Monday, November 21, 2022 / by Dave Magua
Mortgage rates dropped at the fastest clip in 40 years this week, falling from 7.08 percent to 6.61 percent on recent positive news about inflation, according to a weekly lender survey released Thursday by mortgage giant Freddie Mac.
The drop means homebuyers would save more than $100 a month compared to a week earlier, according to a Redfin analysis.
While the rate remains more than double what they were to start the year, it provided a glimmer of hope for prospective buyers and sellers who have watched as rates skyrocketed for most of the year.
“The historic drop in mortgage rates is a tick in the ‘good news’ box for the housing market, as lower rates deliver an immediate win for prospective buyers’ pocketbooks,” said Redfin Deputy Chief Economist Taylor Marr.
Redfin estimates the dip in rates gave buyers $12,000 more purchasing power, and a weekly survey by the Mortgage Bankers Association showed a 4 percent week ...
Friday, November 18, 2022 / by Dave Magua
Homebuyer demand for mortgages picked up again last week as mortgage rates dipped below 7 percent, but applications remain at levels that would have been considered anemic a year ago, according to a weekly survey of lenders by the Mortgage Bankers Association.
The MBA’s Weekly Mortgage Applications Survey shows requests for purchase loans were up a seasonally adjusted 4 percent last week when compared to the week before but down 46 percent from a year ago.
The dip in mortgage rates, which was driven by an encouraging inflation report, failed to rekindle interest in refinancing. With mortgage rates still more than double what they were a year ago, requests to refinance were down 2 percent week over week and 88 percent from a year ago, the MBA survey showed.
“Mortgage rates decreased last week as signs of slower inflation pushed Treasury yields lower,” said MBA Deputy Chief Economist Joel Kan in a statement. “The 30-year fixed rate saw the largest sinR ...
Thursday, November 17, 2022 / by Dave Magua
Home prices will rise slightly and sales will dip next year before making a comeback in 2024, according to Lawrence Yun, the National Association of Realtors’ chief economist.
Yun spoke Friday at the Residential Economic Issues and Trends Forum of NAR’s annual conference, newly rebranded as NAR NXT, in Orlando. The forum is consistently the event’s most heavily-attended session, NAR President Leslie Rouda Smith noted as she introduced Yun, whom she called “the best chief economist in the world,” prompting cheers from the audience.
At the forum, Yun predicted that 2022 would end with home sales down 15 percent year over year and further decline 7 percent in 2023 before rising 10 percent in 2024.
He also forecast that home prices in 2022 would be up 10 percent year over year, increase a slight 1 percent in 2023 and then jump 5 percent in 2024.
That means a “strong rebound” in 2024, according to Yun.
“The prices will ...
Wednesday, November 16, 2022 / by Dave Magua
Home sale prices charted their smallest annual increase since July 2020 during the four weeks ending Nov. 6, according to a new report, released Thursday by the online brokerage Redfin.
Prices increased by 3.2 percent year over year, a drop of 8.4 percent from their all-time high recorded in June, according to the report.
The drop comes as the rate of inflation has begun to show signs of slowing, with the all-time inflation index charting a 7.7 percent annual increase in October, the lowest increase since January’s record-breaking 7.5 percent increase.
“This morning’s report that the overall inflation rate is finally starting to back off makes it even more likely that the Fed will slow their rate increase to 50 basis points next month,” Redfin Deputy Chief Economist Taylor Marr said in a statement on Thursday. “The inflation news is already helping to bring daily mortgage rates down. However, Chair Powell has indicated that inflation ...
Tuesday, November 15, 2022 / by Dave Magua
New Urban Communities Corporation plans to acquire city-owned land in Sunrise Florida for a 28-house development reserved mainly for middle-income buyers.
The Delray Beach-based developer probably will sell the single-family homes at prices “in the $400,000s, which, in this day and age, is pretty reasonably priced,” Tim Hernandez, co-founder of New Urban Communities, told The Real Deal.
“It’s less affordable now than when we started, with interest rates going up,” Hernandez said. “By the time we get it approved, hopefully the mortgage rates will have come down.”
Most of the 28 new houses would have deeds with income-based restrictions on their ownership under a pending development agreement between New Urban and the city of Sunrise.
New Urban agreed to the income-based deed restrictions largely because the city has agreed to sell the development site at 1577 Sunset Strip to New Urban for $410,000 less than it paid s ...