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☆ Mortgage rates rise again, creeping closer to 7%
▼ + stars: | 2022-10-20 | by ( Anna Bahney | ) edition.cnn.com time to read: +4 min

Mortgage rates have more than doubled since the beginning of this year as the Federal Reserve pushed ahead with its unprecedented campaign of hiking interest rates in order to tame soaring inflation. Mortgage rates tend to track the yield on 10-year US Treasury bonds. As investors see or anticipate rate hikes, they make moves which send yields higher and mortgage rates rise. This week, the 10-year US Treasury hit a high not seen since 2008, an indication that mortgage rates could rise even further. Affordability remains a challengeHigher mortgage rates are making it even harder for prospective buyers to afford a home.

☆ Home Buyers Flock to Florida Cities Devastated by Hurricane Ian
▼ + stars: | 2022-10-18 | by ( Robyn A. Friedman | ) www.wsj.com time to read: 1 min

Less than a month after Hurricane Ian caused widespread devastation to southwestern Florida, investors and other buyers are scouring for housing deals in a region where home prices have soared in recent years. Demand remains strong from both locals and out-of-staters, according to residential real-estate agents in Naples, Fla., and other areas near the path of the Category 4 storm. They say they have received numerous inquiries from people still interested in relocating to the Sunshine State, or hoping to pick up distressed properties.

☆ Homebuilder sentiment drops to half of what it was six months ago
▼ + stars: | 2022-10-18 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +1 min

Homebuilder sentiment in the single-family home market has fallen to half what it was just six months ago as mortgage rates climb, according to a new report. "High mortgage rates ... have significantly weakened demand, particularly for first-time and first-generation prospective home buyers," said NAHB Chairman Jerry Konter, a homebuilder and developer from Savannah, Georgia. Of the index's three components, current sales conditions slid 9 points to 45, and sales expectations in the next six months dropped 11 points to 35. On a three-month moving average, the sentiment score in the Northeast fell 3 points to 48. In the South it fell 7 points to 49 and in the West declined 7 points to 34.

They also note that adjustable rate mortgages and other atypical home loans make up a much smaller percentage of total mortgages than what was seen during the 2008 crash. But consumer advocates and others close to the real estate industry warn that homebuyers could still find themselves in a precarious financial position when their mortgage interest rates reset and they find their monthly payments going up. “We are watching anxiously as we see more interest in these alternative mortgage products that often seem to involve some sort of initial teaser interest rate and the interest rate is going to go up,” said Sarah Mancini, a staff attorney with the National Consumer Law Center. “Now, they are feeling like, 'Oh, God, higher interest rates are coming, we want to jump on it, we don’t want to miss it again,'" said Holeman. In marketing material, mortgage brokers often suggest that buyers can refinance after the two-year period, suggesting rates will go down in the near future.

☆ Potential home buyers are cautious about buying as mortgage rates top 7%
▼ + stars: | 2022-10-14 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailPotential home buyers are cautious about buying as mortgage rates top 7%Stephanie Vitacco, Equity Union Real Estate broker, joins 'Power Lunch'' to discuss the housing market gridlock as higher mortgages repel potential buyers and sellers show hesitancy towards pricing at discounts.

☆ Higher rates are hitting homebuyers hard; 30-year fixed-rate mortgage over 7%
▼ + stars: | 2022-10-12 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailHigher rates are hitting homebuyers hard; 30-year fixed-rate mortgage over 7%CNBC's Diana Olick joins 'Squawk on the Street' to discuss how higher rates are hitting home buyers, declines in the volume of mortgage seekers, and more stringent rules around those who qualify for a loan.

☆ China new bank lending nearly doubles after central bank help
▼ + stars: | 2022-10-11 | by ( Judy Hua | Kevin Yao | ) www.reuters.com time to read: +4 min

FILE PHOTO: Paramilitary police officers stand guard in front of the headquarters of the People's Bank of China, the central bank (PBOC), in Beijing, China September 30, 2022. Analysts polled by Reuters had predicted new yuan loans would rise to 1.80 trillion yuan in September. New yuan loans totalled 18.08 trillion yuan in the first nine months, rising 1.36 trillion yuan from a year earlier, central bank data showed. Broad M2 money supply in September grew 12.1% from a year earlier, central bank data showed, in line with analysts’ forecasts in a Reuters poll. In September, TSF rose to 3.53 trillion yuan from 2.43 trillion yuan in August.

☆ Housing is slumping, but this real estate CEO explains why it’s not 2008 all over again
▼ + stars: | 2022-10-05 | by ( Paul R. La Monica | ) edition.cnn.com time to read: +4 min

New York CNN Business —Mortgage rates are soaring. And for many prospective home buyers, especially first-time purchasers, the combination of rising home loan costs and still sky-high real estate prices make the idea of purchasing a home prohibitively expensive…if not impossible. But don’t tell that to the CEO of real estate developer Howard Hughes Corp. In an interview with CNN Business, David O’Reilly said that he’s not too worried about another housing market crash and explains why. apartment buildings) but that they are “running away from retail, offices and hotels.”Weakness in commercial real estate is probably one of the main reasons why Howard Hughes (HHC), like the stocks of other real estate companies, has plunged this year.

☆ The new American dream is buying a house with friends: 'It's a co-parenting model, it's a co-economy model, and it's a really great friendship and support model'
▼ + stars: | 2022-10-02 | by ( Juliana Kaplan | Alcynna Lloyd | ) www.businessinsider.com time to read: +8 min

"It's a co-parenting model, it's a co-economy model, and it's a really great friendship and support model," Pfefferkorn said. It's been "amazing and challenging," Pfefferkorn said, especially as both kids grew up, and one brought a grandchild into the home. "We're at a time now that our expectations for what success looks like is very different," Pfefferkorn said. For Pfefferkorn, the next dream is to buy an eight-bedroom house to turn into a communal retirement home someday. "My friend's mother is selling her house, and she has an eight bedroom house," Pfefferkorn said.

☆ Australia's house prices fall, interest rates soar but analysts say there's no crash yet
▼ + stars: | 2022-09-29 | by ( Su-Lin Tan | ) www.cnbc.com time to read: +10 min

Mortgage rates have fallen to below 2% in recent years, but interest rates are rising rapidly in Australia. Home prices fallNational house prices have fallen for a fourth straight month as demand for homes start to slide due to higher costs of borrowing, according to Corelogic. In Sydney, Australia's biggest city, home prices have fallen over 7% since prices started unwinding at the start of the year, just before interest rates lifted. Since hitting peak prices earlier this year, house prices in Melbourne have fallen nearly 5%. Since hitting peak prices earlier this year, house prices in Melbourne have fallen nearly 5%.

"Were dysfunction in this market to continue or worsen, there would be a material risk to UK financial stability," the BoE warned. One source at the Treasury said Kwarteng would not resign, and the government would not reverse its policy. A second person familiar with the situation said Truss still backed Kwarteng and they would announce further economic reforms soon. One source at the meeting said Kwarteng had asked the assembled finance bosses what they could do to calm markets. U.S. bond giant PIMCO said it would have less confidence in sterling than it did before last Friday's announcement.

"Were dysfunction in this market to continue or worsen, there would be a material risk to UK financial stability," the British central bank said. By 2:48pm (1348 GMT) it was trading down 0.5% at $1.0679, a fall of 12% in the last three months. The BoE said it would return to its plan to sell bonds and its launch was only postponed until the end of October. RESTORE ORDEROn Monday the BoE said it would not hesitate to raise interest rates and was monitoring markets "very closely". But the slide in bond prices continued unabated on Wednesday, prompting the BoE to make its move.

"Were dysfunction in this market to continue or worsen, there would be a material risk to UK financial stability," the central bank said in a statement that immediately eased pressures on soaring British government bond yields. The Bank of England said on Monday it would not hesitate to raise interest rates and was monitoring markets "very closely". Earlier on Wednesday 30-year British government bond yields rose above 5% for the first time since 2002. "An irresponsible, destructive fiscal policy." In his remarks on Tuesday, BoE Chief Economist Pill said financial market upheaval would have a big impact on the economy and would be factored into the Bank's next forecasts.

☆ U.K. Market Turmoil Ripples Into Home Loans
▼ + stars: | 2022-09-27 | by ( Josh Mitchell | ) www.wsj.com time to read: 1 min

At least six mortgage lenders in the U.K. stopped offering some loans, or briefly halted lending to home buyers altogether, according to an industry trade group. LONDON—Some British banks paused new mortgage lending Tuesday, the latest fallout from market turbulence fueled by the new government’s plans for sweeping tax cuts and energy subsidies. At least six mortgage lenders stopped offering some loans, or briefly halted lending to home buyers altogether, according to UK Finance, an industry trade group.

☆ Home purchase cancellations are above 15% for the second straight month. It's important to know the financial repercussions
▼ + stars: | 2022-09-26 | by ( Sarah O'Brien | ) www.cnbc.com time to read: +3 min

That's equal to 15.2% of home contracts initiated during the month and similar to the 15.5% canceled in July. If you're considering joining the ranks of those who walk away from a deal in progress, it's important to know whether it will cost you to do so. The amount is usually 1% to 5% of the purchase price but can run as high as 10% depending on the local market. There also can be affordability issues causing buyers to walk away, especially in new construction, said Al Bingham, a mortgage loan officer with Momentum Loans in Sandy, Utah. Buyers "are willing to walk away even if they can qualify because the house payments have gone up," Bingham said.

Shanghai E-House Real Estate Research Institute estimated in July that stalled projects accounted for 3.85% of China's housing market in the first half of 2022, equivalent to an area of 231 million square metres. But in June 2020, Jiadengbao Real Estate hit the headlines after a court accused its parent company of illegal fund-raising and seized 340 million yuan worth of its properties, including a number of flats in Xiulan County Mansion. Jiadengbao Real Estate did not respond to a request for comment from Reuters. FENCING AND UNDERGROWTHOn a recent day, the main block of buildings at Xiulan County Mansion was surrounded by a tall blue fence while the clubhouse, touted in promotional materials, was covered in a dense undergrowth. "If the government really wants to protect people's livelihoods, and resume construction, we will go back home," Xu said.

☆ Take a look at these 10 smaller cities with some of America's lowest property prices
▼ + stars: | 2022-09-25 | by ( Sam Tabahriti | ) www.businessinsider.com time to read: +4 min

A panoramic aerial drone view over the confluence of the Great Miami and Mad Rivers looking toward downtown Dayton, Ohio Getty Images2. It has a median listing price of just $125,000. Scranton, PennsylvaniaScranton has a median listing price of $142,000, which is still below the national median, according to Redfin. In February, Forbes reported that just under half those looking to rent in Buffalo were living in New York City. Pittsburgh, PennsylvaniaPittsburgh has a median listing price of $266,000, making it the 10th cheapest US city in which to buy a house.

☆ Why it's getting even harder to keep a roof over your head
▼ + stars: | 2022-09-22 | by ( Anna Bahney | Cnn Business | ) edition.cnn.com time to read: +6 min

Americans are now spending more than 35% of their median income on monthly principal and interest payments for that newly purchased median-priced home. Historically, Americans spent closer to 25% of median income on payments. Instead, mortgage rates tend to track the yield on the 10-year US Treasury. As investors anticipate the Fed's rate hikes, they often sell government bonds, which sends the yield higher and, with it, mortgage rates. In May, the Biden administration announced a Housing Supply Action Plan to close the affordability gap and ease housing costs.

☆ U.S. mortgage rates rise to 6.29%, highest in 14 years
▼ + stars: | 2022-09-22 | by ( ) www.reuters.com time to read: +1 min

Register now for FREE unlimited access to Reuters.com RegisterA home for sale sign hangs in front of a house in Oakton in Virginia March 27, 2014./File PhotoSept 22 (Reuters) - U.S. 30-year fixed-rate mortgages rose to 6.29% on Thursday, the highest level since 2008, according to Freddie Mac's mortgage market survey. Last week, rates averaged 6.02%. “The housing market continues to face headwinds as mortgage rates increase again this week, following the 10-year Treasury yield’s jump to its highest level since 2011,” said Sam Khater, Freddie Mac’s chief economist in a statement. However, the number of homes for sale remains well below normal levels.”The 5-year Treasury indexed hybrid adjustable-rate mortgage averaged 4.97% in the latest survey up from 4.93% last week and 2.43% last week. Register now for FREE unlimited access to Reuters.com RegisterReporting by Sinéad Carew; Editing by Lisa ShumakerOur Standards: The Thomson Reuters Trust Principles.

☆ Rising mortgage rates hit home builders as buyers pull back
▼ + stars: | 2022-09-22 | by ( Paul R. La Monica | Cnn Business | ) edition.cnn.com time to read: +1 min

Mortgage rates have also skyrocketed to their highest level in 14 years. "Sales have clearly been impacted by rising interest rates," Stuart Miller, Lennar's executive chairman, said in the company's earnings release. Miller added that "there remains a significant national shortage of housing, especially workforce housing, and demand remains strong." Lennar also reported that orders for new homes fell 12% from a year ago and that it is trying to "navigate the rebalance between price and interest rates." Mortgage rates are likely to head even higher given the Federal Reserve's series of big interest rate increases and likely plans for even more hikes in the coming months.

☆ Rising rates, price slump deal double blow to Hong Kong homeowners
▼ + stars: | 2022-09-22 | by ( Clare Jim | ) www.reuters.com time to read: +4 min

An aerial view shows Choi Hung public housing estate and other residential buildings with the Lion Rock peak in the background, in Hong Kong, China June 3, 2021. Home prices in Hong Kong, the world's most unaffordable market by income ratio to house values, are expected to drop around 10% this year, the first fall since 2008. Interest rates in Hong Kong tend to move in lockstep with U.S. rates, as its currency is pegged to the greenback, putting upward pressure on interbank and mortgage rates. Many sellers are those leaving Hong Kong for good or residents forced to cash in to help struggling businesses. ($1 = 7.8488 Hong Kong dollars)Register now for FREE unlimited access to Reuters.com RegisterReporting by Clare Jim; Editing by Anne Marie Roantree and Shri NavaratnamOur Standards: The Thomson Reuters Trust Principles.

☆ Mortgage rates pose challenge for potential home buyers
▼ + stars: | 2022-09-21 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailMortgage rates pose challenge for potential home buyersCNBC's Diana Olick joins Shep Smith to report on how rising interest rates are impacting a cooling housing market.

☆ 1 in 5 of China's urban youth are unemployed. That's a huge headache for Xi Jinping
▼ + stars: | 2022-09-19 | by ( Laura He | Cnn Business | ) edition.cnn.com time to read: +9 min

The youth unemployment rate has repeatedly hit new highs this year , rising from 15.3% in March to a record 18.2% in April. In the past few months, mass layoffs have engulfed once booming Chinese industries ranging from private tutoring to real estate. Xi is seeking a historic third term when the Communist Party hold its congress next month. But youth unemployment will constitute a "major threat" to China's economic and political stability in the long run, he added. But the government seems unwilling to tackle the main reason behind China's economic slowdown this year — the zero Covid policy .

☆ Housing prices have hit a 30-year high, but don't expect Congress to help anytime soon
▼ + stars: | 2022-09-17 | by ( Joseph Zeballos-Roig | Alcynna Lloyd | ) www.businessinsider.com time to read: +6 min

It seems unlikely that Congress will step in anytime soon to provide housing relief for Americans. But that was only a brief reprieve from a housing market crisis brewing in the US for decades. Soaring housing and rent prices made up a large portion of the increases in the latest inflation report released on Tuesday. "There's all this chaos in the housing market," Williams said. "The combination of higher mortgage rates and the slowdown in economic growth is weighing on the housing market," Sam Khater, Freddie Mac's chief economist, told Insider.

☆ Mortgage rates leap above 6% for the first time in 14 years, further slamming home affordability as construction slows
▼ + stars: | 2022-09-15 | by ( Ben Winck | Alcynna Lloyd | ) www.businessinsider.com time to read: +4 min

"Mortgage rates continued to rise alongside hotter-than-expected inflation numbers this week, exceeding six percent for the first time since late 2008," Sam Khater, Freddie Mac's Chief Economist, told Insider. The uptick reverses a recent dip in mortgage rates and makes home purchases even tougher for those perusing the market. Mortgage rates — which are tied to the Fed's benchmark — responded in kind, soaring above the highs seen in late June and fully reversing the summer slump. For home buyers, higher rates will translate to significantly pricier monthly payments on their mortgages. Indeed, data from the Census Bureau shows that higher mortgage rates are turning the US real estate market frigid.

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