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

Mortgage rates drop to 3-year low

The average U.S. fixed rate for a 30-year mortgage declines to 3.45%

The average U.S. rate for a 30-year fixed mortgage this week fell to a three-year low of 3.45% as worries about coronavirus drove investors into the U.S. bond markets.

That’s the lowest rate since 3.42% in the first week of October 2016 and it’s almost a full percentage point below the 4.41% recorded a year earlier, according to the Freddie Mac report.

Investors are piling into U.S. bonds as a safe haven while the world weighs the possible economic implications of the coronavirus pandemic that has infected more than 20,000 people, primarily in China. The increase in competition for bonds, including mortgage-backed securities, squeezes yields and drives mortgage rates lower.

 “As rates fell for the third consecutive week, markets staged a rebound with increases in manufacturing and service sector activity,” said Sam Khater, Freddie Mac’s chief economist. “The combination of very low mortgage rates, a strong economy and more positive financial market sentiment all point to home purchase demand continuing to rise over the next few months.”

The 15-year FRM averaged 2.97% this week, also a three-year low, Freddie Mac said. This time last year, the 15-year FRM was 3.84%.

The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.32% this week, rising from last week’s rate of 3.24%. This rate is still much lower than a year ago when it averaged 3.91%.

The image below highlights this week’s changes:

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3d rendering of a row of luxury townhouses along a street

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