Apache is functioning normally

April 18, 2024 by Brett Tams

The Federal Housing Finance Agency (FHFA) this week announced a new product proposal for government-sponsored enterprise (GSE) Freddie Mac that would allow the agency to purchase certain single-family, closed-end second mortgages.

This would offer borrowers an alternative way to access their home equity without surrendering a first mortgage with a more favorable interest rate than is currently available.

The proposal, published in the Federal Register, recognizes that existing borrowers “face limited options” if they seek to access equity on their primary residence, particularly if they have a mortgage rate from a loan originated during the low-rate environment of the COVID-19 pandemic.

“[A] traditional cash-out refinance today may pose a significant financial burden, as it requires a refinancing of the entire outstanding loan balance at a new, and likely much higher, interest rate,” FHFA said in its proposal. “Homeowners may also use second mortgages to access the equity in their homes, [where] only the smaller, second mortgage would be subject to the current market rate, as the original terms of the first mortgage would remain intact.”

Second mortgages are also typically offered at a lower interest rate than certain alternative products like personal loans, so Freddie Mac’s proposal is to purchase “certain closed-end second mortgage loans from primary market lenders” that are already approved to sell mortgages to Freddie Mac, the proposal states.

“In a closed-end second mortgage loan, the borrower’s funds are fully disbursed when the loan closes, the borrower repays over a set time schedule, and the mortgage is recorded in a junior lien position in the land records,” FHFA stated. “Freddie Mac has indicated that the primary goal of this proposed new product is to provide borrowers a lower cost alternative to a cash-out refinance in higher interest rate environments.”

FHFA Director Sandra Thompson explained that such options are needed in the current mortgage rate environment.

“The proposed activity is intended to provide homeowners with a cost-effective alternative for accessing the equity in their homes,” Thompson said in an announcement of the proposal. “Reviewing and considering comments from the public will be a critical component of our review as the agency exercises its statutory responsibility to evaluate new enterprise products.”

This is specifically designed to benefit consumers during the high rate environment, the agency said.

“In the current mortgage interest rate environment, a closed-end second mortgage may provide a more affordable option to homeowners than obtaining a new cash-out refinance or leveraging other consumer debt products,” the proposal explained. “A significant portion of borrowers have low interest rate first mortgages, and the proposal would allow those homeowners to retain this beneficial interest rate on the first mortgage and avoid resetting to a higher rate through a cash-out refinance.”

The Federal Housing Enterprises Financial Safety and Soundness Act of 1992, as amended by the Housing and Economic Recovery Act (HERA) of 2008, requires the GSEs to provide advance notice to FHFA of any potential actions or products they aim to pursue. This notice demonstrates that FHFA is fulfilling its mandate and seeks public comments on the proposal.

The comment period lasts 30 days from the publication of the proposal in the Federal Register, making May 16, 2024, the end of the comment period. Interested parties can submit comments to the agency on its website or via email.

Apache is functioning normally

April 18, 2024 by Brett Tams

“Housing costs are high across the board, but renting is a more affordable and realistic option for many Americans right now—especially those who have never owned a home and aren’t able to tap into equity from a previous sale,” said Redfin chief economist Daryl Fairweather. To afford a typical starter home, first-time buyers must now … [Read more…]

Apache is functioning normally

April 18, 2024 by Brett Tams

Mortgage rates jumped for all types of loans compared to a week ago, according to data compiled by Bankrate. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans edged higher.

While mortgage rates are still on track to gradually come down this year, the path might be bumpy. Lenders price mortgages based on many variables, but overall, fixed mortgage rates follow the 10-year Treasury yield, which moves as investor appetite fluctuates with the state of the economy and Federal Reserve decisions.

The Fed indicated it’d cut rates in 2024, but policymakers held off at its latest meeting, citing the need for more promising economic data. The Fed has been working to bring inflation back to its 2 percent target since 2022.

“The Fed is not in a hurry to start cutting interest rates as the progress toward 2 percent inflation has encountered some turbulence,” says Greg McBride, CFA, chief financial analyst for Bankrate.

For now, the Fed expects to issue three rate cuts in 2024. When that happens, the rates on a variety of financial products, including mortgages, should follow suit.

Whether mortgage rates move up or down, though, it’s tough to time the market. Often, the decision to buy a home comes down to needs. Depending on your situation, it might make sense to take a higher rate now and hope to refinance later — buying a home at today’s prices rather than a higher price in the future, while building equity that much sooner.

Rates last updated April 15, 2024.

The rates listed above are averages based on the assumptions here. Actual rates displayed across the site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Monday, April 15th, 2024 at 7:30 a.m.

30-year mortgage rate climbs, +0.08%

Today’s average rate for the benchmark 30-year fixed mortgage is 7.05 percent, up 8 basis points from a week ago. A month ago, the average rate on a 30-year fixed mortgage was lower, at 6.90 percent.

At the current average rate, you’ll pay $668.66 per month in principal and interest for every $100,000 you borrow. That’s $5.37 higher compared with last week.

15-year mortgage rate moves higher, +0.16%

The average rate for a 15-year fixed mortgage is 6.54 percent, up 16 basis points over the last week.

Monthly payments on a 15-year fixed mortgage at that rate will cost approximately $873 per $100,000 borrowed. The bigger payment may be a little harder to find room for in your monthly budget than a 30-year mortgage payment, but it comes with some big advantages: You’ll come out several thousand dollars ahead over the life of the loan in total interest paid and build equity much faster.

5/1 ARM rate increases, +0.02%

The average rate on a 5/1 adjustable rate mortgage is 6.58 percent, up 2 basis points over the last 7 days.

Adjustable-rate mortgages, or ARMs, are mortgage loans that come with a floating interest rate. To put it another way, the interest rate will change at regular intervals, unlike fixed-rate mortgages. These loan types are best for people who expect to refinance or sell before the first or second adjustment. Rates could be substantially higher when the loan first adjusts, and thereafter.

While borrowers shunned ARMs during the pandemic days of super-low rates, this type of loan has made a comeback as mortgage rates have risen.

Monthly payments on a 5/1 ARM at 6.58 percent would cost about $637 for each $100,000 borrowed over the initial five years, but could increase by hundreds of dollars afterward, depending on the loan’s terms.

Jumbo mortgage interest rate trends upward, +0.12%

The average rate for the benchmark jumbo mortgage is 7.21 percent, up 12 basis points from a week ago. Last month on the 15th, the average rate for jumbo mortgages was below that at 7.04 percent.

At today’s average jumbo rate, you’ll pay principal and interest of $679.47 for every $100,000 you borrow. That’s up $8.11 from what it would have been last week.

Refinance rates

30-year fixed-rate refinance increases, +0.08%

The average 30-year fixed-refinance rate is 7.07 percent, up 8 basis points from a week ago. A month ago, the average rate on a 30-year fixed refinance was lower at 6.85 percent.

At the current average rate, you’ll pay $670.01 per month in principal and interest for every $100,000 you borrow. That’s an increase of $5.38 over what you would have paid last week.

Where are mortgage rates heading?

With mortgage rates buffeted by many factors, it’s impossible to predict exactly when they’ll rise or fall. With the Fed still aiming for three rate cuts this year, it’s possible we’ll see lower rates sooner rather than later.

Keep in mind: The rates on 30-year mortgages mostly follow the 10-year Treasury, which shifts continuously as economic conditions dictate, while the cost of variable-rate home loans mirror the Fed’s moves.

These broader factors influence overall rate movement. As a borrower, you could be quoted a higher or lower rate compared to the trend.

What today’s rates mean for your mortgage

While mortgage rates change daily, it’s unlikely we’ll see rates back at 3 percent anytime soon. If you’re shopping for a mortgage now, it might be wise to lock your rate when you find an affordable loan. If your house-hunt is taking longer than anticipated, revisit your budget so you’ll know exactly how much house you can afford at prevailing market rates.

You could save serious money on interest by getting at least three loan offers, according to Freddie Mac research. You don’t have to stick with your bank or credit union, either. There are many types of mortgage lenders, including online-only and local, smaller shops.

“All too often, some [homebuyers] take the path of least resistance when seeking a mortgage, in part because the process of buying a home can be stressful, complicated and time-consuming,” says Mark Hamrick, senior economic analyst for Bankrate. “But when we’re talking about the potential of saving a lot of money, seeking the best deal on a mortgage has an excellent return on investment. Why leave that money on the table when all it takes is a bit more effort to shop around for the best rate, or lowest cost, on a mortgage?”

More on current mortgage rates

Methodology

Bankrate displays two sets of rate averages that are produced from two surveys we conduct: one daily (“overnight averages”) and the other weekly (“Bankrate Monitor averages”).

The rates on this page represent our overnight averages. For these averages, APRs and rates are based on no existing relationship or automatic payments.

Learn more about Bankrate’s rate averages, editorial guidelines and how we make money.

Source: bankrate.com

Apache is functioning normally

April 18, 2024 by Brett Tams

The disco ball, while always beautiful, has undergone a glow-up in the 21st century. No longer relegated to the nightlife scene that birthed it, the mirrorball crept into our weddings, our homes, our earlobes. Then it escaped its spherical form entirely—now martini glasses, cowgirl boots, even mushrooms gleam with silver-tiled radiance. What could they possibly disco next?

Sofie Berarducci has some ideas.

The 24-year-old entrepreneur honed her design savvy building furniture in her parents’ garage during the pandemic. When she returned to college in San Francisco, she had to settle for smaller projects. One night, while watching The Bachelor, she and a handful of friends covered a Styrofoam mushroom from Michaels in shiny, mirrored tiles. “Anytime someone would come over and see it in my room, they’d love it,” Berarducci recalls. “It was such a showstopper.”

After graduating in 2019, Berarducci started crafting more disco mushrooms as Christmas presents. She posted surplus ’shrooms on Facebook Marketplace, where they sold out overnight. “People were messaging me, ‘Where can I buy more?’” Berarducci recalls.

Berarducci capitalized on the disco fever with an Etsy shop and, eventually, a business account on Instagram. She developed new products, pivoting from Styrofoam bases to 3D-printed fruit, liquor bottles, and other fun shapes. Berarducci was still working full-time at a San Diego marketing agency, running her side hustle with help from family. “In the morning, my mom and I would pack orders together, go drop them off at UPS, and go do our nine-to-five,” she says. “Five would hit, and we would turn on a movie and get to tiling.”

Six months in, she decided to launch the brand’s e-commerce site and quit her job to focus on Sofiest Designs. “It was kind of a huge risk,” she adds, “but I haven’t looked back.” After all, the gamble paid off handsomely: In addition to 80,000 Instagram followers, Sofiest Designs boasts partnerships with Urban Outfitters, Free People, Dormify, and Aerie. Berarducci has designed custom disco doodads for celebs such as Lizzo, Kourtney Kardashian, and Shania Twain, and outlets like Architectural Digest, HGTV, Apartment Therapy, and Time have taken notice.

Though her company ships out 15 to 20 orders per day, Berarducci continues to hand-make each product in a San Marcos warehouse with the help of a small team of family and friends. “My business is part e-commerce manufacturer and part art,” she explains. “It’s still really time intensive. I’m touching every single [piece].”

All those hours tiling haven’t stopped her from pushing Sofiest Designs forward. She added additional, less shiny homewares in the form of surreal shelving and pastel lamps and partnered with other woman-owned small businesses to expand the company’s e-commerce offerings. You can shop seven other makers’ products on Berarducci’s site.

Courtesy of Sofiest Designs

Nevertheless, what Berarducci calls “disco therapy” remains core to her company’s ethos. “The disco ball is timeless and gorgeous, but it hadn’t been remodeled in, like, 50 years,” she says. “We wanted to make something more appropriate for Gen Z. Our goal is to make disco items that double as art for your home that you can have forever.”

We tapped Berarducci to share some of her favorite home décor products from small businesses (including her own). Here are 10 fun finds to spruce up your bedroom, bar cart, or coffee table.

10 Unique Room Décor Accents to Spice Up Your Space

Courtesy of Big Night

Big Night Clock, $110

Big Night

This cheeky clock is “so cute for your kitchen area—I love the pop of red,” Berarducci says. “The martini at the five o’clock hand is the perfect little detail.” The timepiece captures two trends: the fervor for food-centric décor and, of course, Gen Z’s love for disco-inspired details.

Courtesy of Sofiest Designs

Glass Tile Decorative Tray, $65

Subtle Art Studio

“This tray makes for the most stunning accent piece on your vanity or bar cart,” Berarducci says. “It’s an easy way to elevate your space.” San Jose–based Subtle Art Studio slings several products made with retro-inspired glass tiles, including coasters, incense holders, and photo stands.

Courtesy of Nata Concept Store

Olive Candle, $21

Nata Concept Store

“Why not add an olive candle to your home décor?” Berarducci suggests. “Style with your martini glasses and mixers on a bar cart. So cute!” Novelty candles have made a splash as a playful, affordable way to accessorize your house, and this one stands out for its lovely floral scent.

Courtesy of Sofiest Designs

Checkered Ceramic Vase, $120

Alicja Ceramics

Another of Berarducci’s small business partners, Alicja Ceramics crafts and paints each of her funky vases by hand. “These are my go-to for all my flower arrangements,” Berarducci adds. “The checkered print against the florals makes for the coolest contrast.”

Courtesy of Sofiest Designs

Disco Strawberry, $52.50

Sofiest Designs

TikTok’s beloved “unexpected red” theory holds that introducing a touch of crimson will enliven any room. Try out the technique with Berarducci’s sparkly strawberry. “My favorite way to show off this strawberry is to style it on a kitchen shelf or use it as a dining-table centerpiece,” she says.

Courtesy of Abbode

Custom Icons Pillow, $155

Abbode

New York embroidery shop Abbode is all about customization. This pillow case takes things a step beyond monogramming, allowing customers to select and request symbols that represent their most formative experiences or favorite things. “These make for the perfect customized housewarming gift—for your friend or for yourself,” Berarducci says.

Courtesy of Piecework Puzzles

Buns Out, $40

Piecework Puzzles

“Boring puzzles are out,” Bararducci declares. “Challenge your brain and create a masterpiece with Piecework’s ‘Buns Out’ puzzle.” After you’ve put the final piece in place, brush Mod Podge over the lot and frame it as a conversation-starting work of art.

Courtesy of Yellowpop

Custom Neon Sign, from $159

Yellowpop

Whatever your catchphrase is, immortalize it in neon lights. Yellowpop offers one-of-a-kind LED signs with 14 different color options. “This is a great way to personalize your space in a unique and timeless way,” Berarducci says. “I created a custom ‘Sofiest Designs’ sign for my warehouse and absolutely love it!”

Coutesy of Sofiest Designs

Wobble Table Lamp, $120

Sofiest Designs

This wiggly lamp from Sofiest Designs comes in four easy-to-style colors: powder pink, muted orange, soft green, and creamsicle orange. You can select a lampshade in one of those same hues to mix and match. “This is my favorite of our lamps,” Berarducci says. “It looks good in any space and any colorway.”

Courtesy of Coming Soon

Concrete Shelf, $650

Concrete Cat

This eye-catching shelf is an art piece in itself. “The concrete coloring brings [it] to the next level,” Berarducci adds. A groove at the back of the shelf helps secure thin items like records, photos, and (SDM’s personal favorite) magazines for display.

Source: sandiegomagazine.com

Apache is functioning normally

April 17, 2024 by Brett Tams

Valuation, Online App., Data Intelligence, UW Guideline Integration Tools; STRATMOR ICE Integration

This website requires Javascrip to run properly.

Valuation, Online App., Data Intelligence, UW Guideline Integration Tools; STRATMOR ICE Integration

By:
Rob Chrisman

Mon, Apr 15 2024, 11:28 AM

No one is getting any younger, not even Clint Eastwood. Time marches on, as does, apparently, the cost of mailing a letter. The post office wants to jack the price of a stamp to 73 cents from 68 cents which took effect in January. But everything is politics these days, and out comes, “The Trump donor whom Biden can’t fire is running the U.S. Postal Service directly into the ground, just what everyone warned about when he was confirmed during the pandemic. The latest price hikes at USPS are just another sign of the unfavorable leadership of Postmaster General Louis DeJoy.” We have nearly seven months more of election cr-p. How about some good ol’ legal stuff? Neither side in the recent UWM lawsuit is likely to care to hear Brian Levy’s perspectives about the legal theories and people involved in the case, but I suspect many of you will. Levy’s most recent Mortgage Musings is chock full of sideways glances in footnotes, Don Corleone’s ethics, and of course, RESPA, among other stuff. (Found here after 8:30AM ET, this week’s podcasts are sponsored by Optimal Blue. OB’s smart solutions automate critical functions like pricing, hedging, trading, and social media. More originators and investors rely upon Optimal Blue’s integrated solutions, data, and connections to support their unique business strategies, no matter how complex. Hear an interview with Canopy’s Josh Neumarker on current pain points for originators and communication between management and sales staffs.)

Lender and Broker Products, Software, and Services

A&D Mortgage introduces AIM – Artificial Intelligence in Mortgage, revolutionizing the mortgage industry with a platform that streamlines the lending process for brokers and borrowers alike. AIM enhances A&D’s existing portal with AI, advanced technology, a user-friendly interface, and stringent compliance protocols to set a new benchmark in loan originations. This innovative platform is designed to simplify mortgage processing, offering features like an intuitive interface for reduced processing times, comprehensive support for Non-QM and Conventional loans, direct Point of Sale integration for swift applications, and top-tier security and compliance measures safeguarding client data. AIM represents A&D Mortgage’s dedication to innovation and excellence, facilitating a smoother, more efficient lending experience from application to closure. As the industry shifts towards a tech-driven future, AIM leads with a solution that enhances both broker efficiency and client satisfaction. Explore AIM’s transformative impact on mortgage lending here. Step into the future of efficient, secure, and user-friendly mortgage processes.

“Take3tech.com is excited to announce our integration between TheRuleTool and Polly PPE. TheRuleTool supports thousands of Loan Officers who can now access agency/investor/bond/jumbo guidelines in Polly to ensure you are on target with guidelines. Are you a lender focused on building relationships with borrowers? Take3Tech has created LoanMAPS, a POS/LOS/CRM that includes upfront underwriting, digital validation and workflow that incorporates D1C, AIM, Collateral Underwriting, and portfolio guidelines. Easy for borrowers to use and empowers loan officers with knowledge that you use to impress! Easy to install and gives you the power of one database that hosts all your POS/LOS/CRM data. Training entry-level employees? Not a problem with our intuitive step-by-step instructions. You will have new employees processing and closing in a week! Learn more by visiting our website or registering today for an upcoming webinar with our CEO and Fannie Mae.”

In today’s fast-changing market, one thing has remained consistent: home price growth. With the rising prices, demand for HELOCs and home equity loans has also increased. Do you have the right tools in place to capitalize on today’s home equity lending opportunities? In this short video, Margie Ambrosio, SVP Information Systems Manager at George Mason Mortgage, shares her unique perspective on why home equity lending should be a “no-brainer” for today’s lenders and how Encompass® by ICE Mortgage Technology® makes it easy. Click here to watch the full video.

Do you know how much wallet share you hold in your agent referral partnerships? With MMI’s data intelligence platform, you can not only see who you’re working with but also how much of their business you’re getting. For a limited time, click here to request your complimentary agent wallet share report and get X-ray insight into where else your top RE agent or office partner is sending their deals. Armed with this competitive intelligence, you can pinpoint potential areas for growth and opportunity like this MMI user: “As a dedicated professional constantly seeking innovative solutions to enhance my business, discovering MMI was a game-changer. MMI has allowed me to proactively identify prospective new agents and immediately reach out to discuss something of value for their new listing. MMI provides the essential data backbone, delivering new listing information to my inbox for existing agent relationships, as well as the agents on my prospect list.”

Winning Agent Business: The lender’s guide to building a strong referral network, updated for 2024. In the aftermath of the NAR ruling, agents are more incentivized than ever to show their clients value. That means they’re actively looking to partner with top-tier lenders in their market. Want to take advantage and grow your referral business? Maxwell just updated its Winning Agent Business eBook with new tips straight from agents to help you better network to create a strong funnel of referral leads. Download your free copy to learn qualities agents value in their lending partners, networking dos and don’ts, ways to become a go-to lender, and more.

If Amazon were in the mortgage business, what would their online application look like? Would it look like yours? They wouldn’t tolerate borrowers getting frustrated with a bad mobile experience and neither should you. Check out LiteSpeed by LenderLogix and see why mortgage bankers are making the switch.

Originators continue to find a way to get ahead of the competition with 48-hour appraisals! Tired of slow appraisals costing you deals? Class Valuation is transforming the industry with its 48-hour purchase appraisal program. This groundbreaking solution is designed to cut appraisal turnaround times significantly, helping loan originators close faster and win more business. Class Valuation’s innovative technology and streamlined process has proven over and over to cut turn times dramatically with no loss in appraisal quality. Get the edge you need in today’s market. Learn more about the 48-hour appraisals.

STRATMOR, Customer Experience, and ICE

Did you know that STRATMOR Group’s Customer Experience Strategy program, MortgageCX, is now integrated with Encompass and available through ICE Marketplace? MortgageCX personalizes CX feedback and coaching tips for every LO, processor, and manager, leveraging STRATMOR’s industry expertise, peer benchmarking data, and the lender’s own customer feedback. Participating lenders are transforming their customer experience and igniting their revenue growth. Contact STRATMOR for more on the MortgageCX program and join those lenders already benefiting from this integration.

Upcoming Webinars and Training

You may-as-well learn something while waiting for business to pick up! A good place for longer term conference planning is to start is here, and click on “Conference List” for in-person events in the future.)

Looking for more in-depth commentary on weekly mortgage news? Register here for “Mortgage Matters: The Weekly Roundup” presented by Lenders One. Every Wednesday at 2:00 PM EST/11:00 AM PT join Robbie Chrisman and Justin Demola for a dive into a range of mortgage-related topics, including market trends, interest rate fluctuations, innovative mortgage products, and industry advancements.

When are Things Going to Get Better Already!?! Spokane Association for Mortgage Professionals invites you to join us as we have a conversation with RE Source on Wednesday, April 17th from 4:30pm-6:30pm at the Spokane Club 1002 W Riverside Ave, Spokane, WA. Topics will include Market Insights, Content Creation, Social Media and Winning in 24′. Click here to register. (Be sure to check out the RE Source latest videos: https://theresource.tv/.)

Thursday April 18th Rich Swerbinsky returns to the airwaves at 3PM ET, interviewing the CFPB’s Mark McArdle on what the big misconceptions about the CFPB are, and where its focus is currently.

FHA Appraisal Policies for Manufactured Homes in Greensboro, April 18th, 1:00 PM – 3:00 PM (Eastern). This free, in-person training will provide an overview of FHA appraisal/appraiser requirements for manufactured homes as outlined in FHA’s Single Family Housing Policy Handbook 4000.1. This training will cover several topics including property acceptability criteria, minimum property standards/minimum property requirements (MPR/MPS), defective conditions, policy updates, inspections, well and septic requirements, underwriting the appraisal, and program types such as a new construction.

Join Angel Oak on Thursday, April 18th for a Non-QM Webinar on Short Term Rentals & DSCLR Loans. Discussion will include AirDNA, short term rentals and DSCR Loan program details. Plus, the top questions heard from their brokers.

IMLA is hosting a Builder Panel at its April Luncheon, Thursday, April 18 · 11:30am – 1pm MDT at the Riverside Hotel Aspen Room. Treasure Valley Builders Bobbie Jordan, Preside of Jordan Homes, Bud Compher, Jr., CEO of Neighborworks Boise, Cody Weight, President of Solitude Homes and Jenna England, President of Berkeley will share their perspectives on building trends, affordable housing, and how they are adapting to the everchanging market.

AmeriCatalyst explores the operational impact of climate change and its profound industry-wide implications for the US housing and finance market. AmeriCatalyst’s GOING TO EXTREMES: The Climate, Housing and Finance Summit is being held at the Gaylord National Harbor (in the Washington DC area) on April 18 and 19. Contact Toni Moss (512-461-6340) with questions.

Friday the 19th is the next episode of The Mortgage Collaborative’s Rundown covering current events in the mortgage market for 30-45 minutes starting at noon PT, 3PM ET, in “The Rundown”.

Join co-hosts, the National Association of Appraisers and Appraiser eLearning, at the 6th annual Appraiser’s Conference and Trade Show (ACTS). The next ACTS conference will be held April 20-23 at the DoubleTree in Colorado Springs hosted by the Colorado Real Estate Appraisers Association.

Interested in learning how retain/release MSR decisions can be included in your best execution strategy? Join MCT for a webinar on April 24th at 11:00 AM PT titled Complete Best Execution – Now Including Fully Integrated Retain/Release MSR Decisioning. In this webinar, MCT will review the current state of the MSR market and discuss more comprehensive retain vs. release strategies, in addition to our recently introduced fully integrated Enhanced Best Execution (EBX) solution. MCT’s Paul Yarbrough will then provide insights from a trader’s perspective regarding MSR best execution strategies at time of loan sale. He will also highlight MCT’s Rapid Commit technology and assignment of trade processes. This session will include a live demo of the EBX (MCTlive! and MSRlive!) integration, showcasing how EBX can effectively optimize your flow MSR trading process and decisions. Register for the webinar to join the session.

Join CoreLogic for an exclusive webinar on Wednesday, April 24, noon CT tailored for lenders to delve into the Valuation Modernization Initiative. Dive into the innovative redesign of forms and the cutting-edge UAD (Uniform Appraisal Dataset) initiative, poised to revolutionize the sector. Explore the significant effects that this initiative is exerting on the broader industry, encompassing alterations in Loan Origination Systems (LOS), effective management of appraisal fees, performance SLAs, and other aspects.

The Single-Family Housing Guaranteed Loan Program (SFHGLP) is offering free, in-person training to its lending partners. The training will offer one and half days of loan origination training and one day of loan servicing training, April 24th, 9:00 am – 4:00 pm in Glenn Allen, VA. The servicing agenda will focus on the methodology and processes of handling troubled loans in your USDA portfolio. USDA will cover the entire waterfall of loss mitigation options and the specific rules and processes of administration and provide an update on USDA programs portfolio review. It will be held at the Virgina Housing Center, 4224 Cox Rd., Glenn Allen, VA. This is an in-person event only and will not be streamed live.

“A never-before-seen economic environment calls for new ways to create stronger business growth. Register now for a MAXEX roundtable discussion Thursday, April 25 at 2 p.m. Eastern where we’ll breakdown how unyielding inflation, stubborn mortgage rates, an unpredictable Federal Reserve and a nearly two-year long yield curve inversion are affecting the mortgage world. The roundtable will feature MAXEX and special guests. Don’t miss this opportunity to hear directly from industry leaders about how they’re attacking the road ahead and where you can find growth while working against industry headwinds.”

Join MBA’s webinar, April 25th, 2:00 PM – 3:30 PM ET, as they delve into the fundamentals and complexities of mortgage accounting. Anyone who desires to increase their knowledge of mortgage loan accounting will benefit from this session that is designed for business owners, executive management, accountants, and non-CPA accounting managers. Complete the full series, and you’ll have the information necessary to master mortgage accounting.

FHA New Applicants are invited to join a free virtual webinar, April 25, 2:00 PM – 3:30 PM (Eastern) conducted by FHA’s Office of Lender Activities and Program Compliance, will focus on the Lender Electronic Assessment Portal (LEAP) as outlined in the Single Family Housing Policy Handbook 4000.1. Content includes a detailed overview of the FHA lender approval application process, eligibility requirements, and required documentation for the various types of mortgagees (lenders). Common application deficiencies will also be addressed and tips for submitting a successful application will be provided.

Capital Markets

The latest consumer price data drove last week’s market movement as traders attempt to predict when the Fed will begin to ease monetary policy. The Consumer Price Index increased 0.4 percent in March at both the headline and core levels, which was hotter than market expectations and led to an immediate sell-off in bonds. The question remains as to whether this is a bump in the road to 2 percent inflation or an inflection point signaling a reversal of course.

Meanwhile, farther up the food chain, producer prices rose 0.2 percent in March, their slowest pace over the last three months. The Fed’s preferred measure of inflation, the core PCE deflator, will not be released until April 26. Despite the belief that inflation will trend lower throughout the year, Fed officials clearly do not have confidence it is on a sustained path towards two percent at this time. As a result, the market has pushed the likelihood of the first rate cut from June to September.

This week’s economic calendar kicked off with a bang today with March retail sales (+.7 percent, the consumer is strong!) and April Empire State manufacturing. Later today brings the NAHB Housing Market Index for April, February business inventories, and remarks from a couple of Fed speakers. We begin the week with Agency MBS prices worse .250-.375, the 10-year yielding 4.61 after closing Friday at 4.50 percent, and the 2-year up at 4.96.

Download our mobile app to get alerts for Rob Chrisman’s Commentary.

Source: mortgagenewsdaily.com

Apache is functioning normally

April 17, 2024 by Brett Tams

Today’s mortgage rates

Average mortgage rates edged higher yesterday. It was a modest increase by any standards but tiny by comparison with Wednesday’s big jump.

First thing, it was looking as if mortgage rates today could fall. But that could change later in the day.

Current mortgage and refinance rates

Find your lowest rate. Start here

Our table is having technical problems. But we’re working hard to fix them.

Program	Mortgage Rate	APR*	Change
30-year fixed VA	7.222%	7.262%	+0.05

Conventional 20-year fixed	7.007%	7.058%	+0.07

Conventional 10-year fixed	6.51%	6.584%	+0.09

Conventional 30-year fixed	7.127%	7.173%	+0.07

30-year fixed FHA	7.056%	7.1%	+0.09

Conventional 15-year fixed	6.64%	6.713%	+0.1

5/1 ARM Conventional	6.785%	7.888%	+0.08

Rates are provided by our partner network, and may not reflect the market. Your rate might be different. Click here for a personalized rate quote. See our rate assumptions See our rate assumptions here.

Should you lock your mortgage rate today?

Markets have turned gloomy over the prospects of the Federal Reserve cutting general interest rates over the next few months. And that’s been pushing mortgage rates higher.

So, for now, my personal rate lock recommendations remain:

LOCK if closing in 7 days
LOCK if closing in 15 days
LOCK if closing in 30 days
LOCK if closing in 45 days
LOCK if closing in 60 days

However, with so much uncertainty at the moment, your instincts could easily turn out to be as good as mine — or better. So, let your gut and your own tolerance for risk help guide you.

>Related: 7 Tips to get the best refinance rate

Market data affecting today’s mortgage rates

Here’s a snapshot of the state of play this morning at about 9:50 a.m. (ET). The data are mostly compared with roughly the same time the business day before, so much of the movement will often have happened in the previous session. The numbers are:

The yield on 10-year Treasury notes fell to 4.50% from 4.55%. (Good for mortgage rates.) More than any other market, mortgage rates typically tend to follow these particular Treasury bond yields
Major stock indexes were falling this morning. (Good for mortgage rates.) When investors buy shares, they’re often selling bonds, which pushes those prices down and increases yields and mortgage rates. The opposite may happen when indexes are lower. But this is an imperfect relationship
Oil prices increased to $87.42 from $85.57 a barrel. (Bad for mortgage rates*.) Energy prices play a prominent role in creating inflation and also point to future economic activity
Gold prices climbed to $2,414 from $2,361 an ounce. (Good for mortgage rates*.) It is generally better for rates when gold prices rise and worse when they fall. Because gold tends to rise when investors worry about the economy.
CNN Business Fear & Greed index — fell to 51 from 54 out of 100. (Good for mortgage rates.) “Greedy” investors push bond prices down (and interest rates up) as they leave the bond market and move into stocks, while “fearful” investors do the opposite. So, lower readings are often better than higher ones

*A movement of less than $20 on gold prices or 40 cents on oil ones is a change of 1% or less. So we only count meaningful differences as good or bad for mortgage rates.

Caveats about markets and rates

Before the pandemic, post-pandemic upheavals, and war in Ukraine, you could look at the above figures and make a pretty good guess about what would happen to mortgage rates that day. But that’s no longer the case. We still make daily calls. And are usually right. But our record for accuracy won’t achieve its former high levels until things settle down.

So, use markets only as a rough guide. Because they have to be exceptionally strong or weak to rely on them. But, with that caveat, mortgage rates today look likely to decrease. However, be aware that “intraday swings” (when rates change speed or direction during the day) are a common feature right now.

Find your lowest rate. Start here

What’s driving mortgage rates today?

Today

Two economic reports are scheduled for this morning.

The March import price index (IPI) landed at 8:30 a.m. Eastern. And that would normally be bad for mortgage rates. Markets had been expecting it to hold steady at 0.3% and it came in at 0.4%.

So, how come mortgage rates were falling first thing? Well, it’s too early to be sure. But those rates often move in the opposite direction after a sharp movement one way or the other. That’s simply markets reflecting on the change and deciding they over-reacted.

This morning’s other report isn’t due until 10 a.m. Eastern. And that means I won’t have time before my deadline to assess its likely impact on markets. They were expecting the preliminary consumer sentiment index for April to improve slightly to 79.9% from 79.4%.

A lower figure may help mortgage rates to fall while a higher one could push them upward. But this is one of those reports that rarely move those rates far unless they contain shockingly good or bad data.

Mortgage rates might also be affected by earnings reports later from three of the biggest U.S. banks, JPMorgan Chase, Wells Fargo and Citigroup. If they all tell a really positive story, stock market reactions could spill over into the bond market that largely determines mortgage rates.

Next week

We’ve had April’s two most important reports over the last six days. And, taken together, they were pretty bad for mortgage rates.

Next week’s reports aren’t typically as influential by a long way. But a couple of them (retail sales and industrial production) could move mortgage rates higher if they feed markets’ current pessimism over Fed rate cuts — or push them downward if they contradict it.

Don’t forget you can always learn more about what’s driving mortgage rates in the most recent weekend edition of this daily report. These provide a more detailed analysis of what’s happening. They are published each Saturday morning soon after 10 a.m. (ET) and include a preview of the following week.

Recent trends

According to Freddie Mac’s archives, the weekly all-time lowest rate for 30-year, fixed-rate mortgages was set on Jan. 7, 2021, when it stood at 2.65%. The weekly all-time high was 18.63% on Sep. 10, 1981.

Freddie’s Apr. 11 report put that same weekly average at 6.88%, up from the previous week’s 6.82%. But note that Freddie’s data are almost always out of date by the time it announces its weekly figures.

Expert forecasts for mortgage rates

Looking further ahead, Fannie Mae and the Mortgage Bankers Association (MBA) each has a team of economists dedicated to monitoring and forecasting what will happen to the economy, the housing sector and mortgage rates.

And here are their rate forecasts for the four quarters of 2024 (Q1/24, Q2/24 Q3/24 and Q4/24).

The numbers in the table below are for 30-year, fixed-rate mortgages. Fannie’s were updated on Mar. 19 and the MBA’s on Mar. 22.

Forecaster	Q1/24	Q2/24	Q3/24	Q4/24
Fannie Mae	6.7%	6.7%	6.6%	6.4%
MBA	6.8%	6.6%	6.3%	6.1%

Of course, given so many unknowables, both these forecasts might be even more speculative than usual. And their past record for accuracy hasn’t been wildly impressive.

Important notes on today’s mortgage rates

Here are some things you need to know:

Typically, mortgage rates go up when the economy’s doing well and down when it’s in trouble. But there are exceptions. Read ‘How mortgage rates are determined and why you should care’
Only “top-tier” borrowers (with stellar credit scores, big down payments, and very healthy finances) get the ultralow mortgage rates you’ll see advertised
Lenders vary. Yours may or may not follow the crowd when it comes to daily rate movements — though they all usually follow the broader trend over time
When daily rate changes are small, some lenders will adjust closing costs and leave their rate cards the same
Refinance rates are typically close to those for purchases.

A lot is going on at the moment. And nobody can claim to know with certainty what will happen to mortgage rates in the coming hours, days, weeks or months.

Find your lowest mortgage rate today

You should comparison shop widely, no matter what sort of mortgage you want. Federal regulator the Consumer Financial Protection Bureau found in May 2023:

“Mortgage borrowers are paying around $100 a month more depending on which lender they choose, for the same type of loan and the same consumer characteristics (such as credit score and down payment).”

In other words, over the lifetime of a 30-year loan, homebuyers who don’t bother to get quotes from multiple lenders risk losing an average of $36,000. What could you do with that sort of money?

Verify your new rate

Mortgage rate methodology

The Mortgage Reports receives rates based on selected criteria from multiple lending partners each day. We arrive at an average rate and APR for each loan type to display in our chart. Because we average an array of rates, it gives you a better idea of what you might find in the marketplace. Furthermore, we average rates for the same loan types. For example, FHA fixed with FHA fixed. The end result is a good snapshot of daily rates and how they change over time.

How your mortgage interest rate is determined

Mortgage and refinance rates vary a lot depending on each borrower’s unique situation.

Factors that determine your mortgage interest rate include:

Overall strength of the economy — A strong economy usually means higher rates, while a weaker one can push current mortgage rates down to promote borrowing
Lender capacity — When a lender is very busy, it will increase rates to deter new business and give its loan officers some breathing room
Property type (condo, single-family, town house, etc.) — A primary residence, meaning a home you plan to live in full time, will have a lower interest rate. Investment properties, second homes, and vacation homes have higher mortgage rates
Loan-to-value ratio (determined by your down payment) — Your loan-to-value ratio (LTV) compares your loan amount to the value of the home. A lower LTV, meaning a bigger down payment, gets you a lower mortgage rate
Debt-To-Income ratio — This number compares your total monthly debts to your pretax income. The more debt you currently have, the less room you’ll have in your budget for a mortgage payment
Loan term — Loans with a shorter term (like a 15-year mortgage) typically have lower rates than a 30-year loan term
Borrower’s credit score — Typically the higher your credit score is, the lower your mortgage rate, and vice versa
Mortgage discount points — Borrowers have the option to buy discount points or ‘mortgage points’ at closing. These let you pay money upfront to lower your interest rate

Remember, every mortgage lender weighs these factors a little differently.

To find the best rate for your situation, you’ll want to get personalized estimates from a few different lenders.

Verify your new rate. Start here

Are refinance rates the same as mortgage rates?

Rates for a home purchase and mortgage refinance are often similar.

However, some lenders will charge more for a refinance under certain circumstances.

Typically when rates fall, homeowners rush to refinance. They see an opportunity to lock in a lower rate and payment for the rest of their loan.

This creates a tidal wave of new work for mortgage lenders.

Unfortunately, some lenders don’t have the capacity or crew to process a large number of refinance loan applications.

In this case, a lender might raise its rates to deter new business and give loan officers time to process loans currently in the pipeline.

Also, cashing out equity can result in a higher rate when refinancing.

Cash-out refinances pose a greater risk for mortgage lenders, so they’re often priced higher than new home purchases and rate-term refinances.

Check your refinance rates today. Start here

How to get the lowest mortgage or refinance rate

Since rates can vary, always shop around when buying a house or refinancing a mortgage.

Comparison shopping can potentially save thousands, even tens of thousands of dollars over the life of your loan.

Here are a few tips to keep in mind:

1. Get multiple quotes

Many borrowers make the mistake of accepting the first mortgage or refinance offer they receive.

Some simply go with the bank they use for checking and savings since that can seem easiest.

However, your bank might not offer the best mortgage deal for you. And if you’re refinancing, your financial situation may have changed enough that your current lender is no longer your best bet.

So get multiple quotes from at least three different lenders to find the right one for you.

2. Compare Loan Estimates

When shopping for a mortgage or refinance, lenders will provide a Loan Estimate that breaks down important costs associated with the loan.

You’ll want to read these Loan Estimates carefully and compare costs and fees line-by-line, including:

Interest rate
Annual percentage rate (APR)
Monthly mortgage payment
Loan origination fees
Rate lock fees
Closing costs

Remember, the lowest interest rate isn’t always the best deal.

Annual percentage rate (APR) can help you compare the ‘real’ cost of two loans. It estimates your total yearly cost including interest and fees.

Also, pay close attention to your closing costs.

Some lenders may bring their rates down by charging more upfront via discount points. These can add thousands to your out-of-pocket costs.

3. Negotiate your mortgage rate

You can also negotiate your mortgage rate to get a better deal.

Let’s say you get loan estimates from two lenders. Lender A offers the better rate, but you prefer your loan terms from Lender B. Talk to Lender B and see if they can beat the former’s pricing.

You might be surprised to find that a lender is willing to give you a lower interest rate in order to keep your business.

And if they’re not, keep shopping — there’s a good chance someone will.

Fixed-rate mortgage vs. adjustable-rate mortgage: Which is right for you?

Mortgage borrowers can choose between a fixed-rate mortgage and an adjustable-rate mortgage (ARM).

Fixed-rate mortgages (FRMs) have interest rates that never change unless you decide to refinance. This results in predictable monthly payments and stability over the life of your loan.

Adjustable-rate loans have a low interest rate that’s fixed for a set number of years (typically five or seven). After the initial fixed-rate period, the interest rate adjusts every year based on market conditions.

With each rate adjustment, a borrower’s mortgage rate can either increase, decrease, or stay the same. These loans are unpredictable since monthly payments can change each year.

Adjustable-rate mortgages are fitting for borrowers who expect to move before their first rate adjustment, or who can afford a higher future payment.

In most other cases, a fixed-rate mortgage is typically the safer and better choice.

Remember, if rates drop sharply, you are free to refinance and lock in a lower rate and payment later on.

How your credit score affects your mortgage rate

You don’t need a high credit score to qualify for a home purchase or refinance, but your credit score will affect your rate.

This is because credit history determines risk level.

Historically speaking, borrowers with higher credit scores are less likely to default on their mortgages, so they qualify for lower rates.

So, for the best rate, aim for a credit score of 720 or higher.

Mortgage programs that don’t require a high score include:

Conventional home loans — minimum 620 credit score
FHA loans — minimum 500 credit score (with a 10% down
payment) or 580 (with a 3.5% down payment)
VA loans — no minimum credit score, but 620 is common
USDA loans — minimum 640 credit score

Ideally, you want to check your credit report and score at least 6 months before applying for a mortgage. This gives you time to sort out any errors and make sure your score is as high as possible.

If you’re ready to apply now, it’s still worth checking so you have a good idea of what loan programs you might qualify for and how your score will affect your rate.

You can get your credit report from AnnualCreditReport.com and your score from MyFico.com.

How big of a down payment do I need?

Nowadays, mortgage programs don’t require the conventional 20 percent down.

Indeed, first-time home buyers put only 6 percent down on average.

Down payment minimums vary depending on the loan program. For example:

Conventional home loans require a down payment between 3%
and 5%
FHA loans require 3.5% down
VA and USDA loans allow zero down payment
Jumbo loans typically require at least 5% to 10% down

Keep in mind, a higher down payment reduces your risk as a borrower and helps you negotiate a better mortgage rate.

If you are able to make a 20 percent down payment, you can avoid paying for mortgage insurance.

This is an added cost paid by the borrower, which protects their lender in case of default or foreclosure.

But a big down payment is not required.

For many people, it makes sense to make a smaller down payment in order to buy a house sooner and start building home equity.

Verify your new rate. Start here

Choosing the right type of home loan

No two mortgage loans are alike, so it’s important to know your options and choose the right type of mortgage.

The five main types of mortgages include:

Fixed-rate mortgage (FRM)

Your interest rate remains the same over the life of the loan. This is a good option for borrowers who expect to live in their homes long-term.

The most popular loan option is the 30-year mortgage, but 15- and 20-year terms are also commonly available.

Adjustable-rate mortgage (ARM)

Adjustable-rate loans have a fixed interest rate for the first few years. Then, your mortgage rate resets every year.

Your rate and payment can rise or fall annually depending on how the broader interest rate trends.

ARMs are ideal for borrowers who expect to move prior to their first rate adjustment (usually in 5 or 7 years).

For those who plan to stay in their home long-term, a fixed-rate mortgage is typically recommended.

Jumbo mortgage

A jumbo loan is a mortgage that exceeds the conforming loan limit set by Fannie Mae and Freddie Mac.

In 2023, the conforming loan limit is $726,200 in most areas.

Jumbo loans are perfect for borrowers who need a larger loan to purchase a high-priced property, especially in big cities with high real estate values.

FHA mortgage

A government loan backed by the Federal Housing Administration for low- to moderate-income borrowers. FHA loans feature low credit score and down payment requirements.

VA mortgage

A government loan backed by the Department of Veterans Affairs. To be eligible, you must be active-duty military, a veteran, a Reservist or National Guard service member, or an eligible spouse.

VA loans allow no down payment and have exceptionally low mortgage rates.

USDA mortgage

USDA loans are a government program backed by the U.S. Department of Agriculture. They offer a no-down-payment solution for borrowers who purchase real estate in an eligible rural area. To qualify, your income must be at or below the local median.

Bank statement loan

Borrowers can qualify for a mortgage without tax returns, using their personal or business bank account as evidence of their financial circumstances. This is an option for self-employed or seasonally-employed borrowers.

Portfolio/Non-QM loan

These are mortgages that lenders don’t sell on the secondary mortgage market. And this gives lenders the flexibility to set their own guidelines.

Non-QM loans may have lower credit score requirements or offer low-down-payment options without mortgage insurance.

Choosing the right mortgage lender

The lender or loan program that’s right for one person might not be right for another.

Explore your options and then pick a loan based on your credit score, down payment, and financial goals, as well as local home prices.

Whether you’re getting a mortgage for a home purchase or a refinance, always shop around and compare rates and terms.

Typically, it only takes a few hours to get quotes from multiple lenders. And it could save you thousands in the long run.

Time to make a move? Let us find the right mortgage for you

Current mortgage rates methodology

We receive current mortgage rates each day from a network of mortgage lenders that offer home purchase and refinance loans. Those mortgage rates shown here are based on sample borrower profiles that vary by loan type. See our full loan assumptions here.

Source: themortgagereports.com

Apache is functioning normally

April 16, 2024 by Brett Tams

Reverse mortgage volume dropped in February compared to the month prior, and new data compiled by Reverse Market Insight (RMI) shows that the primary culprit for the month was retail reverse mortgage originations.

The retail channel volume decrease of 15.7% effectively “masked” a gain of 3.9% posted on the wholesale side of the business, according to RMI. To get a better idea of the dynamics driving this data, RMD spoke with Jon McCue, RMI’s director of client relations, for additional perspective and a breakdown of why business moved this way.

Retail vs. wholesale drop

When asked about why retail suffered a heavier drop for the month, McCue said it could stem from a few different factors.

“I know some companies have gone back to brokering their loans because the volumes are not high enough to support their own staff to compete in the full correspondent space, so I’m sure there is an uptick in part to that,” McCue said. “Outside of that, a one-month decline like this is really too early to weigh in heavily with speculation. If this becomes a trend, then I think that would tell us more.”

<img decoding="async" width="892" height="1023" data-attachment-id="434773" data-permalink="https://www.housingwire.com/articles/cracking-the-data-code-to-enlist-reverse-mortgage-referral-partners/jonmccue_rmi/" data-orig-file="https://www.housingwire.com/wp-content/uploads/2024/01/jonmccue_rmi.jpg" data-orig-size="892,1023" data-comments-opened="1" data-image-meta=""aperture":"0","credit":"","camera":"","caption":"","created_timestamp":"0","copyright":"","focal_length":"0","iso":"0","shutter_speed":"0","title":"","orientation":"0"" data-image-title="jonmccue_rmi" data-image-description="

Jon McCue, director of client relations at Reverse Market Insight (RMI).

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Jon McCue

” data-medium-file=”https://www.housingwire.com/wp-content/uploads/2024/01/jonmccue_rmi.jpg?w=262″ data-large-file=”https://www.housingwire.com/wp-content/uploads/2024/01/jonmccue_rmi.jpg?w=892″ src=”https://www.housingwire.com/wp-content/uploads/2024/01/jonmccue_rmi.jpg?w=892″ alt=”Jon McCue, director of client relations at Reverse Market Insight (RMI).” class=”wp-image-434773″ srcset=”https://www.housingwire.com/wp-content/uploads/2024/01/jonmccue_rmi.jpg 892w, https://www.housingwire.com/wp-content/uploads/2024/01/jonmccue_rmi.jpg?resize=131,150 131w, https://www.housingwire.com/wp-content/uploads/2024/01/jonmccue_rmi.jpg?resize=262,300 262w, https://www.housingwire.com/wp-content/uploads/2024/01/jonmccue_rmi.jpg?resize=768,881 768w” sizes=”(max-width: 892px) 100vw, 892px”>

Jon McCue

Four of the top 10 lenders in the space — South River Mortgage, Goodlife Home Loans, Longbridge Financial and Liberty Reverse Mortgage — managed to post gains for the month. When asked about why the bigger lenders sustained drops in the retail and consumer-direct business channels compared to the wholesale side, McCue said part of it is data visibility.

“Given that the vast majority of brokers in the space only do zero to one loans a month, it is easier to see the significant decreases in the larger players since their volumes are more visible to the entire space,” he said.

“Because of this fact, when there are industry headwinds, we tend to see it first in the larger lenders simply because it is easier to see. However, if we go back to the November and December case number assignments, the writing was sort of on the wall that a month like this was coming.”

That’s because those were the two lowest case number assignment months in all of 2023, McCue said. South River Mortgage does not have a wholesale channel, so its growth was due entirely to retail, but for the other lenders it was a bit more channel-driven, with the exception of Longbridge, he added.

“Longbridge led the wholesale channel in February and was No. 3 in retail, so when combined it gave them a nice boost month over month,” McCue said. “Goodlife was all from their wholesale channel, and Liberty was a little bit of a combined effort as well from both its channels.”

Case numbers, product types

In terms of case numbers, the low-issuance months at the end of 2023 served as a bit of a telegraph, McCue noted.

“Since we are speaking of February endorsements, we need to go back to around the November and December case number assignments, which happened to be the lowest in all of 2023 at just over 2,600 and 2,200 respectively,” he explained.

“With that said, you shouldn’t be too surprised to see endorsements fall off in February. However, ever since the start of the year, we have seen an uptick in case numbers, which correlates to the uptick in activity LOs have been seeing and that [RMD has] reported on.”

Earlier in the year, RMD spoke to reverse mortgage managers and loan officers across the country, who did in fact report a more steady stream of inbound inquiries and product interest. Part of that was also due to an apparent increase in originator sentiment around the HECM for Purchase (H4P) product, which RMI hopes to see more of in the months ahead.

“We are firm believers that the H4P product is prime to take off,” McCue said. “When looking at H4P volumes over the years, interest rates have had very little to do with its success. In fact, the lowest levels of H4P were in the lowest rate environment during the 2020 pandemic as inventory tightened and seniors were not interested in moving given all that was happening.”

Industry perseverance

But other data suggests that seniors may be more willing to move again. He cited the 2024 Generational Trends report from by the National Association of Realtors (NAR), which indicated that the senior demographic made up the second-largest portions of buyers and sellers.

“This tells me [seniors] are moving again, so what are their options? For the right people in this high interest rate environment, an H4P may just be what they need,” McCue said. “And now that the program has gone through some recent changes, it is more closely related to its forward counterpart.”

The reverse mortgage industry, he added, is adding its own brand of perseverance to the table.

“With the rate environment we are in, it is tough, but case number assignments have been on the rise since January, the H4P product got some much needed improvements, and in speaking with LOs, it sounds like they are keeping busy,” McCue said. “Currently, all signs are pointing in the right direction, but that isn’t because of rates. It’s because of the hard work of all the professionals in this space working very hard to help their clients.”

Apache is functioning normally

April 16, 2024 by Brett Tams

Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors’ opinions or evaluations.

As we head into peak home-buying season, signs of life have begun to spring up in the housing market.

Even so, still-high mortgage rates and home prices amid historically low housing stock continue to put homeownership out of reach for many.

Moreover, the National Association of Realtors agreed to a monumental $418 million settlement on March 15 following a verdict favoring home sellers in a class action lawsuit. Still subject to court approval, the settlement requires changes to broker commissions that will upend the buying and selling model that has been in place for years.

Housing Market Forecast for 2024

Elevated mortgage rates, out-of-reach home prices and record-low housing stock are the perennial weeds that experts say hopeful home buyers can expect to contend with this spring—and beyond.

“The housing market is likely to continue to face the dual affordability constraints of high home prices and elevated interest rates in 2024,” said Doug Duncan, senior vice president and chief economist at Fannie Mae, in an emailed statement. “Hotter-than-expected inflation data and strong payroll numbers are likely to apply more upward pressure to mortgage rates this year than we’d previously forecast.”

Despite ongoing affordability hurdles, Fannie Mae forecasts an increase in home sales transactions compared to last year. Experts also anticipate a slower rise in home prices this year compared to recent years, but price fluctuations will continue to vary regionally and depend strongly on local market supply.

U.S. home prices declined in January for the third consecutive month due to high borrowing costs, according to the latest S&P CoreLogic Case-Shiller Home Price Index. But prices year-over-year jumped 6%—the fastest annual rate since 2022.

Chief economist at First American Financial Corporation Mark Fleming predicts a “flat stretch” ahead.

“If the 2020-2021 housing market was too hot, then the 2023 market was probably too cold, but 2024 won’t yet be just right,” Fleming said in his 2024 forecast.

Will the Housing Market Finally Recover in 2024?

For a housing recovery to occur, several conditions must unfold.

“For the best possible outcome, we’d first need to see inventories of homes for sale turn considerably higher,” says Keith Gumbinger, vice president at online mortgage company HSH.com. “This additional inventory, in turn, would ease the upward pressure on home prices, leveling them off or perhaps helping them to settle back somewhat from peak or near-peak levels.”

And, of course, mortgage rates would need to cool off—which experts say is imminent despite rates edging back up toward 7%. For the week ending April 11, the 30-year fixed mortgage rate stood at 6.88%, according to Freddie Mac.

However, when mortgage rates finally go on the descent, Gumbinger says don’t hope they cool too quickly. Rapidly falling rates could create a surge of demand that wipes away any inventory gains, causing home prices to rebound.

“Better that rate reductions happen at a metered pace, incrementally improving buyer opportunities over a stretch of time, rather than all at once,” Gumbinger says.

He adds that mortgage rates returning to a more “normal” upper 4% to lower 5% range would also help the housing market, over time, return to 2014-2019 levels. Yet, Gumbinger predicts it could be a while before we return to those rates.

Nonetheless, Kuba Jewgieniew, CEO of Realty ONE Group, a real estate brokerage company, is optimistic about a recovery this year.

“[W]e’re definitely looking forward to a better housing market in 2024 as interest rates start to settle around 6% or even lower,” says Jewgieniew.

NAR Settlement Rocks the Residential Real Estate Industry

Following years of litigation, the National Association of Realtors (NAR) has agreed to pay $418 million to settle a series of antitrust lawsuits filed in 2019 on behalf of home sellers.

The plaintiffs claimed that the leading national trade association for real estate brokers and agents “conspired to require home sellers to pay the broker representing the buyer of their homes in violation of federal antitrust law.”

Though the landmark settlement is subject to court approval, most consider it a done deal.

The settlement requires NAR to enact new rules, including prohibiting offers of broker compensation on multiple listing services (MLS), the private databases that allow local real estate brokers to publish and share information about residential property listings. The rule is set to take effect in mid-July, once the settlement receives judge approval.

Moreover, sellers will no longer be required to pay buyer broker commissions and real estate agents participating in the MLS must establish written representation agreements with their buyer clients.

NAR denies any wrongdoing and maintains that its current policies benefit buyers and sellers. The organization believes it’s not liable for seller claims related to broker commissions, stating that it has never set commissions and that commissions have always been negotiable.

How Will the New Rules Impact the Buying and Selling Process?

Per the settlement’s terms, the costs associated with buying and selling a home are set to change dramatically.

“The primary things that will change are the decoupling of the seller commission and the buyer commission in the MLS,” says Rita Gibbs, a Realtor at Realty One Group Integrity in Tucson. “It’s gonna cause some chaos.”

While sellers will no longer be able to offer broker compensation in the MLS, there’s no rule prohibiting off-MLS negotiations. Because of this, Gibbs suspects buyers and sellers will continue offering broker compensation off the MLS.

The Department of Justice confirmed it will permit listing brokers to display compensation details on their websites. However, buyer agents will need to undergo the tedious task of visiting countless broker websites to find who’s offering what.

Michael Gorkowski, a Virginia-based real estate agent with Compass, is also trying to figure out how to manage the potential ruling.

“We often work with buyers for many months and sometimes years before they find exactly what they’re looking for,” Gorkowski says. “So in a case where a seller isn’t offering a co-broker commission, we will have to negotiate that the buyer pays an agreed-upon commission prior to starting their search.”

The Changes Will Impact These Home Buyers Most

“In the short term, it is absolutely going to injure buyers, especially FHA and VA buyers,” Gibbs says. “With rare exception, these buyers are not in a position to pay for their own agent.”

Gibbs says that if sellers don’t offer compensation, many buyers who can’t otherwise afford to pay a broker will choose to go unrepresented.

Gorkowski notes that veterans taking out VA loans face a unique challenge under the new rules. “[P]er the VA requirements, buyers cannot pay so it must be negotiated with the seller for now.”

As a result, NAR is calling on the U.S. Department of Veterans Affairs to revise its policies prohibiting VA buyers from paying broker commissions. Even so, there’s skepticism that the federal government will be able to implement changes in time for the July deadline.

Gibbs and Gorkowski are among the many agents especially concerned about first-time home buyers. After July, first-time and VA buyers will be required to sign a buyer-broker agreement stating that they will compensate their broker—but Gibbs says many won’t have the means to do so.

In this situation, agents would likely only show buyers homes where sellers are offering compensation.

“This is a very troubling situation,” Gorkowski says.

Housing Inventory Forecast for 2024

With many homeowners “locked in” at ultra-low interest rates or unwilling to sell due to high home prices, demand continues to outpace housing supply—and likely will for a while—even as some homeowners may finally be forced to sell due to major life events such as divorce, job changes or a growing family.

“I don’t expect to see a meaningful increase in the supply of existing homes for sale until mortgage rates are back down in the low 5% range, so probably not in 2024,” says Rick Sharga, founder and CEO of CJ Patrick Company, a market intelligence and business advisory firm.

Housing stock remains near historic lows—especially entry-level supply—which has propped up demand and sustained ultra-high home prices. Here’s what the latest home values look like around the country.

Yet, some hopeful housing stock signs have begun to sprout:

Existing inventory is showing signs of loosening as impatient buyers and sellers have begun to accept the reality of mortgage rates oscillating between 6% and 7%.
Home-builder outlook also continues to get sunnier, trending back up amid declining mortgage rates and better building conditions.

The most recent National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI), which tracks builder sentiment, saw a fourth consecutive monthly rise, surpassing a crucial threshold with an increase from 48 to 51 in March. A reading of 50 or above means more builders see good conditions ahead for new construction.

At the same time, new single-family building permits ticked up 1% in February—the 13th consecutive monthly increase—according to the latest data from the U.S. Census Bureau and U.S. Department of Housing and Urban Development (HUD).

Residential Real Estate Stats: Existing, New and Pending Home Sales

Though some housing market data indicates signs of growth are in store this spring home-buying season, persistently high mortgage rates may hinder activity from fully flourishing.

Here’s what the latest home sales data has to say.

Existing-Home Sales

Existing-home sales came to life in February, shooting up 9.5% from the month before, according to the latest data from the NAR. Sales dipped 3.3% from a year ago.

Experts attribute the monthly jump to a bump in inventory.

“Additional housing supply is helping to satisfy market demand,” said Lawrence Yun, chief economist at NAR, in the report.

Existing inventory rose 5.9%—logging 1.07 million unsold homes at the end of February. However, there are still only 2.9 months of inventory at the current sales pace. Most experts consider a balanced market falling between four and six months.

Meanwhile, existing home prices continue to soar to unprecedented heights, reaching $384,500, which marks the eighth consecutive month of yearly price increases and a February median home price record.

New Home Sales

Sales of newly constructed single-family houses ticked down by a nominal 0.3% compared to January, but outpaced February 2023 sales by 5.9%, according to the latest U.S. Census Bureau and HUD data.

Amid a high percentage of homeowners still locked in to low mortgage rates, home builders have been picking up the slack.

“New construction continues to be an outsized share of the housing inventory,” said Dr. Lisa Sturtevant, chief economist at Bright MLS, in an emailed statement.

Sturtevant notes that declining new home prices are coming amid a recent trend of builders introducing smaller and more affordable homes to the market.

The median price for a new home in February was $400,500, down 7.6% from a year ago.

Source: U.S. Census Bureau and U.S. Department of Housing and Urban Development

Pending Home Sales

NAR’s Pending Homes Sales Index rose 1.6% in February from the month prior even as mortgage rates approached 7% by the end of the month. Pending transactions declined 7% year-over-year.

A pending home sale marks the point in the home sales transaction when the buyer and seller agree on price and terms. Pending home sales are considered a leading indicator of future closed sales.

The Midwest and South saw monthly transaction gains while the Northeast and West saw declines due to affordability challenges in those higher-cost regions.

“While modest sales growth might not stir excitement, it shows slow and steady progress from the lows of late last year,” said Yun, in the report.

Ongoing Affordability Challenges Could Throw Cold Water on Spring Home-Buying Hopes

Though down from its 2023 high of 7.79%, the average 30-year fixed mortgage rate in 2024 remains well over 6% amid rising home values. As a result, home buyers continue to face affordability challenges.

According to data from its first-quarter 2024 U.S. Home Affordability Report, property data provider Attom found that median-priced single-family homes remain less affordable than the historical average in over 95% of U.S. counties.

For one, the data uncovered that expenses are eating up more than 32% of the average national wage. Common lending guidelines require monthly mortgage payments, property taxes and homeowners insurance to comprise 28% or less of your gross income.

At the same time, home prices and homeownership expenses continue to outpace wage growth.

Consequently, the latest expense-to-wage ratio is hovering at one of the highest points over the past decade, according to the Attom report, despite some slight affordability improvements over the last two quarters.

“Affording a home remains a financial stretch, or a pipe dream, for so many households,” said Rob Barber, CEO at Attom.

Pro Tips for Buyers and Sellers

Here are some expert tips to increase your chances for an optimal outcome in this tight housing market.

Pro Tips for Buying in Today’s Real Estate Market

Hannah Jones, a senior economic research analyst at Realtor.com, offers this expert advice to aspiring buyers:

Know your budget. Instead of focusing on price, figure out how much you can afford as a monthly payment. Your monthly housing payment is influenced by the price of the home, your down payment, mortgage rate, loan term, home insurance and property taxes.
Be flexible about home size and location. Perhaps your budget is sufficient for a small home in your perfect neighborhood, or a larger, newer home further out. Understanding your priorities and having some flexibility can help you move quickly when a suitable home enters the market.
Keep an eye on the market where you hope to buy. Determine the area’s available inventory and price levels. Also, pay attention to how quickly homes sell. Not only will you be tuned in when something great hits the market, you can feel more confident moving forward with purchasing a well-priced home. A real estate agent can help with this.
Don’t be discouraged. Purchasing a home is one of the largest financial decisions you’ll ever make. Approaching the market confidently, armed with good information and grounded expectations will take you far. Don’t let the hustle of the market convince you to buy something that’s not in your budget, or not right for your lifestyle.

Pro Tips for Selling in Today’s Real Estate Market

Gary Ashton, founder of The Ashton Real Estate Group of RE/MAX Advantage, has this expert advice for sellers:

Research comparable home prices in your area. Sellers need to have the most up-to-date pricing intel on comparable homes selling in their market. Know the market competition and price the home competitively. In addition, understand that in some price points it’s a buyer’s market—you’ll need to be prepared to make some concessions.
Make sure your home is in top-notch shape. Homes need to be in great condition to compete and create a strong “online curb appeal.” Well-maintained homes and attractive front yards are major features that buyers look for.
Work with a local real estate agent. A real estate agent or team with a strong local marketing presence and access to major real estate portals can offer significant value and help you land a great deal.
Don’t put off issues that require attention. Prepare the home by making any repairs or improvements. Removing any objections that buyers may see helps focus the buyer on the positive attributes of the home.

Will the Housing Market Crash in 2024?

Despite some areas of the country experiencing monthly price declines, the likelihood of a housing market crash—a rapid drop in unsustainably high home prices due to waning demand—remains low for 2024.

“[T]he record low supply of houses on the market protects against a market crash,” says Tom Hutchens, executive vice president of production at Angel Oak Mortgage Solutions, a non-QM lender.

Moreover, experts point out that today’s homeowners stand on much more secure footing than those coming out of the 2008 financial crisis, with many borrowers having substantial home equity.

“In 2024, I expect we’ll see home appreciation take a step back but not plummet,” says Orphe Divounguy, senior macroeconomist at Zillow Home Loans.

This outlook aligns with what other housing market watchers expect.

“Comerica forecasts that national house prices will rise 2.9% in 2024,” said Bill Adams, chief economist at Comerica Bank, in an emailed statement.

Divounguy also notes that several factors, including Millennials entering their prime home-buying years, wage growth and financial wealth are tailwinds that will sustain housing demand in 2024.

Even so, with fewer homes selling, Dan Hnatkovskyy, co-founder and CEO of NewHomesMate, a marketplace for new construction homes, sees a price collapse within the realm of possibility, especially in markets where real estate investors scooped up numerous properties.

“If something pushes that over the edge, the consequences could be severe,” said Hnatkovskyy, in an emailed statement.

Will Foreclosures Increase in 2024?

In February, total foreclosure filings were down 1% from the previous month but up 8% from a year ago, according to Attom.

“These trends could signify evolving financial landscapes for homeowners, prompting adjustments in market strategies and lending practices,” said Barber, in a report.

Lenders began foreclosure on 22,575 properties in February, up 4% from the previous month and 11% from a year ago. Meanwhile, real estate-owned properties, or REOs, which are homes unsold at foreclosure auctions and taken over by lenders, spiked year-over-year in three states: South Carolina (up 51%), Missouri (up 50%) and Pennsylvania (up 46%).

Despite foreclosure activity trending up nationally and certain areas of the country seeing notable annual increases in REOs, experts generally don’t expect to see a wave of foreclosures in 2024.

“Foreclosure activity is still only at about 60% of pre-pandemic levels … and isn’t likely to be back to 2019 numbers until sometime in mid-to-late 2024,” says Sharga.

The biggest reasons for this, Sharga explains, are the strength of the economy—we’re still seeing low unemployment and steady wage growth—along with excellent loan quality.

Massive home price growth in homeowner equity over the past few years has also helped reduce foreclosures.

Sharga says that some 80% of today’s homeowners have more than 20% equity in their property. So, while there may be more foreclosure starts in 2024—due in part to Covid-era mortgage relief programs phasing out—foreclosure auctions and lender repossessions should remain below 2019 levels.

When Will Be the Best Time To Buy a Home in 2024?

Buying a house—in any market—is a highly personal decision. Because homes represent the largest single purchase most people will make in their lifetime, it’s crucial to be in a solid financial position before diving in.

Use a mortgage calculator to estimate your monthly housing costs based on your down. But if you’re trying to predict what might happen next year, experts say this is probably not the best home-buying strategy.

“The housing market—like so many other markets—is almost impossible to time,“ Divounguy says. “The best time for prospective buyers is when they find a home that they like, that meets their family’s current and foreseeable needs and that they can afford.”

Gumbinger agrees it’s hard to tell would-be homeowners to wait for better conditions.

“More often, it seems the case that home prices generally keep rising, so the goalposts for amassing a down payment keep moving, and there’s no guarantee that tomorrow’s conditions will be all that much better in the aggregate than today’s.”

Divounguy says “getting on the housing ladder” is worthwhile to begin building equity and net worth.

Frequently Asked Questions (FAQs)

Will declining mortgage rates cause home prices to rise?

Declining mortgage rates will likely incentivize would-be buyers anxious to own a home to jump into the market. Expect this increased demand amid today’s tight housing supply to put upward pressure on home prices.

What will happen if the housing market crashes?

Most experts do not expect a housing market crash in 2024 since many homeowners have built up significant equity in their homes. The issue is primarily an affordability crisis. High interest rates and inflated home values have made purchasing a home challenging for first-time homebuyers.

Is it smart to buy real estate before a recession?

If you’re in a financial position to buy a home you plan to live in for the long term, it won’t matter when you buy it because you will live in it through economic highs and lows. However, if you are looking to buy real estate as a short-term investment, it will come with more risk if you buy at the height before a recession.

Source: forbes.com

Apache is functioning normally

April 16, 2024 by Brett Tams

Housing inventory

There are now 526,000 single-family homes active unsold on the market. That’s up 2.6% from the previous week when the data included the Easter holiday. It’s a holiday week jump so it’s not super crazy, but a 2.6% jump in unsold inventory in a week is very notable. This is absolutely a function of high and rising mortgage rates. I’ve been sharing this view for two full years now. As mortgage rates rise, inventory rises. Or, to put it another way: demand slows, inventory grows. So, rates are up and inventory is undeniably growing.

Available inventory of unsold homes on the market is 30% greater than last year at this time and 102% more than in mid-April 2022. There are 120,000 more homes on the market now than there were last year. There are 250,000 more homes on the market now than two years ago. Much of this inventory increase is concentrated is a few key markets.

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Two years ago, rates were obviously rising for the first time in years and inventory was rising too. Inventory was coming off the record lows of the pandemic, but was already increasing 2-3% per week as demand slowed.

Year-over-year inventory growth like this can lead to home-price declines in the future since sales price measures lag way behind the changes in supply and demand. Because we have 30% year-over-year inventory gains now, we’ll be on the lookout for more signals of weakness in home prices as the year progresses.

It’s important to note that we don’t see any signs in the data of a major home-price crash. In early 2022, inventory rose quickly and home prices fell in Q4 of that year. Home prices recovered in 2023 very quickly though. If we finally get some stability in mortgage rates, expect stability also in home prices. If we are in a world of continued rising mortgage rates, supply and demand will continue their imbalance and we’ll likely see price adjustments.

New listings

Inventory growth is from a combination of fewer buyers as affordability worsens, but also gradually improving seller volume. There were 66,000 new listings unsold last week plus another 20,000 immediate sales for 86,000 total new listings. That’s 32% more new listings last week than the same week a year ago.

The measure from last year included last year’s Easter holiday weekend so some of this 32% is from that easy comparison. But each week in 2024 is averaging 13% more sellers than last year at this time. So we have obvious seller growth as we settle into mortgage rates higher for longer.

This concept is counter-intuitive. Many listeners are familiar with the concept of a mortgage rate lock-in. This was the topic of my Top of Mind podcast interview last week with Jonah Coste from FHFA discussing their paper on the lock-in effect.

The lock-in premise is that if rates rise, it becomes more expensive for homeowners to move, so higher rates create more lock-in and fewer sellers. But that’s proving to be only partially true. The lock-in effect keeps us with relatively few sellers: 80,000 instead of 100,000 each week in previous healthy years, but we have more sellers every week than last year even though mortgage rates are higher now.

In fact, there were more new listings last week at 66,000 than any week in 2023 and we have a couple months of spring still for that number to climb.

New pendings

Meanwhile, there were 69,000 new pendings last week. These are homes that were listed, took offers and started the contract process. It takes just under 40 days on average to close the transaction, so these are sales that will close in May for the most part.

The 69,000 contracts is 10% more than a year ago and 7% more than the previous week, which included the Easter holiday. So like the inventory numbers, last week’s big jump is mostly a rebound from the holiday. But it’s really encouraging that sales each week continue to come in ahead of last year.

If rates finally fall, we’ll see this transaction rate accelerate, and we’ll see inventory fall too. But there doesn’t seem to be any inclination of rates falling. This weekly new pendings data is a very handy measure of interest-rate sensitivity.

There are 371,000 single-family homes in contract right now. That’s just 4% more than last year at this time. A lot of places in the country still have fewer sales than last year. The market is trying to grow, but a new jump in mortgage rates doesn’t help. More sales are happening with cash right now, so the mortgage indices are still at record lows. If we get lucky and rates don’t keep climbing, then we’ll continue to see home sales run just a little ahead of last year. The more stable rates stay, the more sales can inch forward.

Home prices

The median price of the homes that took offers last week was $389,900. That is actually below 2022 by 1%. In 2022, home prices still had pandemic momentum into the second quarter. The median price of all the homes in contract is $399,000, which means the homes that sell in April and May will be 5% higher priced than 2023.

The median price of the active market was $447,527 last week. That’s up for the week and 1.7% above last year. The asking prices are leading indicators of where future sales prices will happen. And the growth in those leading indicators is not very strong — just barely above last year at this time.

The price of the newly listed cohort came in pretty strong in the week after Easter at $435,000, which was a new all-time high for that measure. So, not all of the pricing indicators are bearish. That’s good to keep our eyes on.

Price reductions

On the other hand, 32.1% of the homes on the market have taken a price cut. That’s up a fraction from the previous week, 10 basis points. If this most recent move in mortgage rates is stifling homebuyers, we’ll see the price reductions number jump in next Monday’s video.

Some of the homes that are on the market and expected offers last week didn’t get their offers because of the most recent mortgage rate jump. If they don’t get the offer, then on Monday or Tuesday, a few are going to reduce their asking price to try to stimulate demand.

Two takeaways from the price-reductions data: One, next week we will be watching for how many listings cut their prices as a result of newly higher mortgage rates. We can see that moment in September of 2022 when price cuts jumped and we saw it again last September when rates jumped. Will we see it again in next Monday’s data?

And two, because price cuts are a bit high and climbing now, we have to look at that as a slightly bearish signal for home prices for the rest of the year. Transaction volume is climbing but prices do not appear to be climbing considering these levels of unaffordability.

Source: housingwire.com

Apache is functioning normally

April 16, 2024 by Brett Tams

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The Upshot

A Huge Number of Homeowners Have Mortgage Rates Too Good to Give Up

On a scale not seen in decades, many Americans are stuck in homes they would rather leave.

Emily Badger and

April 15, 2024

Something deeply unusual has happened in the American housing market over the last two years, as mortgage rates have risen to around 7 percent.

Rates that high are not, by themselves, historically remarkable. The trouble is that the average American household with a mortgage is sitting on a fixed rate that’s a whopping three points lower.

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Average fixed mortgage rates

8%

Existing
mortgages

6%

3.2-
point
gap

Rates on
new loans

4%

Rates on new home loans now far surpass rates locked in by Americans with existing
mortgages.

2%

2000

2005

2010

2015

2020

2023

Average fixed mortgage rates

8%

Existing
mortgages

6%

3.2-
point
gap

Rates on
new loans

4%

Rates on new home loans now far surpass rates locked in by Americans with existing
mortgages.

2%

2000

2005

2010

2015

2020

2023

Source: Federal Housing Finance Agency analysis. Note: New loan figures show the predicted rate that existing mortgage holders could get on the same mortgages at new market conditions.

Related

30-year mortgage rate climbs, +0.08%

15-year mortgage rate moves higher, +0.16%

5/1 ARM rate increases, +0.02%

Jumbo mortgage interest rate trends upward, +0.12%

Refinance rates

30-year fixed-rate refinance increases, +0.08%

Where are mortgage rates heading?

What today’s rates mean for your mortgage

More on current mortgage rates

Methodology

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Today’s mortgage rates

Current mortgage and refinance rates

Should you lock your mortgage rate today?

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What’s driving mortgage rates today?

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Find your lowest mortgage rate today

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How to get the lowest mortgage or refinance rate

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Housing Market Forecast for 2024

Will the Housing Market Finally Recover in 2024?

NAR Settlement Rocks the Residential Real Estate Industry

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The Changes Will Impact These Home Buyers Most

Housing Inventory Forecast for 2024

Residential Real Estate Stats: Existing, New and Pending Home Sales

Existing-Home Sales

New Home Sales

Pending Home Sales

Ongoing Affordability Challenges Could Throw Cold Water on Spring Home-Buying Hopes