Latest news with #JoelKan
Yahoo
5 days ago
- Business
- Yahoo
Mortgage rates move higher again
Mortgage rates increased for the second straight week. The average rate on a 30-year fixed mortgage was 6.75% through Wednesday, up from 6.68% the week prior, according to Freddie Mac data. The average 15-year fixed mortgage rate was 5.92%, up from 5.86% last week. 'The 30-year fixed-rate mortgage inched up this week and continues to stay within a narrow range under 7%. While overall affordability headwinds persist, rate stability coupled with moderately rising inventory may sway prospective buyers to act,' Sam Khater, Freddie Mac chief economist, said in a statement. Learn more: Will mortgage rates go down? Predictions after two weeks of increases. Mortgage rates continued to climb following a rise in 10-year Treasury yields last week on uncertainty about tariffs. According to data from the Mortgage Bankers' Association, the volume of mortgage applications fell by 10% compared to a week earlier, marking the sharpest decline in nearly three months and erasing the 9.4% increase from the previous week. Applications for home refinancing options also decreased. Sign up for the Mind Your Money weekly newsletter By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy 'Purchase applications remained sensitive to both the uncertain economic outlook and the volatility in rates and declined to the slowest pace since May,' said MBA Deputy Chief Economist Joel Kan. With the June jobs report from the Bureau of Labor Statistics pointing to strong employment and a lower chance of a Fed rate cut in July, mortgage rates are expected to remain within the 6% to 7% range through 2025. Read more: Where and how to find the lowest mortgage rates right now Sign up for the Mind Your Money newsletter Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Mortgage rates move higher again
Mortgage rates increased for the second straight week. The average rate on a 30-year fixed mortgage was 6.75% through Wednesday, up from 6.68% the week prior, according to Freddie Mac data. The average 15-year fixed mortgage rate was 5.92%, up from 5.86% last week. 'The 30-year fixed-rate mortgage inched up this week and continues to stay within a narrow range under 7%. While overall affordability headwinds persist, rate stability coupled with moderately rising inventory may sway prospective buyers to act,' Sam Khater, Freddie Mac chief economist, said in a statement. Learn more: Will mortgage rates go down? Predictions after two weeks of increases. Mortgage rates continued to climb following a rise in 10-year Treasury yields last week on uncertainty about tariffs. According to data from the Mortgage Bankers' Association, the volume of mortgage applications fell by 10% compared to a week earlier, marking the sharpest decline in nearly three months and erasing the 9.4% increase from the previous week. Applications for home refinancing options also decreased. Sign up for the Mind Your Money weekly newsletter By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy 'Purchase applications remained sensitive to both the uncertain economic outlook and the volatility in rates and declined to the slowest pace since May,' said MBA Deputy Chief Economist Joel Kan. With the June jobs report from the Bureau of Labor Statistics pointing to strong employment and a lower chance of a Fed rate cut in July, mortgage rates are expected to remain within the 6% to 7% range through 2025. Read more: Where and how to find the lowest mortgage rates right now Sign up for the Mind Your Money newsletter Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNET
5 days ago
- Business
- CNET
July Mortgage Rate Forecast: Buyers Retreat as Rates Rebound
Buyers should keep an eye on the possibility of rate cuts in the next few months. Tharon Green/CNET Every time the average 30-year fixed mortgage rate dips, even by a few tenths of a percentage point, prospective homebuyers jump to take advantage. As soon as rates move up again, mortgage activity goes down. The past few weeks offer a textbook example. When rates fell to around 6.7% (the lowest level in months) in early July, applications for home loans promptly ticked up, according to the Mortgage Bankers Association. But when the average 30-year fixed rate jumped to around 6.8% last week, mortgage activity plummeted 10%. "Purchase applications remained sensitive to both the uncertain economic outlook and the volatility in rates," said Joel Kan, the MBA's vice president and deputy chief economist, in a statement. The key to understanding mortgage rate movement is by looking at inflation and labor data and how that affects the bond market. Mortgage interest rates are closely tied to the 10-year Treasury. Bond market investors drive yields (rates) higher or lower based on their expectations for inflation, unemployment, Federal Reserve policy decisions and government debt. Last month's surprisingly low unemployment rate reduced the probability of an interest rate cut by the Fed this summer. "The headline labor market data isn't crashing and burning, which likely gives the Fed some cover to hold rates where they are," said Alex Thomas, senior analyst at John Burns Research and Consulting. While the Fed doesn't have direct control over the mortgage market, its monetary policy guides mortgage lenders and the general direction of interest rates. Experts say average 30-year fixed mortgage rates are likely to stay above 6.5% in the coming months, with a potential for small and temporary dips, not substantial drops. Prospective homebuyers are also contending with a long-standing housing shortage, high home prices and a loss of purchasing power. CNET What's driving mortgage interest rates this week? Mortgage rates, which are sensitive to investor speculation and economic data, have been affected by the Trump administration's tax cuts and tariff policies. If tariffs end up raising prices as expected, that would send an even clearer "wait and see" signal to central bank policymakers, whose primary task is keeping both inflation and unemployment in check. "Increased uncertainty about the inflation picture lessens the chances of a cut in rates by the Fed," said Keith Gumbinger, vice president at "Greater inflation would argue against cutting rates, absent any significant deterioration in labor conditions." Following signs of cooler inflation in 2024, the Fed cut interest rates three times but has held rates steady throughout 2025. A slowing job market with higher unemployment could still prompt the central bank to reduce borrowing costs this year, eventually helping mortgage rates fall. But the most recent jobs report appeared too steady on the surface, according to Odeta Kushi, deputy chief economist at First American Financial Corporation. "For the Fed, this reduces the urgency to cut rates in July. Even a September move may require more definitive evidence that the economy is cooling," Kushi said. Fewer interest rate cuts combined with the recently passed budget bill, which is expected to significantly boost government debt deficits, are likely to keep upward pressure on longer-term bond yields and mortgage rates. What's happening in today's housing market? Affordability challenges have kept the housing market frozen for several years. Even as the long-standing housing shortage eases in several local markets and gives those buyers improved negotiating power, the rest remain locked out by steep home prices. The 2025 homebuying season is still on hold, said Kushi. Plus, with recession risks still on the horizon, people who are nervous about finances will be more reluctant to take on mortgage loan debt. Prospective buyers waiting for mortgage rates to drop may soon have to adjust to the "higher for longer" rate environment. While market forces are out of your control, there are ways to make buying a home slightly more affordable. Last year, nearly half of all homebuyers secured a mortgage rate below 5%, according to Zillow. Here are some proven strategies that can help you save up to 1.5% on your mortgage rate. 💰 Build your credit score. Your credit score will help determine whether you qualify for a mortgage and at what interest rate. A credit score of 740 or higher will help you qualify for a lower rate. 💰 Save for a bigger down payment. A larger down payment allows you to take out a smaller mortgage and get a lower interest rate from your lender. If you can afford it, a down payment of at least 20% will also eliminate private mortgage insurance. 💰 Shop for mortgage lenders. Comparing loan offers from multiple mortgage lenders can help you negotiate a better rate. Experts recommend getting at least two to three loan estimates from different lenders. 💰 Consider mortgage points. You can get a lower mortgage rate by buying mortgage points, with each point costing 1% of the total loan amount. One mortgage point equals a 0.25% decrease in your mortgage rate. Watch this: 6 Ways to Reduce Your Mortgage Interest Rate by 1% or More 02:31
CNBC
6 days ago
- Business
- CNBC
Weekly mortgage demand plummets 10%, as rates and economic concerns rise
Renewed concerns over tariffs and the broader economy drove treasury yields higher last week, and mortgage rates followed. As a result, total mortgage application volume dropped 10% last week compared with the previous week, according to the Mortgage Bankers Association's seasonally adjusted index. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, $806,500 or less, increased to 6.82% from 6.77%, with points remaining unchanged at 0.62, including the origination fee, for loans with a 20% down payment. "Treasury yields finished higher last week on average despite an intra-week drop, driven partly by renewed concerns of the impact of tariffs on the economy. As a result, mortgage rates rose after two weeks of declines, which contributed to slower application activity," said Joel Kan, MBA's vice president and deputy chief economist. Applications for a mortgage to purchase a home dropped 12% for the week and were 13% higher than the same week one year ago. That was the slowest pace since May. The housing market has seen inventory climb since the start of the year, but even potential sellers are starting to pull back, as buyer demand retreats and home prices soften. Jumbo rates were lower than conventional rates for the third straight week, as some depositories may be positioning themselves for growth in balance sheet lending, according to Kan. Applications to refinance a home loan dropped 7% for the week and were 25% higher than the same week one year ago. "Refinance applications also dipped because of higher rates, with refinance applications falling, led by VA refinances partially reversing their previous week's gain, dropping 22 percent," said Kan. Mortgage rates continued to move higher to start this week, despite a slightly hotter-than-expected read on inflation. "We knew there was a possibility of two separate reactions--one for the top line CPI numbers and one for a deeper look at the internal components. Those internals show that tariffs are having an impact even though it was a smaller impact than many forecasters were expecting," wrote Matthew Graham, chief operating officer at Mortgage News Daily.
Yahoo
09-07-2025
- Business
- Yahoo
Mortgage Applications Jump As Loan Rates Dip
Applications for mortgages jumped 9.4% for the week ending July 4, as purchase activity reached its highest level since 2023. The surge comes as mortgage rates fell to 6.77%, the lowest reading in three months. The average loan size on a purchase application fell to $432,600, the lowest since borrowing costs edging lower and home prices leveling off, buyers in July began returning to the housing market. Demand for mortgages jumped 9.4% for the week ending July 4, adjusted for the holiday break, according to Mortgage Bankers Association data. The rise in loan applications came as rates for the 30-year fixed mortgage fell to 6.77%, the lowest levels in three months. Applications hit their highest levels since February 2023, while refinancing was up 56% from the same time last year. Meanwhile, the average loan size for on a purchase application fell to $432,600, its lowest level since January. 'Homebuyer demand is being fueled by increasing housing inventory and moderating home-price growth,' said Joel Kan, MBA vice president and deputy chief economist. The improving data comes as the housing market cools, with sales near a 30-year low as inventory piles up and prices continue to rise. But economists have said that lower mortgage rates could help improve sales, especially as prices flatten out. Read the original article on Investopedia Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
