Despite the low likelihood of such a drastic drop next year, experts are pointing to mortgage rates falling below the current average of over 7%. This comes as the Federal Reserve continues to show signs that it will introduce interest rate cuts as early as March 2024. Currently, interest rates are at a 22-year high, with the Fed keeping rate constant over its past two policy meetings.

Still, industry specialists urge homebuyers not to wait until mortgage rates fall below 5% before purchasing a property. “Regardless of what the Fed does with respect to rates, I would never advise prospective homebuyers to try to time the market or trajectory of mortgage rates,” Bob Driscoll, SVP and director of residential lending at Rockland Trust Bank explained. He advised prospective homebuyers to focus on factors in their control such as timing the transaction right according to their own personal financial position.

The post Mortgage Rates Could Drop to 5% in 2024 appeared first on theprimarymarket.com.

According to Lovallo, recent buyers who are purchasing newly built homes are paying mortgage rates of 5% or less – below the headline rate of 6.5%. Lovallo added that these lower rates have placed homebuilders in a strong position, particularly as new home buyers now have a higher financial capacity to spend on home construction.

“By offering lower rates, we are helping to make our homes more affordable for today’s consumers.” Macey Kessler, Pulte Group’s corporate communications manager declared. “Given the extremely low inventory of existing homes, providing an opportunity for consumers to purchase a new home is more important than ever.”

The National Association of Home Builders estimated that over a third of homes on the market in April were newly built; well above the typical figure of 13%.

The post New Home Buyers Receiving Mortgage Rates Under 5% appeared first on theprimarymarket.com.

According to Bloomberg, Wells Fargo executives are currently working on a retreat plan that signals a shift in priorities for the company. It is believed that the bank intends to start the readjustment by cutting ties with the outside firms, which were a big generator of its mortgage revenue in the past.

At one point, Wells Fargo was handling one-third of home loans in the U.S., but that number is expected to be significantly smaller once the new policy kicks in. Reportedly, the bank will be focused on dealing with people that it has existing relationships with and places with a strong presence. Wells Fargo had $205 billion in new home loans last year compared to its closest rival JPMorgan’s 163 billion.

“Wells Fargo is committed to supporting our customers and communities through our home-lending business,” said the company in a statement when reached by Bloomberg for comment. “Like others in the industry, we’re evaluating the size of our mortgage business to adapt to a dramatically smaller originations market. We’re also continuing to look across the company to prioritize and best position us to serve our customers broadly.”

After Bloomberg’s report, Wells Fargo stock dropped 1.13% at one point. It is currently trading at $45.70 per share, which is almost 10% down year-to-date.

The post Wells Fargo Plans to Scale Down its Mortgage Business appeared first on theprimarymarket.com.

Despite the low likelihood of such a drastic drop next year, experts are pointing to mortgage rates falling below the current average of over 7%. This comes as the Federal Reserve continues to show signs that it will introduce interest rate cuts as early as March 2024. Currently, interest rates are at a 22-year high, with the Fed keeping rate constant over its past two policy meetings.

Still, industry specialists urge homebuyers not to wait until mortgage rates fall below 5% before purchasing a property. “Regardless of what the Fed does with respect to rates, I would never advise prospective homebuyers to try to time the market or trajectory of mortgage rates,” Bob Driscoll, SVP and director of residential lending at Rockland Trust Bank explained. He advised prospective homebuyers to focus on factors in their control such as timing the transaction right according to their own personal financial position.

The post Mortgage Rates Could Drop to 5% in 2024 appeared first on theprimarymarket.com.

According to Lovallo, recent buyers who are purchasing newly built homes are paying mortgage rates of 5% or less – below the headline rate of 6.5%. Lovallo added that these lower rates have placed homebuilders in a strong position, particularly as new home buyers now have a higher financial capacity to spend on home construction.

“By offering lower rates, we are helping to make our homes more affordable for today’s consumers.” Macey Kessler, Pulte Group’s corporate communications manager declared. “Given the extremely low inventory of existing homes, providing an opportunity for consumers to purchase a new home is more important than ever.”

The National Association of Home Builders estimated that over a third of homes on the market in April were newly built; well above the typical figure of 13%.

The post New Home Buyers Receiving Mortgage Rates Under 5% appeared first on theprimarymarket.com.

According to Bloomberg, Wells Fargo executives are currently working on a retreat plan that signals a shift in priorities for the company. It is believed that the bank intends to start the readjustment by cutting ties with the outside firms, which were a big generator of its mortgage revenue in the past.

At one point, Wells Fargo was handling one-third of home loans in the U.S., but that number is expected to be significantly smaller once the new policy kicks in. Reportedly, the bank will be focused on dealing with people that it has existing relationships with and places with a strong presence. Wells Fargo had $205 billion in new home loans last year compared to its closest rival JPMorgan’s 163 billion.

“Wells Fargo is committed to supporting our customers and communities through our home-lending business,” said the company in a statement when reached by Bloomberg for comment. “Like others in the industry, we’re evaluating the size of our mortgage business to adapt to a dramatically smaller originations market. We’re also continuing to look across the company to prioritize and best position us to serve our customers broadly.”

After Bloomberg’s report, Wells Fargo stock dropped 1.13% at one point. It is currently trading at $45.70 per share, which is almost 10% down year-to-date.

The post Wells Fargo Plans to Scale Down its Mortgage Business appeared first on theprimarymarket.com.