Mortgage Rates Jump to 7-Year High

Mortgage Rates Jump to 7-Year High
Freddie Mac | October 12, 2018

The 30-year fixed-rate mortgage hasn’t averaged this high since 2011, as it inches closer to the 5 percent threshold.

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“Rising rates paired with high and escalating home prices is putting downward pressure on purchase demand,” says Sam Khater, Freddie Mac’s chief economist. “While the monthly payment remains affordable due to the still low mortgage rate environment, the primary hurdle for many borrowers today is the down payment and that is the reason home sales have decreased in many high-priced markets.”

Freddie Mac reports the following national averages with mortgage rates for the week ending Oct. 11:

30-year fixed-rate mortgages: averaged 4.90 percent, with an average 0.5 point, rising from last week’s 4.71 percent average. Last year at this time, 30-year rates averaged 3.91 percent.

15-year fixed-rate mortgages: averaged 4.29 percent, with an average 0.4 point, rising from last week’s 4.15 percent average. A year ago, 15-year rates averaged 3.21 percent.

5-year hybrid adjustable-rate mortgages: averaged 4.07 percent, with an average 0.3 point, rising from last week’s 4.01 percent average. A year ago, 5-year ARMs averaged 3.16 percent.

Source: Freddie Mac; REALTOR® Mag News

Greater Nashville – Sales Slow Regionally in September

Greater Nashville – Sales Slow Regionally in September
Greater Nashville REALTORS® | October 8, 2018

House 1066NASHVILLE, Tenn. (Oct. 8, 2018) – There were 3,258 home closings in the Greater Nashville Region reported for the month of September, according to figures provided by Greater Nashville REALTORS®. This figure represents an 8 percent decrease compared to the 3,544 closings in September 2017.

Data for the third quarter of 2018 showed 11,031 closings, down 2.4 percent from the 11,299 closings during the same period of 2017.

“Sales slowing is typical for this time of year, though this decrease can be reflected by the limited number of entry-level single-family homes entering the market, even with a 32.7 percent rise in inventory for the region since September of last year,” said Greater Nashville REALTORS® President Sher Powers. “The larger inventory offers a great opportunity for buyers and investors to negotiate and avoid multi-offer scenarios while encouraging sellers to be mindful of pricing and features offered.”

“When looking at a breakdown of sales by county for the year through the third quarter, Davidson County shows consistent numbers, with only a half of 1 percent drop-in single-family sales and a gain of 2 percent in condo sales. Dickson, Maury, Robertson and Rutherford counties all showed solid increases in sales,” added Powers.

There were 2,662 sales pending at the end of September, compared with 3,914 pending sales at this time last year. The average number of days on the market for a single-family home was 30 days.

The median residential price for a single-family home during September was $290,000 and for a condominium it was $218,150. This compares with last year’s median residential and condominium prices of $280,000 and $223,450 respectively.

Inventory at the end of September was 12,415, an increase from 9,358 in September 2017.

About Us: Greater Nashville REALTORS® is one of Middle Tennessee’s largest professional trade associations and serves as the primary voice for Nashville-area property owners. REALTOR® is a registered trademark that may be used only by real estate professionals who are members of the National Association of Realtors® and subscribe to its strict code of ethics.

The data collected for this release represents nine Middle Tennessee counties: Cheatham, Davidson, Dickson, Maury, Robertson, Rutherford, Sumner, Williamson and Wilson.

View the September 2018 Market Data Infographic

Source: Greater Nashville REALTORS®, Press Release 100818

Mortgage Rates Drop Slightly for First Time in 5 Weeks

Mortgage Rates Drop Slightly for First Time in 5 Weeks
Freddie Mac | October 5, 2018

Borrowers saw a slight cool down in mortgage rates this week following last week’s seven-year high. The 30-year fixed-rate mortgage dipped for the first time after five consecutive weeks of increases, averaging 4.71 percent.

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But the higher rates may be deterring some would-be home buyers. “The strength in the economy has failed to translate to gains in the housing market as higher mortgage rates have contributed to the decrease in home purchase applications, which are down from a year ago,” says Sam Khater, Freddie Mac’s chief economist. “With mortgage rates expected to track higher, it’s going to be a challenge for the housing market to regain momentum.”

Freddie Mac reports the following national averages with mortgage rates for the week ending Oct. 4:

30-year fixed-rate mortgages: averaged 4.71 percent, with an average 0.4 point, falling slightly from last week’s 4.72 percent average. Last year at this time, 30-year rates averaged 3.85 percent.

15-year fixed-rate mortgages: averaged 4.15 percent, with an average 0.4 point, decreasing from last week’s 4.16 percent average. A year ago, 15-year rates averaged 3.15 percent.

5-year hybrid adjustable-rate mortgages: averaged 4.01 percent, with an average 0.3 point, rising from last week’s 3.97 percent average. A year ago, 5-year ARMs averaged 3.18 percent.

Source: Freddie Mac; REALTOR® Mag News 100518

The Housing Market’s 50 Hottest Zip Codes

The Housing Market’s 50 Hottest Zip Codes
realtor.com | October 1, 2018

The following is realtor.com®’s rankings of the top 50 hottest ZIP codes for housing in the country.

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Source: National Association of REALTORS®

Mortgage Rates Surge to 7-Year High After Fed Hike

Mortgage Rates Surge to 7-Year High After Fed Hike
Freddie Mac | September 28, 2018

Mortgage rates surged to their highest averages since 2011 following the Federal Reserve’s announcement Wednesday that it is raising its benchmark interest rate by a quarter point. The 30-year fixed-rate mortgage jumped to 4.72 percent, up from 4.65 percent last week.

“The robust economy, rising Treasury yields, and the anticipation of more short-term rate hikes caused mortgage rates to move up,” says Freddie Mac Chief Economist Sam Khater. “Even with these higher borrowing costs, it’s encouraging to see that prospective buyers appear to be having a little more success. With inventory constraints and home prices starting to ease, purchase applications have now trended higher on an annual basis for six straight weeks.”

Khater also notes that consumer confidence is at an 18-year high, and job gains continue to hold steady. “These two factors should keep demand up in the coming months, but at the same time, home shoppers will likely deal with even higher mortgage rates,” Khater says. Freddie Mac reports the following national averages with mortgage rates for the week ending Sept. 27:

30-year fixed-rate mortgages: averaged 4.72 percent, with an average 0.5 point, rising from last week’s 4.65 percent average. Last year at this time, 30-year rates averaged 3.83 percent.

15-year fixed-rate mortgages: averaged 4.16 percent, with an average 0.5 point, rising from last week’s 4.11 percent average. A year ago, 15-year rates averaged 3.13 percent.

5-year hybrid adjustable-rate mortgages: averaged 3.97 percent, with an average 0.3 point, rising from last week’s 3.92 percent average. A year ago, 5-year ARMs averaged 3.20 percent.

Source: Freddie Mac; REALTOR® Mag News 092818

Nationally: Why Were Fewer Contracts Signed in August?

Nationally: Why Were Fewer Contracts Signed in August?
National Association of REALTORS® | September 27, 2018

Pending home sales continued to fall last month, marking the eighth consecutive month for annual decreases, the National Association of REALTORS® reported Thursday. The drop in contracts may be a sign of a growing number of buyers who are being priced out of the market, economists warn.

August PHS InfographicNAR’s Pending Home Sales Index—a forward-looking indicator based on contract signings—fell 1.8 percent to a reading of 104.2 in August. Contract signings are now 2.3 percent lower than a year ago.

The largest declines last month were in the West, where home prices have risen the most. “[This] clearly indicates that affordability is hindering buyers and those affordability issues come from lack of inventory, particularly in moderate price points,” says Lawrence Yun, NAR’s chief economist.

The decline in sales contracts has also coincided with fewer homes on the market. But that may soon change—a record high of Americans now say it’s a good time to sell their home, according to NAR’s third-quarter Housing Opportunities and Market Experience survey.

“Just a couple of years ago about 55 percent of consumers indicated it was a good time to sell; that figure has climbed to 77 percent today,” Yun says. “With prices having risen so quickly, many consumers were deciding to wait to list their homes hoping to see additional price and equity gains. However, with indications that buyers are beginning to pull out, price gains are going to decelerate and potential sellers are considering that now is a good time to list and bring more properties to the market.”

Source: National Association of REALTORS®; REALTOR® Mag News 092718

30-Year Mortgage Rates Reach Highest Level Since May

30-Year Mortgage Rates Reach Highest Level Since May
Freddie Mac | September 21, 2018

For the fourth consecutive week, mortgage rates continued to climb as home buyers face higher borrowing costs.

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“Mortgage rates are drifting upwards again and represent continued affordability challenges for prospective buyers—especially first-time buyers,” says Sam Khater, Freddie Mac’s chief economist. “Borrowing costs are moving right now for three main reasons: the very strong economy, higher U.S. government debt issuances, and global trade tensions.”

Khater says despite the uptick in rates, mortgage applications for home purchases have managed to increase on an annual basis for five consecutive weeks. “However, given the widespread damage caused by Hurricane Florence in the Carolinas, the next few months of housing activity will likely be somewhat volatile,” he adds.

Freddie Mac reports the following national averages with mortgage rates for the week ending Sept. 20:

30-year fixed-rate mortgages averaged 4.65 percent, with an average 0.5 point, rising from last week’s 4.6 percent average. Last year at this time, 30-year rates averaged 3.83 percent.

15-year fixed-rate mortgages averaged 4.11 percent, with an average 0.5 point, increasing from last week’s 4.06 percent average. A year ago, 15-year rates averaged 3.13 percent.

5-year hybrid adjustable-rate mortgages averaged 3.92 percent, with an average 0.4 point, dropping from last week’s 3.93 percent average. A year ago, 5-year ARMs averaged 3.17 percent.

Source: Freddie Mac; REALTOR® Mag News, 092118