Powell was referring to the current situation in which homeowners holding historically low rate mortgages aren’t feeling incentivized to sell their homes, reducing the number of properties available in the market. A Federal Housing Finance Agency research paper published in March 2024 shows that nearly all 50 million active mortgages have fixed rates, and most [...]read moreWhen will the Fed’s moves alleviate the lock-in effect?
Mortgage applications shot up 15.6% from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) weekly application survey for the week ending June 7. On an unadjusted basis, the market composite index increased 26% compared with the previous week. The refinance index increased 28% from the previous week and was also 28% higher [...]read moreRefi business is picking up on falling mortgage rates
As expected by virtually all market participants, the Federal Reserve maintained its short-term policy interest rate between 5.25% and 5.5% at its June meeting that concluded Wednesday afternoon. That’s the seventh consecutive time policymakers with the Federal Open Markets Committee (FOMC) kept the rates unchanged, reflecting mixed signals from the leading U.S. economic data. Job [...]read moreFed holds rates steady amid mixed economic signals
Mortgage rate lock-in happens because even small changes in mortgage rates can make a big difference in costs. For example, for a home priced at $390,000 — the median price for a single-family home in the U.S. in April 2024 — with a 10% down payment, a typical mortgage would be approximately $350,000. For every [...]read moreThe mortgage rate lock-in didn’t start in 2022
FHFA, in its March 2024 research paper, The Lock-In Effect of Rising Mortgage Rates, quantified the degree to which rising mortgage rates slowed housing purchases in 2023. Researchers developed a framework for estimating the number of home sales in 2024 based on the current levels for mortgage rates. They concluded that the net effect of [...]read moreThe mortgage rate lock-in didn’t start in 2022
As the U.S. reaches its peak homebuying season, mortgage rates continue to ease week over week. HousingWire’s Mortgage Rates Center showed the average 30-year fixed rate for conforming loans at 7.45% on Tuesday, below the rate of 7.51% one week ago. At the same time one year ago, the average rate was 6.54%. The 15-year [...]read moreMortgage rates continue to trend down ahead of inflation report
On March 18, 2020, purchase application data broke out to pre-cycle highs in demand. Home sales hit their highest levels in a decade right before COVID-19 hit our economy. This matters because inventory was already heading toward all-time lows before COVID-19. Going back further, the rules put in place after the great financial crisis have [...]read moreHow housing credit is shaping housing inventory
Home prices trended up in almost all U.S. metro areas during the first quarter of 2024. Out of 221 metro markets analyzed, 205 (93%) posted yearly home price gains in Q1 2024, while 30% experienced double-digit price gains during the same period — up from 15% in the fourth quarter of 2023 — according to the National [...]read moreHome prices grew in 93% of markets in Q1 2024: NAR
Even as the median U.S. home sale price remains near record highs and supply stays constrained in many locales, two of the most populous states that have seen a surge in demand since the start of the COVID-19 pandemic are showing signs of a pullback. That’s according to a pair of reports released Thursday by [...]read moreKey housing markets are starting to buck national trends: Redfin
One of the most notable surprises of 2024 has been the trajectory of mortgage rates. When the average rate on 30-year loans dropped from 8.01% on Oct. 25 to 6.84% on Jan. 31, more loan applications started coming in, and the mortgage industry breathed a sigh of relief. Many thought 6.5% would become the new [...]read moreOpinion: If you’re chasing volume, you’re chasing the wrong carrot