Latest news with #LisaSturtevant
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
26-04-2025
- Business
- Yahoo
Mortgage rates are still high. The housing market is suffering in turn.
Rates for home loans remained high as consumer and investor confidence take a hit amid the White House's tariff rollout. In the week ending April 24, 30-year fixed-rate mortgages averaged 6.81%, Freddie Mac announced. That's down fractionally from 6.83% last week, which saw the biggest one-week jump since last August. 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. Rates in the high 6% range seem to be suppressing demand for homes. Applications for mortgages have slumped in each of the past two weeks, according to data from the Mortgage Bankers Association. 'The notable drop in mortgage applications last week was the result of a 30 basis-point jump in mortgage rates over the last two weeks, driven by ongoing financial market volatility and economic uncertainty,' MBA president and CEO Bob Broeksmit said in a release. 'With rates now close to 7%, many potential borrowers will likely stay on the sidelines until they have a better idea of the direction that rates, and the economy, are headed.' On April 24, the National Association of Realtors reported that sales of previously-owned homes cratered in March. The annual pace of sales during the month, 4.02 million, was lower than the full-year tally for 2024, which marked the worst year for sales since 1995. That tracks with a recent report from Redfin that found homes are taking the longest to sell since 2019, and fetching fewer bids. "Supply is climbing, demand is sluggish and some properties are overpriced," Redfin said. Because of the lag between offers and closings, which is what the NAR data tallies, March sales reflect offers made in January or February. 'At the beginning of the year, higher-than-expected mortgage rates held some buyers back,' said Lisa Sturtevant, chief economist for Bright MLS, in emailed remarks. 'Over the past couple of months, rates have come down, but economic uncertainty and consumer anxiety have increased.' Those emotions 'are going to cloud the spring housing market this year,' Sturtevant said. 'While some buyers will take advantage of more listings and more room for negotiation, others will hold back, unwilling to make a big decision in these current uneasy times.' Investor unease is likely to make those big decisions even more difficult for average Americans. As previously reported, interest rates surged in April when investors dumped U.S. Treasury bonds and notes. Bond yields and rates rise when prices fall, and vice versa. It doesn't spell good news for the housing market. 'There's a growing disconnect between what sellers think they can get for their homes and the direction the market is actually moving,' said Redfin senior economist Elijah de la Campa in a release accompanying the report. 'Tariff fears and widespread economic uncertainty are making homebuyers nervous." This article originally appeared on USA TODAY: High rates for home loans are holding back the housing market Sign in to access your portfolio
USA Today
24-04-2025
- Business
- USA Today
Mortgage rates are still high. The housing market is suffering in turn.
Mortgage rates are still high. The housing market is suffering in turn. Show Caption Hide Caption Fast-growing fruit trees for your backyard harvest Here are five fast-growing fruit trees you can plant in your backyard for a quicker harvest. unbranded - Lifestyle Rates for home loans remained high as consumer and investor confidence takes a hit amid the White House's tariff roll-out. In the week ending April 24, 30-year fixed-rate mortgages averaged 6.81%, Freddie Mac announced Thursday. That's down fractionally from 6.83% last week, which saw the biggest one-week jump since last August. 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. Rates in the high 6% range seem to be suppressing demand for homes. Applications for mortgages have slumped in each of the past two weeks, according to data from the Mortgage Bankers Association. 'The notable drop in mortgage applications last week was the result of a 30 basis-point jump in mortgage rates over the last two weeks, driven by ongoing financial market volatility and economic uncertainty,' said the MBA's president in a release. 'With rates now close to 7%, many potential borrowers will likely stay on the sidelines until they have a better idea of the direction that rates, and the economy, are headed.' On Thursday, the National Association of Realtors reported that sales of previously-owned homes cratered in March. The annual pace of sales during the month, 4.02 million, was lower than the full-year tally for 2024, which marked the worst year for sales since 1995. That tracks with a recent report from Redfin which found homes are taking the longest to sell since 2019, and fetching fewer bids. "Supply is climbing, demand is sluggish and some properties are overpriced," Redfin said. Because of the lag between offers and closings, which is what the NAR data tallies, March sales reflect offers made in January or February. 'At the beginning of the year, higher-than-expected mortgage rates held some buyers back,' said Lisa Sturtevant, chief economist for Bright MLS, in emailed remarks. 'Over the past couple of months, rates have come down, but economic uncertainty and consumer anxiety have increased.' Those emotions 'are going to cloud the spring housing market this year,' Sturtevant added. 'While some buyers will take advantage of more listings and more room for negotiation, others will hold back, unwilling to make a big decision in these current uneasy times.' Investor unease is likely to make those big decisions even more difficult for average Americans. As previously reported, interest rates surged in April when investors dumped U.S. Treasury bonds and notes. Bond yields and rates rise when prices fall, and vice versa. It doesn't spell good news for the housing market. 'There's a growing disconnect between what sellers think they can get for their homes and the direction the market is actually moving,' said Redfin senior economist Elijah de la Campa in a release accompanying the report. 'Tariff fears and widespread economic uncertainty are making homebuyers nervous."
Yahoo
03-03-2025
- Business
- Yahoo
Mortgage rates are falling. Here's how much income you need now to buy a house for $250,000, $400,000 and $1 million.
Mortgage rates fell for the sixth week in a row, offering some financial relief to prospective home buyers. The 30-year mortgage rate averaged 6.76% as of Feb. 27, the lowest rate in over two months, according to weekly data from Freddie Mac. Rates were down 9 basis points from the previous week, and down from 6.91% as of Jan. 2. Wall Street can't stop talking about the 'Mar-a-Lago Accord.' Here's how the currency deal would work. 'Why am I so afraid to retire?' I'm 60 and lost $1.2 million in a divorce. Can I rebuild my life? A dear friend, 91, wants to add me to the deed of his house. His daughter died and he's not close to his son. Is that a good idea? 'She's bleeding her retirement dry': My friend earns $9 an hour, but wastes money on vacations and massages. What can I do? My husband and I have been married for 18 years. We share a son — and my husband has a daughter. Why should they get an equal inheritance? Mortgage rates are falling as investors weigh reports of a slowing U.S. economy and the possibility of a Federal Reserve interest-rate cut. The 30-year mortgage rate typically rises and falls in tandem with the yield on the 10-year Treasury note BX:TMUBMUSD10Y, which has been falling recently. 'Although a slowing economy may not seem like a good thing, lower rates could give the housing market the shot in the arm that it so desperately needs,' Lisa Sturtevant, chief economist at Bright MLS, said in a statement. Home buying has sagged under the weight of high interest rates over the last few years. In January, there was a 4.6% drop in the number of contracts signed to purchase homes compared to the previous month, according to the National Association of Realtors. Pending home sales are now at an all-time low, the industry group said. It's been tracking pending home-sales activity since 2001. 'The drop in mortgage rates, combined with modestly improving inventory, is an encouraging sign for consumers in the market to buy a home,' Sam Khater, chief economist at Freddie Mac, said in a statement. Home prices hit record highs last year while mortgage rates have remained elevated, shutting many would-be buyers out of the market. People are still struggling to afford to buy homes, so 'even a slight reduction in mortgage rates will likely ignite buyer interest, given rising incomes, increased jobs and more inventory choices,' Lawrence Yun, chief economist at the NAR, said in a statement. So how much money would a buyer now need to make to buy a home? provided some figures to help guide prospective homeowners. ( is operated by News Corp subsidiary Move Inc.; MarketWatch publisher Dow Jones is also a subsidiary of News Corp.) With a down payment of 20% and an estimated 30-year mortgage rate of 6.76%, while also factoring in property taxes and homeowners-insurance premiums, a home buyer would need to make at least $66,300 in yearly income to afford a home priced at $250,000, Hannah Jones, a senior economic research analyst told MarketWatch. Also read: Mortgage rates are falling, but it's not helping sell more homes. Are lower house prices next? That calculation assumes the buyer does not spend more than 30% of their gross income on housing costs, the level that is considered affordable. To afford a $400,000 home, which was roughly the median price of an existing home as of January, a buyer would need to earn $106,100. To afford a $1 million home — a price tag that's become far more common in the postpandemic era — a buyer would need to earn at least $265,100, Jones said. There are nearly 1 million more homes in the U.S. that are worth $1 million dollars than when the pandemic started, real-estate platform Z ZG estimated. 'I've opened a hornet's nest': My mother-in-law lists my husband as beneficiary on her $1 million IRA. But her will does not. Which wins? 'I believe myself to be an honorable person': Do I have the right to ask my husband if I'll inherit his house after he dies? Trump's 'World War III' warning to Zelensky rattled stocks. Why they quickly recovered. 'She's not working outside the home': My mother, 63, inherited $100,000. Is she too old to invest in the stock market? Friday's 'economic blackout' is a fool's errand — and gives 'woke' a bad name Sign in to access your portfolio
NBC News
21-02-2025
- Business
- NBC News
The housing market's long winter faces a slow thaw and many unknowns
A slew of new data shows that the housing market remains largely frozen at the start of the year, posing steep challenges to President Donald Trump's promise to thaw it. Sales of existing homes fell 4.9% from December to January, the National Association of Realtors reported Friday, a steeper drop than expected. Though the rate improved 2% last month on an annual basis, the sales pace continues to hover around 15-year lows. The situation isn't much rosier for new builds: Construction permits declined 1.7% in January from 12 months earlier, while housing starts were mostly flat, federal data showed Wednesday. And homebuilders' confidence slipped to a five-month low this month, the National Association of Home Builders' latest survey found. It's been a very unusual start to 2025. A lot of buyers and sellers were thinking this was going to be their year. Lisa Sturtevant, chief economist, Bright MLS Meanwhile, homebuying remained very difficult at the end of 2024, driven by economic instability, rising costs and shortages of homes on the market, according to NBC News' Home Buyer Index, which measures the challenges potential buyers face county by county. The current outlook reflects the collision of long-running trends — tight, if improving, inventories; steep prices; high interest rates — with fresh uncertainties posed by Trump's economic agenda, including tariffs and mass deportations that threaten to drive up costs. 'It's been a very unusual start to 2025. A lot of buyers and sellers were thinking this was going to be their year,' said Lisa Sturtevant, chief economist at Bright MLS housing group. Instead, she said, many listings are staying on the market longer as buyers wait for stubborn mortgage rates to fall. 'It's going to be a slower spring than we hoped it would be,' Sturtevant predicted. On the campaign trail, Trump promised mass deportations of undocumented people to free up existing properties, deregulation to spur more development and tax incentives to help first-time home buyers. He also pledged to slash mortgage rates 'very fast.' 'We will drive down the rates so you will be able to pay 2% again and we will be able to finance or refinance your homes drastically at much lower costs,' Trump told Arizona rallygoers in September, estimating he would save families in the state $800 to $1,000 in monthly mortgage payments. But nationwide, rates for 30-year fixed mortgages — the most popular type — have hovered from 6% to 8% for the last two years, and demand for mortgage applications recently fell to its lowest level in six months.
