Housing beat: 30-year mortgage at 13-year high; Top Lenders in LinkedIn Spat

The world of housing and mortgages has seen rising rates, rising demand levels and a public row between two major lenders.

On the Mortgage Front: Freddie Mac FMCC reported that the 30-year fixed rate mortgage averaged 5.27%, up from last week when it averaged 5.10%. The 15-year fixed rate mortgage averaged 4.52%, up from last week when it averaged 4.40%. And the 5-year Treasury-indexed hybrid variable-rate mortgage averaged 3.96%, up from last week when it averaged 3.78%.

“Mortgage rates resumed their ascent this week as the 30-year fixed rate hit its highest level since 2009,” said Sam Khater, chief economist at Freddie Mac. “While housing affordability and inflationary pressures pose challenges to potential buyers, house price growth will continue but is expected to slow in the coming months.”

As rates rose, so did mortgage applications. the Mortgage Bankers Association (MBA) reported that its Composite Market Index, a measure of mortgage application volume, rose 2.5% on a seasonally adjusted basis from the previous week. The seasonally adjusted buy index rose 4% and the refinance index was up 0.2%, although it was also 71% lower than the same week a year ago.

Joel CanMBA’s associate vice president of economic and industry forecasting, hailed the upward movement in app activity, calling it “potentially a good sign for the spring home buying season, which has gotten off to a good start. slow so far”.

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On the buyers front: But those entering the market will pay more on their mortgages. New data from red fin RDFN found that a typical homebuyer’s monthly mortgage payment increased by 39%, the largest year-over-year gain since the company began tracking this data in 2015

“Rising mortgage rates reduce pending sales as buyers and sellers take a step back from the turbulent market,” said Redfin’s chief economist. Daryl Fairweather. “It looks like the buyer-to-seller ratio remains essentially the same, which is why we haven’t yet seen a substantial drop in bidding wars or the share of homes selling fast. It’s still early days when it These are mortgage rates of 5% The number of buyers willing to pay such high mortgage payments could evaporate by the end of the summer.

But some buyers are looking outside their states for better real estate deals. During the first quarter of this year, 40.5% of potential buyers using the real estate agent.com the site viewed property listings outside of their current state – down from 36.4% a year ago and down from 33.4% in the first quarter of 2020.

The top 10 destinations, in order of ranking, were: El Paso, Texas; Albuquerque, New Mexico; Washington D.C.; Birmingham, Alabama; Hartford, Connecticut; Omaha, Nebraska; McAllen, TX; New York City; Augusta, Georgia; and Greensboro, North Carolina.

“After two years of pandemic remote working, offices have started to reopen, but instead of seeing a slowdown in the number of people interested in out-of-state homes, we’re seeing an acceleration,” the economist said. CEO of Realtor.com. Danielle Halewho cited housing affordability and buyer flexibility to fuel this research.

“And finally, some people are just ready to go back to normal, with some buyers’ desire to live downtown pushing two major cities into the top 10,” Hale said.

Realtor.com is operated by press company NWS NWSA subsidiary company Move, Inc.

On the mortgage employment front: The slowdown in mortgage origination is impacting the mortgage industry, with several industry leaders, including Wells Fargo WFC, better.com and Union Home Mortgage dismiss workers.

Detroit-based last week Rocket Companies Inc. RKT announced that it would offer voluntary buyouts to 8% of the workforce of Rocket Mortgage and title insurer Amrock. The head of another major Michigan-based lender – Mat IchbiaPresident and CEO of United Wholesale Mortgage UWMC – took umbrage at Rocket’s actions.

“Disappointed is the best way to describe my thoughts on Rocket Mortgage/Quicken Loans laying off over 2,000 of their employees because it shouldn’t be necessary for a company that made over $5 billion in profits last year “, wrote Ishbia on LinkedIn. “Even though United Wholesale Mortgage is in direct competition with Rocket, I hate to see this type of negative impact on families in Metro Detroit. Those 2,000+ people will have a hard time finding new jobs, and I think it is disgusting that they are thinking short term and only focusing on cutting a few million a month in costs…that is the wrong thing to do to people.

Ishbia added that he was “proud that we haven’t had a single layoff in 35 years at UWM.”

Jared FleisherRocket’s vice president of government affairs, responded on Ishbia’s LinkedIn page, calling his remarks “nothing but empty cynicism” and defending Rocket’s actions.

“Rocket is reacting to dramatically changed market conditions in the most thoughtful and caring way possible,” he said. “The fact that you seek to exploit it for your own ends proves nothing but the true depth of your cynicism, your inattention and your immorality.”

Photo: SSWJ/Flickr Creative Commons

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