Latest news with #BobBroeksmit
Yahoo
05-06-2025
- Business
- Yahoo
Mortgage rates ease for the first time in a month
Mortgage rates fell slightly this week for the first time in a month as the Treasury yields that underpin them also fell. The average 30-year mortgage rate was 6.85% this week through Wednesday, from 6.89% a week earlier, according to Freddie Mac data. The average 15-year mortgage rate was 5.99%, from 6.03%. 'We have been in a very, very narrow range here for over a year,' said Don Roberts, vice president, mortgage field manager at Johnson Financial Group in Kenosha, Wis. 'It just can't seem to find a breakthrough.' Read more: Mortgage and refinance rates today and HELOC rates today Relatively high rates have kept mortgage application activity somewhat depressed through the traditional peak homebuying season. Applications to purchase a home were down 4% through Friday compared with a week earlier, according to Mortgage Bankers Association (MBA) data, though they remain higher than they were a year ago. Refinancing applications also dropped 4%. MBA President Bob Broeksmit said in a statement that refinance and purchase applications are likely 'to remain within the same narrow range until mortgage rates move lower.' 10-year Treasury yields, which mortgage rates closely track, drifted lower most of this week and then dropped sharply on Wednesday after newly released economic data showed service sector activity weakened and private job creation slumped last month. The fresh signs of a shaky economy sent yields tumbling and reignited discussions about a possible Federal Reserve rate cut in September. The Fed doesn't directly control mortgage rates, but they are influenced by expectations about the direction of benchmark interest rates. Friday's nonfarm payrolls report will provide fresh insights about the health of the job market. Economists estimate that the US added 128,000 jobs last month, and a number substantially below that could raise traders' odds of a rate cut later this year. Read more: When will mortgage rates go down to 5%? By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy Claire Boston is a senior reporter for Yahoo Finance covering housing, mortgages, and home insurance. Sign up for the Mind Your Money newsletter
Yahoo
05-06-2025
- Business
- Yahoo
Mortgage rates ease for the first time in a month
Mortgage rates dropped slightly this week for the first time in a month as the Treasury yields that underpin them also fell. The average 30-year mortgage rate was 6.85% this week through Wednesday, from 6.89% a week earlier, according to Freddie Mac data. The average 15-year mortgage rate was 5.99%, from 6.03%. 'We have been in a very, very narrow range here for over a year,' said Don Roberts, vice president, mortgage field manager at Johnson Financial Group in Kenosha, Wis. 'It just can't seem to find a breakthrough.' Read more: Mortgage and refinance rates today and HELOC rates today Relatively high rates have kept mortgage application activity somewhat depressed through the traditional peak homebuying season. Applications to purchase a home were down 4% through Friday compared with a week earlier, according to Mortgage Bankers Association (MBA) data, though they remain higher than they were a year ago. Refinancing applications also dropped 4%. MBA President Bob Broeksmit said in a statement that refinance and purchase applications are likely 'to remain within the same narrow range until mortgage rates move lower.' 10-year Treasury yields, which mortgage rates closely track, drifted lower most of this week and then dropped sharply on Wednesday after newly released economic data showed service sector activity weakened and private job creation slumped last month. The fresh signs of a shaky economy sent yields tumbling and reignited discussions about a possible Federal Reserve rate cut in September. The Fed doesn't directly control mortgage rates, but they are influenced by expectations about the direction of benchmark interest rates. Friday's nonfarm payrolls report will provide fresh insights about the health of the job market. Economists estimate that the US added 128,000 jobs last month, and a number substantially below that could raise traders' odds of a rate cut later this year. Read more: When will mortgage rates go down to 5%? By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy Claire Boston is a senior reporter for Yahoo Finance covering housing, mortgages, and home insurance. Sign up for the Mind Your Money newsletter Sign in to access your portfolio
USA Today
29-05-2025
- Business
- USA Today
Mortgage rates keep rising. Home sales keep slowing.
Mortgage rates keep rising. Home sales keep slowing. Show Caption Hide Caption Social Security uncertainty and policy changes are driving more people to file With a significant rise in Social Security applications, retirees face financial decisions influenced by legislation and economic concerns in today's climate. Scripps News Rates for home loans pressed higher for the third week in a row amid evidence that seesawing financial markets are stifling the housing market. In the week ending May 29, 30-year fixed-rate mortgages averaged 6.89%, Freddie Mac announced, up from 6.86% last week. Those figures don't include fees or points, and rates in some parts of the country may be higher or lower than the national average. 'Mortgage rates increased for the third straight week, pushed higher by continuing volatility in the financial markets," said Mortgage Bankers Association President and CEO Bob Broeksmit, in a release. "These higher mortgage rates dampened borrower demand, with both refinance and purchase applications posting declines last week." So far this year, the most popular mortgage product has moved in the high-6% range, and the housing market has moved sideways. Sales of previously-owned homes fell in January, rose in February, and sank in March. But early signals that the spring selling season would be a dud have turned out to be correct. April sales were at the slowest pace for any April since 2009, the National Association of Realtors said on May 22. The 4 million pace set for sales last month was below the 4.06 million mark achieved in 2024, which was the worst year since 1995. And things are getting worse: home contract signings fell 6.3% in April, the Realtors said on May 29. That means sales in May and June will likely be much lower, as well, since contracts are signed about six weeks before sales close. One silver lining is that the deep freeze caused by 'mortgage rate lock' – in which homeowners with ultra-low rates hold off on listing their homes given concerns about having to take out a new, higher-rate loan – has thawed more quickly than many observers had expected. More: Is it finally a buyer's housing market? What to know about home prices, rate 'lock-in' But sellers may still have unrealistic expectations about what their homes will fetch on the market. The typical home for sale is listed for a record high $469,729, which is 9% more than the typical home is selling for, $431,057, according to a recent Redfin analysis. 'Homebuyers today have the upper hand because they're outnumbered by sellers,' said Redfin Senior Economist Elijah de la Campa, in a release.
Yahoo
03-05-2025
- Business
- Yahoo
Mortgage rates move lower, but is it enough to help the housing market?
Rates for home loans dipped, but consumers' economic uncertainty continues to weigh down the housing market. In the week ending May 1, 30-year fixed-rate mortgages averaged 6.76%, down from 6.81% last week, Freddie Mac said. That's right in line with the year-to-date average of 6.80%. Those figures don't include fees or points, and rates in some parts of the country may be higher or lower than the national average. Earlier coverage: Mortgage rates are still high. The housing market is suffering in turn. It's increasingly difficult to estimate how high or low mortgage rates will go. They follow the direction of the U.S. 10-year Treasury note, since they are held for roughly the same amount of time: The average age of outstanding home loans is 6.26 years, according to an analysis in April by ICE Mortgage Technology, a division of Intercontinental Exchange Inc., for USA TODAY. But predicting the path of the 10-year note may be even more challenging. Bond yields – rates – rise when prices fall. In recent weeks the Trump administration's trade war has raised concerns that American assets are no longer as desirable for global investors as in the past. Foreigners own 30% of outstanding Treasuries, according to an analysis by Apollo Global Management, and a period of heavy selling in mid-April caused Treasury yields to surge. More: The bond market sell-off is more worrisome than the one in stocks. Here's what to know. That's a reversal from what usually happens when the economy weakens, which is what most analysts are concerned about now. As investors buy 'safe haven' assets, they push prices up and yields fall. Reduced borrowing costs, in turn, help spark growth as people take out loans to fund businesses and other purchases. Right now, the concern is that businesses and consumers are simply too anxious to do any borrowing – or buying. Most notably, lower mortgage rates aren't enticing people to buy. 'Mortgage applications fell for the second consecutive week as uncertainty continues to impact many buyers' decisions to enter the housing market,' said Bob Broeksmit, president and CEO of the Mortgage Bankers Association, a trade organization. A measure of home tours and other homebuying services from Redfin agents is 2% lower than at this time last year, despite mortgage rates being lower than in 2024. Its April tracker of pending home sales, or contract signings, is 2.8% lower. Bliss Ong, a Redfin Premier agent in Seattle, believes many people are too nervous to make a move. 'They want to ride out this period of economic uncertainty and wait until they feel more secure to make this huge financial decision,' Ong said in a news release accompanying Redfin's data. For now, the housing market is in wait-and-see mode. When buyers are more reluctant, sellers may be more willing to offer concessions and price cuts. That means anyone brave enough to take a chance might find a bargain. This article originally appeared on USA TODAY: Mortgage rates dipped. Is it enough help the housing market?
USA Today
01-05-2025
- Business
- USA Today
Mortgage rates move lower, but is it enough to help the housing market?
Mortgage rates move lower, but is it enough to help the housing market? Show Caption Hide Caption How to use a bolt, nut, screw gauge Using a bolt, nut and screw gauge takes the guesswork out of your project, helping you quickly identify the exact size you need. Rates for home loans dipped, but consumers' economic uncertainty continues to weigh down the housing market. In the week ending May 1, 30-year fixed-rate mortgages averaged 6.76%, down from 6.81% last week, Freddie Mac said. That's right in line with the year-to-date average of 6.80%. Those figures don't include fees or points, and rates in some parts of the country may be higher or lower than the national average. Earlier coverage: Mortgage rates are still high. The housing market is suffering in turn. It's increasingly hard to estimate how high or low mortgage rates will go. They follow the direction of the U.S. 10-year Treasury note, since they are held for roughly the same amount of time: the average age of outstanding home loans is 6.26 years, according to an April analysis by ICE Mortgage Technology, a division of Intercontinental Exchange, Inc., for USA TODAY. But predicting the path of the 10-year note may be even more challenging. Bond yields – rates – rise when prices fall. In recent weeks the Trump administration's trade war has raised concerns that American assets are no longer as desirable for global investors as in the past. Foreigners own 30% of outstanding Treasuries, according to an analysis by Apollo Global Management, and a period of heavy selling in mid-April caused Treasury yields to surge. More: The bond market sell-off is more worrisome than the one in stocks. Here's what to know. That's a reversal from what normally happens when the economy weakens, which is what most analysts are concerned about now. As investors buy 'safe haven' assets, they push prices up and yields fall. Reduced borrowing costs, in turn, help spark more growth, as people take out loans to fund businesses and other purchases. Right now, the concern is that businesses and consumers are simply too anxious to do any borrowing – or buying. Most notably, lower mortgage rates aren't enticing people to buy. 'Mortgage applications fell for the second consecutive week as uncertainty continues to impact many buyers' decisions to enter the housing market,' said Bob Broeksmit, president and CEO of the Mortgage Bankers Association, a trade organization. A measure of home tours and other homebuying services from Redfin agents is 2% lower than at this time last year, despite mortgage rates being lower than in 2024. Its April tracker of pending home sales, or contract signings, is 2.8% lower. Bliss Ong, a Redfin Premier agent in Seattle, believes many people are too nervous to make a move. 'They want to ride out this period of economic uncertainty and wait until they feel more secure to make this huge financial decision,' Ong said in a press release accompanying Redfin's data. For now, the housing market is in wait-and-see mode. When buyers are more reluctant, sellers may be more willing to offer concessions and price cuts. That means anyone brave enough to take a chance might find a bargain.
