Mortgage Mix: Rates Rise as Buyers Struggle to Keep Up

Editor’s Note: The Mortgage Mix is RISMedia’s weekly highlight reel of need-to-know mortgage-industry happenings. Watch for it each Friday afternoon.

  • After a brief dip last week, mortgage rates rose again this week, according to Freddie Mac’s latest Primary Mortgage Market Survey. The 30-year fixed-rate mortgage averaged 7.18%, while the 15-year fixed-rate mortgage averaged 6.51%. “The reacceleration of inflation and strength in the economy are keeping mortgage rates elevated,” said Freddie Mac Chief Economist Sam Khater.
  • While rates grew, mortgage applications fell to the lowest reading since 1996, according to the latest Weekly Applications Survey from the Mortgage Bankers Association (MBA). Applications decreased 0.8% from the prior week. “Given how high rates are right now, there continues to be minimal refinance activity and a reduced incentive for homeowners to sell and buy a new home at a higher rate,” said MBA Vice President and Deputy Chief Economist Joel Kan.
  • In order to make home buying more available and affordable, the Federal Housing Administration (FHA) has amended their rule on FHA loan applications with prior rejections, according to Forbes. Now, if a potential borrower applies for an FHA loan and has previously been rejected, their new application will still be considered.
  • The Consumer Financial Protection Bureau (CFPB) continues with its attention toward the Real Estate Settlement Procedures Act’s (RESPA) anti-kickback provisions, as reported by Husch Blackwell. CFPB recently affirmed that certain RESPA policy statements issued by the United States Department of Housing and Urban Development (HUD) before the transfer will continue to apply.

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