The next wave of servicing regulation is coming – Are you ready?

Join this webinar to learn what servicers need to know about recent and upcoming servicing compliance regulations and strategies experts are implementing to prepare for servicing regulatory audits.

How demographics shaped the housing market in 2021

The U.S. housing market entered a period of the best housing demographics ever recorded in history the same year that COVID grabbed hold of us.

@properties CEOs talk company growth and franchising

In this episode of HousingWire Daily, Mike Golden and Thad Wong from @properties discuss the future for the company including its nationwide franchising plans as it expands.

Keep Up With the Latest Third Party Origination News

Want to stay up to date with the latest on the third party origination front? We designed a specific news hub with lenders and brokers in mind, with Rocket Pro TPO leading the discussion.

Mortgage

Average mortgage rate falls to 2.91%: Freddie Mac

The rate fell to the second-lowest level on record, staying under 3% for the fifth consecutive week

Average U.S. mortgage rates for a 30-year fixed loan fell to 2.91% this week, the second-lowest level on record, Freddie Mac said in a report on Thursday.

The rate declined from 2.99% last week, the mortgage financier said. The average rate for a 15-year fixed home loan fell to 2.46% from 2.54%.

“This year has been anything but normal and as the uncertainty lingers, mortgage rates remain near record lows,” said 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.”

Existing-home sales jumped 25% in July from June. That beat the prior record gain of 21% set a month earlier, as low mortgage rates fueled demand for real estate purchases, the National Association of Realtors said in a report on Friday.

Seasonally-adjusted sales of single-family homes, townhomes, condominiums, and co-ops rose to an annualized pace of 5.86 million in July, the highest level since 2006, the report said. The median price increased 8.5% from a year ago to $304,100, breaking through the $300,000 threshold for the first time.

The longterm trend is for financing costs to head even lower, Fannie Mae said in its latest forecast. The average U.S. annual rate for a 30-year fixed mortgage probably will fall to 2.7% next year from 3.1% in 2020, the forecast said. Both would be record lows.

That projection is based on an expectation that so-called primary mortgage spread – meaning the difference between the 10-year Treasury yield and the 30-year fixed rate – will narrow, Fannie Mae said.

The spread, sometimes called the margin, was 2.32% last week, down from April’s peak of 2.72%. It was the highest spread since the financial crisis more than a decade ago. Last year, the average spread was 1.80%.

That margin “has remained elevated compared to historical norms, likely due to continued lender volume constraints, though these appear to be diminishing,” Fannie Mae said.

Leave a comment

Most Popular Articles

Treasury removes restrictions on investment properties

The Treasury Department and FHFA announced Tuesday that they are suspending certain requirements that were added in January to the Preferred Stock Purchase Agreements (PSPAs) between Treasury and Fannie Mae and Freddie Mac.

Sep 14, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please