Mortgage Rates Head Even Lower

Mortgage rates inched lower for the third consecutive week. Freddie Mac Chief Economist Sam Khater says the lower rates bode well for the spring home buying season, typically the busiest time of the year for home shopping.  “Wages are growing on par with home prices for the first time in years, and with more inventory available, spring home sales should help the market begin to recover from the malaise of the last few months.” The National Association of REALTORS® reported this week that more houses were on the market in January, rising to 1.59 million nationwide and at a 3.9-month supply at the current sales pace.

Freddie Mac reports the following national averages for the week ending Feb. 21:

  • 30-year fixed-rate mortgages: averaged 4.35 percent ,with an average 0.5 point, dropping from last week’s 4.37 percent average. Last year at this time, 30-year rates averaged 4.40 percent.
  • 15-year fixed-rate mortgages: averaged 3.78 percent, with an average 0.4 point, falling from last week’s 3.81 percent average. A year ago at this time, 15-year rates averaged 3.85 percent.
Source: Freddie Mac

Mortgage Rates at 10-Month Low

 “The U.S. economy remains on solid ground, inflation is contained, and the threat of higher short-term rates is fading from view, which has allowed mortgage rates to drift down to their lowest level in 10 months,” says Sam Khater, Freddie Mac’s chief economist. “This is great news for consumers who will be looking for homes during the upcoming spring home buying season.”

Freddie Mac reports the following averages for the week ending Feb.7:

  • 30-year fixed-rate mortgages: averaged 4.41 percent, with an average 0.4 point, dropping from last week’s 4.46 percent average. Last year at this time, 30-year rates averaged 4.32 percent.
  • 15-year fixed-rate mortgages: averaged 3.84 percent, with an average 0.4 point, dropping from last week’s 3.89 percent average. A year ago, 15-year rates averaged 3.77 percent.
Source: “Mortgage Rates Drop,” Freddie Mac (Feb. 7, 2019)

Fed Puts Brakes on Rates

The Federal Reserve voted to leave interest rates unchanged last Wednesday and signaled that it’s not in any hurry to resume raising rates in 2019. Fed Chairman Jerome Powell used words like “patient” to describe the Fed’s latest approach to increases. His change in tone follows four rate hikes last year. The Fed’s benchmark rate is not directly tied to mortgage rates but does often influence them.

“In light of global economic and financial developments and muted inflation pressures, the committee will be patient as it determines what future adjustments to the target range for the federal funds rate may be appropriate,” a statement from the Federal Reserve read. The Fed said that economic activity has been “rising at a solid rate” and it does expect continued growth, but noted several political uncertainties—such as fallout from the government shutdown—and a slowdown in foreign economies as reason for a more cautionary approach.

Source: Freddie Mac and “Federal Reserve leaves rates unchanged, stresses patience,” HousingWire (Jan. 30, 2019)

Mortgage Rates Inch Up, But ‘Don’t Be Worried’

After weeks of moderating, mortgage rates moved up slightly this week. But aspiring home buyers may be able to breathe a sigh of relief: Freddie Mac economists revised their forecasts this week to predict 30-year fixed-rate mortgages to average below the 5 percent threshold for at least the next two years. “However, softening house price appreciation along with increasing inventory of homes on the market and historically low mortgage rates should give a boost to the spring home buying season,” says Sam Khater, Freddie Mac’s chief economist.

The following are the national averages for the week ending Jan. 31:

  • 30-year fixed-rate mortgages: averaged 4.46 percent, with an average 0.5 point, rising from last week’s 4.45 percent average. Last year at this time, 30-year rates averaged 4.22 percent.
  • 15-year fixed-rate mortgages: averaged 3.89 percent, with an average 0.4 point, increasing from last week’s 3.88 percent average. A year ago, 15-year rates averaged 3.68 percent.
Source: Freddie Mac

Housing Market Looking Brighter

Real estate indicators are starting to shift in favor of home buyers as the housing market sets its sights on spring. Mortgages are getting cheaper, housing inventories are growing, and home prices are rising at a slower pace.

The 30-year fixed-rate mortgage averaged 4.45 percent last week, Freddie Mac reports.  Late last year, mortgage rates were nearing the 5 percent threshold, but several weeks of decreases have offered some relief to home shoppers.

For home sellers, lower prices may not sound ideal. But housing analysts say sellers need to set a realistic price up front to find a buyer as the market shifts.

Source: “Housing Market’s Fundamentals Actually Turning Brighter,” The Washington Post (Jan. 23, 2019)

Hackers Access Data on Loans

Banks are in the process of trying to identify the customers affected and inform them of any possible account hacking.

“These documents contained highly sensitive data, such as Social Security numbers, names, phones, addresses, credit history, and other details which are usually part of a mortgage or credit report,” says security researcher Bob Diachenko, who discovered this.

Consumers are urged to change the passwords on their financial accounts. The database itself that was hacked was not password protected, but in the data theft, hackers may have gained access to personal information that hackers could then use to access a person’s other accounts.

Source: “Fraud Alert: Your Mortgage Info Could Be at Risk,” USA Today (Jan. 23, 2019) and “Document Management Company Left Credit Reports Online,” SecurityDiscovery.com (Jan. 23, 2019)

Will Lower Rates Escalate Sales?

The real estate industry will soon see what kind of impact weeks of declining mortgage rates have had on home sales. Will it provide the boost some experts are predicting?

Since early November, the 30-year fixed-rate mortgage has fallen nearly half a percentage point, from 4.94 percent to 4.45 percent, at the end of this week. This could provide an important incentive for potential home buyers to make a move. The 30-year rate, which didn’t budge in the latest week of reporting, was on a downward trend for six consecutive weeks prior. Existing-home sales in November were already bouncing back from unusually low volume in the summer months, gaining 1.9 percent month over month, due largely to stability in the overall economy, according to data from the National Association of REALTORS®. But when NAR’s data for December existing-home sales is released next Tuesday, it may reveal whether lower mortgage rates have escalated sales gains.

Freddie Mac reports the following national averages for the week ending Jan. 17:

  • 30-year fixed-rate mortgages: averaged 4.45 percent, with an average 0.4 point, unchanged from last week’s average. Last year at this time, 30-year rates averaged 4.04 percent.
  • 15-year fixed-rate mortgages: averaged 3.88 percent, with an average 0.4 point, dropping from last week’s 3.89 percent average. A year ago, 15-year rates averaged 3.49 percent.
Source: Freddie Mac; “The slowing U.S. housing market may have finally bottomed,” Yahoo! Finance (Jan. 17, 2019)

Loan Rates Fall to 9-Month Lows

Mortgage rates posted more drops this week, lowering the borrowing costs of potential home shoppers and refinancers. “Lower mortgage rates combined with continued income growth and lower energy prices are all positive indicators for consumers that should lead to a firming of home sales,” says Sam Khater, Freddie Mac’s chief economist.

Freddie Mac reports the following national averages for the week ending Jan. 10:

  • 30-year fixed-rate mortgages: averaged 4.45 percent, with an average 0.5 point, falling from last week’s 4.51 percent average. Last year at this time, 30-year rates averaged 3.99 percent.
  • 15-year fixed-rate mortgages: averaged 3.89 percent, with an average 0.4 point, dropping from last week’s 3.99 percent average. A year ago, 15-year rates averaged 3.44 percent.
Source: Freddie Mac

Home Loan Interest Rates Update!

The new year is kicking off with lower mortgage rates for home shoppers and people looking to refinance their mortgages. The benchmark 30-year fixed-rate mortgage dipped to a 4.51 percent average this week, Freddie Mac reports.

“Low mortgage rates combined with decelerating home price growth should get prospective home buyers excited to buy,” says Sam Khater, Freddie Mac’s chief economist.

Freddie Mac reports the following national averages for the week ending Jan. 3:

  • 30-year fixed-rate mortgages: averaged 4.51 percent, with an average 0.5 point, falling from last week’s 4.55 percent average. Last year at this time, 30-year rates averaged 3.95 percent.
  • 15-year fixed-rate mortgages: averaged 3.99 percent, with an average 0.4 point, dropping from last week’s 4.01 percent average. A year ago, 15-year rates averaged 3.38 percent.
Source: Freddie Mac

Mortgage Rates End Year Lower

Rates continued their two-month slide and are currently hovering around the same level as the early summer, which was before the deterioration in home sales. The negative headlines around the financial markets are concerning but the economy remains healthy, so the drop in mortgage rates should stem or even reverse the slide in home sales that occurred during the second half of 2018.

Past week:  30-Yr Fixed Rate Mortgage 4.55%   15-Yr Fixed Rate Mortgage  4.01%
Source: freddiemac.com