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.

“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.

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.

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.

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.

“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.

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.

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.