“Mortgage rates ticked back up in February—a disappointing development for prospective homebuyers, who just a few months ago got a glimmer of hope as rates finally started to fall,” Fairweather said. “With rates still elevated, many are opting to continue renting, which is buoying rental demand, and as a result, rent prices.” However, there’s potential … [Read more…]
Mortgage rates are starting to cool off after nearly hitting 7% in recent weeks. Borrowing costs have eased somewhat and housing affordability is showing signs of improvement—just in time for the spring selling season.
The 30-year fixed-rate mortgage averaged 6.74% this week, Freddie Mac reports. Over the last two weeks, rates have fallen by nearly a quarter of a percentage point. Potential home buyers are responding: Mortgage applications for a home purchase—a gauge of future homebuying activity—rose by 5% in the latest week and have been increasing over the last two weeks as rates have moved lower, the Mortgage Bankers Association reports.
For home buyers looking to purchase a $400,000 home with a 20% down payment, the estimated monthly mortgage payment at this week’s rate equates to about $2,073, says Jessica Lautz, deputy chief economist at the National Association of REALTORS®. Compared to October, when rates surged to a 7.79% average, home buyers can now save about $228 per month, she says.
Mortgage rates in the mid-6% range are encouraging more home buyers to return to the market. “Homebuying activity is showing an increase in buyer demand from last year, when buyers were apprehensive of rising rates,” Lautz says. But “more housing inventory is needed to meet the demand.” House hunters are still facing multiple-offer situations as they scramble to compete for low inventory.
Home buyers will continue to watch rates carefully, as they also continue to face record-high home prices. While economists have largely predicted rates to stay in the 6.5% or 6.3% range for most of 2024, week-to-week fluctuations remain a wild card for the housing market. Plus, “despite the recent dip, mortgage rates remain high as the market contends with the pressure of sticky inflation,” says Sam Khater, Freddie Mac’s chief economist. “In this environment, there is a good possibility that rates will stay higher for a longer period of time.”
Freddie Mac reports the following national averages with mortgage rates for the week ending March 14:
30-year fixed-rate mortgages: averaged 6.74%, dropping from last week’s 6.88% average. Last year at this time, 30-year rates averaged 6.6%.
15-year fixed-rate mortgages: averaged 6.16%, falling from a 6.22% average last week. A year ago, 15-year rates averaged 5.9%.
Nope, not a radio. This ol’ thing is a tissue cover box that makes music from an otherwise boring home essential. The cute retro cover comes in three fun colors and looks so charming in kitchens or bedside tables. Who knew tissues could be so cool?
2
Bold and Bright
Simple Designs Mini Ceramic Globe Table Lamp
2
Bold and Bright
Simple Designs Mini Ceramic Globe Table Lamp
Now 53% Off
In case you didn’t see the under-$10 price tag of this mini lamp, we’d like to call that out off the bat. In addition to its affordability, this extremely giftable light comes in eight colors. There’s also an option to buy an 18-pack for just over $150 if your giftee has a lot of rooms in dire need of some light.
3
For Bath Time All the Time
dodococa Bathtub Soap Dish
3
For Bath Time All the Time
dodococa Bathtub Soap Dish
Now 10% Off
Has anything ever been more on the nose than these bathtub-shaped soap dishes? The quirky little holders look so nostalgic and actually have great use to them since they’ll prevent any gunky build-up from forming on your sink or tub edge. We also recommend storing jewelry, Q-tips, or smaller toiletries in these dishes.
More: Gift This Lego Tiny Plants Set to the Person Who’s Over Roses
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4
For the Hostess
Brew To A Tea Porcelain Floral Plates
4
For the Hostess
Brew To A Tea Porcelain Floral Plates
Nothing is more ’70s than a set of porcelain plates. These floral ones exude a groovy dinner in Mom’s (or Grandma’s) kitchen. The set of eight petite plates is perfect for dessert time, whether you’re serving up a group or enjoying some goodies with the family.
Gerard explained that, “after 2023 trends like quiet luxury dethroned 2022’s colorful maximalism, it’s natural that 2024 shoppers want to ease their way back into the funky prints that once brought them joy. Perhaps the retro waves and groovy flowers of the ‘70s are the perfect opportunity to do so.”
5
Acrylic Accessories
upsimples Acrylic Shelves for Wall Storage
5
Acrylic Accessories
upsimples Acrylic Shelves for Wall Storage
Now 17% Off
Somehow, if you find the right shelving, it can transform a space from meh to HELLO! These bold acrylic shelves are the perfect example of an enticing piece of decor that your giftee will obsess over.
The set of four comes with pre-drilled holes so they won’t have to get too down and dirty with assembly, and they can each hold 8 pounds of books, photos, or knickknacks. (If you’re gifting this, include a framed picture of you and the recipient. That way, they’ll have no choice but to hang it up in their home.)
6
A Washable Favorite
Ruggable Iris Apfel Birds of A Feather Green and Peach Rug
6
A Washable Favorite
Ruggable Iris Apfel Birds of A Feather Green and Peach Rug
Our editors love Ruggable for its many eccentric washable rugs. This bird style is screaming grandparent’s living room (in the best way). It’s a quirky centerpiece that dresses up a drab kitchen in no time.
Senior Editor Summer Cartwright has an area rug from the brand and recommends getting a tufted finish for added comfort. “It’s so soft, but the thickness doesn’t hinder any of its machine-washable capabilities.”
Anyone, from your in-laws to your little sibling, would likely love a new runner to enhance their home.
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7
Blondie-Approved
Snadinordica Disco Ball Planter
7
Blondie-Approved
Snadinordica Disco Ball Planter
Now 20% Off
I’m not saying that your Swiftie friend needs this disco ball-shaped plant holder. I’m saying that they deserve this disco ball-shaped plant holder (the Mirrorball stans know what I mean).
8
For a Fresh Morning Jump Start
Smeg Retro Drip Filter Coffee Machine
8
For a Fresh Morning Jump Start
Smeg Retro Drip Filter Coffee Machine
I know we just mentioned coffee makers above, but this home decor gift is for a recipient who needs their morning nectar fast and in huge supply. The drip machine can craft up to 10 cups at once, plus it has an auto-start capability that can align with their alarms. Imagine waking up to fresh coffee. Now that’s a good gift.
9
Storage in Style
Mustard Made Lowdown Locker
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Storage in Style
Mustard Made Lowdown Locker
If your friend or family member is moving into a new home, gift them a piece from Mustard Made to prove that even storage units can be beautiful.
The Lowdown locker comes in vibrant colors like the pictured yellow and works great as a TV stand like our Senior Editor Summer Cartwright uses it for. “It’s a cool-looking piece of furniture that holds SO much more than you’d think.”
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Aquatic Art
Eangee Home Design Jellyfish Lamp
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Aquatic Art
Eangee Home Design Jellyfish Lamp
The fact that jellyfish are trending in home decor is something most of us did not have on our Bingo cards (if you did, props!), but seeing how cute this sea creature-inspired lamp is, it makes sense. The green and blue hues combined with gemstone-like tentacles are truly gorgeous. This would make a great gift for your creative best friend who moved into their new space.
11
Removable Decals
Kazova Brown Stripe Arch Wall Decal
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Removable Decals
Kazova Brown Stripe Arch Wall Decal
Now 20% Off
If your giftee lives in an apartment or rental unit, this removable decal would be a stellar present. It has a funky retro shape to it that looks great when laid against corners, shelves, or doors.
More: The Best Peel-and-Stick Backsplash
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A Sunny (Side-Up) Mat
Dtdepth Egg Bath Mat
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A Sunny (Side-Up) Mat
Dtdepth Egg Bath Mat
The perfect bath mat doesn’t exi— never mind. This sunny-side-up egg mat is precisely the kitschy decor piece your giftee needs in their home. It’s under $25 but will certainly bring some laughs and sunshine to their bathroom or even the kitchen sink area, even on rainy days.
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13
Pour One Out
The Wine Savant Vintage Petals Glasses
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Pour One Out
The Wine Savant Vintage Petals Glasses
If you’re looking for a present to give a friend who always hosts dinner parties at their place, this set of glasses will be a home run. The four-piece gift had that trendy vintage feel to it and comes in an adorable pink color that any Barbie fan would love.
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For the Coffee Enthusiast
Frieling Double-Walled French Press
14
For the Coffee Enthusiast
Frieling Double-Walled French Press
15
Renaissance Realness
XMGZQ Silver Vase
15
Renaissance Realness
XMGZQ Silver Vase
Does this remind you of someone? Perhaps a queen? More specifically, THE Queen Bee?
Metalic decor pieces are all the rage this year, according to Stanback from Pinterest. “With the Renaissance Tour and Beyoncé encouraging people to wear silver in attendance, that definitely trickled outside of the tour… A lot of Gen Z and millennials are driving hot metal aesthetics into their own home.”
If you’re searching for a home decor gift for a Bey fan, it’s safe to say this set of vases is more than ideal.
Summer Cartwright is senior editor for Best Products and FirstFinds and is based in New York. She has written and edited for sites including Cosmo, People, InStyle, Food & Wine, Real Simple, and StyleCaster. Her interests outside of work include running, eating dessert, and playing with her two cats, Peaky and Polly. She received her master’s degree in magazine writing from New York University, and her bachelor’s degree in public affairs journalism from The Ohio State University.
To paraphrase Julie Andrews and the Muppets: The springtime cometh for the housing market. This is traditionally the time when home sales bloom. But 2023’s deep freeze begs the question of whether the warming will emerge from under an ice cube or an iceberg. This season, the economists say, will be no picnic.
Take the typical home value of $349,216, which is more than 40% higher than before the pandemic. Home prices increased on a monthly basis in 45 of the 50 largest metropolitan areas in February, and they’re up in 47 of the 50 largest metropolitan areas on an annual basis, per Zillow. (By Redfin’s count, prices increased in all 50 of the most populous metropolitan areas, which is the first time that’s occurred since the summer of 2022.)
The typical mortgage payment more than doubled during the pandemic, rising by roughly 106%, and is still up 9% from last year, according to Zillow. Mortgage rates have fallen from their recent peak at slightly above 8%, but they’re still high compared to previous historic lows. While the average 30-year fixed mortgage rate is sitting at 7.02%, as of the latest reading, the expectation is that it’ll come down further if the Federal Reserve cuts interest rates this year.
So it’s not an easy market by any means, as Wells Fargo’s economics team recently concluded: “The housing market continues to navigate tumultuous waters.” But more inventory is coming on the market, with the easing of the so-called lock-in effect, which refers to homeowners holding onto their homes for fear of losing their low mortgage rates. The lock-in effect was a major factor last year in pushing existing home sales to their lowest point in almost 30 years.
“A substantial infusion of new inventory to the market is welcome news for buyers on the hunt for their next home this spring—and more evidence that the effects of ‘rate lock’ are starting to weaken,” Zillow’s chief economist wrote recently in a market report.
New listings of existing homes on Zillow are up 21% in February compared to last year and 20% from the prior month; on a local level, more sellers are coming back to the market in Dallas, Minneapolis, and Austin, where new listings are the highest. And according to Redfin, new listings are up 13%, which is the biggest annual increase in almost three years. The total number of homes for sale is up 3%, and that’s the biggest increase in nine months, Redfin’s data journalist, Dana Anderson, recently wrote in a market update. (Zillow’s analysis shows there are 12% more total active listings than last year.)
So maybe this year’s crucial spring selling season is shaping up more like a shopping window, if not a mini-spring season.
Pending sales are down 6% from the prior year, according to Redfin, which means high housing costs are continuing to price out some would-be homebuyers. There’s also competition even as the market has cooled down, particularly among “attractively-priced and well-marketed homes,” as Zillow put it. That doesn’t seem like it’ll ever completely change given the housing market is missing anywhere between 2 million and 7 million homes, despite an increase in listings.
So what’ll happen to existing home sales this year? They rose 3.1% in January from the previous month, but declined 1.7% from a year earlier. Better economic conditions, and a more stabilized housing market, might not solve all.
“Although lower financing costs, rising supply and brightening economic growth prospects may help home sales turn around from the sharp contraction experienced over the past two years, the recovery will likely be limited by adverse affordability conditions stemming from home price appreciation far outpacing income growth over the past several years,” Wells Fargo senior economist Charlie Dougherty and economic analyst Patrick Barley wrote in a newly shared note titled: “Housing Market 2024: An Early Spring or Longer Winter.”
We know lower mortgage rates will not only somewhat improve affordability, and therefore help bring back demand, but also bring more sellers onto the market and increase supply. It’s why Dougherty and Barley said existing home sales started off on a “positive note,” and expect them to improve modestly this year.
But it really comes down to the fact that “home price appreciation has far outpaced household income growth in recent years,” as the Wells Fargo economics team put it. “Home values are now roughly five times higher than median household incomes, a stark change from the 3.5 ratio averaged historically,” they wrote.
Not to mention, the Wells Fargo team expects home prices to increase another 3.1% in 2024 and 4.3% the year after. “If these forecasts come to fruition, then affordability is not likely to meaningfully improve,” Dougherty and Barley wrote.
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Solar batteries store solar energy for use at another time. Manufactured by companies including Panasonic, LG, Generac and Tesla, a solar battery typically costs $12,000 to $22,000. Solar batteries may be a good choice if you’re looking to use less grid electricity or go off-grid completely
.
Solar battery pros and cons
Lower energy bills.
Expensive to purchase and replace.
Environmental benefits — reduced need for fossil fuel generated power/lower carbon footprint.
Limited energy storage capacity.
Long life span options. Many can last up to 20 years or longer.
Safety concerns if improperly installed, ventilated or maintained. Some types can overheat and catch fire.
Possible federal and state tax incentives.
Regular maintenance required on some types.
Provides backup energy in the event of a blackout, regardless of weather.
Some types can be bulky and take up a lot of space.
Can avoid high peak-use-hours charges.
Requires proper disposal.
Increased energy efficiency.
Some types, such as nickel-cadmium, may contain materials that are harmful to the environment.
Less dependency on the grid.
Renters don’t qualify for federal tax incentives.
Can operate in tandem with a grid-tie system.
Some require special equipment for installation.
Quiet power, unlike generators.
Some may emit harmful gasses.
Can also be used for microgrids and portable power units.
Not all battery types are readily available for residential systems.
How do solar batteries work?
When you pair your solar energy system with a solar battery, the surplus energy your system generates goes straight to the battery, where it’s stored for later use (as opposed to that surplus automatically being returned to the grid)
State of South Carolina Energy Office. Battery Back-up. Accessed Mar 11, 2024.
.The energy stored in your battery bank can then be used later when you need it most, such as during a power blackout. Here’s how it works:
Solar panels use photons from the sun to knock electrons away from atoms and generate an electrical flow.
The excess electricity generated by the solar panels is stored as direct current (DC) energy in the solar battery.
An inverter converts the DC energy to alternating current (AC) energy for home use — either as needed, if you have a DC-coupled conversion system — or immediately for instant use if you have an AC-coupled conversion system. Excess power in this type of system can be converted back to DC to charge the battery.
A solar system with a solar battery may include these basic components:
Ground or roof-mounted solar panels.
Battery bank.
Inverter that converts DC energy into AC energy for home use.
Junction box to connect solar panel wiring to the home breaker panel.
Charge controller to prevent battery overheating.
Utility meter for the battery bank.
Disconnect switch to prevent islanding (continuing to generate electricity and push it onto the grid) during blackouts. This protects electrical workers trying to restore power.
If your solar system is connected to the grid, you’ll also have an interconnection agreement with your utility provider.
Types of solar batteries
Here are some of the main types of batteries commonly used in solar systems.
Lead acid batteries
These reliable staples are the oldest type of solar batteries, and they are often used for off-grid applications. They’re the most affordable solar battery option, but they have a low energy density, meaning they can’t hold a lot of energy for their weight. Compared to other options, they’re large and heavy.
Pros
Dependable, time-tested technology.
Easy to recycle.
Lower priced than other types of solar batteries.
Compatible with most systems.
Cons
Heavier and bulkier than other types of solar batteries.
To preserve battery life, it’s recommended that you don’t let the battery capacity drop below 50%. Other types of batteries can drop to 10% capacity — and sometimes lower — without damaging the system.
Generally need maintenance such as adding water (unless sealed).
May emit gasses.
Shorter life span than other types of solar batteries.
Take longer to recharge than other types of solar batteries.
Contain harmful chemicals and they require proper disposal.
Lithium-ion batteries
Well-suited to residential solar systems, lithium-ion batteries offer a small, light and long-lasting solar battery option with a high energy density. This newer technology lets you access more of the battery’s stored energy before needing to recharge it, which is why this type of battery is common in laptops and mobile phones. If they’re not installed properly, however, lithium-ion batteries can catch fire. They’re also pricier than some other types of batteries.
Pros
Smaller and lighter than other battery types; work well in tight spaces.
Newer technology with improved battery capacity and efficiency.
Long life span.
Little or no maintenance required.
Fewer batteries needed for power.
Lithium-ion batteries have a high depth of discharge, meaning if the battery capacity drops to 10%, it won’t strain the system or cause the system to degrade.
Cons
High price.
Can catch fire if improperly installed.
Special equipment required for installation.
Nickel-cadmium batteries
Designed mostly for commercial solar systems, nickel-cadmium batteries are rare in smaller residential applications. Because some manufacturers are testing ni-cads for home systems, we may see more of them in the future. Nickel-cadmium batteries use older technology, are low maintenance and long-lasting, have a high discharge capacity and can work efficiently even in extreme temperatures. However, they’re also heavy and bulky, lose charge when they’re not used, are costly and contain toxins that are harmful to the planet when not properly disposed of. Some countries have banned their use.
Pros
Long life span of up to 20 years or more.
Nickel-cadmium batteries have a high depth of discharge, meaning if the battery capacity drops to 20%, it won’t strain the system or cause the system to degrade.
Perform well under extreme weather conditions.
Time-tested technology.
Low maintenance.
Cons
Power retention is lower than other battery types.
Not environmentally friendly.
Not typically available for residential solar systems.
Heavy and bulky.
Flow batteries
Engineered for large-scale use with very limited availability to homeowners, this new technology uses water-based electrolytes that flow between two internal tanks. Charging and discharging takes place through chemical reactions within the battery, and increasing the number of tanks can increase total energy storage capacity. Flow batteries are very efficient and have a 100% discharge capacity. They’re also long-lasting and use nontoxic, nonflammable materials. Unfortunately, they’re also heavy, large and expensive. They require a lot of maintenance and have a low power density.
Pros
Customizable.
Long life span of 20 years or more.
Nonflammable and nontoxic materials.
High efficiency with 100% discharge capacity.
Cons
Heavy/bulky.
Considered too expensive for residential use.
Low power density.
High maintenance.
Final considerations and how to choose a solar battery
Here are a few important factors to consider and compare:
Budget. Weigh affordability and durability, and be aware that less expensive lead-acid batteries won’t last as long as lithium-ion batteries, which are more expensive upfront.
Space. Choose batteries that fit in your available space.
Warranty: Look for a solid warranty from a reputable manufacturer.
Battery capacity. For maximum efficiency, be sure this is appropriate for your solar system’s energy production. There are two measurements to consider: Storage capacity is how much energy the battery can hold; usable capacity is the energy the battery can provide minus the energy needed to operate the battery.
Battery life span. Longer life spans save on battery replacement costs over time and lessen the impact on the environment.
Round-trip efficiency. This is the measure of how well your battery stores and retrieves energy and how efficient its operation is after it’s charged. The industry standard for this is about 80%
.
Depth of discharge: This is how much power a battery uses before you need to recharge it.
Maintenance. Lower-priced battery options such as lead-acid typically require more maintenance, and you’ll need to decide how much maintenance you’re willing and able to perform.
Your system’s voltage requirements. Make sure your battery is compatible with the voltage requirements of your solar panels.
Frequently asked questions
Are there any tax incentives to offset the cost of a solar battery?
Yes. Depending on when you purchased and installed your solar battery, you may be eligible for a federal tax incentive of between 22% and 30% of the battery’s cost. To qualify, the battery must have a storage capacity of at least 3 kilowatt hours. New construction and existing homes both qualify, as do both primary and secondary residences. The home can be a house, co-op, condo, houseboat, mobile home or manufactured home. Rentals do not qualify for this tax incentive. State incentives may be available in your areas as well. Check this database to see if you qualify for one.
Can I have solar panels without buying a solar battery?
Yes. Without a battery, any excess energy you produce will just go back to the grid rather than be stored in a battery for your future use. This is called a grid-tie system.
What type of solar battery is the most popular for residential use?
Even though they’re pricey, lithium-ion batteries are the most popular type of solar battery for residential use because they’re long-lasting and often don’t need maintenance.
“Housing affordability is top of mind for voters because elevated mortgage rates and home prices, along with an acute housing shortage, have pushed the dream of homeownership out of reach for many Americans,” Redfin chief economist Daryl Fairweather said in the report. The nationally representative survey of roughly 3,000 respondents points to deep frustrations over … [Read more…]
Families who manage to save up for a down payment and get approved for a mortgage often get an unwelcome surprise: closing costs that all too often are full of junk fees. Closing costs are the fees you pay on the day you finalize the purchase of your home, and they include things like title insurance, credit report and appraisal fees, origination fees, and more. The Consumer Financial Protection Bureau (CFPB) is working to ensure that consumers can navigate the closing process more easily, shop around, and save money.
Closing costs have risen, putting pressure on borrowers’ budgets
While home prices and interest rates often command our attention, closing costs also contribute to borrowers’ monthly burdens. One measure of closing costs is total loan costs. Total loan costs include origination fees, appraisal and credit report fees, title insurance, discount points, and other fees. From 2021 to 2022, median total loan costs rose sharply, increasing by 21.8 percent on home purchase loans.
In 2022, the median amount paid by borrowers was nearly $6,000 in these costs and fees. That’s a substantial upfront cost on what is already a major financial undertaking. Homeowners can choose to pay closing costs out of pocket, but that can reduce their down payment amount. Lenders sometimes give borrowers a “credit” to cover closing costs, but then charge the borrower a higher interest rate on the mortgage. Sometimes sellers pay closing costs but increase the sale price on the home. Often, closing costs are simply rolled into the total loan amount, racking up interest for the life of the loan. Borrowers who can’t bring cash to the table often have to pay more, through higher interest rates or mortgage insurance payments.
Many of these costs are fixed and do not fluctuate with interest rates or change based on the size of the loan. As a result, they have an outsized impact on borrowers with smaller mortgages, such as lower income borrowers, first-time homebuyers, and borrowers living in Black and Hispanic communities. A 2021 study found that nearly 15 percent of lower income homebuyers had closing costs that exceeded the amount of their down payment.
We are paying particular attention to the recent rise in discount points. A higher percentage of borrowers reported paying discount points in 2022 than any other years since this data point was first reported in 2018. In 2022 about 50.2 percent of home purchase borrowers paid some discount points, up from 32.1 in 2021. Borrowers are also paying more in discount points. The median discount points paid for home purchase loans in 2022 was $2,370 in 2022, up from $1,225 in 2021. Lenders sell discount points to borrowers to reduce interest rates. These points may not always save borrowers money, however, and may indeed add to borrowers’ costs. The CFPB is continuing to monitor market trends in this area.
Lack of competition and choice may add to already rising housing costs
It appears that some closing costs are high and increasing because there is little competition. Borrowers are required to pay for many of the costs associated with closing a home loan but cannot pick the provider and do not benefit from the service. In many cases, the lender simply picks from a very small universe of providers, and the costs are then passed on to the borrower.
Lender’s title insurance is one example of a fee borrowers face at closing where the borrower has no control over cost. Title insurance is meant to protect against someone else laying claim to a borrower’s property. A lender’s title insurance policy protects only the lender against these possible claims, not the borrower. Instead of paying this fee themselves, lenders make borrowers pay the cost. The amount that borrowers pay for lender’s title insurance is often much greater than the risk.
Fees for credit reports are another example. The credit reporting industry is highly concentrated, with just a handful of dominant players dictating the price of credit reports and scores. Borrowers pay the fee for lenders to pull credit reports for each loan applicant from three nationwide credit reporting companies. Mortgage lenders have recently reported steep increases in the price of the scores and reports used for mortgage underwriting. The CFPB has heard reports of recent costs spiking 25 percent to as much as 400 percent. At the same time, we estimate that nationwide credit reporting companies made over $1.3 billion annually. These steep increases in a market that lacks competition and choice warrant further scrutiny.
Tell the CFPB how mortgage closing costs affect you
The CFPB is tackling housing affordability using all our tools. We are working on:
Improving the ability of homeowners to refinance their mortgage when interest rates are favorable.
Reducing risks for borrowers who fall behind in their mortgage payments.
Making it easier for consumers to submit debt collection complaints to us about rental housing so that we can address illegal fees and better identify emerging issues like rental payment platforms that target families with junk fees or the use of high-cost loans to pay rent.
In the coming months, the CFPB will continue working to analyze mortgage closing costs, seek public input and, as necessary, issue rules and guidance to improve competition, choice, and affordability. We will also continue using our supervision and enforcement tools to make it safer for people to purchase homes and to hold companies accountable when they violate the law. Our research findings and market insights guide our work, as well as information from consumers that helps us better understand how issues like mortgage closing costs affect households and families.
If you have problem with your mortgage or closing costs and need a response from a company, you can submit a complaint with the CFPB. If you don’t need a response from the company and want to share your experience with us, you can tell your story.
Editor’s Note: Parts of this story were auto-populated using data from Curinos, a mortgage research firm that collects data from more than 250 lenders. For more details on how we compile daily mortgage data, check out our methodology here.
Mortgage rates remain above 7%, according to data from Curinos analyzed by MarketWatch Guides. The 30-year fixed-rate mortgage is 7.17% today, down-0.21 percentage points from last week.
With mortgage rates above 7% and home prices showing no signs of dropping, home affordability has continued to decline, according to the Mortgage Bankers Association (MBA). An MBA report published last week showed that the median monthly payment for new home purchases in the U.S. increased to $2,134 in January – up 4% from the month before.
Prospective home buyers may see rates drop more substantially this year, however. The Federal Reserve board previously indicated that it expects three rate cuts throughout 2024 and their next meeting is scheduled for March 19-20.
Here are today’s average mortgage rates:
30-year fixed mortgage rate: 7.17%
15-year fixed mortgage rate: 6.53%
5/6 ARM mortgage rate: 6.93%
Jumbo mortgage rate: 7.02%
Current Mortgage Rates
Product
Rate
Last Week
Change
30-Year Fixed Rate
7.17%
7.38%
-0.21
15-Year Fixed Rate
6.53%
6.72%
-0.19
5/6 ARM
6.93%
7.02%
-0.09
7/6 ARM
7.09%
7.23%
-0.14
10/6 ARM
7.24%
7.35%
-0.11
30-Year Fixed Rate Jumbo
7.02%
7.17%
-0.15
30-Year Fixed Rate FHA
6.96%
7.17%
-0.21
30-Year Fixed Rate VA
6.98%
7.16%
-0.18
Disclaimer: The rates above are based on data from Curinos, LLC. All rate data is accurate as of Friday, March 08, 2024. Actual rates may vary.
>> View historical mortgage rate trends
Mortgage Rates for Home Purchase
30-year fixed-rate mortgages are down, -0.21
The average 30-year fixed-mortgage rate is 7.17%. Since the same time last week, the rate is down, changing -0.21 percentage points.
At the current average rate, you’ll pay $676.76 per month in principal and interest for every $100,000 you borrow. You’re paying less compared to last week when the average rate was 7.38%.
15-year fixed-rate mortgages are down, -0.19
The average rate you’ll pay for a 15-year fixed-mortgage is 6.53%, a decrease of-0.19 percentage points compared to last week.
Monthly payments on a 15-year fixed-mortgage at a rate of 6.53% will cost approximately $872.76 per $100,000 borrowed. With the rate of 6.72% last week, you would’ve paid $883.25 per month.
5/6 adjustable-rate mortgages are down, -0.09
The average rate on a 5/6 adjustable rate mortgage is 6.93%, a decrease of-0.09 percentage points over the last seven days.
Adjustable-rate mortgages, commonly referred to as ARMs, are mortgages with a fixed interest rate for a set period of time followed by a rate that adjusts on a regular basis. With a 5/6 ARM, the rate is fixed for the first 5 years and then adjusts every six months over the next 25 years.
Monthly payments on a 5/6 ARM at a rate of 6.93% will cost approximately $660.61 per $100,000 borrowed over the first 5 years of the loan.
Jumbo loan interest rates are down, -0.15
The average jumbo mortgage rate today is 7.02%, a decrease of-0.15 percentage points over the past week.
Jumbo loans are mortgages that exceed loan limits set by the Federal Housing Finance Agency (FHFA) and funding criteria of Freddie Mac and Fannie Mae. This generally means that the amount of money borrowed is higher than $726,200.
Product
Monthly P&I per $100,000
Last Week
Change
30-Year Fixed Rate
$676.76
$691.02
-$14.26
15-Year Fixed Rate
$872.76
$883.25
-$10.49
5/6 ARM
$660.61
$666.65
-$6.04
7/6 ARM
$671.36
$680.82
-$9.46
10/6 ARM
$681.50
$688.97
-$7.47
30-Year Fixed Rate Jumbo
$666.65
$676.76
-$10.11
30-Year Fixed Rate FHA
$662.62
$676.76
-$14.14
30-Year Fixed Rate VA
$663.96
$676.08
-$12.12
Note: Monthly payments on adjustable-rate mortgages are shown for the first five, seven and 10 years of the loan, respectively.
Factors That Affect Your Mortgage Rate
Mortgage rates change frequently based on the economic environment. Inflation, the federal funds rate, housing market conditions and other factors all play into how rates move from week-to-week and month-to-month.
But outside of macroeconomic trends, several other factors specific to the borrower will affect the mortgage interest rate. They include:
Financial situation: Mortgage lenders use past financial decisions of borrowers as a way to evaluate the risk of loaning money.
Loan amount and structure: The amount of money that bank or mortgage lender loans and its structure (including both the term and whether its a fixed-rate or adjustable-rate).
Location: Mortgage rates vary by where you are buying a home. Areas with more lenders, and thus more competition, may have lower rates. Foreclosure laws can also impact a lender’s risk, affecting rates.
Whether borrowers are first-time homebuyers: Oftentimes first-time homebuyer programs will offer new homeowners lower rates.
Lenders: Banks, credit unions and online lenders all may offer slightly different rates depending on their internal determination.
How To Shop for the Best Mortgage Rate
Comparison shopping for a mortgage can be overwhelming, but it’s shown to be worth the effort. Homeowners may be able to save between $600 and $1,200 annually by shopping around for the best rate, researchers found in a recent study by Freddie Mac. That’s why we put together steps on how to shop for the best mortgage rate.
1. Check credit scores and credit reports
A borrower’s credit situation will likely determine the type of mortgage they can pursue, as well as their rate. Conventional loans are typically only offered to borrowers with a credit score of 620 or higher, while FHA loans may be the best option for borrowers with a FICO score between 500 and 619. Additionally, individuals with higher credit scores are more likely to be offered a lower mortgage interest rate.
Mortgage lenders often review scores from the three major credit bureaus: Equifax, Experian and TransUnion. By viewing your scores ahead of lenders considering you for a loan, you can check for errors and even work to improve your score by paying down balances and limiting new credit cards and loans.
2. Know the options
There are four standard mortgage programs: conventional, FHA, VA and USDA. To get the best mortgage rate and increase your odds of approval, it’s important for potential borrowers to do their research and apply for the mortgage program that best fits their financial situation.
The table below describes each program, highlighting minimum credit score and down payment requirements.
Though conventional mortgages are most common, borrowers will also need to consider their repayment plan and term. Rates can be either fixed or adjustable and terms can range from 10 to 30 years, though most homeowners opt for a 15- or 30-year mortgage.
3. Compare quotes across multiple lenders
Shopping around for a mortgage goes beyond comparing rates online. We recommend reaching out to lenders directly to see the “real” rate as figures listed online may not be representative of a borrower’s particular situation. While most experts recommend getting quotes from three to five lenders, there is no limit on the number of mortgage companies you can apply with. In many cases, lenders will allow borrowers to prequalify for a mortgage and receive a tentative loan offer with no impact to their credit score.
After gathering your loan documents – including proof of income, assets and credit – borrowers may also apply for pre-approval. Pre-approval will let them know where they stand with lenders and may also improve negotiating power with home sellers.
4. Review loan estimates
To fully understand which lender is offering the cheapest loan overall, take a look at the loan estimate provided by each lender. A loan estimate will list not only the mortgage rate, but also a borrower’s annual percentage rate (APR), which includes the interest rate and other lender fees such as closing costs and discount points.
By comparing loan estimates across lenders, borrowers can see the full breakdown of their possible costs. One lender may offer lower interest rates, but higher fees and vice versa. Looking at the loan’s APR can give you a good apples-to-apples comparison between lenders that takes into account both rates and fees.
5. Consider negotiating with lenders on rates
Mortgage lenders want to do business. This means that borrowers may use competing offers as leverage to adjust fees and interest rates. Many lenders may not lower their offered rate by much, but even a few basis points may save borrowers more than they might think in the long run. For instance, the difference between 6.8% and 7.0% on a 30-year, fixed-rate $100,000 mortgage is roughly $5,000 over the life of the loan.
Expert Forecasts for Mortgage Rates
Mortgage rates have cooled significantly over the past several months. After the 30-year fixed-rate mortgage hit 8% last October, it ended 2023 closer to 7%. In fact, the average for Q4 2023 was 7.3%.
Analysts with Fannie Mae and the Mortgage Bankers Association (MBA) both project that rates will fall going into 2024 and throughout next year.
Fannie Mae economists expect rates to drop more quickly, falling below 6% by Q4 2024. Meanwhile, the MBA’s forecast for Q4 2024 is 6.1% and 5.9% for Q1 2025.
More Mortgage Resources
Methodology
Every weekday, MarketWatch Guides provides readers with the latest rates on 11 different types of mortgages. Data for these daily averages comes from Curinos, LLC, a leading provider of mortgage research that collects data from more than 250 lenders. For more details on how we compile daily mortgage data, check out our comprehensive methodology here. Editor’s Note: Before making significant financial decisions, consider reviewing your options with someone you trust, such as a financial adviser, credit counselor or financial professional, since every person’s situation and needs are different.
While the proposed tax credit appears unlikely to get through a Republican-controlled Congress, Biden has the ability to use the CFPB to push his housing policy agenda.
An ‘unwelcome surprise’
A CFPB blog post on Friday states that families closing a mortgage “often get an unwelcome surprise: closing costs that all too often are full of junk fees.”
According to the CFPB, one measure of closing costs is total loan costs, which includes title insurance, credit report, appraisal, and origination. These costs increased by 21.8% from 2021 to 2022, reaching nearly $6,000, per the CFPB post. And, as they are fixed, they have an “outsized impact on borrowers with smaller mortgages,” it added.
The post provoked a strong reaction from the Mortgage Bankers Association (MBA). Its president and CEO, Bob Broeksmit, stated that the use of the term junk fees is “illogical” and contradicts the White House’s definition, which is “lack of disclosure of the fee being charged.”
“The fees mentioned are clearly disclosed to borrowers well before a home purchase on forms developed and prescribed by the Dodd-Frank Act and the CFPB itself,” Broeksmit said in a prepared statement.
Broeksmit added that the Bureau’s “TRID” rule in 2015 and other rules imposed in 2020 reformed mortgage disclosures and customers’ ability to read these documents.
What’s the CFPB monitoring?
The CFPB said it will closely examine three topics: discount points, lenders’ title insurance, and credit reports.
Discount points have surged in recent years as mortgage rates have risen and competition has gotten more fierce. They were used by 50.2% of home purchase borrowers in 2022, compared to 32.1% in 2021. And, despite lenders selling points to reduce rates, it “may not always save borrowers money, however, and may indeed add to borrowers’ costs,” the CFPB said.
In another criticism of housing finance practices, the CFPB said lenders force borrowers pay for their title insurance, and the amount “is often much greater than the risk.”
Regarding credit reports, HousingWire reported in December that lenders’ prices would jump in 2024. The CFPB said that the “credit reporting industry is highly concentrated” and that “these steep increases in a market that lacks competition and choice warrant further scrutiny.”
“In the coming months, the CFPB will continue working to analyze mortgage closing costs, seek public input, and, as necessary, issue rules and guidance to improve competition, choice, and affordability,” the blog post reads. “We will also continue using our supervision and enforcement tools to make it safer for people to purchase homes and to hold companies accountable.”
Broeksmit has argued for years that it’s the CFPB that has made mortgage lending more expensive for consumers. The agency announces “new legal obligations without formal process or deliberation, enforcing novel and untested legal theories, and making it very difficult for firms to understand their legal obligations,” he said in 2022. A year later he described housing policy coming from Washington, D.C. as “extreme overregulation.”
In response to the CFPB’s latest “baffling” blog post, he noted that the agency has already imposed limits on lenders’ fees. The services covered, such as appraisals and flood hazard certifications, bring efficiency to the mortgage market and benefit consumers. The Federal Housing Administration (FHA), Department of Veterans Affairs (VA), Fannie Mae, and Freddie Mac also require these services.
The MBA, according to him, is also concerned “regarding rising costs of the tri-merge credit reports” and shares the “desire to help more Americans become homeowners.”
“MBA is eager to continue working with the Biden administration in these efforts but will vigorously oppose politically motivated proposals that only increase regulatory costs, reduce competition, or otherwise make it more difficult for Americans to get the credit necessary to achieve homeownership,” Broeksmit said.
He pointed to the marked improvement in sentiments toward selling, which could signal an influx of existing home listings in the near future. He also noted a lingering optimism among consumers that mortgage rates might see a decline over the next 12 months, which could potentially energize the housing market even more. “If their expectations … [Read more…]