dallas, Austin, Jacksonville, Fort Worth , TX, Jose, Columbus, Charlotte, NC, Indianapolis, Seattle, WA, Francisco, Denver, homeownership, Chevron

☆ Fitch downgrades Fannie Mae, Freddie Mac after US rating cut
▼ + stars: | 2023-08-02 | by ( ) www.reuters.com time to read: +1 min

A man walks through a plaza at the new Fannie Mae headquarters in Washington, U.S., October 4, 2022. REUTERS/Kevin LamarqueAug 2 (Reuters) - Ratings agency Fitch on Wednesday downgraded U.S. mortgage finance giants Fannie Mae and Freddie Mac Long-Term Issuer Default Ratings (IDR) and senior unsecured debt ratings to 'AA+' from 'AAA' after the U.S. rating downgrade on Tuesday. The agency said the cut was a result of Tuesday's downgrade and was "not being driven by fundamental credit, capital or liquidity deterioration at firms". "The downgrade to the ratings of Fannie and Freddie was a certainty after Fitch's downgrade of the US rating since the two ratings are linked," said Gennadiy Goldberg, Head of US Rates Strategy at TD Securities. The move to cut U.S ratings on Tuesday drew an angry response from the White House and surprised investors, coming despite the resolution of the debt ceiling crisis two months ago.

Persons: Fannie Mae, Kevin Lamarque, Fitch, Freddie Mac Long, Fannie, Freddie, Gennadiy Goldberg, Urvi, Megan Davies, Chris Reese, Sandra Maler Organizations: REUTERS, AAA, U.S, TD Securities, White, Thomson Locations: Washington , U.S, Bengaluru, New York

☆ Fitch downgrades mortgage giants Fannie and Freddie from AAA to AA+
▼ + stars: | 2023-08-02 | by ( Anna Bahney | ) edition.cnn.com time to read: +2 min

CNN —The credit ratings of US mortgage giants Freddie Mac and Fannie Mae were downgraded by Fitch Ratings on Wednesday, the day after Fitch cut the US sovereign rating from the top-ranked AAA to AA+. The firm downgraded the mortgage giants’ Long-Term Issuer Default Ratings (IDR) and senior unsecured debt ratings from AAA to AA+. The ratings agency said that as government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac benefit from implicit government support. But this flow of funds could be disrupted if the United States defaults on its debt, Fitch warned. It also said that should the US sovereign debt rating be raised, the GSEs’ rating would move in tandem.

Persons: Freddie Mac, Fannie Mae, Fitch, ’, Freddie, Fannie, Fannie Mae’s, Freddie Mac’s, ” Organizations: CNN, Fitch, AAA, AA, Congress, Federal Housing Finance Agency, U.S, Treasury’s Locations: United States

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

The average 30-year mortgage rate was around 6.62% for the month in July, compared to 6.49% for the month of June. 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 current average 30-year fixed mortgage rate is 6.81%, according to Freddie Mac. 15-year Fixed Mortgage RatesThe average 15-year fixed mortgage rate is 6.11%, up 5 points from the prior week, according to Freddie Mac data. But average 30-year fixed rates will likely remain somewhere in the 6% to 7% range throughout 2023.

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

☆ Why so many Americans feel trapped in their homes by their low-rate mortgages
▼ + stars: | 2023-08-01 | by ( Jessica Dickler | ) www.cnbc.com time to read: +4 min

Saul Loeb | AFP | Getty ImagesThe recent spike in mortgage rates has created a so-called golden handcuff effect. For homeowners, a low mortgage rate is similar. Nearly 82% of home shoppers said they felt "locked-in" by their existing low-rate mortgage, according to a recent survey by Realtor.com. Between 1978 and 1981, mortgage rates similarly doubled from around 9% to more than 18%, compelling more homeowners to hold on to their homes. Mortgage rates may not return to sub-3% levels again anytime soon — if ever.

Persons: Bob, Terri Wood, Bob Wood Bob Wood, Terri, It's, Wood, Tomas Philipson, Philipson, Saul Loeb, he'd, Zillow, Greg McBride, Sam Khater, Freddie Mac's, Jacob Channel Organizations: University of Chicago, White House Council, Economic Advisers, AFP, Getty, Jacob Channel Locations: Mobile , Alabama, Tennessee, Arlington , Virginia, Bankrate.com, LendingTree

☆ 'The most important financial decision' of your life—what you need to know about mortgages
▼ + stars: | 2023-08-01 | by ( Ryan Ermey | ) www.cnbc.com time to read: +8 min

News about mortgage rates comes out daily. But for most would-be homebuyers, up-to-the-minute financial information might not feel as important as the bigger-picture questions: How do mortgages work? "Borrowing to purchase property is probably the most important financial decision that most people are ever going to make in their life," she says. The average 30-year mortgage rate was above 10% for most of the 80s, cresting in 1981 at 18.39%. "One can never truly predict the future, but I don't see mortgage rates returning back to the 3% range in the remainder of my lifetime," he says.

Persons: Will, Mary O'Sullivan, Read, Jeff Ostrowski, Z homebuyers, Lawrence Yun, that's, Freddie Mac, you've, O'Sullivan Organizations: Nationwide Mortgage Brokers, Federal Reserve, Fed, cresting, National Association of Realtors, CNBC, PMI, Federal Housing Administration, Financial, Urban Institute

Mortgage rates climbed throughout the first half of July, with average 30-year mortgage rates nearing 7%. Lower mortgage rates will provide some affordability to potential homebuyers who have been waiting to enter the market. 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 is currently 6.81%, according to Freddie Mac. 15-Year Fixed Mortgage RatesThe average 15-year fixed mortgage rate is 6.11% right now, according to Freddie Mac data.

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

If the Fed stops hiking rates this year, mortgage rates could fall a bit. As the economy slows throughout this year and next, the central bank may even consider cutting rates, which would allow mortgage rates to drop even further. According to its latest forecast, the Mortgage Bankers Association expects 30-year mortgage rates to fall to 5.9% by the end of this year. 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, Fannie Mae, they'll Organizations: Federal Reserve, Fed, Mortgage, Association, Zillow, Sky, ARM Locations: Chevron

☆ Soaring home prices mean first-time buyers need to be making 13% more money than a year ago to afford a 'starter' home
▼ + stars: | 2023-07-28 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +2 min

A first-time homebuyer needs to earn 13% more money to afford a starter home, per a Redfin analysis. The average starter home cost $243,000 in June, sending the income needed to afford it to $64,500 per year. "The most affordable homes for sale are no longer affordable to people with lower budgets" due to rising prices and rates. The average starter home cost $243,000 in June, up 2% from the average price last year and up 45% from before the pandemic. Experts say affordability won't improve until mortgage rates pull back more significantly, though that's unlikely to happen anytime soon.

Persons: Sheharyar Bokhari, Redfin, That's, Freddie Mac Organizations: Service Locations: Wall, Silicon

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 (-0.10%)The current average 30-year fixed mortgage rate is 6.40%, down 10 basis points since this time last week. 20-year Fixed Mortgage Rates Go Up (+0.20%)The average 20-year fixed mortgage rate is up from last week and sits at 6.25%. Mortgage Refinance Rates30-year Fixed Refinance Rates Inch Down (-0.07%)The average 30-year refinance rate is 6.76%, which is just 7 basis points lower compared to last week. 15-year Fixed Refinance Rates Fall (-0.22%)The average 15-year fixed refinance rate is 6.20%, a bit lower than it was last week.

Persons: Freddie Mac, homebuyers, Sam Khater, Freddie Mac's, you'll, refinance, It's Organizations: Federal Reserve, Conference, Zillow Locations: Chevron

☆ High Interest Rates and Low Savings Could Put Renovations on Hold
▼ + stars: | 2023-07-27 | by ( Michael Kolomatsky | ) www.nytimes.com time to read: +1 min

The U.S. housing stock is aging, which means lots of bathrooms and kitchens need remodeling. Moving to a newer home that’s in better shape is out of reach for many people, because a new mortgage will usually come at a much higher interest rate. Eighty percent of interest rates on existing mortgages are below 5 percent, while the average rate for new mortgages was about 7 percent on July 20, according to Freddie Mac. But staying put and paying for a renovation may not be any easier. And faced with recent inflation, it’s no surprise that people are saving less.

Persons: Freddie Mac Organizations: & Bath Association, The New York Times

Though they rose rapidly in the first half of July, mortgage rates plunged a couple of weeks ago and inched down further today. Average 30-year mortgage rates have been hovering in the 6.4% to 6.6% range this week. 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 6.06% 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: Jerome Powell, Selma Hepp, you'll, Freddie Mac Organizations: Federal Reserve, Fed, Zillow Locations: Chevron

☆ Interest rates just went up again: What the latest Fed move means for you
▼ + stars: | 2023-07-26 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +6 min

And the Fed’s preferred inflation measure — the core Personal Consumption Expenditures Index — inched down to 4.6% in its latest reading. Credit cards remain very expensiveWhen Fed rates go up, so do credit card rates. So it’s not surprising that card rates in the past year have been trending at around 20-year highs. As of July 19, the average credit card interest rate is 20.44%, down slightly from the 20.58% recorded the week before, according to Bankrate.com. Second-quarter data from the Fed shows the average rate for them is 22.16%.

Persons: ”, Greg McBride, Michele Raneri, you’ll, it’s, Matt Schulz, Cardholders, Freddie Mac, they’d, McBride, Anna Bahney Organizations: New, New York CNN, Federal Reserve, Consumer, JPMorgan Chase, Bank of America, Fed, LendingTree Locations: New York

☆ Federal Reserve Meeting Fed Expected to Resume Rate Increases
▼ + stars: | 2023-07-26 | by ( Jeanna Smialek | ) www.nytimes.com time to read: +7 min

The Federal Reserve has already raised its benchmark rate, the federal funds rate, to a range of 5 to 5.25 percent to rein in inflation, which is showing signs of slowing. The average credit card rate was 20.44 percent as of July 19, according to Bankrate.com, up from around 16 percent in March last year, when the Fed began its series of rate increases. The average rate on new car loans in June was 7.2 percent, up slightly from the start of the year, according to Edmunds.com. The average rate for an identical loan was 5 percent the same week in 2022. But yields on money market funds offered by brokerage firms are even more alluring because they have tracked the federal funds rate more closely.

Persons: ”, Anna N’Jie, Bankrate.com, Matt Schulz, Jonathan Smoke, that’s, —, Freddie Mac, Ken Tumin, DepositAccounts.com Organizations: Federal Reserve, Federal, Fed, Re, LendingTree, Cox Automotive, Treasury, Savings Vehicles Savers, Consumers, DepositAccounts.com Locations: Chicago

☆ New home sales dropped in June after May’s surge
▼ + stars: | 2023-07-26 | by ( Anna Bahney | ) edition.cnn.com time to read: +4 min

Homeowners with ultra-low mortgage rates are reluctant to sell and buy another home at a much higher mortgage rate. Sales of existing homes have been down for the past few months, while new home sales have been rising. This increase in mortgage rates cooled mortgage applications. New home sales boosted by low inventory of existing homesAlthough sales were down from May, the trajectory of new home sales is generally positive, said Kelly Mangold of RCLCO Real Estate Consulting. By comparison, the inventory of existing homes for sale at the end of June was only a little over 1 million homes.

Persons: Freddie Mac, Kelly Mangold, “ Buyers, ” Mangold, ”, George Ratiu, Charlotte , Organizations: DC CNN, US Department of Housing, Urban Development, Census, Real Estate Consulting, “, National Association of Realtors Locations: Washington, Houston, Dallas, Atlanta, Charlotte, Charlotte , North Carolina, Austin , Texas, Orlando , Florida, Southern

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