September 2022

Inflation talk pushes mortgage rates upward again

Mortgage rates are on the upswing again following comments from Federal Reserve officials last week indicating further tightening is on the way.

After a 42-basis-point leap a week earlier, the 30-year fixed-rate mortgage average kept climbing, rising to 5.66% from 5.55% for the seven-day period ending Sept. 1, according to Freddie Mac's Primary Mortgage Market Survey. In the same weekly period a year ago, the 30-year average stood at 2.87% Continue ..............

Freddie Mac's credit risk transfers set records for 2Q, first half

Freddie Mac on Tuesday reported that its single-family credit risk transfer activity set records for the second quarter and first half.

The government-sponsored enterprise issued approximately $6.5 billion between April and June, mitigating risks on mortgages with a total unpaid principal balance of around $151 million. That brought the first-half total to $15 billion in issuance, mitigating risks on $358 billion in loans.

The record numbers, which include Structured Agency Credit Risk and Agency Credit Insurance Structure deals, show Freddie's volume has been strong for the first half of the year despite volatility in the market that at one point delayed a CRT deal from competitor Fannie Mae. Continue ............

Mortgage rates will fall to 4.5% in 2023? That’s the estimate from Fannie Mae. Here’s what that means for homebuyers

Mortgage rates are projected to decline next year — but that doesn’t mean prospective homebuyers should necessarily delay a purchase for the prospect of lower financing costs.

The rate on a 30-year fixed mortgage will fall to an average 4.5% in 2023, according to a recent housing forecast published by Fannie Mae, a government-sponsored lender. Continue ..........

First-time buyers show more demand for mortgages, even as interest rates rise

Mortgage demand continues to weaken, still right around a 22-year low, but there was a sign in the weekly numbers that first-time buyers may be slowly returning.

Mortgage applications to purchase a home fell 1% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Volume was 21% lower than the same week one year ago. There was, however, a jump in demand for loans offering lower down payments. Continue........

Homebuyers are backing out of more deals as high mortgage rates persist and recession fears linger

Rising costs and falling confidence in the U.S. economy are fast becoming a toxic cocktail for the housing market. As a result, a growing number of buyers are backing out of deals they’ve made with homebuilders and sellers of existing homes.

Homebuilder cancellation rates have more than doubled since April, according to surveys by John Burns Real Estate Consulting. In July, 17.6% of builder contracts fell through, compared with 8% in April and 7.5% in July 2021. Continue ........