Top markets for affordable renovated housing inventory

Despite the rapidly deteriorating affordability, there is some hope for homebuyers in the form of renovated homes: properties that have been rehabbed into move-in ready condition after being purchased at auction.

HousingWire Magazine: December 2021/ January 2022

AS WE ENTER A NEW YEAR, let’s look at some of the events that we can look forward to in 2022. But what about what’s next for the housing industry?

Back to the Future of Mortgage Lending

This webinar will be a discussion on understanding what’s to come in the future of mortgage lending by analyzing past trends in the industry, evolving consumer behaviors and demographics of the industry’s production capacity.

Logan Mohtashami on Omicron and pending home sales

In this episode of HousingWire Daily, Logan Mohtashami discusses how the new COVID variant, Omicron, will impact inflation and whether or not it will send mortgage rates lower.

Mortgage

Freddie Mac: Mortgage rates hit 10-month low

But even that won't help homebuying

Mortgage rates have now fallen to their lowest level within the last 10 months, according to the latest Freddie Mac Primary Mortgage Market Survey.

According to the survey, the 30-year fixed-rate mortgage averaged 4.41% for the week ending Feb. 7, 2019, moderately retreating from last week’s percentage. Unsurprisingly, this is once again higher than last year’s rate of 4.32%.

Freddie Mac Chief Economist Sam Khater said the U.S. economy remains on solid ground, inflation is contained, and the threat of higher short-term rates is fading from view, which has allowed mortgage rates to drift down to their lowest level in 10 months.

“This is great news for consumers who will be looking for homes during the upcoming spring homebuying season,” Khater continued. “Mortgage rates are essentially similar to a year ago, but today’s buyers have a larger selection of homes and more consumer bargaining power than they did the last few years.”

However, other economists aren't as positive. Yesterday Capital Economics warned that, despite lower rates, homeownership isn't likely to get a boost any time soon.

“A drop in mortgage interest rates to a nine-month low in January helped boost mortgage demand. But the jump in applications for home purchase is already unwinding,” Capital Economics stated. “Given a slowing economy and lack of homes for sale, housing demand is likely to tread water this year even as mortgage rates see further falls.”

 (Click to enlarge)

Freddie Mac - Mortgage rates

The 15-year FRM averaged 3.84% this week, sliding from last week’s 3.89%. Notably, this time last year, the 15-year FRM was 3.77%.

Lastly, the 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.91%, falling from 3.96% the week before. The rate remains higher than this time in 2018 when it averaged 3.57%.

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