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Yahoo
3 days ago
- Business
- Yahoo
Mortgage rates ease, but many house hunters still need hacks
Rates for home loans eased, but as housing remains hard to afford, homebuyers have to be as resourceful as possible. In the week ending June 5, 30-year fixed-rate mortgages averaged 6.85%, Freddie Mac announced, down from 6.89% last week, marking the first decline in five weeks. 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 have made little meaningful moves at all so far this year: The 30-year-fixed started January at 6.91% and has drifted up and down, a few basis points at a time, since then. Borrowing costs are only part of the equation for would-be buyers, however. 'The affordability picture for prospective homebuyers has not improved because home prices are still rising,' said Bright MLS chief economist Lisa Sturtevant in a statement out June 4. More: Down payments are the biggest homeownership hurdle. Why is Washington making them scarcer? Read next: Can't afford a home? Why becoming a landlord might be the best way to 'house hack.' At the prevailing interest rate, the median-priced home in April would have a monthly payment of $2,980, Sturtevant said. That compares to $2,965 a year ago, when mortgage rates were higher but home prices lower. 'Some analysts are saying that to get the sluggish housing market moving, all we need is for mortgage rates to fall," Sturtevant said. "But if home prices continue to rise, a drop in interest rates is not going to make much difference to a typical homebuyer. And a drop in rates certainly won't make much of a dent in affordability.' Star Addams recently bought a home in Grays Harbor County, near the coastline of Washington State. Addams, 52, is a single mother, and had spent several years struggling with homelessness before turning things around. She was able to get down payment assistance through her lender, which helped put her over the edge to be able to buy. The mortgage rate was less important to Addams than the money she had to bring to the table, she said. Her advice to other would-be homeowners: 'Save, save, save because you need closing costs, but you don't need as much as you think you do,' Addams told USA TODAY. 'People often think, oh, I'll never be able to buy a house because I won't have the 20% down but there are a lot of programs that help people.' They closed the last week of November in 2024, and it took a few days to get electricity turned on, so Thanksgiving dinner was barbecued in the backyard. 'I keep wanting to pinch myself like this, this is my home. It's really mine. It's amazing,' she said. This article originally appeared on USA TODAY: Mortgage rates ease, but house hunters still need hacks Sign in to access your portfolio
USA Today
3 days ago
- Business
- USA Today
Mortgage rates ease, but many house hunters still need hacks
Mortgage rates ease, but many house hunters still need hacks Show Caption Hide Caption 4 easy home repairs that make a big difference These quick home repairs are low effort yet high impact. Rates for home loans eased, but as housing remains hard to afford, homebuyers have to be as resourceful as possible. In the week ending June 5, 30-year fixed-rate mortgages averaged 6.85%, Freddie Mac announced, down from 6.89% last week, marking the first decline in five weeks. 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 have made little meaningful moves at all so far this year: The 30-year-fixed started January at 6.91% and has drifted up and down, a few basis points at a time, since then. Borrowing costs are only part of the equation for would-be buyers, however. 'The affordability picture for prospective homebuyers has not improved because home prices are still rising,' said Bright MLS chief economist Lisa Sturtevant in a statement out June 4. More: Down payments are the biggest homeownership hurdle. Why is Washington making them scarcer? Read next: Can't afford a home? Why becoming a landlord might be the best way to 'house hack.' At the prevailing interest rate, the median-priced home in April would have a monthly payment of $2,980, Sturtevant said. That compares to $2,965 a year ago, when mortgage rates were higher but home prices lower. 'Some analysts are saying that to get the sluggish housing market moving, all we need is for mortgage rates to fall," Sturtevant said. "But if home prices continue to rise, a drop in interest rates is not going to make much difference to a typical homebuyer. And a drop in rates certainly won't make much of a dent in affordability.' How homebuyers use hacks to afford homes Star Addams recently bought a home in Grays Harbor County, near the coastline of Washington State. Addams, 52, is a single mother, and had spent several years struggling with homelessness before turning things around. She was able to get down payment assistance through her lender, which helped put her over the edge to be able to buy. The mortgage rate was less important to Addams than the money she had to bring to the table, she said. Her advice to other would-be homeowners: 'Save, save, save because you need closing costs, but you don't need as much as you think you do,' Addams told USA TODAY. 'People often think, oh, I'll never be able to buy a house because I won't have the 20% down but there are a lot of programs that help people.' They closed the last week of November in 2024, and it took a few days to get electricity turned on, so Thanksgiving dinner was barbecued in the backyard. 'I keep wanting to pinch myself like this, this is my home. It's really mine. It's amazing,' she said.
CNET
26-05-2025
- Business
- CNET
Mortgage Rate Predictions for the Week of May 26- June 1, 2025
Mortgage rates can change daily and even hourly. Tharon Green/CNET Recently, I've been outlining how average mortgage rates are likely to remain above 6.5% for a while. Uncertainty over the impact of President Trump's economic policies has been causing daily volatility in the mortgage market. Last week, the average rate on a 30-year fixed mortgage climbed as high as 7.08%, according to data from Mortgage News Daily. Rates started the month around 6.75%. The big jump was due to rising Treasury yields in the bond market. The 30-year mortgage rate closely tracks the 10-year Treasury yield; when yields go up, lenders respond by setting higher rates for home loans. 'Treasury yields have been moving higher as a result of increasing headwinds in the economy, rising federal government debt levels and the recent downgrading of the US's credit rating by Moody's,' said Lisa Sturtevant, chief economist at Bright MLS. US Treasury bonds have traditionally been considered a safe haven during economic uncertainty, Sturtevant noted. However, investors have recently been pulling back from them due to perceived risk, causing bond prices to fall and yields to go up. Sturtevant said mortgage rates will likely remain near 7% or slightly higher in the near term. High mortgage rates and record-low affordability have plagued the housing market since 2022. But even those who can afford to buy in today's market are waiting. 'Growing uncertainty is going to make this a slower-than-typical spring housing market,' said Sturtevant. It's not only about the financial calculus but also the psychological impact of economic instability that holds prospective buyers back. 'When people are anxious, they are less likely to make big decisions, like buying and selling a home,' said Sturtevant. How tariffs are affecting mortgage rates Bond yields had already been on the rise even before last week, fueled by a combination of risk factors, including the impact of tariffs. Specifically, analysts expect domestic companies to pass expensive tariffs onto consumers in the form of higher retail prices, which would kick inflation back up. With the details of Trump's budget bill still being debated and tariffs negotiations are ongoing, we're likely to see more economic volatility over the coming weeks and months. Overall, prospective homebuyers should expect mortgage rates to remain elevated, with any dips likely to be small and temporary. 'It's a roller coaster that seems to be trending higher versus lower,' said Melissa Cohn, regional vice president at William Raveis Mortgage. 'Financial markets hate uncertainty. If it's not the budget, it's the tariffs.' Can mortgage rates still fall in 2025? While longer-term housing market forecasts call for a gradual decline in borrowing costs over the coming years, the potential for sub-6% mortgage rates in 2025 is slim. Financial experts caution that higher inflation due to Trump's tariffs could derail the Federal Reserve's anticipated rate cuts. Though the central bank doesn't directly set the rates on home loans, its monetary policy changes have a ripple effect on the housing market. Fed officials cut interest rates three times in 2024 because of slowing inflation, making borrowing costs slightly less restrictive. However, the Fed has been in a holding pattern since then, waiting to see the long-term implications of Trump's policies before it cuts rates again. Earlier in the year, market watchers expected as many as four or five rate cuts by the Fed in 2025. Now, the prospect of even one or two rate cuts is diminishing. 'The Fed's not going to do anything because now they have to continue to wait because of additional prolonged uncertainty,' said Cohn. Given where inflation and the economy are right now, markets are no longer predicting a rate cut this summer. 'However, the situation could change quickly if there are new announcements out of the Trump administration or if global economic conditions weaken,' said Sturtevant. In other words, unless there's a fresh downshift in the inflation trend or a sudden weakening of labor conditions, which would prompt the Fed to ease policy, mortgage rates will remain close to 7% for a while. Tips for navigating an uncertain housing market Mortgage rates haven't moved steadily in one direction over the last few months, and that shakiness is likely to continue, according to Hannah Jones, senior research analyst at If you're waiting for mortgage rates to come down before buying, keep in mind that the large-scale economic issues affecting the housing market are beyond your control. However, there are ways to bring down your individual mortgage rate. "With borrowing costs elevated, buyers can take steps to reduce their housing expenses by securing a lower mortgage rate," said Jones. For example, being financially prepared and shopping around for lenders can save borrowers up to 1.5% on their mortgage rate. Since each lender offers different rates and terms, comparing offers from multiple lenders can also help you negotiate a better rate. If you can't snag a low rate but are ready to buy, you can always refinance down the road. Jones said other strategies for lowering your mortgage rate include improving your credit score, making a larger down payment or choosing a more affordable home. When weighing the pros and cons of homeownership, experts recommend making a homebuying budget and sticking to it. Creating a realistic financial plan can help you decide if you can handle the costs of homeownership and provide you with some figures for how large your mortgage should be. Watch this: 6 Ways to Reduce Your Mortgage Interest Rate by 1% or More 02:31 More on today's housing market
Yahoo
23-04-2025
- Business
- Yahoo
DC home inventory skyrockets by 47% following Trump admin's federal layoffs
"For sale" signs are popping up everywhere near Washington, D.C., following the Trump administration's federal shakeup. Compared to this time last year, the number of active home listings in the nation's capital shot up by almost 47%, according to Fox5 Dc, citing data from real estate agency Bright MLS. In March alone, records tracked 6,000 new listings and almost 5,000 new pending contracts in the D.C. area, according to Bright MLS Chief Economist Lisa Sturtevan, the outlet reported. Sturtevan told the outlet that the rise in inventory has been great for the real estate market as listings were previously at "historically low levels." From Return-to-office To Federal Layoffs, How Trump Policies Are Affecting Dc Housing Market: Report "Inventory has just been so tight here in the Washington area," Sturtevant said. "More inventory coming onto the market is a good thing for the market." Read On The Fox Business App Median sale prices last week in the D.C. region were listed at $630,000, according to Bright MLS. While prices may remain high, FOX5 reported one home that was only on the market for 41 days saw a price drop of $45,000. Washington Dc Gets 'Trump Bump' In Luxury Home Market The rise in new listings has been fueled by the area's high concentration of federal employees impacted by the Trump administration's new policies, FOX Business previously reported, citing Redfin agents. The Department of Government Efficiency, which aimed to eliminate wasteful government spending by trimming the federal workforce, has slashed thousands of jobs across agencies such as the Department of Health and Human Services and the Internal Revenue Service. In addition, buyout offers were accepted by nearly 75,000 employees, Fox News Digital previously reported. Return-to-office mandates have also affected the real estate market. FOX Business previously reported that a D.C.-area couple who had to return to the office sought to list their home in the hopes of finding another home closer to public transportation. The abundance of homes for sale presents an opportunistic moment for buyers. "Developers are buying these homes because they're reasonably priced," northwest D.C. resident Robin Roth told FOX5. "They develop them, put a third story on and away they go." Click Here To Read More On Fox Business While new listings have increased dramatically, the housing market is still performing below pre-pandemic levels, Sturtevant said. D.C. Mayor Muriel Bowser also said she believes the capital's real estate market still has room to grow, according to the outlet. "I remain very optimistic about the downtown, very bullish about the future of the District of Columbia," Bowser said. "We have laid out a plan, we've delivered on the plan, we continue to have people come forward with ideas. We continue to attract partners and continue to make investments."Fox News' Alexandra Koch contributed to this article source: DC home inventory skyrockets by 47% following Trump admin's federal layoffs
Yahoo
10-04-2025
- Business
- Yahoo
Mega-rich pledge allegiance to Trump by buying Washington DC real estate
The ultra-wealthy Maga set is buying up Washington DC's most expensive properties in a show of allegiance to Donald Trump. In recent months, wealthy political appointees and so-called tech bros have flooded into the city's most exclusive postcodes, scooping up multimillion-dollar properties in the north-west region of the nation's capital. Experts have labelled the boom in luxury property sales the 'Trump bump', with the likes of Robert F Kennedy Jr and Mark Zuckerberg buying homes in the vicinity of the White House. 'They are sending a message that we are here, we are serious and we have skin in the game,' said Tom Daley, co-owner of Keller Williams, a luxury real-estate brokerage in DC. 'They are sending a message that we are here, we are serious and we have skin in the game,' said Tom Daley, co-owner of Keller Williams, a luxury real-estate brokerage in DC. Sales of luxury properties in the DC metro area exploded towards the end of last year, with 20 homes selling for more than $5 million in November and December of 2024 alone, according to Bright MLS data. This was up from 10 homes sold in the same period the previous year, while a further 27 deals above $5 million have been signed so far this year. 'Our luxury market ceiling has been totally raised,' said Ben Roth of Washington Fine Properties. 'DC is becoming a who's who of people that want to be around the administration.' The influx of high-net-worth buyers shows no sign of abating, with one real estate source saying there are more high-level chief executives who are 'very much in the market' and eyeing up the north-west area of the city. North-west DC has long been a hot-spot for luxury homes in the nation's capital. Surrounded by parkland and home to embassy row – a sprawling collection of foreign consulates – it is the city's most expensive district and is known as its diplomatic hub. Mr Kennedy has been spotted working out at West End Equinox, a health club charging $220 a month for membership. Meanwhile, Scott Bessent and Howard Lutnick, the cabinet picks who have overseen Mr Trump's tariffs policy, have been seen at the nearby Ned, an elite private members club. Located across from the White House, the club, which costs $5,000 a year, opened in February and has quickly become a social hub for the upper echelons of DC society. 'Discretion so important' 'This has always been a city where discretion has been so important,' said Mr Daley, but 'clearly these people are making a big splash.' Proximity to the president appears to be the central attraction of the neighbourhood, located a 15-minute drive from the Oval Office. 'The consistent theme seems to be how far is the property from the White House – that's a regular conversation,' said Michael Rankin of TTR Sotheby's International Realty, who represented Mr Bessent in his recent purchase. One luxury real-estate source said members of the current administration as well as top chief executives pre-emptively rented in the nation's capital before Mr Trump returned to the White House in order to ingratiate themselves with the city's political elite. 'They're here to be part of the right group who can mutually benefit them and vice versa,' said Nickie Jordan, international real estate broker at Jordan Group within TTR Sotheby's. Mr Trump has spoken about the importance of face-to-face interactions, writing in his book, The Art of the Deal, that 'you can learn more in one meeting than you can in a hundred phone calls'. 'I think the people that have come here recognise that as a benefit and note that that is how he does business,' said Ms Jordan. Despite the boom in luxury homes going under the hammer, the majority of high-end buyers are said to be looking for 'turn-key' rentals that are ready to live in amid uncertainty about how long they may end up staying. 'Most people are interested in high-net-worth rentals currently, because everybody's a little apprehensive about making a long-term commitment,' said Ms Jordan. 'Nobody is really sure how long they are going to be in favour.' At the start of Mr Trump's first administration, Rex Tillerson, a former secretary of state, bought a red brick town house in north-west DC for $5.5 million but was fired by the president the following year. The size and security of homes to the north-west of the city is said to be a major draw for the ultra-wealthy. Last week, Mr Kennedy, the health secretary, bought a 4,800 sq ft home in the upscale Georgetown neighbourhood for $4.4 million (£3.4 million). 'These are big houses and former estates,' said Mr Daley. 'You're not going to see those being replicated in any other territories.' One real-estate source revealed that Mr Zuckerberg's mansion is fitted with bulletproof glass, while another said that some of the most expensive properties recently sold have panic rooms installed. Mr Zuckerberg bought a 15,000 sq ft mega-mansion, compared to a 'private embassy' owing to its immense proportions, in nearby Massachusetts Avenue Heights. The Meta boss, who has gone to great lengths to ingratiate himself with Mr Trump since his re-election, revealed last week that he had purchased the $23 million property – the third most expensive ever sold in the district – in a secretive sale. Mr Lutnick, Mr Trump's commerce secretary, has also put down roots in the area, buying up a French château-style house in the adjacent Foxhall neighbourhood in December. The Cantor Fitzgerald chief executive bought the property from Fox News anchor Bret Baier for $25 million, making it one of the most expensive homes sold in the region. The area's classical architecture, with its brick row houses and cobblestone streets, is also said to be a strong pull for wealthy buyers. Mr Bessent, the Treasury secretary, paid $12.5 million for a four-storey Georgetown mansion, featuring a banquet hall, days after his Senate confirmation in January. Mr Bessent, who last month sold a historic mansion in Charleston, South Carolina, for $18.25 million, is known for collecting older houses, according to Mr Daley, while Mr Roth said the architecture of Mr Kennedy's new property, a Federal-style rowhouse, is 'probably important to him'. North-west DC is also known for its prestigious private schools, with the National Cathedral School, which charges fees of $56,920 a year, and Sidwell Friends – where the Obamas sent their children – both located in the area. Despite the area being quiet, real-estate agents have said that the action is likely taking place behind closed doors, with billionaire property owners choosing to entertain guests within the privacy of their own homes. One property insider said high-end buyers have been enquiring about big dining rooms and living rooms for hosting and entertaining. Mr Daley said the ultra-wealthy's renewed focus on north-west DC has echoes of the Georgetown set, a term for the Left-leaning newspaper barons and politicians who hosted soirees in the area during the second half of last century. Wealthy Republicans moving to the capital have typically settled in nearby Mclean, across Potomac river in Virginia. But the return of Mr Trump to the White House has seen an influx of Maga-faithful into the heart of the city. 'I guess that [old] formula's out the window because you're hearing about so many people moving into Washington DC,' said Mr Daley. Mr Trump has pledged to renew Washington DC, signing an executive order last month to rescue the city from being a 'nightmare of murder and crime' and turn it into 'the greatest capital city in the world'. The city has struggled with violent crime in recent years, with 2023 proving the deadliest year for homicides in more than two decades. Yet despite the boom in top-end sales, experts have warned that cuts to the federal workforce and market turmoil caused by tariffs could play havoc with DC businesses and the broader housing market. Ms Jordan said: 'I think everyone is in a holding pattern right now.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
