Inflation continues to press on mortgage rates. The 30-year fixed-rate mortgage averaged 3.45% this week, up from last week’s 3.22% average, Freddie Mac reports.“Mortgage rates rose across all mortgage loan types, with the 30-year fixed-rate mortgage increasing by almost a quarter of a percent from last week,” says Sam Khater, Freddie Mac’s chief economist. “This was driven by the prospect of a faster than expected tightening of monetar
The majority of home buyers—87%—finance their home purchase. But some aspiring buyers may delay their purchase due to persistent myths over down payment requirements.Thirty-five percent of consumers believe they need a down payment of 16% to 20% of the purchase price. Ten percent believe they need more than 20% for a down payment to purchase a home, according to the National Association of REALTORS®’ survey data. With home prices rising by
Mortgage rates have taken a big leap at the start of the new year. In the first week of 2022, the 30-year fixed-rate mortgage jumped nearly 60 basis points higher than a year earlier, averaging 3.22% this week, Freddie Mac reports.“Mortgage rates increased during the first week of 2022 to the highest level since May 2020 and are more than half a percent higher than January 2021,” says Sam Khater, Freddie Mac’s chief economist. “With highe
The Federal Housing Finance Agency announced it would be increasing upfront fees on second-home mortgages and on mortgages that finance homes with balances that exceed standard conforming loan limits. The fees are expected to increase the purchase cost of second homes and homes in high-cost areas.The new fees from Fannie Mae and Freddie Mac will take effect on April 1.Upfront fees for mortgage loans on second homes will rise between 1.125% and 3.
The latest COVID-19 variant is prompting a wave of new infections—more than 1 million daily cases were reported on Monday alone. Omicron is also the most contagious variant yet. But housing analysts don’t believe omicron will hamper the housing market and deter buyers and sellers—at least it doesn’t done that so far, observers say.Housing analysts acknowledge they were concerned as the new strain reached the U.S. in November and then saw
Lumber prices are soaring once again: Following a dip last spring and summer, they have nearly tripled over the past four months.Builders say that increase has caused the price of an average new single-family home to rise by more than $18,600. It has also added nearly $7,300 to the price of an average new multifamily home, translating into $67 a month more in rent for a new apartment, according to the National Association of Home Builders.Price v
Conforming loan limits for mortgages backed by Fannie Mae and Freddie Mac have jumped in most of the country to $647,200, an increase of $98,950 from 2021’s limit of $548,250. The higher levels are in response to rising home prices over the past year.The new loan limits took effect Jan. 1.The Federal Housing Finance Agency’s House Price Index shows that home prices rose 18.05%, on average, between the third quarters of 2020 and 2021. The 2022
The hot housing market fueled an all-time record for the amount Americans borrowed to buy homes in 2021.Mortgage lenders issued $1.61 trillion in purchase loans last year, according to preliminary data from the Mortgage Bankers Association. That tops a previous record set in 2005 of $1.51 trillion.Home prices have grown by double digits over the past year. That is driving up mortgage balances as Americans stretch their budgets to afford a home.Th
Mortgage rates stayed low for the final week of 2021, but housing analysts largely predict rates will be heading up in the coming weeks.“Mortgage rates have been effectively been moving sideways despite the increase in new COVID cases,” says Sam Khater, Freddie Mac’s chief economist. “This is because incoming economic data suggests that the economy remains on firm ground, particularly cyclical industries like manufacturing and housing. Mo
Low-interest rates and a hot stock market fueled a drive in the luxury housing market this year. Sales priced at or over $50 million rose 35% year over year, according to a report from appraiser Miller Samuel, as reported by Bloomberg. That marks a record high, topping 2020 levels, the previous record.“This surge in this tier is unprecedented,” Jonathan Miller, Miller Samuel president and CEO, told Bloomberg. “We’ve never seen this kind o
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