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Yahoo
7 days ago
- 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
7 days ago
- 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
CNBC
04-06-2025
- Business
- CNBC
On-time debt payments aren't a magic fix for your credit score, experts say. Here's why
Americans have a near-record level of credit card debt — $1.18 trillion as of the first quarter of 2025, according to the Federal Reserve Bank of New York. The average credit card debt per borrower was $6,371 during that time, based on data from TransUnion, one of the three major credit reporting companies. Many people don't understand why a common strategy that can help them pay down that debt — paying bills on time — isn't all it takes to improve their credit. Separating fact from fiction is essential to help you pay down debt and raise your credit score. Here's the truth behind a common credit myth: Your credit score is a three-digit numerical snapshot, typically ranging from 300 to 850, that lets lenders know how likely you are to repay a loan. The average American's score is 715, according to February data from scoring brand FICO. Here's what you need to know about on-time payments and your credit: "You may be paying rent-to-own, private school tuition, utilities, or internet payments on time every month, and you think it helps your credit score," said Yanely Espinal, director of educational outreach for financial literacy nonprofit Next Gen Personal Finance. "But a lot of these are not traditional payment types and are not reported to the credit bureaus — so there's no impact." For example, making on-time payments on buy now, pay later, or BNPL, loans may not help your credit score, even though 62% of BNPL users incorrectly believe they will, according to a new LendingTree some BNPL providers do report certain loans to the credit bureaus, this is not a universal practice. And BNPL users may see a negative credit impact if they fall behind. "Some BNPL lenders will report missed payments, which can hurt your score," said Matt Schulz, chief consumer finance analyst at LendingTree and author of "Ask Questions, Save Money, Make More." An easy way to check what payments are and aren't influencing your credit: take a look at your credit report. You can pull it for free, weekly, for each of the major credit reporting agencies at While payment history can account for 35% of your score, according to FICO, it's not the only factor that matters. How much you owe relative to how much credit you have available to you — known as your "credit utilization" — is almost as important, at about 30% of your score. Higher utilization can hurt your score. Aim to use less than 30% of your available credit across all accounts, credit experts say, and keep it below 10% if you really want to improve your credit score. A 2024 LendingTree study found that consumers with credit scores of 720 and up had a utilization rate of 10.2%, compared with 36.2% for those with credit scores of 660 to 719. "Don't settle for B+ when you can go for the A+," said Espinal, who is also the author of "Mind Your Money" and a member of the CNBC Global Financial Wellness Advisory Board. "You want to use less than 10% to really boost your score significantly."
Yahoo
15-05-2025
- Business
- Yahoo
Mortgage rates move higher on positive economic news
Mortgage rates rose slightly this week as easing trade tensions between the US and China gave Wall Street more confidence that the economy could avoid entering a recession. The average 30-year mortgage rate jumped to 6.81% this week through Wednesday, from 6.76% a week earlier, according to Freddie Mac data. Average 15-year mortgage rates were 5.92%, from 5.89%. 10-year Treasury yields, which mortgage rates closely track, moved higher in recent days after positive economic news lessened the odds of a Fed rate cut in the coming months. On Monday, the US and China reached a deal to temporarily slash the steep tariffs they had imposed on each other, a move many economists expect will help stave off a recession this year. 'It's a catch-22 for homebuyers,' Chen Zhao, Redfin's head of economics research, said in a statement. 'Mortgage rates are unlikely to fall unless all of the new tariffs are eliminated, or if the country falls into a fairly severe recession — which would cut housing budgets for many Americans." Read more: Mortgage and refinance interest rates today Fading recession fears, coupled with a Consumer Price Index report that showed inflation cooled in April but is still running above the Fed's target 2% range, gave traders confidence that the central bank will hold benchmark interest rates steady in the months ahead. Treasury yields and mortgage rates aren't directly affected by Fed policy but do move based on expectations about the future direction of interest rates. Traders don't expect the Fed to cut interest rates until September, according to CME FedWatch. Read more: When will mortgage rates go down? What experts say. Although rates remain elevated, some buyers are proceeding with purchases. Mortgage applications to purchase a new home rose 2% through Friday compared with a week earlier, according to the Mortgage Bankers Association. Refinancing applications slipped 0.4% in the same time period. Claire Boston is a Senior Reporter for Yahoo Finance covering housing, mortgages, and home insurance. Sign up for the Mind Your Money newsletter
Yahoo
07-05-2025
- Business
- Yahoo
Americans still feel OK about the housing market, but are more worried about selling
Americans' attitudes about the housing market managed to improve in April, even as President Trump's tariff plans plunged financial markets into uncertainty. Read more: 5 ways to tariff-proof your finances The Fannie Mae Home Purchase Sentiment Index increased 1.1 points last month to 69.2, though it's down 2.7 points in the last year. The index uses responses from the National Housing Survey, a poll of more than 1,000 household financial decision-makers conducted between April 1 and April 18. Overall sentiment improved as survey participants grew less worried about losing their jobs and attitudes about home buying remained unchanged, with around 23% of respondents saying now is a good time to buy. Still, attitudes about selling a home and the direction of mortgage rates turned more negative. Sign up for the Mind Your Money weekly newsletter Subscribe By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy Of those surveyed last month, 58% think it's a good time to sell a home, down from 64% in March. Consumers remain split on where mortgage rates will go, with 26% expecting them to go down and 36% anticipating they'll go up, slightly less optimistic than a month earlier. Learn more: When will mortgage interest rates go down to 4% At the same time, respondents reported feeling better about their job security compared to a month earlier. The percentage of employed respondents who said they're worried about job loss in the next 12 months fell to 25%, from 32% in March. The relative optimism about the housing market stands in contrast to broader consumer confidence metrics. The Conference Board's Consumer Confidence Index fell for the fifth straight month in April to levels not seen since the early days of the pandemic as consumers fretted about inflation and job prospects. Since the survey was conducted, the government reported that the economy contracted in the first quarter, raising fears of a possible recession. April's jobs report, however, showed a resilient labor market, though the overall hiring rate remains low. Claire Boston is a Senior Reporter for Yahoo Finance covering housing, mortgages, and home insurance. Sign up for the Mind Your Money newsletter Click here for the latest personal finance news to help you with investing, paying off debt, buying a home, retirement, and more Read the latest financial and business news from Yahoo Finance
