Top markets for affordable renovated housing inventory

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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?

Mortgage Tech Virtual Demo Day

Tune in to our live Virtual Demo Day on December 1st at 10am CT to experience demos from the most innovative tech companies in the Servicing, Audit and Post-Close space.

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 set more record lows

A weakening economy and the Federal Reserve’s continued purchase of mortgage securities took the 30-year, fixed-rate mortgage to historic lows for the second straight week

The Freddie Mac survey showed the 30-year FRM averaged 3.36% for the week ending Thursday, falling below the all-time low of 3.4% set last week. Last year at this time, the 30-year FRM averaged 3.94%.

The 15-year FRM, a popular refinancing choice, averaged 2.69%, falling from 2.73% last week and setting a new record low. A year ago, the average rate for a 15-year FRM was 3.26%.

Five-year, Treasury-indexed, hybrid adjustable-rate mortgage averaged 2.72%, up a bit from 2.71% last week and falling from 2.96% a year earlier.

The Federal Reserve’s purchase of long-term fixed mortgage securities pushed 15-year FRMs below 5-year ARMs for the first time since the week of October 15, 2009.

One-year, Treasury-indexed ARMs averaged 2.57%, down from last week’s 2.60%. A year ago, it averaged 2.95%.

Freddie Chief Economist Frank Nothaft cited a weakening economy as a reason for the historic lows.

The final estimate of growth in gross domestic product was revised down to 1.3% in the second quarter, representing the slowest growth in a year. Personal incomes rose only 0.1% in August, while July’s increase was revised downward.

And pending home sales in August fell 2.6%, well below the market consensus forecast of a slight increase.

Home loan analytics firm Bankrate, which surveys large banks, reported that the 30-year FRM fell to 3.52% from 3.55%, while the 15-year FRM dropped to 2.84% from 2.88%. The 5/1 ARM slipped to 2.67% from 2.68% for the week.

jhilley@housingwire.com

@JustinHilley

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