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 tumble to new record lows this week

All-time lows: The average U.S. rate for a 30-year fixed mortgage is 2.88% this week and the average 15-year rate is 2.44%

Average U.S. mortgage rates for a 30-year fixed mortgage fell to an all-time low of 2.88% this week, the eighth time in 2020 the weekly rate has set a record in a Freddie Mac series that goes back almost five decades.

It fell from 2.99% last week, Freddie Mac said in a report on Thursday. The average 15-year rate fell to 2.44%, the lowest in almost 30 years of data, according to the mortgage financier.

Low mortgage rates help to support real estate demand by making it possible for more buyers to qualify for loans. This is because cheaper financing lowers monthly mortgage bills, which are compared to income to qualify applicants. Low rates also support price growth because buyers typically qualify for bigger mortgages.

“Mortgage rates hit another all-time low, giving potential buyers more purchasing power and strengthening demand,” said Sam Khater, Freddie Mac’s chief economist.

The problem facing buyers isn’t the rates, Khater said. It’s the dearth of homes for sale that has plagued the housing market long before coronavirus.

In June, the inventory of homes on the market fell to a four-month supply, according to the National Association of Realtors. A year ago, the number was 4.3 months.

“We expect rates to stay low and continue to propel the purchase market forward,” Khater said. “However, the main barrier to rising demand remains the lack of inventory, especially for entry-level homes.”

Mortgage rates began tumbling in March after the Federal Reserve made a pledge to buy mortgage-backed securities and Treasuries to support demand in the bond market, which is where most U.S. home loans are packaged and sold.

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