Realty World - Sierra PropertiesLicense #: 00319644

Realty World - Sierra PropertiesLicense #: 00319644

Realty World - Sierra Properties's blog

Mortgage Rates Rise Again, Nearing Affordability Threshold

On the first day of September, mortgage rates continued to rise, following the trend of the 10-year Treasury yield. According to Freddie Mac, the 30-year fixed mortgage rate inched up to 5.66% from 5.55% the previous week.

NATIVE AMERICAN HOME LOAN PROGRAM 

Financing a home purchase is a unique and different endeavor in today's market. This also comes along with the need for buyers qualifying for the right loan and will the home qualify? Real estate agents need to coordinate these factors to help clients. 

As an example, when helping Native Americans buy a home, we work with an experienced lender that has done this specific type of loan in El Dorado County. If you or someone you know may be interested, please contact us. Some of the guidelines are shown in attachment below: 

Economist: Mortgage Rates Hurt Buyers More Than Home Prices

The nation is witnessing a “housing recession,” says NAR Chief Economist Lawrence Yun, as existing-home sales plummeted 20% year over year in July, according to NAR data. Contract signings also dropped 20% in the same month. And there’s been a significant pullback in the new-home market—sales in the sector were down 30% annually in July—causing homebuilder sentiment to slide for the eighth straight month.

Mortgage Rates Settle In the 5% Range

Mortgage rates peaked at 6% in early June, which prompted a pullback in housing demand. However, “home sales may soon stabilize since mortgage rates have fallen to near 5%, thereby giving an additional boost of purchasing power to home buyers,” says Lawrence Yun, chief economist for the National Association of REALTORS®.

Home Loan Interest Rates Continue to Fluctuate

Purchase demand continues to tumble as the cumulative impact of higher rates, elevated home prices, increased recession risk, and declining consumer confidence take a toll on homebuyers. It’s clear that over the past two years, the combination of the pandemic, record low mortgage rates, and the opportunity to work remotely spurred greater demand. Now, as the market adjusts to a higher rate environment, we are seeing a period of deflated sales activity until the market normalizes.

Primary Mortgage Market Survey®
U.S. weekly averages as of 07/28/2022:

Mortgage Rates Rise Ahead of Fed’s Big Announcement

Mortgage rates rose slightly this week ahead of the Federal Reserve’s highly anticipated meeting next Tuesday, when it is expected to increase its benchmark rate by up to a full percentage point. What impact could that have on mortgage rates ahead?

Existing-Home Prices Hit New Record as Sales Slow

Prices for existing homes climbed to a record high in June, continuing at a breakneck pace with double-digit-percentage annual increases. The median price for an existing home rose to $416,000 last month, up 13.4% compared to a year earlier, the National Association of REALTORS® reported Wednesday.

The Equity Housing Agenda

Homeownership is good for America. The housing industry accounts for 15% of the country’s GNP. Mortgage financing is the fuel for a healthy real estate market. Maintaining a consistent flow of dollars into mortgages has been the primary responsibility of the Federal National Mortgage Association, Fannie Mae, since it was created in 1938. The availability of low-down payment loans, less than 20% and 30-year financing, has enabled millions of Americans to create wealth through homeownership.

Mortgage Rates Shift Upward

“Mortgage rates are volatile as economic growth slows due to fiscal and monetary drags,” said Sam Khater, Freddie Mac’s Chief Economist. “With rates the highest in over a decade, home prices at escalated levels, and inflation continuing to impact consumers, affordability remains the main obstacle to homeownership for many Americans.”

*30-year fixed-rate mortgage averaged 5.51 percent with an average 0.8 point as of July 14, 2022, up from last week when it averaged 5.30 percent. A year ago at this time, they averaged 2.88 percent.

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