First-Time Buyers Rush to Lock in Low Mortgage Rates

September 18, 2020

© REALTOR® MAGAZINE

 

Record low mortgage rates are drawing a new wave of first-time home buyers to the market, Freddie Mac reports. “In August, activity among first-time home buyers rose 19% from July to the highest monthly level ever for Freddie Mac,” says the mortgage giant’s Chief Economist Sam Khater, adding that the rebound “has come at a critical time for the economy.”

Since the beginning of the year, mortgage rates have dropped more than 80 basis points, the National Association of REALTORS® reports. As such, the qualifying income to buy a starter home has dropped by 10% to nearly $43,000. Further, the monthly mortgage payment dropped by $100.

The lower borrowing costs are prompting homebuying activity to move higher than pre-pandemic levels, NAR notes. More home buyers may be able to jump into the housing market, with one in three renters able to afford to buy the typical home today, NAR reports.

Freddie Mac reports the following national averages with mortgage rates for the week ending Sept. 17:

  • 30-year fixed-rate mortgages: averaged 2.87%, with an average 0.8 point, rising slightly from last week’s all-time low of 2.86%. Last year at this time, 30-year rates averaged 3.73%.
  • 15-year fixed-rate mortgages: averaged 2.35%, with an average 0.8 point, falling from last week’s 2.37% average. A year ago, 15-year rates averaged 3.21%.
  • 5-year hybrid adjustable-rate mortgages: averaged 2.96%, with an average 0.3 point, dropping from last week’s 3.11% average. Last year at this time, 5-year ARMs averaged 3.49%.

Freddie Mac reports average commitment rates, along with average fees and points, to reflect the total upfront cost of obtaining a mortgage.

 

 

Mortgage Rates Did It Again: Another Record Low

September 11, 2020

© REALTOR® MAGAZINE

 

Just as some housing experts were predicting rates couldn’t get lower, they did. The 30-year fixed-rate mortgage reached a new all-time low, averaging 2.86% this week, according to Freddie Mac. “Mortgage rates have hit another record low due to a late-summer slowdown in the economic recovery,” says Sam Khater, Freddie Mac’s chief economist. “These low rates have ignited robust purchase demand activity, which has been growing at double-digit rates for four consecutive months. However, heading into the fall, it will be difficult to sustain the growth momentum in purchases because the lack of supply is already exhibiting a constraint on sales activity.”

Freddie Mac reports the following national averages with mortgage rates for the week ending Sept. 10:

  • 30-year fixed-rate mortgages: averaged 2.86%, with an average 0.8 point, dropping from last week’s 2.93% average. Last year at this time, 30-year rates averaged 3.56%. The previous all-time low for 30-year rates was set at the beginning of August, averaging 2.88%.
  • 15-year fixed-rate mortgages: averaged 2.37%, with an average 0.7 point, dropping from last week’s 2.42% average. A year ago, 15-year rates averaged 3.09%.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.11%, with an average 0.2 point, rising from last week’s 2.93% average. A year ago, 5-year ARMs averaged 3.36%.

Freddie Mac reports average commitment rates along with average fees and points to reflect the total upfront cost of obtaining the mortgage.

 

 

Freddie: Mortgage Rates Won’t Move Much Lower

September 4, 2020

 

 

Mortgage rates were mostly flat this week, remaining below 3%. “However, there are some interesting compositional shifts, as the 10-year Treasury rate has increased modestly over the past month while mortgage spreads have declined,” notes Sam Khater, Freddie Mac’s chief economist. “Spreads may decline even further, but the rise in Treasury rates will make it difficult for mortgage rates to fall much more over the next few weeks.”

Ultra-low mortgage rates are prompting existing- and new-home sales to increase to pre-pandemic levels, the National Association of REALTORS® reports. Mortgage rates have plunged nearly 80 basis points since the beginning of the year, which translates to a decrease in monthly mortgage payments of $120 for the typical American, NAR reports.

Freddie Mac reports the following national averages with mortgage rates for the week ending Sept. 3:

30-year fixed-rate mortgages: averaged 2.93%, with an average 0.8 point, up slightly from a 2.91% average last week. The all-time record low for 30-year rates was 2.88%, set at the beginning of August. A year ago, 30-year rates averaged 3.49%.

15-year fixed-rate mortgages: averaged 2.42%, with an average 0.8 point, falling from last week’s 2.46% average. A year ago, 15-year rates averaged 3%.

5-year Treasury hybrid adjustable-rate mortgages: averaged 2.93%, with an average 0.2 point, rising from last week’s 2.91% average. A year ago, 5-year ARMs averaged 3.30%.

 

 

Mortgage Rates Fall Again, Average 2.91%

August 28, 2020

© REALTOR® MAGAZINE

 

Mortgage rates remain near all-time lows, and many economists believe they will stay for the remainder of this year and well into next year.

“This year has been anything but normal and as the uncertainty lingers, mortgage rates remain” low, says Sam Khater, Freddie Mac’s chief economist. “These rates continue to incentivize potential buyers and the home buying season, which shifted from spring to summer, will likely continue into the fall.”

The Federal Reserve this week announced the adoption of a more flexible policy to achieve inflation that averages 2% over time. “This significant change can keep interest rates low for longer periods, which could translate into both long periods of cheap mortgages and a strong job market,” the National Association of REALTORS® said in a statement. “More and more home buyers and homeowners are expected to take advantage of these ultra-low rates.”

Freddie Mac reports the following national averages with mortgage rates for the week ending Aug. 27:

  • 30-year fixed-rate mortgages: averaged 2.91%, with an average 0.8 point, dropping from last week’s 2.99% average. The 30-year fixed-rate mortgage hit an all-time low of 2.88% at the beginning of this month. A year ago, 30-year rates averaged 3.58%.
  • 15-year fixed-rate mortgages: averaged 2.46%, with an average 0.7 point, falling from last week’s 2.54% average. A year ago, 15-year rates averaged 3.06%.
  • 5-year hybrid adjustable-rate mortgages: averaged 2.91%, with an average 0.2 point, unchanged from last week’s average. A year ago, 5-year ARMs averaged 3.31%.

Freddie Mac reports average commitment rates along with average fees and point stop reflect the total upfront cost of obtaining the mortgage.

 
 

August 21, 2020

 

The 30-year fixed-rate mortgage averaged 2.99% this week after hitting an all-time low of 2.88% at the beginning of the month, Freddie Mac reports. Home buyer demand continues to accelerate and is providing support to an otherwise stagnant economy, says Sam Khater, Freddie Mac’s chief economist. Further, a surge in home sales has led to a rapid increase in demand for remodeling and home furnishings as consumers look to renovate during the COVID-19 pandemic.

Mortgage rates will likely move lower over the coming weeks, too. “Going forward, rates could still come down due to the super-accommodating monetary policy that has kept the benchmark Treasury yields at under 1%,” NAR says. Freddie Mac reports the following national averages with mortgage rates for the week ending:

  • 30-year fixed-rate mortgages: averaged 2.99%, with an average 0.8 point, rising from last week’s 2.96% average. A year ago, 30-year rates averaged 3.55%.
  • 15-year fixed-rate mortgages: averaged 2.54%, with an average 0.7 point, increasing from last week’s 2.46% average. A year ago, 15-year rates averaged 3.03%.
  • 5-year hybrid adjustable-rate mortgages: averaged 2.91%, with an average 0.3 point, increasing from last week’s 2.90% average. A year ago, 5-year ARMs averaged 3.32%.

 

 

30-Year Mortgage Rates Stay Below 3% This Week

August 14, 2020

© REALTOR® MAGAZINE

 

Mortgage rates inched up slightly this week but still remained near historical lows. The 30-year fixed-rate mortgage averaged 2.96% this week, up from last week’s record low of 2.88%, Freddie Mac reports.

“Home buyer demand remains strong, especially for those in search of an entry-level home, where the improvement in affordability via lower mortgage rates has a material impact,” says Sam Khater, Freddie Mac’s chief economist. “Even with this week’s uptick, very low rates are providing a significant boost to the housing market that continues to hold up well during this time of uncertainty.”

The National Association of REALTORS® predicts that mortgage rates should continue to remain low and even drop as monetary policy keeps the benchmark Treasury yields under 1%.

Freddie Mac reports the following national averages with mortgage rates for the week ending Aug. 13:

  • 30-year fixed-rate mortgages: averaged 2.96%, with an average 0.8 point, rising from last week’s 2.88% average. Last year at this time, 30-year rates averaged 3.60%.
  • 15-year fixed-rate mortgages: averaged 2.46%, with an average 0.8 point, rising from last week’s 2.44% average. A year ago, 15-year rates averaged 3.07%.
  • 5-year hybrid adjustable-rate mortgages: averaged 2.90%, with an average 0.4 point, unchanged from last week. A year ago, 5-year ARMs averaged 3.35%.

Freddie Mac reports average commitment rates along with average fees and points to reflect the total upfront cost of obtaining the mortgage.

 

 

 

New Record Low for 30-Year Mortgage Rate: 2.88%

August 7, 2020

© REALTOR® MAGAZINE

 

For the eighth time this year, the 30-year mortgage rate hit an historic low. Home buyers and refinancing homeowners could now potentially lock in the lowest rates Freddie Mac has recorded since it began tracking such data in 1971.

“The resilience of the housing market continues as mortgage rates hit another all-time low, giving potential buyers more purchasing power and strengthening demand,” says Sam Khater, Freddie Mac’s chief economist. “We expect rates to stay low and continue to propel the purchase market forward. However, the main barrier to rising demand remains the lack of inventory, especially for entry-level homes.”

The National Association of REALTORS® predicts that rates could fall further over the next few weeks, since 10-year Treasury yields, which mortgage rates tend to follow, also have retreated slightly.

Jumbo mortgages, on the other hand, cannot be sold to Fannie Mae and Freddie Mac and do not carry a government guarantee. Therefore, they are more difficult to obtain, with lenders requiring higher down payments and stellar credit. “The housing market is hot because of the lower mortgage rates, but the luxury market may remain soft due to jumbo loan issues,” NAR economists say.

Freddie Mac reports the following national averages with mortgage rates for the week ending Aug. 6:

  • 30-year fixed-rate mortgages: averaged 2.88%, with an average 0.8 point, falling from last week’s 2.99% average. The lowest average for the 30-year fixed-rate mortgage had previously been set in July at 2.98%. A year ago, 30-year rates averaged 3.60%.
  • 15-year fixed-rate mortgages: averaged 2.44%, with an average 0.8 point, falling from last week’s 2.51% average. A year ago, 15-year rates averaged 3.05%.
  • 5-year hybrid adjustable-rate mortgages: averaged 2.90%, with an average 0.4 point, falling from last week’s 2.94% average. A year ago, 5-year ARMs averaged 3.36%.

Freddie Mac reports average commitment rates, along with average fees and points, to reflect the total upfront cost of obtaining a mortgage.

Source: 
 

 

 

30-Year Mortgage Rate Drops to 2.99% Average

July 31, 2020

© REALTOR® MAGAZINE

 

Thirty-year fixed-rate mortgages crossed below the 3% threshold—not only the second time this month but also the second time on record, Freddie Mac reports.

“It’s Groundhog Day in the mortgage market as rates continue to remain near historic lows, driving purchase demand over 20 percent above a year ago,” says Sam Khater, Freddie Mac’s chief economist. “Real estate is one of the bright spots in the economy, with strong demand and modest slowdown in home prices heading into late summer. Home sales should remain strong the next few months into the early fall.”

Lawrence Yun, chief economist of the National Association of REALTORS®, predicts that mortgage rates are likely to fall further over the next few weeks since the 10-year Treasury yields—which rates follow—have retreated over the past few weeks. “The housing market is hot because of lower mortgage rates,” Yun says.

Freddie Mac reports the following national averages with mortgage rates for the week ending July 30:

  • 30-year fixed-rate mortgages: averaged 2.99%, with an average 0.8 point, falling slightly from 3.01% average. The lowest average on record is 2.98%, which occurred in mid-July. Last year at this time, 30-year rates averaged 3.75%.
  • 15-year fixed-rate mortgages: averaged 2.51%, with an average 0.7 point, dropping from last week’s 2.54% average. A year ago, 15-year rates averaged 320%.
  • 5-year hybrid adjustable-rate mortgages: averaged 2.94%, with an average 0.4 point, dropping from last week’s 3.09% average. A year ago, 5-year ARMs averaged 3.46%.

Freddie Mac reports average commitment rates along with average fees and points to reflect the total upfront cost of obtaining the mortgage.

 

 

 

Mortgage Rates Dip Below 3%

July 17, 2020

© REALTOR® MAGAZINE

 

The 30-year fixed-rate mortgage averaged 2.98% this week, the lowest rate in Freddie Mac’s records dating back to 1971.

“The drop has led to increased home buyer demand and, these low rates have been capitalized into asset prices in support of the financial markets,” says Sam Khater, Freddie Mac’s chief economist. “However, the countervailing force for the economy has been the rise in new virus cases which has caused the economic recovery to stagnate, and this economic pause puts many temporary layoffs at risk of ossifying into permanent job losses.”

Freddie Mac reported the following national averages with mortgage rates for the week ending July 16:

  • 30-year fixed-rate mortgages: averaged 2.98%, with an average 0.7 point, falling from a 3.03% average last week. A year ago, 30-year rates averaged 3.81%.
  • 15-year fixed-rate mortgages: averaged 2.48%, with an average 0.7 point, falling from last week’s 2.51% average. A year ago, 15-year rates averaged 3.23%.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.06%, with an average 0.3 point, rising slightly from last week’s 3.02% average. A year ago, 5-year ARMs averaged 3.48%.

Freddie Mac reports average commitment rates along with average fees and points to reflect the total upfront cost of obtaining a mortgage.

 

 

 

How Much Lower Can Mortgage Rates Go?

July 10, 2020

© REALTOR® MAGAZINE

 

The 30-year fixed-rate mortgage is edging closer each week to the 3% mark. Freddie Mac reported that the 30-year rate averaged 3.03% this week, the lowest since the government-sponsored enterprise began tracking such data in 1971. Last week, the 30-year rate hit 3.07%, a record at the time. “The summer is heating up as record low mortgage rates continue to spur homebuyer demand,” says Sam Khater, Freddie Mac’s chief economist. “However, it remains to be seen whether the demand will continue if COVID-19 cases rise to the point that it hinders economic growth.”

Freddie Mac reports the following national averages for the week ending July 9:

  • 30-year fixed-rate mortgages: averaged 3.03%, with an average 0.8 point, falling from last week’s previous record low of 3.07%. Last year at this time, 30-year rates averaged 3.75%.
  • 15-year fixed-rate mortgages: averaged 2.51%, with an average 0.8 point, falling from last week’s 2.56% average. A year ago, 15-year rates averaged 3.22%.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.02%, with an average 0.3 point, rising slightly from last week’s 3% average. A year ago, 5-year ARMs averaged 3.46%.

Freddie Mac reports average commitment rates, along with average fees and points, to reflect the total upfront cost of obtaining a mortgage.

 

 

 

 

Mortgage Rates Remain at All-Time Low

July 3, 2020

Freddie Mac reported the following national averages with mortgage rates for the week ending July 2:

  • 30-year fixed-rate mortgages: averaged 3.07%, with an average 0.8 point, down from last week’s 3.13%—the previous all-time low average. Last year at this time, 30-year rates averaged 3.75%.
  • 15-year fixed-rate mortgages: averaged 2.56%, with an average 0.8 point, falling slightly from last week’s 2.59% average. A year ago, 15-year rates averaged 3.18%.
  • 5-year hybrid adjustable-rate mortgages: averaged 3%, with an average 0.3 point, falling from last week’s 3.08% average. A year ago, 5-year ARMs averaged 3.45%.

 

 

 

June 26, 2020

© REALTOR® MAGAZINE

 

The 30-year fixed-rate mortgage stayed at its record low this week, offering an opportunity for home buyers to lock in the lowest rate in Freddie Mac’s records dating back 50 years.

The 30-year fixed-rate mortgage averaged 3.13% this week.

The mortgage market has seen a resurgence in applications for home purchases in recent weeks. “The rebound in purchase demand partly reflects deferred sales as well as continued interest from prospective buyers looking to take advantage of the low mortgage rate environment,” says Sam Khater, Freddie Mac’s chief economist.

Freddie Mac reports the following national averages with mortgage rates for the week ending June 25:

  • 30-year fixed-rate mortgages: averaged 3.13%, with an average 0.8 point, unchanged from last week’s all-time low average. Last year at this time, 30-year rates averaged 3.73%.
  • 15-year fixed-rate mortgages: averaged 2.59%, with an average 0.8 point, rising slightly from a 2.58% average. A year ago, 15-year rates averaged 3.16%.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.08%, with an average 0.5 point, falling slightly from last week’s 3.09% average. A year ago, 5-year ARMs averaged 3.39%.

Freddie Mac reports average commitment rates along with average fees and points to reflect the total upfront cost of obtaining a mortgage.

Source: 
 

 

 

 

 

 

 

 

 

 

 

Mark Wilmot Realtor® Compass Real Estate

Ventura/L.A. Counties

Lic#01733107 805-279-3038

www.BeachBumLiving.com/ www.MarkWilmot.com/ www.BeachBumHomes.com

 



© TTWS