Still, while the decline in mortgage rates is expected to provide some relief to homebuyers, lower rates are expected to push prices higher. “A drop in rates makes it more likely that prices will start heading higher earlier than normal in 2024, and higher prices will erase some of the benefits of lower mortgage rates,” Keith Gumbinger, vice president of HSH.com, observed.

The Federal Reserve is expected to cut interest rates three times throughout 2024. While economists at Realtor.com said they expect rates to average 6.8% for most of the year before declining to 6.5% later in the year, the National Association of Realtors forecasted that rates will average 6.3% in 2024.

The post Mortgage Rate Hit Lowest Level Since May 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.

“With mortgage rates down roughly 50 basis points over the past month, builders are reporting an uptick in traffic as some prospective buyers who previously felt priced out of the market are taking a second look,” NAHB Chairwoman Alicia Huey observed, reflecting on the easing market conditions.

In October, the average rate for the 30-year fixed-rate mortgage surged to a two-decade high of 7.9% before retreating to 7.07% last week, data from the Mortgage Bankers Association showed. This is another sign of easing inflation, with investors becoming more confident that the Federal Reserve will cut interest rates early in 2024.

The post U.S. Homebuilders More Confident as Interest Rates Ease appeared first on theprimarymarket.com.

Mortgage rates have been in a constant decline due to rising expectations that the Federal Reserve will implement interest rate cuts during the early stages of next year. Still, most major lenders and realtor organizations have submitted predictions that the 30-year mortgage rate will fall between 6% and 7% in 2024.

While the fall in mortgage rates provides relief to potential homebuyers, this breathing room is somewhat limited given the home prices continued to rise throughout 2023. Redfin’s latest data shows that the median existing home price in the U.S. is $413,500—a 3.4% rise from the same point last year.

The post Mortgage Rates Fall Below 7% appeared first on theprimarymarket.com.

15-year new purchase loans also declined, falling by three basis points to 6.85%; their lowest level since August. It’s also a decline from the 7.59% peak reached in August, which is the highest average level since 2000. The 30-year average fell even further, declining by 12 basis points to 6.69%; its lowest level since August as well.

Refinancing rate averages also declined, with the exception of the 30-year refinancing rate. The 30-year refi average surged higher by 20 basis points; a colossal 68 basis points higher than the 30-year new purchase rate.

The post 30-Year Mortgage Rate Retreats to September Level 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.

Despite this decline, rates don’t seem to have fallen enough the convince homeowners to list their homes for sale, Jeff Tucker, a Zillow senior economist, observed.

“Affordability and availability of homes are the biggest hurdles for buyers in today’s market, though both are driven by mortgage rates,” Tucker commented. “Many homeowners just are not willing to give up their current house and low monthly payments to jump into a tight, expensive market.”

Data from the Mortgage Bankers Association (MBA) showed that the number of mortgage applications for home purchases for the week ending March 31 declined by 4% on a seasonally adjusted basis. Activity remains 35% lower than last year on an unseasonal basis.

According to Altos Research, only 410,000 single-family homes came on the market this week; down almost 1% from the previous week.

The post Mortgage Rates Fall for Fourth Straight Week appeared first on theprimarymarket.com.

Weaker homebuyer demand has led to a significant drop in mortgage rates, particularly in the midst of rising inflation. While the Federal Reserve has embarked on a series of interest rate hikes, such hikes are expected to slow down in the face of cooling inflation.

“The overall sentiment that I’m experiencing with clients is skittishness,” Scott Sheldon, branch manager at New American Funding said of his company’s customer reactions to the ongoing inflation. “They want to see what the market does and make the right approach. They want to wait until January… see if interest rates start to slowly trickle down [more].”

A survey released by the Mortgage Bankers Association revealed that the demand for mortgages dropped by 1.9% last week, thereby ending three consecutive weeks of rising demand. Actual purchase activity has declined by 3% over the week.

In response to the decline in demand, sellers have been marking down the prices of their listings. Realtor.com reported that 19.6% of home had a price reduction in November; up 9.2% from last year.

The post Mortgage Rates Hit Lowest Point Since September appeared first on theprimarymarket.com.

Despite the positive signs on the horizon, homebuyers should completely relax. According to Freddie Mac’s chief economist Sam Khater, the current economic situation will continue to provide a fertile ground for mortgage rate volatility. 

“Mortgage rates remained volatile due to the tug of war between inflationary pressures and a clear slowdown in economic growth,” Khater explained in a statement. “The high uncertainty surrounding inflation and other factors will likely cause rates to remain variable, especially as the Federal Reserve attempts to navigate the current economic environment.”

While this week’s mortgage rate can seem attractive compared to the June peak of 5.81%, the number is still up 2.22% compared to 2021. This has caused a significant slowdown in home market activity and a drop in sales and mortgage demands.

The cooldown of the U.S. house market is expected to continue in the future as 40-year-high inflation and fears of recessions make Americans cautious of costs related to buying a home.

The post Mortgage Rates Dip Below 5% for the First Time in 4 Months appeared first on theprimarymarket.com.

In its report, Freddie Mac attributed the drop to surging inflation and the fears of recession. Sam Khater, the chief economist of this government-sponsored company, also predicts the normalization of the housing market if “home price growth materially slows due to the combination of low housing affordability and an expected economic slowdown.”

It remains to be seen whether the drop in mortgage rates will help the home market to recover from recent blows. The National Association of Realtors recently reported that home sales in the United States dipped to a two-year low. Besides the decade-high mortgage rates, the reason for the home market cooldown was also the high prices. The national median home price reached $407,600 in June, representing a record since the data started being measured in the late 1990s.

While the homebuyers might have to wait a bit more for a significant relief, some positives are on the horizon. More homes are getting on the market in recent weeks, according to data shared by Realtor.com, which will make it easier for buyers to find a home in their price range. On the other hand, the sellers might be willing to negotiate more due to increased competition.

The post Mortgage Rates Drop for Second Consecutive Week appeared first on theprimarymarket.com.

Still, while the decline in mortgage rates is expected to provide some relief to homebuyers, lower rates are expected to push prices higher. “A drop in rates makes it more likely that prices will start heading higher earlier than normal in 2024, and higher prices will erase some of the benefits of lower mortgage rates,” Keith Gumbinger, vice president of HSH.com, observed.

The Federal Reserve is expected to cut interest rates three times throughout 2024. While economists at Realtor.com said they expect rates to average 6.8% for most of the year before declining to 6.5% later in the year, the National Association of Realtors forecasted that rates will average 6.3% in 2024.

The post Mortgage Rate Hit Lowest Level Since May 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.

“With mortgage rates down roughly 50 basis points over the past month, builders are reporting an uptick in traffic as some prospective buyers who previously felt priced out of the market are taking a second look,” NAHB Chairwoman Alicia Huey observed, reflecting on the easing market conditions.

In October, the average rate for the 30-year fixed-rate mortgage surged to a two-decade high of 7.9% before retreating to 7.07% last week, data from the Mortgage Bankers Association showed. This is another sign of easing inflation, with investors becoming more confident that the Federal Reserve will cut interest rates early in 2024.

The post U.S. Homebuilders More Confident as Interest Rates Ease appeared first on theprimarymarket.com.

Mortgage rates have been in a constant decline due to rising expectations that the Federal Reserve will implement interest rate cuts during the early stages of next year. Still, most major lenders and realtor organizations have submitted predictions that the 30-year mortgage rate will fall between 6% and 7% in 2024.

While the fall in mortgage rates provides relief to potential homebuyers, this breathing room is somewhat limited given the home prices continued to rise throughout 2023. Redfin’s latest data shows that the median existing home price in the U.S. is $413,500—a 3.4% rise from the same point last year.

The post Mortgage Rates Fall Below 7% appeared first on theprimarymarket.com.

15-year new purchase loans also declined, falling by three basis points to 6.85%; their lowest level since August. It’s also a decline from the 7.59% peak reached in August, which is the highest average level since 2000. The 30-year average fell even further, declining by 12 basis points to 6.69%; its lowest level since August as well.

Refinancing rate averages also declined, with the exception of the 30-year refinancing rate. The 30-year refi average surged higher by 20 basis points; a colossal 68 basis points higher than the 30-year new purchase rate.

The post 30-Year Mortgage Rate Retreats to September Level 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.

Despite this decline, rates don’t seem to have fallen enough the convince homeowners to list their homes for sale, Jeff Tucker, a Zillow senior economist, observed.

“Affordability and availability of homes are the biggest hurdles for buyers in today’s market, though both are driven by mortgage rates,” Tucker commented. “Many homeowners just are not willing to give up their current house and low monthly payments to jump into a tight, expensive market.”

Data from the Mortgage Bankers Association (MBA) showed that the number of mortgage applications for home purchases for the week ending March 31 declined by 4% on a seasonally adjusted basis. Activity remains 35% lower than last year on an unseasonal basis.

According to Altos Research, only 410,000 single-family homes came on the market this week; down almost 1% from the previous week.

The post Mortgage Rates Fall for Fourth Straight Week appeared first on theprimarymarket.com.

Weaker homebuyer demand has led to a significant drop in mortgage rates, particularly in the midst of rising inflation. While the Federal Reserve has embarked on a series of interest rate hikes, such hikes are expected to slow down in the face of cooling inflation.

“The overall sentiment that I’m experiencing with clients is skittishness,” Scott Sheldon, branch manager at New American Funding said of his company’s customer reactions to the ongoing inflation. “They want to see what the market does and make the right approach. They want to wait until January… see if interest rates start to slowly trickle down [more].”

A survey released by the Mortgage Bankers Association revealed that the demand for mortgages dropped by 1.9% last week, thereby ending three consecutive weeks of rising demand. Actual purchase activity has declined by 3% over the week.

In response to the decline in demand, sellers have been marking down the prices of their listings. Realtor.com reported that 19.6% of home had a price reduction in November; up 9.2% from last year.

The post Mortgage Rates Hit Lowest Point Since September appeared first on theprimarymarket.com.

Despite the positive signs on the horizon, homebuyers should completely relax. According to Freddie Mac’s chief economist Sam Khater, the current economic situation will continue to provide a fertile ground for mortgage rate volatility. 

“Mortgage rates remained volatile due to the tug of war between inflationary pressures and a clear slowdown in economic growth,” Khater explained in a statement. “The high uncertainty surrounding inflation and other factors will likely cause rates to remain variable, especially as the Federal Reserve attempts to navigate the current economic environment.”

While this week’s mortgage rate can seem attractive compared to the June peak of 5.81%, the number is still up 2.22% compared to 2021. This has caused a significant slowdown in home market activity and a drop in sales and mortgage demands.

The cooldown of the U.S. house market is expected to continue in the future as 40-year-high inflation and fears of recessions make Americans cautious of costs related to buying a home.

The post Mortgage Rates Dip Below 5% for the First Time in 4 Months appeared first on theprimarymarket.com.

In its report, Freddie Mac attributed the drop to surging inflation and the fears of recession. Sam Khater, the chief economist of this government-sponsored company, also predicts the normalization of the housing market if “home price growth materially slows due to the combination of low housing affordability and an expected economic slowdown.”

It remains to be seen whether the drop in mortgage rates will help the home market to recover from recent blows. The National Association of Realtors recently reported that home sales in the United States dipped to a two-year low. Besides the decade-high mortgage rates, the reason for the home market cooldown was also the high prices. The national median home price reached $407,600 in June, representing a record since the data started being measured in the late 1990s.

While the homebuyers might have to wait a bit more for a significant relief, some positives are on the horizon. More homes are getting on the market in recent weeks, according to data shared by Realtor.com, which will make it easier for buyers to find a home in their price range. On the other hand, the sellers might be willing to negotiate more due to increased competition.

The post Mortgage Rates Drop for Second Consecutive Week appeared first on theprimarymarket.com.