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 start 2020 well below last year's average

The average U.S. fixed rate for 30-year mortgage slides to 3.72%

In the first week of the year, the average U.S. fixed rate for a 30-year mortgage averaged 3.72%.

Not only is this percentage below the previous week’s average, but it’s also nearly 80 basis points below the 4.51% of the year-earlier week, according to the Freddie Mac Primary Mortgage Market Survey.

“As investors kept their eyes on the phase one of the U.S.-China trade deal, 10-year Treasury notes closed 2019 lower than a year ago,” said George Ratiu, Realtor.com’s chief economist. “The conventional 30-year loan slid 2 basis points to 3.72% in the first week of 2020. Rates remain about 80 basis points lower than the first week of 2019.”

With an economy expected to maintain a moderate growth trajectory this year, Ratiu said employment and wage gains will continue to fuel demand for housing.

“As mortgage rates remain favorable, buyers are likely to get a head start on the spring shopping season in the first couple of months of this year,” Ratiu said. “A stronger infusion of new homes in affordable price ranges would be a welcome gift for the New Year.”

According to the survey, the 15-year FRM averaged 3.16% this week, sliding from last week’s rate of 3.19%. This time last year, the 15-year FRM came in at 3.99%.

The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.46% this week, inching forward from last week’s rate of 3.45%. Last year, the 5-year ARM averaged 3.98%.

Sam Khater, Freddie Mac’s chief economist said the combination of improved economic data and market sentiment has led to stability in mortgage rates, which have hovered around 3.7% for nearly the last two months.

“The stability is welcome news after the interest rate turbulence of the last year, which caused a slowdown in the housing market and other interest rate-sensitive sectors,” Khater said. “The low mortgage rate environment combined with the red-hot labor market is setting the stage for a continued rise in home sales and home prices.”

The image below highlights this week’s changes:

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