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Average mortgage rates came down on all loan terms from a week ago, according to rate data compiled by Bankrate. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans all dropped.

The average rate on the popular 30-year fixed-rate loan at times exceeded 8 percent in recent weeks, following a jump in 10-year Treasury yields. After a period of record lows, mortgage rates climbed in 2022 as inflation spiked and the Federal Reserve responded aggressively. The Fed last hiked its key interest rate in July, which brought up borrowing costs on a variety of financial products, including mortgages.

The central bank held firm on another rate hike this month, indicating it expects rates to stay on the higher side for the foreseeable future.

“To have the full effect of keeping interest rates higher for longer, the Fed will maintain a posture that rates could go higher and that any rate cuts are quite a ways off,” says Greg McBride, CFA, Bankrate chief financial analyst.

The rise in mortgage rates comes alongside appreciating home prices, both of which have kept homebuyers on the sidelines. More than half of home purchase mortgages originated in July had a monthly payment over $2,000, according to Black Knight. Twenty-three percent of originations in July had a payment over $3,000. The affordability squeeze is stretching budgets, and keeping many first-time homebuyers out of the market altogether.

Rates as of November 9, 2023.

The rates listed above are Bankrate’s overnight average rates and are based on the assumptions shown here. Actual rates available on-site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Thursday, November 9th, 2023 at 7:30 a.m.

30-year mortgage declines, -0.19%

Today’s average 30-year fixed-mortgage rate is 7.83 percent, down 19 basis points from a week ago. This time a month ago, the average rate on a 30-year fixed mortgage was higher, at 7.89 percent.

At the current average rate, you’ll pay a combined $721.95 per month in principal and interest for every $100,000 you borrow. That’s down $13.21 from what it would have been last week.

Use the loan widgets on this page or head to our primary rates page to see what kind of rates are available in your situation. You just need to give us a little information about your finances and where you live. With that data, Bankrate can show you real-time estimates of mortgages available to you from a number of providers.

15-year mortgage rate retreats, -0.08%

The average 15-year fixed-mortgage rate is 7.12 percent, down 8 basis points since the same time last week.

Monthly payments on a 15-year fixed mortgage at that rate will cost roughly $906 per $100,000 borrowed. That may squeeze your monthly budget than a 30-year mortgage would, but it comes with some big advantages: You’ll come out several thousand dollars ahead over the life of the loan in total interest paid and build equity much more rapidly.

5/1 adjustable rate mortgage declines, -0.14%

The average rate on a 5/1 ARM is 6.97 percent, ticking down 14 basis points over the last week.

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

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

Monthly payments on a 5/1 ARM at 6.97 percent would cost about $663 for each $100,000 borrowed over the initial five years, but could increase by hundreds of dollars afterward, depending on the loan’s terms.

Jumbo mortgage rate declines, -0.17%

The average rate for the benchmark jumbo mortgage is 7.83 percent, down 17 basis points from a week ago. This time a month ago, the average rate for jumbo mortgages was higher, at 7.92 percent.

At the current average rate, you’ll pay $721.95 per month in principal and interest for every $100,000 you borrow. That represents a decline of $11.81 over what it would have been last week.

Interested in refinancing? See rates for home refinance

30-year mortgage refinance trends down, -0.12%

The average 30-year fixed-refinance rate is 7.96 percent, down 12 basis points compared with a week ago. A month ago, the average rate on a 30-year fixed refinance was higher, at 8.08 percent.

At the current average rate, you’ll pay $730.98 per month in principal and interest for every $100,000 you borrow. That’s a decline of $8.37 from last week.

Where are mortgage rates heading?

Most rate watchers polled by Bankrate predict mortgage rates will rise this upcoming week. Looking to the remainder of the year, some forecasters still expect to see rates decrease, but the state of the U.S. economy and rising 10-year Treasury yields will be key factor.

30-year fixed mortgage rates mostly follow the 10-year Treasury yield, which shifts continuously as economic conditions dictate, while the cost of variable-rate home loans mirror the Fed’s moves.

“Economic data that is not too hot and not too cold would be helpful to mortgage rates and could get rates back down below 7 percent,” says Greg McBride, chief financial analyst for Bankrate, adding, “but that has to be true for inflation, job growth, wages and consumer spending.”

What these rates mean for you and your mortgage

While mortgage rates move up and down on a daily basis,, there is some consensus that we won’t see rates return to 3 percent for some time. If you’re shopping for a mortgage now, it might be wise to lock your rate when you find an affordable loan. If your house-hunt is taking longer than expected, revisit your budget so you’ll know exactly how much house you can afford at prevailing market rates.

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

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

More on current mortgage rates

Methodology

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

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

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

Source: bankrate.com

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U.S. credit card balances continued to climb above $1 trillion last quarter, while the number of newly delinquent credit card users now tops the pre-pandemic average, a new report shows.

The uptick in borrowers who have fallen at least 30 days behind on their card payments appears to cut across income and geography, but it is “disproportionately driven” by millennials, credit card users with auto or student loans and those with higher credit card balances, the Federal Reserve Bank of New York said Tuesday in its third-quarter report on household debt and credit.  

Millennials, who were born between 1980 and 1994, are now moving into credit card delinquency status at a higher rate — 0.4% — than they were in the third quarter of 2019, according to the report. The potential reason for the higher rate may come down to urgent bills — housing, education, child care — that may take precedence over paying off credit cards.

“Those are all reasons why young adults are struggling,” said Ted Rossman, a senior industry analyst at Bankrate.com who specializes in credit card trends. “It’s a cumulative effect. If you’re paying so much more for these things, it makes sense that credit card payments might slip.”

Researchers at the New York Fed said Tuesday that they are planning to do more research into why millennials are experiencing higher rates of delinquency compared to other generations. 

One factor could be that older generations, who are more likely to be homeowners, may have benefitted from mortgage refinancing in recent years that lowered their monthly housing costs. Millennials, many of whom may not be homeowners yet, are dealing with higher rent costs.

Overall, household debt, including credit card balances, mortgages, auto loans and student loans, totaled $17.29 trillion in the third quarter, an increase of 4.8% year over year. Balances have grown by $3.1 trillion since the end of 2019, just before the pandemic started.

For the second consecutive quarter, credit card balances exceeded the $1 trillion mark, rising to $1.08 trillion as of Sept. 30, up from 16.1% from a year earlier, the New York Fed found. Credit card balances were $1.03 billion the prior quarter, up from $980 billion in the first quarter.

About 2% of all card users went from “current” status in the second quarter to 30 or more days past due in the third quarter, the report said. That’s up from 1.7% in the first and second quarters of this year, and it’s higher than the third quarter average of 1.7% between 2015 and 2019.

The increase in credit card delinquencies last quarter comes on the heels of what had appeared to be a stabilization of past-due payments, particularly among subprime borrowers who in general have been more likely than other borrowers to be late on their card payments.

During the third quarter, the rates of transition into delinquency status increased for all loan categories except student loans, the New York Fed found. About 8% of credit card balances moved into delinquency status, with borrowers between the ages of 30 and 39 seeing the sharpest increase in credit card delinquency for the quarter, according to the report.

Banks as a whole are not yet sounding alarm bells about rising credit card delinquencies. But several are pointing to “normalization” trends that include an uptick in past-due payments.

At Capital One Financial in McLean, Virginia, the 30 days’ past due delinquency rate increased to 4.31% during the third quarter, up 134 basis points from the same quarter in 2022, Chairman and CEO Richard Fairbank said on the company’s third-quarter earnings call. The monthly delinquency rate and monthly charge-off rate are “now modestly above 2019 levels,” he added.

Meanwhile, Synchrony Financial of Stamford, Connecticut, said its 30-day and 90-day past-due payments are now “approaching 2019 levels” as credit trends continue to return to normal. 

“Overall, our credit performance remains within our expectations,” Chief Financial Officer Brian Wenzel Sr. told analysts during the firm’s third-quarter earnings call. At the same time, the $113 billion-asset card issuer is “continuously monitoring” its card portfolio and has “implemented further credit actions,” such as tightening some of its loan origination criteria, Wenzel said.

Rossman of Bankrate.com called the overall increase in card balances “striking,” but added that “all things considered, I think the consumer has hung in there a lot better than expected.”

Still, he’s beginning to wonder when the impact of inflation and higher interest rates will widely, and negatively, impact consumers, who are by and large still in spending mode, he said. 

The job market will be one area to keep watching, he said.

“I do think we’re getting closer to a tipping point in terms of excess savings, which has pretty much been exhausted at this point,” he said. “We’re getting to the point where something has to give. People will have to spend less or these debts and loans are going to become increasingly difficult.”

Source: nationalmortgagenews.com

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As a Homes writer and interior design obsessive, I love nothing more than spending my downtime decorating or sprucing up our family home. And whether you live in a cozy apartment or palatial house, we all want to create our ideal abode. Trouble is, when you don’t know where to start, it all can all seem rather overwhelming. 

While pulling a room together may seem easy on Instagram or social media, there are some basic rules and tips I’ve learned over the years. These top tips will help you achieve the right balance of functionality yet still look stylish. What’s more, these clever design ideas will instantly transform your space, regardless of size, without having to spend a fortune on an expensive renovation!

I’m obsessed with home makeover shows — and these are the 3 mistakes people always make. 

1. Go big with mirrors  

Large mirror in bedroom (Image credit: Shutterstock)

One of my favorite tricks is the power of mirrors. I absolutely love using mirrors in my home, and the bigger the better. Mirrors are a great way to reflect the natural light across the room,  make a small room look bigger, and feel airy and more open. For effective results, lean a large mirror against a wall opposite a window so the light will bounce off it. In small spaces, opt for mirrors that go from floor to ceiling to maximise the light. 

In addition, if you want to brighten a dark room, a mirrored wall will also do the trick. Wall-mounted mirrors work well to reflect light, give the illusion of a bigger space, and instantly make your room feel open and airy. More importantly, it will give your blank wall a stylish and contemporary makeover.  

While glass can often be problematic if you have children and pets running around, you can choose plexiglass acrylic mirror. Bendable acrylic wall mirrors much like this Shatterproof Wall Mirror ($29, Amazon), are designed to be safer and won’t get accidentally broken or damaged. 

Alternatively, if you don’t have a mirror, any reflective surface such as stainless steel, glass and metallic accessories will do the job.

2. Buy the right-sized furniture for the space

Big sofa in small space (Image credit: Shutterstock)

Have you ever bought something for your home, only to find out that it’s way too big (or small) for the room? That’s why it’s important to always check the dimensions of furniture before buying, and find a style that’s in proportion to the room. So if your space is too compact for a conventional, rectangular dining table, a circular table will take up less room. 

Getting the proportion right can be tricky if you’re buying furniture/decor online, and the reality is far different from the pictures! You may find it helpful to use an AR app such as IKEA Place to get a better idea of how an item of furniture will fit into the space you have.

Another top tip is to elevate your furniture. Instead of heavy-set pieces of furniture, and cumbersome sofas — especially in compact rooms, choose sofas and armchairs with narrow arms, and raised on taller legs. The trick here is when you see more floor underneath, it will give the illusion of a bigger room, and allow natural light to flow better.

In fact, buying the wrong-sized furniture is one of the top decor mistakes that are making your home look smaller than it is.  

3. Make use of vertical space 

Bathroom items in storage boxes (Image credit: Shutterstock)

Furniture doesn’t always have to be spread out. Another top tip is to utilize vertical space — especially if you lack floor space or have a compact room. Depending on how strong your walls are, you can easily wall mount floating wall shelves, vertical cabinets, or clever storage units to free up valuable floor space. 

For home offices, hanging smaller things on wall-mounted rails can be handy, as you’ll have more desk space making it less cluttered. And for small bathrooms, wall-mounted storage is one of the things organized people keep in their bathrooms. Just don’t forget to check what’s behind the wall before you start drilling holes everywhere! 

There are also plenty of stackable storage ideas to keep everything in order. For instance, if you want to keep children’s toys tidy, storage organizers like this Humble Crew Extra-Large Toy Organizer ($79, Amazon), will save you valuable space.  

4. Layer your fabrics 

Sofa with throws and cushions (Image credit: Shutterstock)

There’s nothing better than coming back to a warm and relaxing home to snuggle in. And layering up with chunky throws, soft blankets and plush cushions on sofas and beds work well to achieve that cozy factor. 

In addition, it’s good to mix-and-match the textures and color scheme so that everything doesn’t look the same. You want to create an inviting feeling that is also aesthetically pleasing. 

Interestingly, soft furnishings are one of the clever ways to reduce noise in your home. Plush furniture like an upholstered sofa, bench or even plump cushions work well to ‘soften’ an area — diffusing unwanted sounds. Thick rugs on hardwood floors can also help to block out some noise, and also prevents furniture from making much noise when it’s moved around. So it’s a win-win! 

5. Conceal the clutter  

Storage stool and basket in living room (Image credit: Shutterstock)

When designing a space, we often forget about functionality, and practical storage solutions. To avoid cluttered spaces, conceal the clutter with multi-purpose furniture such as ottoman benches, blanket boxes or woven baskets. These are clever ways of hiding clutter, as well as doubling up as extra seating or a handy footstool for your guests. Plus, if you have cluttered shoes piling up by the front door, here’s 7 space-saving ways to organize shoes in your entryway.

In addition, if you have unsightly cables or items lying around, there are plenty of creative ways to disguise ugly items in your home. These include things like cable management organizers or sleeves, soap dispensers, or attractive tissue box covers. 

And if you have one of the best TVs for family entertainment, cozy movie nights or a decent gaming session, check out these clever ways to decorate around a TV. 

6. Don’t overcrowd your walls 

Gallery wall in living room (Image credit: Shutterstock)

Whether it’s family photographs, abstract wall art, or stylish posters, pictures on the walls can add a personal touch. However, there is a danger of going overboard with the gallery wall — making your walls look like an eyesore. 

When learning ways to decorate a blank wall, it’s advisable to stick to the ‘odd number rule’ when displaying pictures. So rather than hanging in even numbers, stick to three or five on one wall, or even one large frame. This rule is considered to be more visually appealing, and looks less cluttered. If you want to hang two pictures side by side however, make sure the frames are identical, and hung at the same height. Although this should really be 57 inches, generally, pictures should be hung at eye-level. 

Secondly, if you just want to hang one large wall art, position it so that the center of the artwork is approximately 48-56 inches from the floor. However, if it’s positioned above a sofa or table, the bottom of the frame should begin at least 6-12 inches above the back of the sofa or tabletop.

Peacock chair in room  (Image credit: Shutterstock)

If you follow decor trends on social media or TV shows, it can be easy to get carried away with buying things on impulse. By definition, trends come and go, and just because everyone is doing wood panelling, doesn’t mean it will look good in your home! 

Define your personal style, and keep your interior scheme simple and classy. After all, less is more! It’s always best to stick to neutral styles, tones or accessories, and incorporate bursts of bold color in soft furnishings, accessories or even lush houseplants. This way, you can change it up whenever you feel like it, or style your home according to the changing seasons.

What’s more, splurging on the latest trends and new furnishings just for the sake of it can make your home look cheap, according to interior designers. 

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Source: tomsguide.com

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Can you negotiate rent? The short answer is yes. After all, you never get anything unless you ask for it.

So, how do you go about negotiating rent? Rental negotiations can be tricky, so it’s always in your best interest to be strategic when talking to landlords. Here are different ways to negotiate rent, gain bargaining power, take action and (hopefully) get a lower rent from your property manager.

1. Understand the rental market

The first step in negotiating rent is to do your research ahead of time. Look around and understand what surrounding apartment rates are. Compare apples to apples. If you’re interested in a new development, then look at other new developments.

Make sure you have a clear understanding of the amenities that are available and how they compare to the unit you’re considering. For example, if one neighboring apartment complex offers covered parking, a gym and a pool, you’ll want to compare that to an apartment complex with similar offerings. After all, those amenities increase the price of rent. Make this info known to your property manager.

Rental rates are not a secret, but they can change from day to day. Get a competing rate in writing if you can, and if it’s lower than the one being offered, have it with you when you go to negotiate. A lower rate in a similar apartment is a great tool for negotiating a lower price on your own apartment.

2. Consider the time of year

For property managers, timing is everything and there are seasonal trends in the moving and rental industry. In other words, think about the broader supply and demand trends during any given season.

If it’s the end of the month, vacancies are high and you’d be willing to leave if you don’t get what you want, that could be a time when a manager is more likely to be amenable to your offer. However, if you don’t have an alternate place to move ahead of time, you may not want to start negotiating rent until something else is lined up.

As a rule of thumb, winter is usually a good moment to broach the topic of cheaper rent, as it’s harder to find tenants during that time of year. Summer is peak rental season, so you’ll need to be a little more persuasive if you’re trying to negotiate rent during the peak moving season.

3. Sell yourself as a good tenant

Looking for another lesson on how to negotiate rent? If you’ve never rented in that particular complex a few letters of recommendation from personal references will go a long way toward convincing a manager you’d be a tenant worth having, even at a lower rate.

Think of it as a resume for your living situation. Get a letter from previous landlords or apartment managers that says you make on-time rent payments and cause them no problems. Get letters that speak to your character from a former boss, neighbor, or someone in a non-profit organization or church. Just like in a job interview, these professional references can help you negotiate rent and sell yourself as a good tenant for your potential new landlord.

If you’re trying to renew your existing lease at a better rate, remind the manager that you’ve always paid your rent on time and anything else that’s positive. Have you kindly alerted them to maintenance concerns? Have you helped in an emergency? Have you assisted during holiday parties? These situations can go a long way and help you lower the cost of rent on your upcoming lease.

4. Exchange value for price

What’s a lower rent price worth to you? Would you consider doing something above and beyond paying rent that offers tangible value to your property manager?

Think of jobs or tasks around the property — maintenance, cleaning, administrative, marketing — that would increase the underlying value of the owner or manager’s investment. Helping with some of these activities could cut down on expenses and thus, justify the price reduction you’re looking for.

Another “how to” negotiate your rent tip is to bargain with amenities and other things of value. Are you willing to give up your parking space to reduce rent each month? Or, can you pay six months of rent upfront or in cash? Would you be willing to sign a longer lease at a lower rate?

Think like a manager. Everything has a value and most everything is fair game to negotiate or trade with. Don’t be afraid to ask what your manager needs. If he or she has flexibility in pricing (and they usually do), then you might be able to help each other.

5. Experiment with the lease terms

Offering a different move-out date, extending your lease term or reworking the end of your lease term to fall during high season (spring or summer) are some of the ways you may be able to play with lease dates and terms that might be attractive to a leasing manager.

Get your negotiation in writing

As with many things in life, you can ask for and negotiate anything — including rent. If you’re a good tenant, can be persuasive and ask for what you want and need, you can negotiate the terms of your lease and rent prices and walk away with a lower rental rate.

After you’ve worked out a reduced rate with your landlord, make sure you get the new deal in writing so you have a paper trail and proof of your newly negotiated rate.

FAQs around rent negotiations

Rent negotiations are tricky and require a wealth of knowledge and understanding.

How can I negotiate rent for a rent-controlled apartment?

Negotiating rent for a rent-controlled apartment is different. In these cases, research local rent control laws and regulations to understand your rights and limitations. While you may not have as much room for negotiation on the base rent, you can explore negotiations on other aspects, like utilities or improvements.

How can I negotiate rent if I have a low credit score or a poor rental history?

If you have a low credit score or a poor rental history, you can still negotiate rent. Tips to overcome this include offering to pay a larger security deposit, providing a co-signer or demonstrating your commitment to improving your credit and rental history. This can help build trust with the landlord and potentially secure a lower rate.

What if my landlord refuses to negotiate the rent?

If your landlord is unwilling to negotiate the rent, consider proposing alternative terms, such as a longer lease or prepayment of rent. If negotiations remain unsuccessful, you may need to decide whether you’re willing to accept the current rent or look for another rental property.

Can you negotiate rent? It’s worth a shot!

Negotiating rent is not only possible but also a valuable skill for renters. By following these steps, you can strategically and effectively negotiate your rent with confidence. Understanding the rental market, considering the timing of your negotiation and presenting yourself as a desirable tenant are essential elements in the process. Remember, communication is key in this process, and being prepared, courteous and persistent can lead to a mutually beneficial agreement with your landlord.

The information contained in this article is for educational purposes only and does not, and is not intended to, constitute legal or financial advice. Readers are encouraged to seek professional legal or financial advice as they may deem it necessary.

Wesley is a Charlotte-based writer with a degree in Mass Communication from the University of South Carolina. Her background includes 6 years in non-profit communication and 4 years in editorial writing. She’s passionate about traveling, volunteering, cooking and drinking her morning iced coffee. When she’s not writing, you can find her relaxing with family or exploring Charlotte with her friends.

Source: rent.com

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Northwestern Mutual Study Finds Gen Z Wants to Talk About Family Finances Far Earlier than Previous Generations Gen Z trusts family members and advisors – and not “FinTok” influencers – for financial advice Millennials want to talk to parents about wills, life insurance, inheritance and long-term care plans a full decade earlier than Boomers+ MILWAUKEE, … [Read more…]

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Rental, Renovation, Fee Collection, Subservicing, Verification Tools; Training and Events

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Rental, Renovation, Fee Collection, Subservicing, Verification Tools; Training and Events

By:
Rob Chrisman

2 Hours, 11 Min ago

Yes, WeWork has filed for bankruptcy, but if you look at GDP and employment, our economy is doing pretty well. Did you know that the Dallas metro area is home to the headquarters of companies responsible for originating 78 percent of residential volume? You probably didn’t, as I just made that up out of thin air. Texas’ growth and not having state income tax both help. Here in Dallas at the TMBA Education Symposium, there is plenty of discussion about the industry incorporating non-traditional products into their lineups, such as reverse mortgages, bond programs, buydowns, renovation loans, construction to perm financing, and jumbo loans, all have value to lenders. Meanwhile, loan originators are looking at a “full stack” loan origination & processing platform like Realfinity.io to go “independent” allowing them to get the most competitive pricing directly from wholesale lenders with no overlays due to corporate expenses. (No, this is not a paid ad… Check out this WSJ article which really opened my eyes. To learn more about going independent reach out to Luca Dahlhausen.) Today’s podcast can be found here, and this week is sponsored by nCino makers of the nCino Mortgage Suite. With three products tailored to the needs of the modern mortgage lender, nCino Mortgage, nCino Incentive Compensation, and nCino Mortgage Analytics unite the people, systems, and stages of the mortgage process. Hear an interview with nCino’s Jay Arneja on the company’s rebrand and the seamlessness of the nCino Mortgage Suite.

Lender and Broker Software, Products, and Services

Is down payment assistance (DPA) actually making an impact in a brutal housing market? The answer is a resounding “yes” according to a newly released Urban Institute (UI) study. UI partnered with Down Payment Resource (DPR) to analyze 2022 HMDA data and DPA data from the 10 largest MSAs. Among the findings, 43.6% of purchase loans were potentially DPA-eligible. 36.7% of declined loans fell through because of DTI. 30.7% of declined loans (46,370) could potentially have been salvaged with DPA. This is especially relevant because it shows that DPA can prevent more declined loans by improving DTI ratios, a growing issue as interest rates rise. To get insight into how many DPA programs are available to help you save declined loans in your service area, schedule a demo with the DPR team.

Servbank is dedicated to creating excellence with every customer and client experience. Having personally experienced how subpar service can negatively impact your businesses and brand, we have consistently elevated our own standards through substantial investments in our people and technology to ensure we are delivering a consistent, best-in-class experience at every interaction point. Our efforts have yielded remarkable results: a 92% first-call resolution rate, a 99% customer satisfaction score, an 85% Net Promoter Score, with wait times of under 10 seconds. This forward-thinking commitment to creating excellence with every experience has positioned Servbank as a market leader and one of the nation’s 10 largest subservicers. As a genuine, collaborative partner, Servbank has the capability and determination to enhance your brand, keep your customers loyal, and improve your bottom line. Ready for a subservicer who goes above and beyond? Partner with Servbank.

Now available: New MERS® Automated Lien Release™ Now, loan servicers and sub-servicers can optimize efficiency and accuracy on process lien releases, all while significantly lowering cost, with the recently announced MERS® Automated Lien Release. Leverage the combined power of the MERS® System and the Simplifile® Document Builder lien release framework to streamline the lien release process for loans registered with MERS®. When a paid-in-full transaction is completed on the MERS® System, this triggers the creation of a compliant lien release package and processing workflow in Document Builder. With pre-populated compliant document templates, Automated Lien Release ensures accuracy and compliance with the latest regulatory requirements. By leveraging the loan updates already sent daily to MERS®, the solution is compatible with the servicing platform you use today, alleviating implementation challenges. Click here to learn more.

While the industry strives for a “fully digital” real estate transaction experience, we cannot lose sight of how important it is to make it easier for loan officers and other staff members to do their jobs. The experts at ICE understand this, which is why any new solution that is developed prioritizes the back-office experience just as much as the front-end experience. As EVP of Product Strategy Sandra Madigan tells HousingWire in a new interview: “You can put the most incredible technology in front of the consumer, but if you don’t work on streamlining the back-end part of the process, you have not delivered effective technology.” Read her full interview here, and see how ICE Mortgage Technology is digitizing the mortgage and servicing processes, while still providing the human-guided experience borrowers want.

It’s no secret. The industry is going through tough times, and Xactus, the leading verifications provider, is here to help guide you in navigating through these challenges. It anticipates credit costs will soon increase as much as 30-100 percent due to several external factors including inflation and out-of-pocket fees. This will, in turn, have a far-reaching impact on all lenders. At the MBA Annual, we heard a lot of “Survive until ’25.” But how is a lender supposed to do that with these rising costs? One way is to work with a partner like Xactus who has the experience to help you strategically review processes to efficiently and cost-effectively manage milestones, improve workflows, optimize outcomes and enhance margins. The right partner can even assist you with capturing market share by helping you mine leads within your existing portfolio and identify more prospects. That’s how lenders will survive until ’25 and eventually thrive. Collaborate more in ’24 with Xactus. Email Xactus today to schedule a consultation!

Sagent’s Five Principles for the Future of Servicing. A better homeowner experience begins, ends, and emanates out of simplified, unified operations, a key component as Sagent delivers on their future-of-servicing model for the industry at large. Check out their COO Marianne Sullivan’s latest blog, where she shares relevant intel about how an open ecosystem provides open opportunities to power a better customer experience while reducing total operational costs and powering real-time compliance for servicers. Read the full piece here where she breaks down their 5 guideposts for servicing innovation. (Spoiler alert: end-to-end servicing tech IS the future.)

Click button, collect fee. It’s as easy as that with Fee Chaser. No more missed appraisal fees. No more awkwardly taking down credit card numbers over the phone. No more data entry into the LOS. With Fee Chaser’s integration into Encompass® by ICE Mortgage Technology™, borrowers get a text message to pay a fee, and everything’s automatically updated including a receipt into the eFolder. Check out the borrower experience here.

Broker and Correspondent Programs

Every lender is looking for a competitive advantage in today’s tight lending environment. With AFR Wholesale® (AFR) take your Delegated Correspondent business to the next level. With competitive best effort and mandatory pricing, our partners can maximize their profitability. AFR will purchase a diverse program catalog, including completed Renovation, Construction, and Manufactured Homes on all program types. We are fully integrated with BAM and Resitrader for those who wish to shadow bid on their loans prior to signing up. Activate AFR in your pricing engine or contact the AFR Bulk Bid desk today or 973-298-8003. Not yet a partner? Sign up today to start taking action! Have questions? Contact AFR at afrwholesale.com, email us or call 1-800-375-6071.

Long-term Rental or Vacation Rental? Visio Lending is the nation’s leader in Non-QM Investor DSCR loans for buy and hold SFR rentals with nearly a decade of experience and over $2.5 billion in originations. No-DTI, 30-year terms, rate buy downs, free 45-day rate locks; I/O and Sub-1 DSCR options available. Through our top-notch Broker Program, brokers are able to earn up to 2 points YSP, and 5 points total. Visio Brokers can count on a designated Account Executive and in-house processing.

Training and Events, In-Person or Virtual

Deephaven Mortgage invites you to join its educational webinar “Opportunities in Today’s Mortgage Market With Deephaven and CoreLogic” on November 9th at 1:00 pm EST. Chief Sales Officer Tom Davis with Deephaven Mortgage and Chief Economist Selma Hepp, PhD at CoreLogic will discuss opportunities in today’s challenging mortgage environment. Selma brings extensive experience in analytics offering actionable and straightforward insights that are important to know. Selma and Tom will provide an update on the housing market, forecasts, demographic trends, and the non-QM products to expand offerings and increase volume. Don’t miss it! Register today.

A good place for longer term conference planning is to start is here, and click on “events” for conferences in the future.

Today, Tuesday, 11/7, is the next Mortgages with Millennials with Kristin Messerli and Robbie Chrisman. Tune in every Tuesday at 10AM PT to the weekly video show designed to empower mortgage professionals to tap into the millennial market. This show demystifies the psychology of first-time homebuyers and offers strategies to win more market share with a key segment of the market. Sign up for a weekly reminder with the link to join and a sneak peek into the next episode. Special guest Jordan Nutter, VP of the Influencer Division at NFM.

Join CAMP on today at 1PM PT to hear expert insurance panelists discuss why insurance companies are leaving California, what new regulations to expect, what are the best practices for your new home-buying clients and what happens if their insurance is cancelled.

Join NYMBA and Proof (formerly Notarize) for a webinar on operationalizing RON in New York, November 7th, 12-1pm. Learn the latest developments in New York State’s rollout of remote online notarization (RON) including the benefits for lenders, attorneys, and your customers. See a live demo of the Notarize platform and learn how RON can help your business from lending to servicing.

Discover what lies ahead in the world of home financing and interest rates with our upcoming webinar, “What Does the Road Ahead Look Like? Navigating Home Financing, Interest Rates, Planning, and More in 2024.” Join us on November 8th: Secure your spot now!

Tomorrow, looking for more in-depth commentary on weekly mortgage news? Register here for “Mortgage Matters: The Weekly Roundup” presented by Lenders One. Every Wednesday at 2:00 PM EST/11:00 AM PT is a dive into a range of mortgage-related topics, including market trends, interest rate fluctuations, innovative mortgage products, and industry advancements. Listen to a unique mix of age perspective, expertise, and charisma to the screen, ensuring that the information is not only educational but also entertaining. This week’s episode features respected attorney Brian Levy.

Join Optimal Blue for the next session in its hedging series, Wednesday, Nov. 8th at 11a.m. CT, Hedging 201: The Components of Pipeline Valuation. Take a deeper dive into the different components that make up your pipeline valuation. From data integrity to gain/loss reconciliation, this webinar will cover features and functionality that Optimal Blue’s hedging and loan trading services provide.

On Wednesday, November 8th at 11:30am–12:30 pm PT, join Orrick’s fourth session zoom conversation about what’s next in fair lending enforcement.

Join USDA Rural Development first live, virtual training for fiscal year 2024. Back to the Basics…SFHGLP Overview: 101 on Wednesday, November 8th | 2:00 pm – 3:00 pm ET.

Beginning in 2024, USDA-RD will be offering free monthly virtual live training events: USDA Rural Development 2024 training schedule.

Learn more about HFA Advantage® features and benefits, borrower eligibility, homebuyer education requirements and product enhancements. Register for a free Freddie Mac webinar on Wednesday, November 8, 2 pm – 3:30 pm ET.

The MBA of Eastern Pennsylvania is hosting its annual President’s Banquet on Thursday November 9, welcoming CNBC commentator Ron Insana for the keynote address. This event is open to members and nonmembers. Tickets can be purchased here.

Join Land Gorilla for an upcoming webinar on November 9 at 11 a.m. PT, “Florida Lien Law Overview For Construction Lenders,” which will cover statutory requirements and lender strategies for managing construction loans in the Sunshine State. If you can’t make the live session, register anyway and you will be sent the recording.

In support of the Credit Score and Credit Reports Initiative, FHFA will host a series of stakeholder forums. The initial topics will focus on the historical credit score files and the timing/sequencing of key project milestones. To register for any of the sessions outlined below and to stay up to date on future discussions, send your name, affiliation and contact information to [email protected]. Forum Schedule: Tuesday, November 7, 3-4 p.m. ET: Uses of Historical Data for Stakeholder Analysis. Tuesday, November 14, 3-4 p.m. ET: Sequencing of Project Milestones. Tuesday, November 28, 3 –4 p.m. ET: Uses of Historical Data for Stakeholder Analysis (cont’d). Tuesday, December 12, 3–4 p.m. ET: Sequencing of Project Milestones (cont’d).

In September, the CFPB included Loan Originator Compensation in its supervisory highlights. Are your compensation policies compliant? Register for the MMBA MLO Compensation Program Webinar on November 9th, 10:00 – Noon.

Friday the 10th is The Mortgage Collaborative’s Rundown covering current events in the mortgage market for 30-45 minutes starting at noon PT, 3PM ET, in “The Rundown”. This Friday’s features David Karandish with Capacity.

Capital Markets

There was a big rally over the last week as the sentiment that the Fed could be done raising rates swept through markets, allowing Treasuries to build on gains. However, this week opened with substantial sales as a knee jerk reaction to how far bond yields fell over the past seven days. That selling hasn’t really put in a dent in how much yields have risen over the past 18 months and the last time U.S. government bond yields climbed so far, so fast, the nation plunged into back-to-back recessions. And even with markets firmly in “bad news is good news” mode, everyone who has predicted a downturn since early last year has been incorrect. Even with the chance of a rate cut in March increasing to nearly 25 percent, for now, the Fed will continue to feel the pressure to keep rates high to battle price surges.

Today’s economic calendar is light and kicked off with the September trade deficit ($61.5 billion, moving higher). Expectations were for the trade deficit to deteriorate to $59.2 billion from $58.3 billion with consumer credit increasing $15.0 billion following the surprising $15.6 billion decline in August. Later today brings September consumer credit, Redbook same store sales, a Treasury auction of $48 billion 3-year notes, and a litany of Fed speakers. We begin the day with Agency MBS prices better than Monday night by a few ticks and the 10-year yielding 4.62 after closing yesterday at 4.66 percent; the 2-year is at 4.94.

Employment and Transitions

Merchants Bank of Indiana, continues to grow. The Carmel, IN based Bank knows these are challenging times, but also sees opportunity. Having recently reached $16 billion in assets, they continue to leverage their diversified business model to grow market share and assist their lending partners. They offer Correspondent Lending, Non delegated and Delegated; a Dedicated Wholesale platform for Banks and Credit Unions; Retail Lending and Warehouse financing. Their LO centric platform along with the strength and balance sheet of the bank allows them to expand market share in their regional markets. Contact Ron Berry, Retail Sales Leader to learn more about their LO opportunities. With the TPO market experiencing frequent Investor shakeup their committed, focused, and growing TPO channel is worth a look. Contact Rob Wilson, Correspondent Sales Executive to learn more about their Servicing Released Non Delegated, Delegated platforms and their Financial Institutions dedicated BCU Mortgage Services platform.

FHA has two vacancies for a Housing Program Policy Specialist. Duties include monitoring and evaluating agency operations to ensure policies and standards are maintained, up-to-date, and in compliance with respective guidance and procedures. Resolve many types of program policy issues involving single family mortgages and appraisal/valuation requirements presented by field staff, lending institutions, and other housing interests. Collect, review, and analyze a variety of data including statistical information. Announcement 23-HUD-2577-P.

FHA is accepting applications for a Management and Program Analyst, Announcement Number 23-HUD-3104-P. Responsibilities include development of procedures and systems for assessing the effectiveness of programs/management processes. Analyze and evaluate on a quantitative/qualitative basis the effectiveness of line program operations in meeting established goals and objectives. Direct and develop plans for project teams or other groups in accomplishing/producing projects/studies.

FHA is hiring a Single-Family Housing Specialist. This position is responsible for providing technical assistance and advice to the Single-Family Homeownership Centers on matters concerning risk management and monitoring of program participants. Serve as technical expert on established policies and procedures for monitoring lender/servicer performance.

View Job Announcement Number 23-HUD-3102-P for all job duties.

FHA has an open position for a Deputy Director, Quality Assurance Division. Job duties include exercising full managerial authority in assisting the Director in the planning and execution of assigned program operations and functions. Provide technical assistance and advice to the Single-Family Homeownership Centers on matters concerning risk management and monitoring of program participants. Prepare bulletins highlighting notable trends for management in Headquarters and the Homeownership Centers. For details, view Job Announcement Number 24-HUD-141-P.

DocMagic has promoted Chris Lewis to the role of Director of Sales, tasked with “building on DocMagic’s success as a market leader while also driving strategic sales initiatives for the company’s new innovations.” “His primary goal is to lead a team of subject matter experts in offering a consultative approach. This approach assists lenders of all sizes in realizing the cost-saving benefits and operational efficiencies of eClosings, which are becoming more prevalent in the industry.”

Morgan Barnes has joined the Real Estate Connection team as Director of Lender Relations. “As a licensed Real Estate Agent with keen organizational expertise, Morgan is committed to offering streamlined industry support to our lenders and agent partners.”

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

Source: mortgagenewsdaily.com

Apache is functioning normally

2023 has been a difficult year for prospective homebuyers, who have faced soaring mortgage rates, expensive home prices and low housing inventory. But last week, several important mortgage rates began sliding downward in what could be an about-face in long-term highs. There was a marked improvement in 15-year fixed and 30-year fixed mortgage rates, and the 5/1 adjustable-rate mortgage also decreased.

Since early 2022, when the Federal Reserve kicked off aggressive interest rate hikes to combat inflation, mortgage rates have increased steadily from their historic pandemic-era lows. Mortgage rates are now at their highest peak in more than two decades. Home affordability is at the worst level in nearly four decades, and home loan applications have made new cyclical lows, according to the housing authority Fannie Mae.

While the central bank does not directly set mortgage rates, they’re affected by the Fed’s rate decisions. During its Nov. 1 policy meeting, the Fed held its key interest rate steady at a range of 5.25% to 5.5%. Historically, when the Fed stops hiking rates, mortgage rates tend to cool, according to Logan Mohtashami, lead analyst at HousingWire. However, inflation is still too high, and there’s a chance the Fed may carry out one more rate hike in December.

About these rates: Like CNET, Bankrate is owned by Red Ventures. This tool features partner rates from lenders that you can use when comparing multiple mortgage rates.

Fluctuations in the mortgage and housing markets are always going to happen. That’s why experts say it’s a good idea for homebuyers to focus on what they can control: getting the best rate for their financial situation.

Mortgage rate trends

With average mortgage rates around 8%, the question is what the rest of the year has in store for prospective homebuyers. Experts say mortgage rates will remain near their current levels in the coming weeks. Fannie Mae expects the average 30-year fixed mortgage rate to close out the year at 7.3%.

Moreover, wage growth hasn’t kept up with inflation, and household income hasn’t outpaced increased housing costs. According to a recent report by the real estate firm Redfin, homebuyers need an income of $114,627 in order to afford a median-priced house. That’s $40,000 more than what the typical US household earns.

“As long as prices stay elevated, the way to help ease housing affordability is for wages to grow and mortgage rates to fall,” Mohtashami said.

Over the long term, progress on inflation and other key economic indicators could potentially ease some of the upward pressure on mortgage rates. But even when the Fed stops hiking interest rates, it generally takes 12 months before mortgage rates see substantial declines, according to Niladri Mukherjee, chief investment officer at TIAA Wealth Management.

“Until mortgage rates drift back down to a reasonable level, let’s say 5.5% or 6%, I don’t think mortgage applications are going to pick back up again,” Mukherjee told CNET.

Average mortgage interest rates today

We use data collected by Bankrate to track daily mortgage rate trends. This table summarizes the average rates offered by lenders across the country:

Loan type Interest rate A week ago Change
30-year fixed rate 7.79% 8.05% -0.26
15-year fixed rate 7.15% 7.19% -0.04
30-year jumbo mortgage rate 7.75% 8.02% -0.27
30-year mortgage refinance rate 7.92% 8.15% -0.23

Rates as of Nov. 6, 2023.

What homebuyers should know about mortgage rates

High mortgage rates discourage prospective homebuyers and potential sellers alike. Most homeowners have an interest rate well below 6% and aren’t willing to move because it would mean giving up their low mortgage rate, said Jason Walter, real estate agent at Realty One Group Complete. “That’s one of the main reasons why existing housing inventory remains 40% below pre-COVID levels,” he said.

While today’s housing market is especially intimidating for first-time homebuyers, it doesn’t mean it’s unrealistic to buy. That all depends on your financial situation and long-term goals.

The most important thing is to make a budget and try to stay within your means. Though mortgage rates and home prices are high, the housing market won’t be unaffordable forever. It’s always a good time to save for a down payment and improve your credit score to help you secure a competitive mortgage rate when the time is right for you.

What is a good loan term?

When picking a mortgage, remember to consider the loan term, or payment schedule. The most common mortgage terms are 15 years and 30 years, although 10-, 20- and 40-year mortgages also exist. Mortgages can either be fixed-rate and adjustable-rate mortgages. The interest rates in a fixed-rate mortgage are set for the duration of the loan. The interest rates for an adjustable-rate mortgage are only fixed for a certain amount of time (commonly five, seven or 10 years), after which the rate adjusts annually based on the current interest rate in the market.

When choosing between a fixed-rate and adjustable-rate mortgage, consider the length of time you plan to live in your home. If you plan on living long-term in a new house, a fixed-rate mortgage may be the better option. Fixed-rate mortgages offer more stability over time compared to adjustable-rate mortgages, but adjustable-rate mortgages may offer lower interest rates upfront. As a result, a growing share of homebuyers are leaning toward ARMs.

30-year fixed-rate mortgages

The average 30-year fixed mortgage interest rate is 7.79%, which is a decline of 26 basis points from one week ago. (A basis point is equivalent to 0.01%.) A 30-year fixed mortgage, the most common loan term, is a good option if you’re looking to minimize your monthly payment. A 30-year fixed rate mortgage will usually have a lower monthly payment than a 15-year one, but often a higher interest rate.

15-year fixed-rate mortgages

The average rate for a 15-year, fixed mortgage is 7.15%, which is a decrease of 4 basis points from seven days ago. Though you’ll have a bigger monthly payment compared to a 30-year fixed mortgage, a 15-year loan will usually be the better deal if you can afford the monthly payments. You’ll usually be able to get a lower interest rate, pay less interest in the long run and pay off your mortgage sooner.

5/1 adjustable-rate mortgages

A 5/1 ARM has an average rate of 7.08%, a slide of 4 basis points compared to last week. You’ll typically get a lower interest rate (compared to a 30-year fixed mortgage) with a 5/1 ARM in the first five years of the mortgage. But you could end up paying more after that time, depending on how the rate adjusts with the market rate. For borrowers who plan to sell or refinance their house before the rate changes, an ARM could be a good option. If not, changes in the market may significantly increase your interest rate.

How to find personalized mortgage rates

You can get a personalized mortgage rate by contacting your local mortgage broker or using an online calculator. To find the best home mortgage, take into account your goals and current finances. Be sure to look at the annual percentage rate, or APR, which reflects the mortgage interest rate plus other borrowing charges. By comparing the total cost of borrowing from multiple lenders, you can make a more accurate apples-to-apples comparison.

Your specific mortgage rate will vary based on factors including your down payment, credit score, debt-to-income ratio and loan-to-value ratio. Having a higher down payment, a good credit score, a low DTI and LTV or any combination of those factors can help you get a lower interest rate.

The interest rate isn’t the only factor that affects the cost of your home. Be sure to also consider fees, closing costs, taxes and discount points. You should shop around and talk to several different lenders from local and national banks, credit unions and online lenders to find the best mortgage for you.

Source: cnet.com

Apache is functioning normally

Sand, sun and a competitive housing market

In the world of California real estate, the San Diego housing market stands out as an ever-evolving entity. A mesmerizing blend of sun-soaked beaches, cultural riches and the allure of a cosmopolitan life has catapulted the city’s housing scene into the limelight. And if you’re keen on understanding the intricate dance of supply, demand and pricing within this market, let’s set the stage.

The San Diego housing market

At the core of the San Diego housing market is its undeniable competitiveness. Homes here are highly coveted, and the stats tell the same story. On average, houses in this sunlit city receive a whopping six offers, only to be whisked off the market in a brisk 14 days. Compare that to last year’s 28 days, and it’s evident that the tempo of the San Diego housing market is only accelerating.

Price tags and more

Now, no discussion about the San Diego housing market is complete without touching on price. With the median home price settled at $894,250 in September 2023, there’s been a 6.5% ascent year-over-year.

The price per square foot? An impressive $683, up by 8.5% from the previous year. And here’s the showstopper: San Diego’s median sale price is an overwhelming 113% higher than the national average.

In this market, homes in San Diego, like the city’s famous sunsets, often outshine their list price. On average, they sell for about 1% above their stated value. And a staggering 50.1% of homes now sell above their asking price, up by 20.3 percentage points from last year.

Migration patterns

Between the gentle waves of the Pacific and the buzz of the San Diego housing market lies a tale of migration. From July to September 2023, while 29% of San Diego’s homebuyers contemplated new horizons outside the city, a sizable 71% remained within the city limits. And the allure isn’t just local. From the cinematic boulevards of Los Angeles to the tech hubs of San Francisco, many are heeding the siren call of the San Diego housing market.

Schools, lifestyle and more

San Diego is home to stellar educational institutions, with schools like La Jolla Elementary and Silver Strand Elementary setting an undeniably high standard. Plus, the city’s transit-friendly, bikeable and walkable neighborhoods ensure that every day runs smoothly.

Climate

Life isn’t all carefree on the coast, though. For San Diego, it’s the environmental concerns. A significant 55% of properties are at risk of wildfire damage over the next three decades. Additionally, 8% face potential flood risks and a considerable 88% could endure heat damage.

Buying a house in San Diego

The San Diego housing market isn’t just about homes, prices and trends — it’s about living your life to the fullest. Whether you’re a potential homebuyer or a curious observer, this competitive market may not be for everyone, but if you stay alert and keep searching, you’re sure to find the right home for you.

San Diego’s rental market at a glance

Delving deeper into the world of San Diego’s rental spaces, we find a distinct rhythm in the market. Amidst the backdrop of the city’s soaring home prices, the rental market presents an alternative, more affordable route.

Average rent in San Deigo

As of October 2023, studio apartments, with their cozy confines and efficient designs, come with an average price tag of $2,363, marking a 2% annual hike. For those seeking a bit more space without venturing into the full-blown family home category, one-bedroom apartments stand as a popular choice, averaging at $2,846 in rent – interestingly, witnessing a slight dip of 1% from the previous year. However, two-bedroom apartments have seen a 1% rise, commanding an average rent of $3,735.

Renting in San Diego

San Diego’s rental scene offers a broad spectrum of apartments and costs. On average, renters should anticipate shelling out anywhere between $2,363 to $3,735 in 2023, depending on their choice of apartment.

Apartments priced between $501 to $1,500 account for a minuscule portion of the market, with only 1% of apartments falling in the $1,001 to $1,500 range. On the other end of the scale, a significant 84% of San Diego’s apartments command a rent of $2,101 or more, painting a clear picture of the city’s upscale rental offerings.

Decoding San Diego’s rental scene

San Diego’s rental market, like its housing counterpart, strikes a chord of demand and quality. While the absence of apartments in the lower price ranges underlines the city’s upscale living standards, the dominant presence of higher-end apartments showcases San Diego’s commitment to quality and luxurious living.

For potential renters, the San Diego rental market offers a plethora of choices, each with a unique rhythm and pace, ensuring that every individual finds their perfect home in one of the city’s many living spaces.

Source: rent.com

Apache is functioning normally

Mortgage rates are down over the past week, with the 30-year fixed rate mortgage at 7.77%. The average rate on a 30-year fixed rate mortgage surpassed 8% in mid-October for the first time since 2000. 

The Federal Reserve meetings are underway, but there has been no indication that it plans to change its key interest rate this month. However, many experts predict a rate increase before the end of the year. This, along with rising tensions in the Middle East and the recently ended autoworkers strike, are some of the possible key factors in the continued upward trajectory of the national average interest rate.

Here are today’s average mortgage rates: 

  • 30-year fixed mortgage rate: 7.77%
  • 15-year fixed mortgage rate: 6.98%
  • 5/6 ARM mortgage rate: 7.51%
  • Jumbo mortgage rate: 7.61%

Current Mortgage Rates

Product Rate Last Week Change
30-Year Fixed Rate 7.77% 8.16% -0.39%
15-Year Fixed Rate 6.98% 7.34% -0.36%
5/6 ARM 7.51% 7.58% -0.07%
7/6 ARM 7.61% 7.78% -0.17%
10/6 ARM 7.71% 7.88% -0.17%
30-Year Fixed Rate Jumbo 7.61% 7.91% -0.30%
30-Year Fixed Rate FHA 7.41% 7.78% -0.37%
30-Year Fixed Rate VA 7.41% 7.77% -0.36%

Disclaimer: The rates above are based on data from Curinos, LLC. All rate data is accurate as of Monday, November 06, 2023. Actual rates may vary.

Mortgage Rates for Home Purchase

30-year fixed-rate mortgages are down, -0.39%

The average 30-year fixed-mortgage rate is 7.77%. Since the same time last week, the rate is down, changing -0.39%. 

At the current average rate, you’ll pay $717.79 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 8.16%. 

15-year fixed-rate mortgages are down, -0.36%

The average rate you’ll pay for a 15-year fixed-mortgage is 6.98%, a decrease of -0.36% compared to last week. 

Monthly payments on a 15-year fixed-mortgage at a rate of 6.98% will cost approximately $897.71 per $100,000 borrowed. With the rate of 7.34% last week, you would’ve paid $917.94 per month.

5/6 adjustable-rate mortgages are down, -0.07%

The average rate on a 5/6 adjustable rate mortgage is 7.51%, a decrease of -0.07% 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 7.51% will cost approximately $699.90 per $100,000 borrowed over the first 5 years of the loan. 

Jumbo loan interest rates are down, -0.30%

The average jumbo mortgage rate today is 7.61%, a decrease of -0.30% 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 $717.79 $744.95 -$27.16
15-Year Fixed Rate $897.71 $917.94 -$20.23
5/6 ARM $699.90 $704.70 -$4.80
7/6 ARM $706.76 $718.49 -$11.73
10/6 ARM $713.65 $725.42 -$11.77
30-Year Fixed Rate Jumbo $706.76 $727.50 -$20.74
30-Year Fixed Rate FHA $693.06 $718.49 -$25.43
30-Year Fixed Rate VA $693.06 $717.79 -$24.73

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 factors specific to the borrower will affect the mortgage interest rate. They include: 

  • Your 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).  
  • Where you live: Mortgage rates vary by where you are buying a home. 
  • Whether you are a first-time homebuyer: Oftentimes first-time homebuyer programs will offer new homeowners lower rates. 
  • Your lender: 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

Shopping for a mortgage can be overwhelming, but it’s shown to be worth it. In a recent study by Freddie Mac, researchers found that homeowners may save between $600 and $1,200 annually by shopping around for the best rate. That’s why we put together steps on how to shop for your best mortgage rate. 

1. Check your credit scores and credit report

Your credit situation will likely determine the type of mortgage you pursue and your rate. Conventional loans are typically only offered to borrowers with a credit score of 620 or higher, while FHA loans may be your best option if your FICO score is between 500 and 619. Additionally, individuals with higher credit scores are more likely to be offered a lower mortgage interest rate. 

Mortgage lenders 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 your mortgage 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 to do your research and apply for the mortgage program that best fits your 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 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 your “real” rate as figures listed online may not be representative of your 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 you to prequalify for a mortgage and receive a tentative loan offer with no impact to your credit score.

After gathering your loan documents – including proof of income, assets and credit – you may also apply for pre-approval. Pre-approval will let you know where you stand with lenders and may also improve your negotiating power with home sellers. 

4. Review your Loan Estimates

To fully understand which lender is offering the cheapest loan overall, take a look at the Loan Estimate provided by each lender. Your Loan Estimate will list not only the mortgage rate, but also your 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, you can see the full breakdown of costs. One lender may offer lower interest rates, but higher fees and vice versa. You can then decide whether you prefer saving over the lifetime of the mortgage or want to prioritize lower upfront costs with your home purchase. 

5. Consider negotiating with lenders on rates

Mortgage lenders want your business. This means that you may use competing offers as leverage to adjust fees and interest rates. Many lenders may not lower your rate by much, but even a few basis points may save you more than you 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 interest rates climbing steadily throughout the first half of 2023 and now exceeding 8%, prospective homeowners may be wondering: Will there be any relief going forward? Some experts are optimistic. 

Fannie Mae and the Mortgage Bankers Association (MBA) project that rates will fall going into 2024 and throughout next year. In fact, the MBA predicts that rates will end 2024 at 6.1%.

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. 

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.

Source: marketwatch.com