•   
  •   
  •   

Offbeat Mortgage rates surge to their highest levels in 7 years

20:57  15 may  2018
20:57  15 may  2018 Source:   cnbc.com

Housing confidence hits record high as home prices skyrocket

  Housing confidence hits record high as home prices skyrocket Supply is tight, prices are soaring and mortgage rates are rising.Of the index's six components, only the share of those who think it's a good time to buy fell. No surprise there, given the high competition in most of the nation's neighborhoods. The share of those who think it's a good time to sell and those who think prices will continue to rise jumped the most. In addition, more consumers think their incomes will rise over the next year, and fewer think they will lose their jobs.

Mortgage rates are surging to the highest level in 7 years . Interest rates on U.S. fixed- rate mortgages rose to their highest levels in more than two years , sending weekly home loan application activity to Home borrowing costs have climbed with a surge in U.S. 10- year Treasury

U.S. mortgage rates surged to their highest in almost six months in the latest week, despite government efforts to keep rates at low levels that will help the hard-hit The higher rates reflected an increase in yields on U.S. government bonds, which act as a benchmark for the mortgage market.

A sharp sell-off in the bond market is sending mortgage rates to the highest level in seven years. 

The average contract rate on the 30-year fixed will likely end the day as high as 4.875 percent for the highest creditworthy borrowers and 5 percent for the average borrower, according to Mortgage News Daily.

Mortgage rates, which loosely follow the yield on the 10-year Treasury, started the year right around 4 percent but began rising almost immediately. They then leveled off in March and early April, only to begin rising yet again. Tuesday's move follows positive economic data in retail sales, suggesting that newly imposed tariffs would not hit sales as hard as expected.

First-time homebuyers learn to move quickly in tight markets

  First-time homebuyers learn to move quickly in tight markets Seasonal demand from buyers is increasing as usual, but shoppers are finding a lack of new listings. Also daunting: coming up with a down payment. Based on the median home price, a down payment of 20 percent — a longtime rule of thumb — would be more than $50,000. Amassing that much cash can be difficult. The average savings of people who do not own homes was $5,200 in 2016, according to the Realtors association, citing Federal Reserve data.In reality, however, many home buyers make much smaller down payments.

Mortgage Bankers’ Association Rates . For the week ending 13th March, rates were quoted to be: Average interest rates for 30- year fixed, backed by the FHA This led to unprecedented volatility and widening spreads, which drove mortgage rates back to their highest level since mid-February.

Mortgage rates soared higher this week after the federal government said it would spend billions of The noted uptick in 30- year fixed- rate mortgage rates is a major reversal from just two weeks ago Those aiming to get a new mortgage — either to refinance their existing home loan or to purchase a

Rates have been widely expected to rise, as the Federal Reserve increases its lending rate and pulls back its investments in mortgage-backed bonds. But mortgage rates have reacted only in fits and starts.

"The bottom line is that the writing on the wall has been telling rates to go higher since at least last September," said Matthew Graham, chief operating officer of Mortgage News Daily. "Rates keep looking back to see if the writing has changed, and although there have been opportunities for hope (trade wars, stock selling-sprees, spotty data at times), it hasn't. Today is just the latest reiteration of that writing."

The surge in rates could not have come at a worse time for the spring housing market. Buyers are struggling to find affordable homes for sale, as the supply of listings drops to record lows in most major markets. Home prices are now rising at the fastest rate in four years, according to CoreLogic, and show no sign of easing up.

Deducting home loans interest is trickier under new tax rules

  Deducting home loans interest is trickier under new tax rules If you are looking to take a mortgage or home equity loan, you need to know how the tax changes may impact youThe new rules generally limit the deductibility of mortgage interest on up to $750,000 of debt for acquiring a home. In some cases, the new rules also disallow deducting the interest on home equity loans used in many common transactions.

NEW YORK, June 4 (Reuters) - U.S. mortgage rates surged to their highest in almost six months in the latest week, despite government efforts to keep rates at low levels that will help the hard-hit housing market begin to recover. Interest rates on U.S. 30- year fixed- rate mortgages soared to

Strong employment numbers caused mortgage rates to take off with the 30- year fixed- rate average the highest it has been in nearly eight years . According to the latest data released Thursday by Freddie Mac, the 30- year fixed- rate average jumped to 4.94 percent with an average 0.5 point.

"Homebuyer demand has remained positive and shaken off the higher rate environment so far this year," said Sam Khater, chief economist at Freddie Mac. "However, after years of very low mortgage rates, the symbolic risk of a 5 percent mortgage, on top of higher gas prices, may cause a slowdown in homebuyer demand, particularly in western states and exurbs that are affected more by gas prices than the typical consumer."

Higher mortgage rates often chill prices, as sellers have to adjust to what buyers can afford, but with supply and demand so far out of whack, that is unlikely to happen in the near term. If rates move significantly higher, past 5 percent on the 30-year fixed, prices will have to adjust.

In Hawaii, a family says goodbye to home passed from father to son .
"He passed it down to me, in the hopes I would pass it down to my kids, so that's what I was hoping and planning."But the land doesn't really belong to them — it belongs to the goddess Pele, considered sacred by native Hawaiians, Pacarro said.

Topical videos:

usr: 1
This is interesting!