Tag Archives: rates

Though mortgage rates and applications are falling, home prices are rising. Freddie Mac’s House Price Index has shown a steady increase in prices over the last several months. The S&P CoreLogic Case Shiller Home Price Index has shown a similar trend. January’s Index reflected a 31-month high in home prices. During January, home prices were up 5.9 percent year-over-year and 5.7 percent month-over-month.

A new JPMorgan Chase Institute report highlights the link between interest rate changes and consumer spending for homeowners with adjustable-rate vs. fixed-rate mortgages. The study, released on Thursday, could provide valuable insight to housing policy makers regarding how their actions affect the type of mortgage a homeowner chooses as well as how they impact the consumption habits of homeowners with ARMs, compared to those with fixed rates, throughout the business cycle.

As mortgage applications increase, mortgage rates have begun to drop, according to data from the Mortgage Bankers Association (MBA) and Freddie Mac. The MBA’s Market Composite Index, a measure of mortgage loan application volume, rose 1.5 percent from a week earlier, while the 30-year fixed-rate mortgage dropped from 4.10 to 4.08 percent. The average loan size for purchase applications was at $318,700, a survey high.

This week, Freddie Mac, The Mortgage Bankers Association (MBA), and the Federal Housing Finance Agency (FHFA) released reports on the state of the mortgage rates. According to Freddie Mac, mortgage rates are still in a decline. The 30-year fixed mortgage rate fell nine basis points this week, another week-over-week decline. But despite the fluctuations in rates, new home sales still managed to exceed expectations jumping 6.1 percent in February to 592,000.

The Fed raised rates in 2017, and with two more rate increases this year likely, potential homebuyers will get into the market in order to buy a house before rates go any higher.

As risk is reduced, CoreLogic indicates that home prices have continued to rise. Previously, the CoreLogic Home Price Index (HPI) showed nationwide sales, including distressed sales, jumped 6.9 percent year over year and 0.7 percent month-over-month. Mortgage rates have continued to rise as well, and are anticipated to continue to rise during 2017.

Homes stayed on the market for an average of two days more in February than January.

Notoriously expensive New York state ranks high on the list, but surprisingly, New York’s most expensive ZIP code is not in Manhattan.

Before the Federal Reserve Meeting on March 14, Federal reserve Head Janet Yellen announced the possibility of federal rate increases.

Although interest rates have been at historical lows, they have been highly responsive to the general level of interest rates, causing originators' profits to suffer.