Despite an uptick in mortgage rates at the beginning of 2024, mortgage demand surged after adjusting for the holiday.
Mortgage applications increased 9.9% for the week ending Jan. 5 compared to one week earlier, according to data from the Mortgage Bankers Association (MBA).
The 30-year fixed mortgage rate averaged 6.62% as of Jan. 4, according to Freddie Mac’s Primary Mortgage Market Survey.
“The increase in purchase and refinance applications for both conventional and government loans is promising to start the year but was likely due to some catch-up in activity after the holiday season and year-end rate declines,” Joel Kan, MBA’s vice president and deputy chief economist, said in a statement. “Mortgage rates and applications have been volatile in recent weeks and overall activity remains low.”
Purchase applications rose by 6% week over week on an adjusted basis. Meanwhile, refinance applications were 19% higher than a year ago.
The share of Federal Housing Administration (FHA) loan activity decreased to 14.4% from 14.5% the week prior. The share of Department of Veterans Affairs (VA) loan activity was 16.3%, up from 14.6% over the previous week, while the share of U.S. Department of Agriculture (USDA) loan activity decreased to 0.4% compared to 0.5% the previous week.
With four commission lawsuits in play, Illinois currently holds the title for the most commission lawsuits in one state. In addition to the long running Moehrl commission lawsuit, as well as the Batton 1 and Batton 2 suits, the Prairie State is now home to the Tuccori suit, filed in early December 2023 by James Tuccori against @properties.
The suit was originally filed in the Circuit Court of Cook County Illinois, but it was moved to the U.S. District Court for the Northern District of Illinois Eastern Division last Friday.
Like the other copycat commission lawsuits, the plaintiff James Tuccori, an Illinois resident who purchased a home listed on the local MLS in 2018 with the help of an @properties agent, is accusing real estate industry players of colluding to artificially inflate real estate agent commissions. The suit takes aim at the National Association of Realtor’s Participation Rule which requires listing brokers to make a blanket offer of compensation to the buyer’s broker in order to list a property on a NAR affiliated MLS.
“These anti-competitive rules permit Defendant and other NAR members to sustain buyer-agent fees at artificially high levels which would not exist in a competitive marketplace,” the complaint reads. “Defendant and the members of NAR further protect and promote their conspiracy by exerting control over and manipulating the MLSs, which constitute the gateway to homebuying and selling.”
“There is no pro-competitive benefit to the conspiracy,” the complaint adds. “Defendant and its coconspirators have effectively maintained and significantly raised the financial costs of buyerbroker commissions, despite the diminishing role of such buyer-brokers due to the emergence of third-party listing websites.”
As with all of the other commission lawsuits, Tuccori’s suit is seeking class action status. However, the suit is seeking both national and Illinois class action status for all persons who purchased a home listed on a NAR MLS with a buyer’s agent and or seller-agent employed or affiliated with @properties or any of its franchises, subsidiaries, or agencies between March 17, 2000, and the present.
The plaintiff is demanding a jury trial, as well as damages and a permanent injunction that prevents the defendants from continuing on with these practices.
In an emailed statement, a spokesperson for @properties Christie’s International Real Estate, the top brokerage in Chicago, wrote that the copycat suit was in response to the Missouri jury’s verdict in the Sitzer/Burnett suit.
“The Kansas City case was premised on those other brokerages controlling NAR by having their executives serve on its board of directors and executive committee, which allegedly created, implemented, and enforced the NAR rules at issue. In contrast, the Chicago complaint makes no specific allegation that @properties was or is involved in any such activities,” the spokesperson wrote. “In fact, while we are members of NAR, no @properties manager or executive has ever served in any role at NAR with any rule-making authority. This applies to Mabel Guzman, a former @properties agent who is mentioned in the complaint, but who was never an employee or manager with @properites and was never directed by @properties’ management in her volunteer role with NAR. We will move to vigorously defend against this complaint and believe that it will be resolved in our favor.”
Guzman moved to a Coldwell Banker affiliate in Chicago in 2020 and remains an active member of NAR. According to her official biography, she served as the NAR 2021 vice chair for the insurance committee and she also chaired the business insurance work group. In 2020, she served as vice president of association affairs at NAR.
Are you longing for more beyond your current circumstances? To be more? To do more? To have more? Today’s guest, Dianna Kokoszka, helped countless Realtors become more while serving as the CEO of Keller Williams’ MAPS coaching program. And now, she’s striving to help more people, including listeners like you, reach their true potential. Listen and learn how Dianna took MAPS coaching from a program that was losing money to one that generated over $500 million per year by transforming real estate agents’ lives for the better. Dianna also shares several can’t-miss tips from her upcoming book, Becoming More: You Can’t Get to Better Until You Get to Different. Don’t miss it!
Listen to today’s show and learn:
Dianna Kokoszka’s first year in real estate: 104 homes sold [2:22]
The beginning of buyer’s agents [4:56]
How wrong things can go when you don’t watch your money [6:33]
Transforming KW MAPS Coaching into a $500 million business [8:42]
The power of the right mindset [9:52]
Advice on turning a failing business into a huge success [11:33]
Breaking out of your mental cage [15:00]
The difference between attitude and mindset [16:10]
The seven mindsets of limitation and the seven of liberation [17:22]
What dictates the decisions you make [19:38]
Bringing out the best in your people [23:51]
KW MAPS success stories [27:06]
The steps for scaling a real estate business [32:21]
Training your brain for success [37:21]
Learning from the leaders of thought [39:01]
What Blockbuster, RadioShack, and Sears taught us [40:43]
Get to better by getting to different [42:18]
Mentorship and adding value [42:35]
Where to find and follow Dianna Kokoszka [44:19]
Dianna Kokoszka
As CEO of Mega Achievement Productivity Systems (KW MAPS Coaching), Dianna Kokoszka was responsible for building the most powerful coaching and mastermind program in the industry. She led a team of more than 35 coaches, who provided coaching programs tailor-made to help their clients.
In 2009, Dianna created the BOLD (Business Objective: Life by Design) program, which instantly took hold and transformed the careers and beliefs about what was possible for thousands of real estate professionals.
Passionately committed to providing a high level of motivation and accountability to her clients, Dianna has over 30 years of real estate experience. Formerly as team leader of the Keller Williams Realty Denver-West Market Center, she pioneered documentation and accountability systems for real estate agents, helping others to draw upon her prior success as a mega agent.
Her entrepreneurial spirit and industry renown have resulted in many industry honors and awards, including the Stevie Award for the Best Sales Coaching Program; an appointment to the President of the United States’ Business Advisory Council; Denver Entrepreneur of the Year in 1984 and 1991; and Denver Businesswoman of the Year in 1986, 2003 and 2004.
Kokoszka’s tenacity and ingenious methods have not only brought her press coverage, they’ve brought her big business. She believes we are all creative, resourceful and whole. May we empower others to actively engage and participate in their own evolving transformations.
She is a founding member of the John Maxwell Team of Certified Coaches, an author of 19 system books for real estate offices, and loves to add value to others.
Dianna is the author to her new book Becoming More – published with the John Maxwell Publishing Company.
Despite her impressive achievements, Dianna believes that her greatest titles are wife, mother, and grandmother. She lives with her husband, Tony DiCello, on Lake Travis in Lakeway TX, where she loves to waterski or sit on the dock and read her Bible. She enjoys a good clean joke, traveling, reading, and spending her time with her 3 boys and 4 grandchildren.
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It might go without saying, but I’m going to say it anyway: We really value listeners like you. We’re constantly working to improve the show, so why not leave us a review? If you love the content and can’t stand the thought of missing the nuggets our Rockstar guests share every week, please subscribe; it’ll get you instant access to our latest episodes and is the best way to support your favorite real estate podcast. Have questions? Suggestions? Want to say hi? Shoot me a message via Twitter, Instagram, Facebook, or Email.
Mortgage giant Mr. Cooper has tapped Mike Weinbach, a veteran banking executive, as president following current leader Chris Marshall’s expected retirement at the end of this year.
Weinbach, the longtime CEO of Chase Home Lending and former CEO of consumer lending at Wells Fargo, will begin his role Feb. 1, Mr. Cooper announced Tuesday. Marshall, also the company’s vice chairman, will remain onboard to assist with the transition and lead fundraising for Mr. Cooper’s mortgage servicing rights fund.
“I have long admired Mr. Cooper’s impressive record of growth and profitability as well as their commitment to the customer experience, and I am thrilled to hit the ground running with this fantastic team,” said Weinbach in a press release.
Company chairman and CEO Jay Bray in a statement commended Weinbach’s background in consumer lending. Weinbach worked at JPMorgan Chase from 2003 through 2020, heading mortgage operations in his final five years there. He worked in the newly-created consumer lending role at Wells from 2020 to 2022, overseeing the launch of a new portfolio of credit cards.
The incoming president will oversee Mr. Cooper’s originations, servicing and technology efforts. Weinbach steps in at a critical time for the publicly traded giant, following a massive data breach in November exposing the Social Security numbers of over 14 million customers. The incident has spawned over a dozen class action lawsuits from consumers, while Moody’s in November suggested the incident could impact the firm’s creditworthiness.
The company reported strong earnings in the third quarter, posting net income of $275 million, nearly double the amount of its second quarter results. Bray, at the time of the earnings and Marshall’s retirement announcement in October, credited Marshall for implementing “bank-like” efficiencies to the company during the pandemic.
Kurt Johnson, Mr. Cooper’s executive vice president and chief financial officer, then anticipated gains in owned servicing moving forward. As part of the firm’s busy 2023, it closed in August on the acquisition of the servicing business of Home Point Capital. That transaction added $83 billion in MSRs to bring Mr. Cooper’s servicing portfolio closer to $1 trillion.
40 Northwestern Mutual Wealth Management Teams Rank Among Nation’s Best in New Forbes Listing MILWAUKEE, Jan. 9, 2024 /PRNewswire/ — Northwestern Mutual today announced that 40 of the company’s advisory practices from across the country have earned a spot on Forbes‘ highly coveted Best-in-State lists of Top Wealth Management Teams for 2024. This accolade showcases … [Read more…]
Over one-quarter of the consumer respondents to a Mphasis Digital Risk survey admit they are willing to bend the truth in order to lower the cost of buying a home.
This could be considered shocking, even as the causes of the Great Financial Crisis fade further into memory. Among the roots of that late-2000s debacle was misstatements on mortgage applications, especially with certain products like no income/no asset verification loans that encouraged deceptiveness, also known as “liar loans.”
Even with tighter product underwriting standards as a result, lenders cannot rest on their laurels when it comes to the possibility of deceptive information in an application or related documents.
The survey was conducted in November on a broad range of housing topics and garnered approximately 1,600 responses.
And that timing might be part of the reason why that question garnered those responses, as mortgage rates were approaching 8% for the 30-year fixed, and home prices were (and are) still rising with a competitive market driven by the inventory shortage, impacting affordability, noted Kimberly Lanham, senior vice president of marketing and client relations. The most recent Freddie Mac survey put the 30-year at 6.62%.
People were doing what “they can in the gray area of getting a lower rate, or somehow figuring out how to get their offer accepted,” Lanham said.
The question also was about the cost of buying a house, not necessarily that of getting a mortgage, said James Jajtner, vice president, operations and managers due diligence at Mphasis Digital Risk.
“There’s checks and balances that go into place when you are trying to get an appraised value, when you’re completing that sales contract,” Jajtner said. It shows the importance for lenders, especially third party originators, to stay on top of their guidelines and have those external checks as part of the process, especially if the loan is being securitized.
In a follow up question about what would they do if someone during the mortgage lending process advised them to enter inaccurate or misleading information in order to improve your chances of approval or achieve better terms, less than half, 41%, unequivocally answered they would disagree and not follow along.
Slightly more than 16% admitted they would follow along, and 20% would seek other opinions. Almost 14% said they would ask for an attorney’s advice, while 7.66% claimed they didn’t know what they would do.
Another question could be as much as about consumer loyalty to their lender and using them for their next loan as it might mean for views on underwriting.
When asked if the lender cared about you and your ability to pay off the mortgage in a timely manner, 29.6% said somewhat and 20.9% responded not at all. Just 23.4% said the lender cared very much. The remaining 26% do not have a mortgage.
But the good news, Lanham noted, is that no tick up in mortgage fraud is taking place right now.
“The reason that we’ve been able to kind of weather the interest rate storm that we’ve been having for the past couple of years, even through the craziness of COVID is because underwriting standards were so shored up and so many checks and balances were put in place that we are still seeing very safe, correctly underwritten loans,” said Lanham.
The mortgage loan critical defect rate, a marker that consumers and/or industry insiders might be making deliberate misrepresentations on applications, declined 6 basis points in the second quarter of 2023 to 1.78%, a report issued in mid-December by Aces Quality Management stated.
Defects related to income and employment remained by far the single largest source of misrepresentations, at a 31.25% share in the second quarter, slightly down from 31.5% in the first quarter.
The second most cited category was assets, at just under 16%.
“At a time when every loan originated matters, lenders are taking quality control seriously and doing all they can to prevent buyback requests from the government-sponsored enterprises,” said Aces Executive Vice President Nick Volpe in a press release. “Critical defect rates continue to trend in the right direction, and now, with interest rates trending down at the time of this report, we’re looking forward to seeing lenders maintain high loan quality as the market once again changes.”
Mphasis Digital Risk’s Jajtner agreed. “I think we’re going to be coming into a really solid 2024 from an originations standpoint,” with mortgage rates likely to decline fueling activity.
It is up to participants across the board, from lenders, to aggregators and securitizers, that “everything is up to par from an operational standpoint just to ensure that we can originate, review and securitize safe, complete, accurate loans,” Jajtner said.
There’s cautious optimism in the air among area real estate professionals looking into the 2024 home sales market.
If trends continue, they see mortgage rates going down and listings going up.
The key word is “if.”
“Looking ahead to 2024, we anticipate mortgage interest rates to settle in the 6% range, which will attract even more buyers into the market, especially come spring,” said Jeanette Schneider, president of Re-Max of Southeastern Michigan.
“Current homeowners who held onto their home due to a favorable interest rate may decide their interest rate isn’t worth keeping a home that no longer meets their needs, and that should bring a bit more inventory to the market.”
Adds Karen Kage, chief executive officer of Realcomp II Ltd., Michigan’s largest multiple listing service: “We are hopeful for interest rates to continue to trend downward in the new year and consumer confidence levels to rise. As we stand today and look ahead, those are, perhaps, the biggest factors in determining what we might see in 2024.”
Nationally, industry analysts and veterans offer a range of predictions for the upcoming year. Among those:
• Buying a new home will remain expensive, according to Zillow, while Redfin said the median sale price could retreat by 1% in 2024
• The market will still be challenging for first-time homebuyers, but an influx of new apartment units could help manage inflation, according to Lawrence Yun, chief economist for the National Association of Realtors
• Sales of existing homes will rebound in 2025, with home-buying costs leveling off in the second half of 2024, according to investment banker Goldman Sachs
• In Michigan, tech startup real estate tracker Houzeo predicted home sellers will return to the market in 2024 and interest rates will stabilize in the second half of the year.
Locally, Schneider predicted a “slight uptick in home sales in 2024, along with a steady, but moderate increase, in home prices.”
“As boomers consider downsizing, we expect to see more cash offers in the market, providing a challenge for first-time buyers,” she said.
The Press & Guide asked area real estate specialists — with a combined experience of more than seven decades — to size up the market for the next year.
Interviewed for this story are:
• Susie Armiak, Realtor, MBA Realty Powered by Real Estate One, Grosse Ile, three years experience as a licensed Realtor and more than 25 years as a residential home builder
• Eric Blaine, associate broker and branch manager, Dearborn Office, Real Estate One, 10 years experience
• Tracey Solomon, Realtor, Re/Max Masters, Davis/Solomon Realty Group, Flat Rock, more than four years experience
• Maria Starkey, Realtor, Starkey Team, MBA Realty, Grosse Ile, 24 years experience. Also contributing: Michael Starkey, Realtor
• Benjamin Welch, associate broker, Century 21 Curran & Oberski, Dearborn Heights, 18 years experience, including owning and operating Street Rock Management (property management) for five years
Susie Armiak
Eric Blaine
Tracey Solomon
Michael and Maria Starkey
Benjamin Welch
Here are edited excerpts of their comments about the year ahead:
Q: Strong demand and tight inventory have defined the real estate market in 2023. How do you see those factors and others shaping the 2024 home sales market?
Armiak: I believe we will continue to see that same trend. Specifically because the higher interests this past year had many sellers/buyers sitting on the fence and new home construction is still behind the demand.
Blaine: Inventory has begun to rise in many markets and is expected to continue that trend in 2024. We expect demand to remain high, as well, and rising inventory will help.
Solomon: Demand is still outpacing supply. Unless this changes, we can expect more of the same seller-weighted market. Election years are historically slower as buyers and sellers may feel unsure about changing economic policy. Post-election, the market typically stabilizes. I suspect that if demand remains high and inventory low, we may not see that expected slowdown. It would be offset by the continued supply/demand pressure.
Starkey: The current market of strong demand and tight inventory is expected to continue into 2024. More buyers than houses continue to be the trend. This is keeping prices in the Downriver market on the high end for homes that are well-maintained and updated. The year ahead will likely continue to be a seller’s market. Homes in need of updating or with deferred maintenance tend to sit on the market longer, resulting in lower noncompeting offers.
Welch: Predicting the 2024 housing market is like forecasting the weather in Michigan – it’s an assumption with a dash of optimism. If interest rates remain the same, the days a home is on the market will continue to increase.
Q: Mortgage interest rates exceeded 7% in 2023. Where do you see mortgage rates in 2024 and how will that affect sales?
Armiak: The most recent Fed meeting stated they would be dropping interest rates three times in 2024 and we are already noticing the benefits of the recently lowered rate, currently at 6.6% for a 30-year fixed rate. (That rate may vary for buyers based on credit score, income and down payment amount.) This rate drop will entice sellers and buyers to make their move. My advice is the sooner the better because it’s going to be crowded in the marketplace once again. Be prepared to make swift and decisive decisions.
Blaine: Rates have held steady for a while and even declined slightly. I expect rates to hold somewhat steady in 2024, allowing more consumers to get off the fence and jump back in the market.
Solomon: Mortgage rates seem to be slowly dropping, which is great news for buyers and sellers. If rates continue to decline, more buyers will enter the market and demand will (again) increase. That will mean a continued shortage of homes and continued pressure on buyers to offer incentives to encourage sellers to accept their offers (fewer contingencies, appraisal guarantees, etc.)
Starkey: Interest rates are anticipated to come down into the 6% range in 2024, which likely will bring more buyers into the market. This may encourage more sellers to list their homes for sale. However, I expect home values will stay steady as demand for homes is expected to continue.
Welch: Increasing interest rates have been a major topic of discussion this year. It appears the Federal Reserve is done with rate hikes and Fannie Mae announced that interest rates could drop into the 6% range by the second quarter. If that happens, I expect a flurry of buyers to hit the market and for home prices to continue to rise.
Q: What is your best advice to potential home sellers for 2024?
Armiak: Connect with an experienced Realtor now to generate your personal marketing strategy. There are multiple items that need to be addressed prior to listing your home. Being prepared will put you in the best position to achieve your goals.
Blaine: It is a great time to sell. Values are up and demand is high.
Solomon: Once you’ve found an agent you trust, listen to their advice. Prepare your home for sale, but don’t overdo it. Timing is everything. Waiting to list until it’s perfect can cost you thousands. Consult your listing agent to prioritize your timing and task list. Utilize a pricing strategy that’s proven effective.
Starkey: Consider taking care of any potential deferred maintenance that could bring down home value. Also, be proactive by having a private home inspection done in advance to address any issues that may come up in a buyer’s private home inspection. This can reduce obstacles throughout the transaction. Last, minimize clutter, reduce excess furnishing that may make the space look smaller and — most importantly — provide a clean home for buyers to tour.
Welch: My advice is to hire a professional so you know all of your options. A professional Realtor will provide guidance, resources and a proven plan to facilitate the sale.
Q: What is your best advice to potential home buyers in 2024?
Armiak: Connect with an experienced Realtor now and begin the pre-approval process with your mortgage lender. It generally takes three months from start to finish. The more prepared you are, the stronger your chances are of getting the home of your dreams. And remember, you can always refinance, but you can’t retrofit the home appreciation value as they continue to rise at an annual rate of 4.7%, per FHFA reports.
Blaine: With value rising — a trend we expect will continue — now is the time to buy before values rise more. Waiting will only cost more and interest rates will not drop enough to help overcome appreciation.
Solomon: Find an agent you trust and communicate your needs and wants. Be financially prepared; your pre-approval matters. Set a home budget that works for your life, not just your balance sheet. Love to travel? Eat out? Give charitably? Factor that in. Adjust your price point to accommodate. (Yes, I’m suggesting you spend less so you can live more.)
Starkey: Get into the market early. Homes are hitting the market every day — not just in spring. Buyers who get a head start should have less competition than those who wait for more homes to choose from. If potential buyers find a home they love, go for it. If interest rates come down, you can always refinance. There are mortgage companies that offer a “no fee” refinance within the first two years of purchase.
Welch: If you are waiting for interest rates to come down before buying a home, it’s time to rethink your strategy. It is best to buy now because if interest rates drop, the number of buyers competing for the home you want will increase significantly, making it more challenging to buy that home.
Q: What communities do you see as most active for home sales in 2024 and why?
Armiak: I believe all communities will enjoy accelerated activity with the promise of lower interest rates, including those looking for second homes and investment properties. We are already seeing an increase in new listings in what is typically known as a quieter time. However, driving factors will continue to be the usual suspects: marriage, family growth, job change, death and divorce.
Blaine: Southeast Michigan markets, including Dearborn, are going to continue strong sales in 2024.
Solomon: Flat Rock, Woodhaven, Wyandotte and Southgate. All show increased values and searches. “Most active” is a hard metric to use as a measurement. A small community won’t show big sales numbers. However, highly rising values and quick list-to-pending sales dates show they are desirable and likely selling at or above asking with appraisal guarantees. Grosse Ile is a good example.
Starkey: The current market of strong demand and tight inventory is expected to continue into 2024. More buyers than houses continue to be the trend. This is keeping prices in the Downriver market on the high end for homes that are well-maintained and updated. The year ahead will likely continue to be a seller’s market. Homes in need of updating or with deferred maintenance tend to sit on the market longer, resulting in lower noncompeting offers.
Starkey: All Downriver communities will be active for home sales in 2024. The communities with more affordable housing for first-time buyers may see more activity as those buyers get away from renting. Of course, we need homes to come up for sale. Many homeowners are getting older and either moving to warmer climates or looking for less housing maintenance. Investors also like to purchase homes to add to their rental portfolio or to renovate and sell. The “step up” housing may not be as active as many of those homeowners are enjoying 2% to 4% interest rates and are feeling very comfortable with their current housing costs.
Welch: During November in the Downriver area, the number of homes for sale declined by 32% compared with previous months. It’s still a competitive market. With interest floating around 7.5%, there are many buyers just sitting on the bench waiting for rates to come down before they make their move. Imagine what it will be like if, and when, that happens.
Mortgage interest rates inched up this week, following nine straight declines totaling a decrease of 118 basis points (1.18%).
The average 30-year fixed rate mortgage (FRM) rose from 6.61% on Dec. 28 to 6.62% on Jan. 4, according to Freddie Mac.
“Given the expectation of rate cuts this year from the Federal Reserve, as well as receding inflationary pressures, we expect mortgage rates will continue to drift downward as the year unfolds,” said Sam Khater, Freddie Mac’s Chief Economist.
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Will mortgage rates go down in January?
Mortgage rates fluctuated significantly in 2023, with the average 30-year fixed rate going as low as 6.09% on Feb. 2 and as high as 7.79% on Oct. 26, according to Freddie Mac.
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The range can be largely attributed to the Federal Reserve’s ongoing fight against inflation, juxtaposed with uncertainty in the banking sector sparked by Silicon Valley Bank’s collapse. However, with duress permeating the financial market and the fallout from U.S. debt ceiling talks, the Fed may continue making hikes to bring interest rates down.
With the economy likely heading into a recession, it’s possible we’ve already seen the peak of this rate cycle. Of course, interest rates are notoriously volatile and could tick back up on any given week.
Experts from CoreLogic, Home Qualified, Realtor.com and others weigh in on whether 30-year mortgage rates will climb, fall, or level off in January.
Expert mortgage rate predictions for January
Craig Berry, branch manager at Acopia Home Loans
Prediction: Rates will moderate
“As inflation is the no. 1 item on the Federal Reserve’s radar right now, the Feds may choose not to lower the federal funds rate until inflation comes down. And, while Fed rate cuts aren’t a must-have in order for mortgage rates to come down, interest rates are affected by the federal funds rate.
The Feds continue to seek a balance between inflation and maximum employment so as not to cause significant damage to the economy which could trigger a recession. Recent momentum has been positive, and as long inflation cooperates, mortgage rates may see a slight decline in January. However, it isn’t likely that we’ll see significant drops to longer-term rates until we get further into 2024.”
Ralph DiBugnara, president at Home Qualified
Prediction: Rates will fall
“Rates finally shifted down some in December and stabilized lower. U.S. payrolls came in lower than anticipated, unemployment was up and building of new homes was down. These are good signs that inflation may have reached its peak and could trigger a lowering of rates. I expect the Fed to stay neutral for the time being and possibly through the first quarter of the year with possible cuts coming only if we see a drastic shift in the economy. For January, I believe the average 30-year fixed will land at 7.125% and the 15-year fixed will be 6.75%.”
Selma Hepp, chief economist at CoreLogic
Prediction: Rates will fall
“Mortgage rates should continue to decline, albeit very gradually and given there are no surprises with inflation. We should see rates fall below 7% mark.”
Hannah Jones, senior economic research analyst at Realtor.com
Prediction: Rates will fall
“If inflation and employment data continue to show signs of slowing, mortgage rates are likely to ease in January, though at a slower clip than in recent weeks. As incoming data confirms that the economy is indeed cooling, the upward pressure on mortgage rates will continue to let up and buyers will enjoy lower rates than in recent months.
However, if inflation or employment data come in stronger than expected, we could see rates pick up steam once again. Investors expect the Fed to hold steady at the current target rate in next week’s meeting, which would signal the Committee’s confidence in the current policy stance to bring inflation down to the target 2%. As inflation reaches the target level, mortgage rates will continue to drift lower.”
Jess Kennedy, COO at Beeline
Prediction: Rates will fall
“We expect rates to continue to ease as we kick off 2024. You can see the signaling of a rate cut from the Fed in many ways. For example, it is harder to find long-term CDs at the higher interest rates we were seeing 45-60 days ago). Publicly traded companies are also seeing their stock prices move higher on the expectation of rate relief in 2024. All these signs signal rates start to tick down even ahead of an official rate cut.”
Odeta Kushi, deputy chief economist at First American
Prediction: Rates will fall
“In light of favorable trends in inflation and labor market data, the Federal Reserve appears to be on a path towards its goals, although achieving its 2% inflation target will take some time. Consequently, the Fed is expected to maintain a restrictive stance, which will keep mortgage rates elevated. However, given slowing inflation and a cooling labor market, and barring any unforeseen developments, modest reductions in mortgage rates are possible in January.”
Rick Sharga, CEO at CJ Patrick Company
Prediction: Rates will fall
“With inflation moving in the right direction, wage growth slowing, and the jobs market softening a bit, it seems likely that the Federal Reserve has finished rate hikes for this cycle. That, coupled with weakening bond yields, should create an environment where mortgage rates can start a gradual, but steady decline throughout 2024. January rates for 30-year fixed-rate loans will probably straddle 7% — ranging from 7.1% to about 6.9% as the market finds its footing to begin the year.”
Mortgage interest rates forecast next 90 days
As inflation ran rampant in 2022, the Federal Reserve took action to bring it down and that led to the average 30-year fixed-rate mortgage spiking in 2023.
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With inflation gradually cooling, the Fed adjusted its policies with smaller and skipped hikes. Additionally, the economy showing signs of slowing has many experts believing mortgage interest rates will gradually descend in 2024.
Of course, rates could rise on any given week or if another global event causes widespread uncertainty in the economy.
Mortgage rate predictions for 2024
The 30-year fixed-rate mortgage averaged 6.62%% as of Jan. 4, according to Freddie Mac. All five major housing authorities we looked at project 2024’s first quarter average to finish above that.
The National Association of Home Builders sits at the low end of the group, predicting the average 30-year fixed interest rate to settle at 7.04% for Q1. Meanwhile, Fannie Mae had the highest forecast of 7.6%.
Housing Authority
30-Year Mortgage Rate Forecast (Q1 2024)
National Association of Home Builders
6.77%
Wells Fargo
6.85%
Fannie Mae
7.00%
Mortgage Bankers Association
7.00%
National Association of Realtors
7.50%
Average Prediction
7.02%
Current mortgage interest rate trends
Mortgage rates came down for the ninth consecutive week.
The average 30-year fixed rate increased from 6.61% on Dec. 28 to 6.62% on Jan. 4 The average 15-year fixed mortgage rate fell, going from 5.93% to 5.89%.
Get started shopping for mortgage rates
Month
Average 30-Year Fixed Rate
December 2022
6.36%
January 2023
6.27%
February 2023
6.26%
March 2023
6.54%
April 2023
6.34%
May 2023
6.43%
June 2023
6.71%
July 2023
6.84%
August 2023
7.07%
September 2023
7.20%
October 2023
7.62%
November 2023
7.44%
December 2023
6.82%
Source: Freddie Mac
After hitting record-low territory in 2020 and 2021, mortgage rates climbed to a 23-year high in 2023. Many experts and industry authorities believe they will follow a downward trajectory into 2024. Whatever happens, interest rates are still below historical averages.
Dating back to April 1971, the fixed 30-year interest rate averaged around 7.8%, according to Freddie Mac. So if you haven’t locked a rate yet, don’t lose too much sleep over it. You can still get a good deal, historically speaking — especially if you’re a borrower with strong credit.
Just make sure you shop around to find the best lender and lowest rate for your unique situation.
Mortgage rate trends by loan type
Many mortgage shoppers don’t realize there are different types of rates in today’s mortgage market. But this knowledge can help home buyers and refinancing households find the best value for their situation.
Find your lowest mortgage rate. Start here
Which mortgage loan is best?
The best mortgage for you depends on your financial situation and your goals.
For instance, if you want to buy a high-priced home and you have great credit, a jumbo loan is your best bet. Jumbo mortgages allow loan amounts above conforming loan limits, which max out at $ in most parts of the U.S.
On the other hand, if you’re a veteran or service member, a VA loan is almost always the right choice. VA loans are backed by the U.S. Department of Veterans Affairs. They provide ultra-low rates and never charge private mortgage insurance (PMI). But you need an eligible service history to qualify.
Conforming loans and FHA loans (those backed by the Federal Housing Administration) are great low-down-payment options.
Conforming loans allow as little as 3% down with FICO scores starting at 620. FHA loans are even more lenient about credit; home buyers can often qualify with a score of 580 or higher, and a less-than-perfect credit history might not disqualify you.
Finally, consider a USDA loan if you want to buy or refinance real estate in a rural area. USDA loans have below-market rates — similar to VA — and reduced mortgage insurance costs. The catch? You need to live in a ‘rural’ area and have moderate or low income to be USDA-eligible.
Mortgage rate strategies for January 2024
Mortgage rates displayed their famous volatility in 2023. Uncertainty in the banking sector led to downtrends, but ongoing inflation battles, Fed hikes and a hot job market drove growth.
Find your lowest mortgage rate. Start here
At its September and November meetings, the central bank held off on a rate hike, preferring to see if the economy would keep cooling organically. In December, the FOMC skipped a hike and projected cuts for 2024. As always, the committee said it would adjust its policies as necessary — which could mean additional hikes or possibly none at all.
Here are just a few strategies to keep in mind if you’re mortgage shopping in the coming months.
Be ready to move quickly
Indecision can lead to failure or missed opportunities. That holds true in home buying as well.
Although the housing market is becoming more balanced than the recent past, it still favors sellers. Prospective borrowers should take the lessons learned from the last few years and apply them now even though conditions are less extreme.
“Taking too long to decide to make an offer can lead to paying more for the home at best and at worst to losing out on it entirely. Buyers should get pre-approved (not pre-qualified) for their mortgage, so that the seller has some certainty about the deal closing. And be ready to close quickly — a long escrow period will put you at a disadvantage.
And it’s definitely not a bad idea to work with a real estate agent who has access to “coming soon” properties, which can give a buyer a little bit of a head start competing for the limited number of homes available,” said Rick Sharga.
Buyer demand is lower than a typical year, but the market usually heats up in spring and summer. Being decisive (and prepared) should only play to your advantage.
Shopping around isn’t only for the holidays
Since interest rates can vary drastically from day to day and from lender to lender, failing to shop around likely leads to money lost.
Lenders charge different rates for different levels of credit scores. And while there are ways to negotiate a lower mortgage rate, the easiest is to get multiple quotes from multiple lenders and leverage them against each other.
“For potential home buyers, it’s important to get quotes from multiple lenders for a mortgage, as rates can vary dramatically, especially during such a volatile period,” said Odeta Kushi.
As the mortgage market slows due to lessened demand, lenders will be more eager for business. While missing out on the rock-bottom rates of 2020 and 2021 may sting, there’s always a way to use the market to your advantage.
How to shop for interest rates
Rate shopping doesn’t just mean looking at the lowest rates advertised online because those aren’t available to everyone. Typically, those are offered to borrowers with great credit who can put a down payment of 20% or more.
The rate lenders actually offer depends on:
Your credit score and credit history
Your personal finances
Your down payment (if buying a home)
Your home equity (if refinancing)
Your loan-to-value ratio (LTV)
Your debt-to-income ratio (DTI)
To figure out what rate a lender can offer you based on those factors, you have to fill out a loan application. Lenders will check your credit and verify your income and debts, then give you a ‘real’ rate quote based on your financial situation.
You should get three to five of these quotes at a minimum, then compare them to find the best offer. Look for the lowest rate, but also pay attention to your annual percentage rate (APR), estimated closing costs, and ‘discount points’ — extra fees charged upfront to lower your rate.
This might sound like a lot of work. But you can shop for mortgage rates in under a day if you put your mind to it. And shaving just a few basis points off your rate can save you thousands.
Compare mortgage and refinance rates. Start here
Mortgage interest rate FAQ
What are current mortgage rates?
Current mortgage rates are averaging 6.62% for a 30-year fixed-rate loan and 5.89% for a 15-year fixed-rate loan, according to Freddie Mac’s latest weekly rate survey. Your individual rate could be higher or lower than the average depending on your credit score, down payment, and the lender you choose to work with, among other factors.
Will mortgage rates go down next week?
Mortgage rates could decrease next week (Jan. 8-12, 2024) if the mortgage market takes a cautious approach to a possible recession. However, rates could rise if lenders account for the Federal Reserve taking measures to counteract inflation or if a global event brings economic uncertainty.
Will mortgage interest rates go down in 2024?
If inflation continues to dissipate and the economy cools or goes into a recession, it’s likely mortgage rates will decrease in 2024. Although, it’s important to remember that interest rates are notoriously volatile and are driven by many factors, so they can rise during any given week.
Will mortgage interest rates go up in 2024?
Mortgage rates may continue to rise in 2024. High inflation, a strong housing market, and policy changes by the Federal Reserve have all pushed rates higher in 2022 and 2023. However, if the U.S. does indeed enter a recession, mortgage rates could come down.
What is the lowest mortgage rate right now?
Freddie Mac is now citing average 30-year rates in the 7% range. If you can find a rate in the 5s or 6s, you’re in a very good position. Remember that rates vary a lot by borrower. Those with perfect credit and large down payments may get below-average interest rates, while poor-credit borrowers and those with non-QM loans could see much higher rates. You’ll need to get pre-approved for a mortgage to know your exact rate.
Will there be a housing crash?
For the most part, industry experts do not expect the housing market to crash in 2023. Yes, home prices are over-inflated. But many of the risk factors that led to the 2008 crash are not present in today’s market. Low inventory and massive buyer demand should keep the market propped up next year. Plus, mortgage lending practices are much safer than they used to be. That means there’s not a subprime mortgage crisis waiting in the wings.
What is the lowest mortgage rate ever?
At the time of this writing, the lowest 30-year mortgage rate ever was 2.65%. That’s according to Freddie Mac’s Primary Mortgage Market Survey, the most widely used benchmark for current mortgage interest rates.
Should I lock my rate now or wait?
Locking your rate is a personal decision. You should do what’s right for your situation rather than trying to time the market. If you’re buying a home, the right time to lock a rate is after you’ve secured a purchase agreement and shopped for your best mortgage deal. If you’re refinancing, you should make sure you compare offers from at least three to five lenders before locking a rate. That said, rates are rising. So the sooner you can lock in today’s market, the better.
Is now a good time to refinance?
That depends on your situation. It’s a good time to refinance if your current mortgage rate is above market rates and you could lower your monthly mortgage payment. It might also be good to refinance if you can switch from an adjustable-rate mortgage to a low fixed-rate mortgage; refinance to get rid of FHA mortgage insurance; or switch to a short-term 10- or 15-year mortgage to pay off your loan early.
Is it worth refinancing for 1 percent?
It’s often worth refinancing for 1 percentage point, as this can yield significant savings on your mortgage payments and total interest payments. Just make sure your refinance savings justify your closing costs. You can use a mortgage calculator or speak with a loan officer to crunch the numbers.
How do I shop for mortgage rates?
Start by choosing a list of three to five mortgage lenders that you’re interested in. Look for lenders with low advertised rates, great customer service scores, and recommendations from friends, family, or a real estate agent. Then get pre-approved by those lenders to see what rates and fees they can offer you. Compare your offers (Loan Estimates) to find the best overall deal for the loan type you want.
What are today’s mortgage rates?
Mortgage rates are rising, but borrowers can almost always find a better deal by shopping around. Connect with a mortgage lender to find out exactly what rate you qualify for.
Time to make a move? Let us find the right mortgage for you
1Today’s mortgage rates are based on a daily survey of select lending partners of The Mortgage Reports. Interest rates shown here assume a credit score of 740. See our full loan assumptions here.
California-based Pennymac Financial Serviceshas hired Kristy Dickey, a former executive at Citizens Bank, as first vice president of TPO sales.
Dickey will be responsible for growing the lender’s broker division and support its brokers and non-delegated partners, the firm said.
A total of five additional senior account executives joined Dickey. The new hires joined Pennymac after Citizens exited the wholesale channel in November.
Dickey brings more than two decades of financial industry experience to the position.
For more than 10 years, she served as vice president and regional manager for the Southeast at Citizens, formerly Franklin American Mortgage which was acquired in 2018.
Prior to that, Dickey worked for SunTrust Mortgage for more than 15 years, and left as regional sales manager.
She also serves on the National Association of Mortgage Brokers (NAMB) Corporate Board of Governors and is a member of Inspire, NAMB’s networking group for women in the workforce.
“Kristy’s proven talent, track record and enthusiasm for what we intend to achieve in 2024 will continue to drive our ‘tech forward, human focused’ approach home. We look forward to having Kristy lead and inspire our team, while providing best-in-class service to our partners,” said Kim Nichols, chief TPO production officer.
Pennymac TPO is the country’s second largest third-party originator trailing United Wholesale Mortgage (UWM), per Inside Mortgage Finance estimates. Most of its volume comes through the correspondent channel.
Production volume came in at around $68.8 billion in the first nine months of 2023, which gave the lender 14.4% market share in the TPO space.
Stash is an app for both Android and iOS that was born out of the simple question: Why don’t more people invest their money? This seemingly simple question can have a myriad of answers depending on who you ask.
Stash tries to overcome these obstacles with a well-designed app that provides easily understood solutions without breaking the bank.
For many, the barrier for entry for investing in stocks can be incredibly high. Whether it’s high minimum investments or hefty fees, many people find that investing is not affordable. Moreover, it can also be incredibly confusing.
There’s a lot of jargon out there, and many people don’t know the difference between a stock and a bond, let alone how to read a stock ticker. The Stash app aims to solve both of these issues by making investing both affordable and accessible.
Intrigued? Keep reading to learn more.
Why is investing important?
Before we talk about why to invest with Stash, let’s briefly talk about why you should invest at all. Whether you know it or not, if you have a job, you are already likely investing a portion of your money.
Thanks to President Franklin D. Roosevelt, who signed the Social Security Act in 1935 following the Great Depression, a portion of our payroll tax is allocated towards securing retirement benefits. Both employees and employers contribute to this system, with each paying a percentage of an employee’s paycheck into Social Security to ensure future retirement benefits.
Social Security is designed as a safety net for the elderly and the disabled. It is relied upon by millions of Americans as a portion of income once reaching retirement age.
According to a study by the Economic Policy Institute, almost half of Americans have no retirement savings other than Social Security. Predictably, low-income families are disproportionately affected by this trend.
Due to an inability to afford to save money and a lack of understanding of investment options, a large portion of our population is unprepared for their future. But it doesn’t have to be this way, and Stash is on its way to bridging the investment gap in America.
What Stash Does Differently
While Stash Invest is not the only low fee, easy to use investment app on the market, they educate their customers and show them how to invest and save money. This app is not designed for the seasoned investor.
The premise is for Stash to provide you with access to exchange-traded funds (ETFs), which are investment funds that allow you to buy a portion of stocks through a portfolio.
Signing up for Stash is not as easy as just signing in with Facebook. One of the main complaints about the app in Google Play is the invasive information they request. This includes banking information, your address, and even your Social Security number.
While it’s not usually recommended to hand out this type of information to an app on your phone, Stash is bound by federal law, including the Patriot Act, to collect this information.
It is a necessary evil, unfortunately, but one mitigated by the fact that they use 256-bit encryption and your securities are protected up to $500,000. Additional security features include a PIN of your choosing that you must enter every time you open the app.
This is beneficial whether your phone is stolen or your toddler is button mashing your phone while playing angel investor.
Stash’s Key Features
Minimum investment: $5
Fees: As little as $1 per month if you choose the beginner plan
Accounts offered: Traditional IRAs, Roth IRAs, checking account
Other benefits: The mobile app is available on iOS and Android phones
Promotions: You can get $5 for free for signing up with Stash
Understanding Pricing
Stash offers three different pricing models, depending on where you’re at in your investing journey. Here is a brief overview of each:
PLAN
BEGINNER
GROWTH
STASH+
Cost
$1 per month
$3 per month
$9 per month
Personal Investment Account
x
x
x
Debit Card
x
x
x
Rewards program
x
x
x
Online Resources
x
x
x
Tax Benefits
x
x
Investment Account for Two Children
x
Exclusive Metal Debit Card with Cashback Rewards
x
Monthly Market Insights
x
How Stash Works
When you first sign up for Stash, you’ll be asked about your investing style. You can choose from conservative, moderate, or aggressive. This helps tailor your portfolio options based on the amount of risk, and potential return, that is acceptable to you.
Determining your risk tolerance is only one way Stash helps you choose your investment strategy. Next, they’ll ask you how much and how often you’d like to invest. You can choose to invest as little as $5 at a time on a weekly, bi-weekly, or monthly schedule.
Knowledge is Power
While we know that you didn’t install Stash just for the articles, there is a wealth of knowledge to be found here. Under the “Learn” section of the drop-down menu are dozens of well-written articles designed to teach you how to invest. Stash is designed for the beginner, and these articles can show you the ins and outs of an investment strategy.
From “What’s a Capital Gain?” to “How to Invest Like an Activist,” Stash spends a great deal of time into turning you into an investment professional. Many people choose apps like Stash because of their simple-to-use nature, and set-it and leave-it design.
This is great for those dipping their toes in for the first time, but Stash realizes that you may want to be more than just a casual investor. Think of it as a bootcamp for the uninitiated.
Whether you want to learn what interest rate hikes mean to you or better understand certain investment portfolios, Stash allows you to invest your time to learn as well as your money to earn.
Stash Retire
While Stash has some heavy hitters behind it, it’s still only two years old and a bit of a one-trick pony.
However, Stash is now in the process of launching Stash Retire, which will add Roth IRAs into the mix. A Roth IRA is an individual retirement account that, as long as you meet certain criteria, is not taxed when you start to make withdrawals.
This option from Stash is still in development and while they appear to be reaching certain milestones, it is not yet available.
Still, it’s an indication that Stash is growing. Couple that with Stash’s latest funding round, which saw investment from PayPal co-founder Peter Thiel, it’s easy to assume that Stash is here to stay.
Stash Custodial
You can open a custodial investment account for kids under 18 years old. Stash Custodial can be used by the child once they reach adulthood, which can be anywhere between 18 and 25, depending on the state in which they live.
There’s no limit to your annual contributions, and it doesn’t have to be used for education. The money can be invested in stocks, bonds, mutual funds, and ETFs.
Who should invest with Stash?
Overall, Stash Invest is designed to help the would-be investor. If you have money sitting in a savings account or if you’re just starting to think about your future, Stash is a great place to start investing. They make it easy to put money into portfolios that are of interest to you. They are also adept at making the confusing world of finance and investing easy to understand.
With the inclusion of a plethora of articles designed to teach you about investing, it’s also a great place to learn. Use it not just to easily invest your money, but as a resource that allows you to grow your knowledge with your money.
Stash’s simplified fee structure can be a low gateway into the world of investing. Your first two months are free, and they only charge $1 per month up to $5,000 and .025% above that number.
This is pricey if you are just starting out. If you’re investing $5 per month, that’s 20% of your investment in the beginning. Stash can be a great option if you can get your balance higher before they start charging you fees.
Bottom Line
All in all, Stash is a great app for the beginning investor. There are certainly better options out there for people already familiar with investing, but with over half of Americans having no investment at all, it could be a great start for you.
Stash is also growing and beginning to offer more investment options such as Stash Retire, so they may grow with you. If not, use Stash as a learning tool and springboard into the heady world of investment finance.