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

Average U.S. mortgage rates rise from record low

The average rate for a 30-year fixed mortgage is 2.96% this week, up from all-time low of 2.88%

Average U.S. mortgage rates for a 30-year fixed rose to 2.96% this week from an all-time low of 2.88%, Freddie Mac said in a report on Thursday.

The average 15-year rate rose to 2.46% from 2.44% last week, according to the mortgage financier.

“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,” said Sam Khater, Freddie Mac’s chief economist.

Mortgage rates have tumbled during the COVID-19 pandemic, bolstered by Federal Reserve purchases of Treasuries and mortgage-backed securities.

U.S. existing-home sales rose 21% in June, the biggest monthly gain on record, and the median home price rose 3.5% from a year ago, the National Association of Realtors said in a July 22 report.

Cheaper interest rates are making more Americans eligible to purchase a home because lenders qualify applicants by comparing monthly mortgage payments to income. When financing costs go down the payment shrinks. That also means borrowers find they qualify for larger mortgages, which means they can pay more for a property they want.

“Homebuyer 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,” said Khater.

Rates are expected to remain low through 2021 as the U.S. struggles with the economic fallout from the pandemic, according to a forecast from Fannie Mae.

The average 30-year fixed rate likely will be 3.2% this year and fall to 2.8% in 2021, the mortgage giant said in a forecast last month. In 2019, the average rate was 3.9%.

Leave a Reply

Your email address will not be published. Required fields are marked *

Most Popular Articles

Better.com lays off LOs, secures $750M cash injection

Digital mortgage lender Better.com is laying off 9% of its workforce ahead of a $750 million cash injection from financial backer SoftBank Group.

Dec 01, 2021 By

Latest Articles

What Omicron, bond market and jobs mean for housing

We often have two to three job reports per year that miss estimates badly. However, remember that we have over 10 million job openings.

Dec 03, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please