Inflation as measured by personal spending increased in line with expectations in October, possibly giving the Federal Reserve more incentive to hold rates steady and perhaps start cutting in 2024, according to a data release Thursday.The personal consumption expenditures price index, excluding food and energy prices, rose 0.2% for the month and 3.5% on a year-over-year basis, the Commerce Department reported. Both numbers aligned with the D
A turnaround may be insight as mortgage rates retreat from their peak—but another issue is coming into focus for home buyers.As mortgage rates rose to their highest averages in October—nearing 8%—many home buyers backed away from the housing market. As a result, contract signings for existing homes dipped to their lowest number in more than 20 years, the National Association of REALTORS® reported Thursday.NAR’s Pending Home Sales&nb
In line with rising home prices, federally-backed loans will adjust for borrowers in the new year.Conforming loan limits are rising in the new year to keep up with escalating home prices, both the Federal Housing Administration and Federal Housing Finance Agency announced Tuesday.The new conforming loan limit set by the FHFA for 2024 is $766,550 (a hike of $40,350 compared to 2023’s baseline amount of $726,200). FHFA is the regulator of Fannie
Higher mortgage rates appear to be doing very little to cool home prices.Nationally, prices were 3.9% higher in September compared with the same month a year earlier, up from a 2.5% annual gain in August, according to the S&P CoreLogic Case-Shiller Index. This occurred as the average rate on the 30-year fixed mortgage climbed toward 8%.Of the 20 metropolitan markets highlighted in the report, Detroit saw the biggest annual increase
Requests for purchase loans were up 4% last week compared to the week before, but down 20% from the same time a year ago, Mortgage Bankers Association's weekly survey of lenders finds Applications for purchase mortgages surged last week as mortgage rates hit their lowest levels in two months, with rates continuing to trend down this week as bond market investors digest data that shows inflation cooling.Requests for purchase loans were up by a sea
Consumer credit preferences shift as households anticipate reduced demand for credit cards, mortgages, and auto loans in the coming year.The Federal Reserve Bank of New York's Center for Microeconomic Data revealed Monday that rejection rates for new mortgage applications declined over the past four months. That comes amidst an increase in mortgage credit availability last month.The Survey of Consumer Expectations found that there was a
For the third consecutive week, mortgage rates fell, possibly a sign they’ve now moved past their recent peak. Find out where rates could be heading.Mortgage rates dropped again this week after reaching 20-year highs recently, and economists predict they are likely to continue to decline through the spring homebuying season. The 30-year fixed-rate mortgage averaged 7.44% this week, backing further away from its near-8% high, Freddie Mac reports
‘We’re just looking at every opportunity we have to turn the dial as much as we can to help support homeowners in this difficult market,’ FHA official says Housing affordability hit a 39-year low this year, and the federal government says it’s determined to do something about that.Rising mortgage rates and home prices have made it a lot more expensive to buy a home.For a typical household, buying a median-priced home entails spending near
The 30-year fixed-rate mortgage dropped a quarter of a percentage point this week, as home buyers prove their rate sensitivity.Home buyers rushed to lock in this week’s lower mortgage rates, with applications for home loans seeing their first increase in a month as the average for the 30-year fixed-rate mortgage dipped to 7.5%, according to Freddie Mac and the Mortgage Bankers Association. Purchase applications rose 3% for the week, although th
While that’s unwelcome news for buyers, “homeowners have accumulated sizable wealth,” says NAR Chief Economist Lawrence Yun.Home prices continue to rise in most areas of the country as more home buyers face affordability challenges. The median price nationwide for an existing single-family home in the third quarter was $406,900, which is 2.2% higher than a year prior, according to the National Association of REALTORS®. More than 80% of met
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