Borrowing costs have fallen over the last two months.Mortgage rates are ringing in the new year much lower than their near-8% peak this past fall. The 30-year fixed-rate mortgage has decreased for the past nine weeks, though breaking for a slight uptick this week to reach 6.62%, Freddie Mac reports.“The overall trajectory of mortgage interest rates in 2024 is expected to decrease,” says Jessica Lautz, deputy chief economist at the National As
The differential between 30-year mortgage rates and benchmark Treasury yields has been shrinking for eight straight weeks A key factor that pushed up mortgage rates over the past two years is now starting to pull them down.Average 30-year fixed mortgage rates have been higher than usual relative to the benchmark Treasury yields they typically track. But that extra differential, or spread, has been shrinking for eight straight weeks. It is now at
Rent began to reverse, office vacancy remained near record highs, banks failed and lending got tricky in 2023. Where are we headed next?Investors knew they were in for a roller coaster ride in 2023. What they still don’t know is where the ride is heading next.Pandemic-era highs for virtually all sectors of real estate led to uncertainty in markets across the U.S. Rent began to reverse, office vacancy remained near record highs, banks
Novembers numbers show pending sales didn't move compared to October, but lower rates did apparently lead to more lockbox openings — hinting that better days lie ahead Despite being jam-packed with real estate news, just-released data shows that November saw pending home sales remain flat compared to one month earlier — though the numbers do offer some hints of an improving market.In total, the National Association of Realtors’ Pending
While Federal Reserve policymakers had forecast 3 rate cuts next year, futures markets see an 85% chance of at least 6 rate cuts after a key inflation metric shows the economy is cooling rapidly Mortgage rates are continuing a stunning retreat from 2023 highs this week after a key inflation metric showed the economy is cooling rapidly — perhaps too rapidly for those hoping for a soft landing in 2024.The Bureau of Economic Analysis reported
The S&P CoreLogic Case-Shiller National Home Price Index posted a yearly increase of 4.8% in October, the fastest annual rate gain of 2023 and 'the strongest national growth rate since 2022'October saw the highest home price increase of 2023, according to new data, despite mortgage rates also rising significantly that month.The S&P CoreLogic Case-Shiller National Home Price Index posted a yearly increase of 4.8 percent and
A recent surge in construction of single-family homes could offer more opportunities for home buyers in the new year.Existing-home sales posted a slight gain last month, breaking a streak of five consecutive monthly declines and foreshadowing what is expected to be a more favorable real estate market in 2024.The National Association of REALTORS® reported Wednesday that existing-home sales, which are completed transactions for single-family
Despite unprecedented challenges, and the predictions of naysayers, the residential real estate market showed surprising strength in 2023, according to industry analyst Michael Gifford Despite unprecedented challenges, the housing market emerged as a resilient and surprising beacon of stability in 2023. While supply constraints continued and the Federal Reserve’s interest hike lasted longer than expected, the sharp decline in hom
Homeowners looking to refinance are finding savings after mortgage rates dropped again last week.The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) decreased to 7.07% from 7.17%, with points falling to 0.59 from 0.60 (including the origination fee) for loans with a 20% down payment, according to the Mortgage Bankers Association. That was the lowest level since July.“Mortgage
Construction spending (not adjusted for inflation) totaled $2.027 trillion in October at a seasonally adjusted annual rate, up 0.6% from the upwardly revised September rate and up 11% year-over-year (y/y), the Census Bureau reported today. However, without a deflator, it is impossible to say how much of the y/y gain is in units vs. price. Private residential construction rose 1.2% for the month, with single-family homebuilding up 1.1% (
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