Mortgage rates remain relatively unchanged

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Freddie Maca Latest Primary Mortgage Market Research (PMMS) found that 30-year fixed rate mortgages (FRM) averaged 2.86% for the week ended Aug 19, 2021, slightly below last week’s average (2.87%)… A year ago at this time, the average FRM over 30 years was 2.99 percent.

“Mortgage rates have remained relatively unchanged this week,” he said. Sam Hater, Chief Economist Freddie Mac. “Housing is in the same phase of the economic cycle as many other consumer goods. Despite strong latent demand, low supply led to higher prices as the scarcity limits the volume of sales that would otherwise occur. ”

Also this week, the 15-year FRM averaged 2.16% with an average of 0.6 points, up slightly from last week when it averaged 2.15%. A year ago at this time, the average FRM over 15 years was 2.54%.

“Mortgage rates remain favorable for buyers, many of whom welcome the marked shift in markets towards more normal seasonal trends,” said a senior economist at Realtor.com. George Ratiu… “Based on today’s inventory from Realtor.com, the number of homes for sale continues to rise as sellers are willing to push back plans and take advantage of market conditions. We have witnessed three consecutive weeks of single-digit price increases, a clear sign that the excessive price increases over the past 12 months are behind us. This shift in inventory and pricing offers shoppers more choice along with more affordable prices. The next few months will provide buyers and sellers with a great opportunity to benefit from a combination of historically low mortgage rates and growing inventories. ”

The economy could be booming as more Americans return to work as US Department of Labor reported that for the week ended August 14, the advance for initial claims on a seasonally adjusted basis was 348,000, down 29,000 from the revised level of the previous week, the lowest level for initial claims since March 14, 2020, when it was 256,000 …

However, as rates remain below the 3% mark, home sales have begun to slow as This was reported by the Association of Mortgage Bankers that the number of mortgage applications decreased by 3.9% compared to the week ended August 13, 2021. The MBA also found that the share of mortgage refinancing activities declined slightly to 67.3% of total applications from 68.0% in the previous week.

Home prices remain at an all-time high, forcing many to reconsider buying options despite low prices. In a new study Redfin reported The average home price again hit a record high in July, reaching $ 385,600, an increase of 20% over the year. This amount does not exceed the largest annual peak growth rate of 26% in May 2021, but it still exceeds any record figure until April of this year.

July 2021 marks 12 consecutive months of double-digit price increases, significant as the housing market was already in a strong growth phase a year ago after a brief pause at the start of the pandemic.

A year later, Redfin says it is still experiencing extremely strong growth, but the market is gradually becoming less competitive for buyers, as bidders are slightly less tough among home buyers. In July, 60.1% of housing offers wrote Redfin agents face competition, down from the revised 66.5% in June and the pandemic peak of 74.1% in April. Although the July trading war rate was the lowest since January, it was still higher than the July 2020 trading war rate of 57.9%.

“Competition has started to slow down over the past three weeks. Now we see five to eight offers for houses instead of 25, and they arrive at $ 5,000-10,000 higher than the listing price instead of $ 50-60,000, ”he said. Scott Mercer, real estate agent for Redfin in Sacramento, California. “Buyers are resisting. They even started re-incorporating evaluation contingencies and making requests for repairs – things that were pretty much unheard of in the past year. ”



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