More home buyers are reaching for the ARMs. Adjustable-rate mortgages generally offer a lower introductory mortgage rate that is locked in for five, seven, or 10 years before then adjusting. As mortgage rates rapidly rise, some buyers may be getting priced out, unless they lock in an ARM, which may have an introductory rate closer …
Category: Real Estate Tips
Apr 01
Nearly Half of US Homeowners Considered ‘Equity Rich’
As home prices continue to increase, homeowners are getting richer and richer. About 45% of mortgaged residential properties in the U.S. were considered “equity rich” in the first quarter, up from about 32% a year earlier, according to a new report from ATTOM Data Solutions. Equity rich means that the combined estimated amount of the …
Mar 29
Buyers Resilient Against Rising Rates
Mortgage rates continue to push higher, but home buyers aren’t spooked. Mortgage applications for home purchases moved 5% higher last week compared to the previous week, and buyer competition remains elevated in many markets. Even as costs rise, buyers remain focused on their homeownership aspirations. The 30-year fixed-rate mortgage rose to a 5.30% average last …
Mar 28
Buyers Have Doubled Their Down Payments
With home prices rising, home buyers are bringing higher down payments to make their offers more attractive to sellers. Buyers are offering about twice as much cash for down payments as they did two years ago, according to realtor.com® data. Buyers, on average, offered a $28,000 down payment in the first quarter. In 2020, down …
Mar 27
Most Borrowers Don’t Compare Mortgage Rates
Fifty-six percent of home buyers went with the first mortgage rate offer they received, according to a new survey from LendingTree of more than 1,000 homeowners. But nearly half of those who gathered multiple quotes reported that they saved money by doing so—46% of borrowers who shopped around said the first offer they received was …
Mar 26
Fixed-Rate Mortgages Dip but ARMs Rise
The 30-year fixed-rate mortgage fell slightly this week, a temporary retreat after weeks of steady increases. The 30-year fixed-rate mortgage averaged 5.25%, Freddie Mac reports. Rates dropped following the 10-year Treasury yield trend this week. Last week’s average was 5.30%. “Economic uncertainty is causing mortgage rate volatility,” says Sam Khater, Freddie Mac’s chief economist. “As …
Mar 25
ARMs Can Help You Save, But Carry Risks
The typical home buyer could save $260 per month with an adjustable-rate mortgage over a 30-year fixed-rate mortgage, or more than $15,000 in five years, a new study from Redfin shows. That marks the largest savings since at least 2015. A 5/1 ARM means the interest rate is fixed for the first five years and …
Mar 21
Mortgage Rates Drop From Recent Highs
After weeks of rising rates, mortgage rates are now falling. The 30-year fixed-rate mortgage averaged 5.10% this week, Freddie Mac reports. “Mortgage rates decreased for the second week in a row due to multiple headwinds that the economy is facing,” says Sam Khater, Freddie Mac’s chief economist. “Despite the recent moderation in rates, the housing …
Mar 20
Mortgage Applications Are Falling
The housing market is showing more signs of slowing. Purchase applications fell 1% last week compared to the previous week and volume is now 14% lower than a year ago, the Mortgage Bankers Association’s latest index shows. Overall, mortgage demand, which includes applications for refinancing and home purchases, has fallen to its lowest level since …
Mar 19
Signs of Widespread Buyer Regret Emerge
Seventy percent of recent home buyers say they rushed their property purchase due to market pressure, according to a new survey of more than 1,000 consumers conducted by MoneyWise. Rising home prices and mortgage rates made many buyers speed up their timelines, the survey notes. The speed of their decisions may later lead to some …
Mar 18
Mortgage Rates Hold Mostly Flat This Week
The interest rate for the 30-year fixed-rate mortgage averaged 5.09% this week, continuing to inch down slightly. Still, rates are up significantly compared to a year ago. Due to the higher rates, home buyers need to earn about $30,000 more if they want to buy the typical home now compared to a year ago, Nadia …
Mar 18
Mortgage Demand Plummets to 22-Year Low
Mortgage applications dropped 6.5% last week, and demand reached the lowest point in 22 years, the Mortgage Bankers Association reported Wednesday. The index reflects applications for refinancings and home purchases. Mortgage applications for a home purchase, a gauge of homebuying, dropped 7% for the week and are now 21% lower than a year ago, the …
