This week Primary Mortgage Market Research (PMMS) from Freddie Mac for the week ending Aug 26 shows 30 year fixed rate mortgages (FRM) averaged 2.87%, slightly higher last week average 2.86%… A year ago at this time, the average FRM over 30 years was 2.91 percent.
“The tug of war between the economic recovery and the rise in COVID-19 cases has caused mortgage rates to move sideways in the past few weeks,” he said. Sam Hater, Chief Economist Freddie Mac. “In general, rates remain low, opening a window of opportunity for those who have not refinanced rates below three percent. From a homebuyer’s perspective, demand for bids is on the rise, but the main obstacle to increasing home sales remains the very low level of inventory that can be purchased by consumers. ”
Mortgage Bankers Association (MBA) latest weekly mortgage applications survey found that the number of applications for mortgage lending increased by 1.6% compared to the results of the previous week, as the share of refinancing of mortgage activities amounted to 67.3% of the total number of applications.
“While the mortgage rate background is important to home buyers, finding a home amid limited opportunities remains a bigger challenge,” said Realtor.com’s chief economist. Daniel Hale… “The steady increase in the number of homeowners deciding to sell will bring welcome relief and will likely allow more buyers to take advantage of the still low mortgage rates. While we have seen less new offerings this week as students return to school across the country, we expect this decline to be temporary, which means better opportunities for homebuyers in the months ahead. “
New buyers interested in locking up their dream home have been somewhat “locked in” by high asking prices as Redfin reported that median home sales prices across the country rose 16% year-over-year to $ 361,225 in the four-week period ending August 22, as the proportion of home sellers who cut asking prices every week continues to rise.
“The housing market is less hectic than it was in early spring, but it is still far from typical. The transition to a less imbalanced market is slow, ”he said. said Redfin chief economist Daryl Fairweather… “As we get closer to the start of the return-to-school season, house prices tend to drop, supply decreases, and homes take longer to sell. All this is happening, but very slowly. I don’t think the housing market will return to its fully typical state anytime soon, but we are starting to move in that direction. “
The economic stability is further influenced by a slight rise in unemployment this week. V U.S. Department of Labor reports that for the week ended August 21, the seasonally adjusted upfront initial jobless claims totaled 353,000, up 4,000 from the revised level of the previous week.
Also this week, Freddie Mac reported that the 15-year FRM averages 2.17% with an average of 0.6 points, up from 2.16% last week. A year ago at this time, the 15-year average FRM was 2.46%. Treasury-indexed five-year Adjustable Interest Rate Hybrid (ARM) mortgages also averaged 2.42% this week, averaging 0.2 points, slightly lower than last week’s 2.43 average. %. A year ago at this time, the five-year ARM averaged 2.91%.