Mortgage rates increase to 4.72%, highest level in over seven years

Mortgage rates have continued their upward march to the highest level since April 2011, according to the latest Primary Mortgage Market Survey from Freddie Mac.

The rate for a 30-year fixed-rate mortgage averaged 4.72 percent for the week of September 27 — only 0.6 percentage points from the recent 4.72 percent high seen on April 28, 2011. Last week, the rate was at 4.65 percent. Last year at this time, it averaged only 3.83 percent.

The 15-year fixed-rate mortgage averaged 4.16 percent, up from 4.11 percent last week and 3.13 percent last year. A five-year treasury-indexed hybrid adjustable mortgage is at 3.97 percent, compared to 3.92 percent last week and 3.20 percent last year.

Freddie Mac Chief Economist Sam Khater says consumer confidence is at an all-time high, thanks to a strong economy and healthy jobs growth. Those factors, he says, has caused the Fed to hike short-term rates by another 0.25 percent, which results in higher mortgage rates for borrowers.

Despite increased borrowing costs, Khater says buyer demand is expected to remain strong.

The biggest missed opportunity for growth

How your back office system can help your brokerage compete READ MORE

“Even with these higher borrowing costs, it’s encouraging to see that prospective buyers appear to be having a little more success,” said Khater in the report. “With inventory constraints and home prices starting to ease, purchase applications have now trended higher on an annual basis for six straight weeks.”

“Consumer confidence is at an 18-year high, and job gains are holding steady,” he added. “These two factors should keep demand up in coming months, but at the same time, home shoppers will likely deal with even higher mortgage rates.”

Realtor.com chief economist says she expects rising mortgage rates to deliver a one-two punch to home sales, which have been sluggish this year.

“Driven by a strong economy and inflation concerns, mortgage rates are likely to continue their upward trajectory for the rest of the year, averaging 4.6 percent and nearing 5 percent before 2019,” she said in a statement. “Although this will take some of the pressure off home prices, it will come at the expense of home sales which are already struggling this year.”

“In August, the median home listing price rose 7 percent, down from 10 percent a year ago. Existing home sales have not had a year-over-year gain since February 2018,” Hale added.

Email Marian McPherson.

Mortgage rates increase to 4.72%, highest level in over seven years curated from Inman

Comments

The Ultimate Guide To Family Law

Introduction The government has always had a fascination with families and the contract of marriage. State legislatures have passed many laws regulating the requirements for getting married and for obtaining a divorce. In addition, today’s laws also affect couples who live together outside of marriage. It is hard to give simple answers to many of the legal questions that a person may have about marriage, parenthood, separation, or divorce because the laws change and vary from one state to another. In addition, judges in different states with identical laws may decide cases with similar facts in different ways. This article describes the laws and court rulings common to most states. If you have other questions, please contact a lawyer in your state. You may also wish to contact a specialist. Many lawyers (particularly in urban areas) work only on family law or make it a large part of their general practice. Lawyers specializing in family law also may refer to themselves as specialist...

Amazon HQ2 talks reportedly narrow to Crystal City, Dallas and NYC

Amazon is reportedly getting close to finalizing the location of its $5 billion, 50,000-job second headquarters following a nationwide reverse-contest of sorts, wherein the tech company accepted bids and presentations from different city governments on why they should be the one to land Amazon HQ2. And now it appears that three locations are currently in the lead: Virginia’s Crystal City, Dallas and New York City. After speaking to people familiar with Amazon’s plans, The Wall Street Journal reported this weekend that the search for the second headquarters has narrowed from the 20 cities originally shortlisted as potential locations. Discussions around Denver, Toronto, Atlanta, Nashville, Tenn., and Raleigh, N.C. have cooled somewhat while Amazon’s team has been having more talks with representatives of the other three cities. Amazon’s impact on home affordability has been a major consideration, as the tech giant’s presence in Seattle has both created nume...

How To Flag Your Hotel In The Age Of Brand Proliferation

No doubt about it, we’re in the age of hotel brand proliferation. New brands seemingly sprout almost weekly. Counting the precise or official number of hotel brands is difficult. By my conservative estimate, nearly 100 new flags with at least eight properties have been launched since 2008, conceivably pushing the total number of brands to more than 700. This dizzying array of choices doesn’t the make the decision about which flag to fly on a property any easier for hotel developers. How do you decide when there are so many brands to choose from? Marriott , for example, has 30-plus brands under its umbrella spanning all chain scale and star levels of the hospitality industry. A successful hotel project begins with the selection of the right brand for your marketplace, physical site and price point. Although the macro dynamics of the lodging business are strong, a microanalysis of the destination in which you want to build will ultimately dictates your brand choice. Here’s a road ma...

Maureen Mengel Blog

Search This Blog