“Buyers are extra cautious right now,” Redfin premier agent Heather Kruayai observed. They want to make sure they’re getting a good deal given how much mortgage payments have gone up, and when they don’t feel like they’re getting a good deal, they’re backing out.”

The towns that were hit the hardest were those that experienced a home purchase boom during the pandemic due to the arrival of remote workers. Some areas in Florida experienced contract cancellation rates of up to 20%.

The post Home Sales Dive as Mortgage Rates Hit 23-Year High appeared first on theprimarymarket.com.

Still, Realtor.com chief economist Danielle Hale insists that the property market has remained relatively unchanged since mortgage rates first hiked. “Taking a step back, the big picture remains largely unchanged,” Hale explained. “The number of homes for sale remains low and the number of newly listed homes has lessened the gap, but continues to trail behind prior years. This has kept housing markets surprisingly competitive.”

Housing market data from Redfin showed that new property listings fell by 9.3% annually to 82,136 units this month. The median US home sale price is $378,725 in September; a 4.5% increase from last year.

The post Mortgage Rates Remain Above 7% For Fourth Week appeared first on theprimarymarket.com.

Mortgage rates have fluctuated more aggressively since the start of the Federal Reserve’s strict interest rate hiking agenda in an effort to beat down inflation. “I think what we’re seeing is the Fed’s efforts to crush inflation are in turn starting to crush demand,” National Association of Home Builders CEO Jim Tobin commented. According to Tobin, this is why many homeowners are reluctant to search for new properties, instead of remaining in their existing homes.

A survey by the Mortgage Bankers Association (MBA) for the week ending August 11 showed that overall purchase demand slumped by 26% compared to the same week a year ago. Purchase applications for a mortgage fell by 0.8% from the previous week, heading to its lowest level in nearly seven months.

The post Mortgage Rates Surge to 21-Year High appeared first on theprimarymarket.com.

Bankrate mortgage analyst Jeff Ostrowski claimed that while mortgage rates and home prices may be able to drop in price marginally in the coming months, no significant drop can be expected over the next two years. This is because the Federal Reserve is expected to keep interest rates high, thereby putting upward pressure on mortgage rates. Ostrowski forecast mortgage rates to float between 5% and 6% over the next year.

Redfin deputy chief economist Taylor Marr agreed with this sentiment, predicting that mortgage rates would ease to approximately 6% by the end of the year. “It feels like prices aren’t really changing much and interest rates aren’t changing much,” Marr admitted. “We’ve been describing it sort of like a game of musical chairs, where most participants are just in their seats, and once people start to get up out of their seats, that’s where there will be affordable housing opportunities.”

The post Housing Market Affordability Expected to Remain Low, Experts Warn appeared first on theprimarymarket.com.

Freddie Mac reported that the average 30-year fixed mortgage rose from 6.27% the previous week to 6.39%. While the mortgage rate had fallen by almost half a percentage point since early March, the trajectory of the mortgage rate changed once several Federal Reserve officials hinted that further interest rates may be implemented going forward as a means of further fighting inflation.

“We had a surge of buyers probably a month and a half ago, but that’s waned,” Sean Dycus, a realtor at Mainstreet Properties said of the effect of the mortgage rate increase. “Buyers are still out there, but we’re going to have less listings coming on. That’s the big prediction: Homeowners are going to hold back from listing this year because of rates.”

A survey by the Mortgage Bankers Association found that the number of property purchase applications declined by 10% from the week ending April 14. Furthermore, demand was 36% lower than the same week a year earlier.

The post Mortgage Rates Increase After Weeks of Declines appeared first on theprimarymarket.com.

The mortgage rate on a 30-year fixed mortgage has been on a steady rise and has increased by 0.75 points since February. One of the main reasons for this is an expectancy that the Federal Reserve will continue to be aggressive in interest rate hikes as part of the efforts to cool down the economy and fight inflation.

“Consumers are spending in sectors that are not interest rate sensitive, such as travel and dining out,” said Freddie Mac in their report. “However, rate-sensitive sectors, such as housing, continue to be adversely affected. As a result, would-be homebuyers continue to face the compounding challenges of affordability and low inventory.”

Mortgage rates hit their peak in November when the 30-year fixed mortgage rate was at 7.08% while the 15-year fixed mortgage rate reached 6.38%. This was followed by a slide to 6.09% and 5.14%, respectively, in early February before the rates began to climb again.

The high mortgage rates will continue to make things hard for homebuyers, who are also forced to navigate a ballooned house market. The average price of a home listing in January was $406,000 before surging to $415,000 the following month.

The post Mortgage Rates Continued to Rise in March, Approaching 7% appeared first on theprimarymarket.com.

Sam Khater, Freddie Mac’s chief economist, pins this surge on the effort to combat rising inflation. “Mortgage rates rose again as markets continue to manage the prospect of more aggressive monetary policy to combat elevated inflation,” Khater explained.

As a result, the demand for mortgages slumped to a 22-year low, with elevated borrowing costs and inventory shortages detracting potential buyers. Those buyers who remain in the market have consequently expressed less desire to make a bid on a property, thereby convincing property owners to reassess their asking prices.

Realtor.com reported that the median home price in the United States fell to $435,000 in August, down from July’s figure of $449,000. Robert Heck, the vice president of Morty, believes that this is only the start of the rise in mortgage rates following the increase at the start of 2022.

The post Mortgage Rates Close in on 14-Year Record appeared first on theprimarymarket.com.

This increase is a large factor that is contributing to the lack of affordability in the current housing market, with many property owners also putting off sales in anticipation of eased market conditions where they will be able to raise their asking prices thanks to an increase in demand.

According to Freddie Mac Chief Economist Sam Khater, the recent mortgage rate increase is a testament to the ongoing volatility of the property market. “Declines in purchase demand continue to diminish while supply remains fairly tight across most markets. The consequence is that house prices likely will continue to rise, but at a slower pace for the rest of the summer,” Khater commented.

The heightened mortgage rates have left prospective property buyers hesitant to make purchases, particularly owing to the resulting heightened borrowing costs. According to a Fannie Mae survey, only 17% of buyers believe that now is an opportune time to purchase a home; a 20% decline from the previous month.

The post Mortgage Rates Pass 5% This Week After Brief Dip 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.

The figure represents a 0.03 increase on last week’s 5.78 percent mortgage rate and 2.79 points jump compared to the same period last year. The mortgage rates are now running at their highest since late 2008.

According to Freddie Mac’s chief economist Sam Khater, the increased rates will not have a major impact on the interest of homebuyers, but the demand won’t be near as close as in some previous years.

“The combination of rising rates and high home prices is the likely driver of recent declines in existing home sales,” Khater said in a statement. “However, in reality, many potential homebuyers are still interested in purchasing a home, keeping the market competitive but leveling off the last two years of red-hot activity.”

Home sales in the U.S. have recently reached a two-year low. National Association of Realtors released a report earlier this week that shows a 3.4 percent dip in sales in May. The data also showed that 5.41 million units had been sold compared to a seasonally adjusted annual rate of 6.49 million units in early 2022.

The post Mortgage Rates Make Another Jump, Approach 6% Mark appeared first on theprimarymarket.com.

“Buyers are extra cautious right now,” Redfin premier agent Heather Kruayai observed. They want to make sure they’re getting a good deal given how much mortgage payments have gone up, and when they don’t feel like they’re getting a good deal, they’re backing out.”

The towns that were hit the hardest were those that experienced a home purchase boom during the pandemic due to the arrival of remote workers. Some areas in Florida experienced contract cancellation rates of up to 20%.

The post Home Sales Dive as Mortgage Rates Hit 23-Year High appeared first on theprimarymarket.com.

Still, Realtor.com chief economist Danielle Hale insists that the property market has remained relatively unchanged since mortgage rates first hiked. “Taking a step back, the big picture remains largely unchanged,” Hale explained. “The number of homes for sale remains low and the number of newly listed homes has lessened the gap, but continues to trail behind prior years. This has kept housing markets surprisingly competitive.”

Housing market data from Redfin showed that new property listings fell by 9.3% annually to 82,136 units this month. The median US home sale price is $378,725 in September; a 4.5% increase from last year.

The post Mortgage Rates Remain Above 7% For Fourth Week appeared first on theprimarymarket.com.

Mortgage rates have fluctuated more aggressively since the start of the Federal Reserve’s strict interest rate hiking agenda in an effort to beat down inflation. “I think what we’re seeing is the Fed’s efforts to crush inflation are in turn starting to crush demand,” National Association of Home Builders CEO Jim Tobin commented. According to Tobin, this is why many homeowners are reluctant to search for new properties, instead of remaining in their existing homes.

A survey by the Mortgage Bankers Association (MBA) for the week ending August 11 showed that overall purchase demand slumped by 26% compared to the same week a year ago. Purchase applications for a mortgage fell by 0.8% from the previous week, heading to its lowest level in nearly seven months.

The post Mortgage Rates Surge to 21-Year High appeared first on theprimarymarket.com.

Bankrate mortgage analyst Jeff Ostrowski claimed that while mortgage rates and home prices may be able to drop in price marginally in the coming months, no significant drop can be expected over the next two years. This is because the Federal Reserve is expected to keep interest rates high, thereby putting upward pressure on mortgage rates. Ostrowski forecast mortgage rates to float between 5% and 6% over the next year.

Redfin deputy chief economist Taylor Marr agreed with this sentiment, predicting that mortgage rates would ease to approximately 6% by the end of the year. “It feels like prices aren’t really changing much and interest rates aren’t changing much,” Marr admitted. “We’ve been describing it sort of like a game of musical chairs, where most participants are just in their seats, and once people start to get up out of their seats, that’s where there will be affordable housing opportunities.”

The post Housing Market Affordability Expected to Remain Low, Experts Warn appeared first on theprimarymarket.com.

Freddie Mac reported that the average 30-year fixed mortgage rose from 6.27% the previous week to 6.39%. While the mortgage rate had fallen by almost half a percentage point since early March, the trajectory of the mortgage rate changed once several Federal Reserve officials hinted that further interest rates may be implemented going forward as a means of further fighting inflation.

“We had a surge of buyers probably a month and a half ago, but that’s waned,” Sean Dycus, a realtor at Mainstreet Properties said of the effect of the mortgage rate increase. “Buyers are still out there, but we’re going to have less listings coming on. That’s the big prediction: Homeowners are going to hold back from listing this year because of rates.”

A survey by the Mortgage Bankers Association found that the number of property purchase applications declined by 10% from the week ending April 14. Furthermore, demand was 36% lower than the same week a year earlier.

The post Mortgage Rates Increase After Weeks of Declines appeared first on theprimarymarket.com.

The mortgage rate on a 30-year fixed mortgage has been on a steady rise and has increased by 0.75 points since February. One of the main reasons for this is an expectancy that the Federal Reserve will continue to be aggressive in interest rate hikes as part of the efforts to cool down the economy and fight inflation.

“Consumers are spending in sectors that are not interest rate sensitive, such as travel and dining out,” said Freddie Mac in their report. “However, rate-sensitive sectors, such as housing, continue to be adversely affected. As a result, would-be homebuyers continue to face the compounding challenges of affordability and low inventory.”

Mortgage rates hit their peak in November when the 30-year fixed mortgage rate was at 7.08% while the 15-year fixed mortgage rate reached 6.38%. This was followed by a slide to 6.09% and 5.14%, respectively, in early February before the rates began to climb again.

The high mortgage rates will continue to make things hard for homebuyers, who are also forced to navigate a ballooned house market. The average price of a home listing in January was $406,000 before surging to $415,000 the following month.

The post Mortgage Rates Continued to Rise in March, Approaching 7% appeared first on theprimarymarket.com.

Sam Khater, Freddie Mac’s chief economist, pins this surge on the effort to combat rising inflation. “Mortgage rates rose again as markets continue to manage the prospect of more aggressive monetary policy to combat elevated inflation,” Khater explained.

As a result, the demand for mortgages slumped to a 22-year low, with elevated borrowing costs and inventory shortages detracting potential buyers. Those buyers who remain in the market have consequently expressed less desire to make a bid on a property, thereby convincing property owners to reassess their asking prices.

Realtor.com reported that the median home price in the United States fell to $435,000 in August, down from July’s figure of $449,000. Robert Heck, the vice president of Morty, believes that this is only the start of the rise in mortgage rates following the increase at the start of 2022.

The post Mortgage Rates Close in on 14-Year Record appeared first on theprimarymarket.com.

This increase is a large factor that is contributing to the lack of affordability in the current housing market, with many property owners also putting off sales in anticipation of eased market conditions where they will be able to raise their asking prices thanks to an increase in demand.

According to Freddie Mac Chief Economist Sam Khater, the recent mortgage rate increase is a testament to the ongoing volatility of the property market. “Declines in purchase demand continue to diminish while supply remains fairly tight across most markets. The consequence is that house prices likely will continue to rise, but at a slower pace for the rest of the summer,” Khater commented.

The heightened mortgage rates have left prospective property buyers hesitant to make purchases, particularly owing to the resulting heightened borrowing costs. According to a Fannie Mae survey, only 17% of buyers believe that now is an opportune time to purchase a home; a 20% decline from the previous month.

The post Mortgage Rates Pass 5% This Week After Brief Dip 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.

The figure represents a 0.03 increase on last week’s 5.78 percent mortgage rate and 2.79 points jump compared to the same period last year. The mortgage rates are now running at their highest since late 2008.

According to Freddie Mac’s chief economist Sam Khater, the increased rates will not have a major impact on the interest of homebuyers, but the demand won’t be near as close as in some previous years.

“The combination of rising rates and high home prices is the likely driver of recent declines in existing home sales,” Khater said in a statement. “However, in reality, many potential homebuyers are still interested in purchasing a home, keeping the market competitive but leveling off the last two years of red-hot activity.”

Home sales in the U.S. have recently reached a two-year low. National Association of Realtors released a report earlier this week that shows a 3.4 percent dip in sales in May. The data also showed that 5.41 million units had been sold compared to a seasonally adjusted annual rate of 6.49 million units in early 2022.

The post Mortgage Rates Make Another Jump, Approach 6% Mark appeared first on theprimarymarket.com.