Mortgage Rates Climb to Highest Levels in Almost a Year; 30-Year Fixed Above 3%

Mortgage rates have now increased in six of the last eight weeks. According to Mortgage Bankers Association (MBA) latest weekly survey, average 30 Year Fixed mortgage rates climbed above 3%. The higher rates resulted in refinance activity falling 11% to its lowest levels since December 2020. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($548,250 or less) increased to 3.08 percent, with points increasing to 0.46. The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $548,250) increased to 3.23 percent with points…continue reading →

2021 CONFORMING LOAN LIMITS FOR TEXAS (TX)

2021 Conforming Limit Texas counties is $548,250 and for 2-unit properties is $702,000. See below the list of all 2021 Conforming Limit Texas counties for 1, 2, 3, and 4 Unit properties. Looking For 2022 Conforming Loan Limits for Texas?  Click Here 2021 Conforming Loan Limits for Anderson County 1 Unit – $548,250 2 Unit – $702,000 3 Unit – $848,500 4 Unit – $1,054,500 2021 Conforming Loan Limits for Andrews County 1 Unit – $548,250 2 Unit – $702,000 3 Unit – $848,500 4 Unit – $1,054,500 2021 Conforming Loan Limits for Angelina County 1 Unit – $548,250 2…continue reading →

Mortgage Credit Availability Hits Lowest Point in Six Years

Mortgage credit availability has declined considerably, reaching the lowest point it has reached in six years, according to the Mortgage Bankers Association (MBA). The Mortgage Credit Availability Index (MCAI) dropped to 120.9 in August, which is a 60.8 point decrease from August 2019 (181.7). MCAI Trend (Source: Mortgage Bankers Association) Joel Kan, the MBA’s Vice President of economic and industry forecasting, remarked that uncertainty around the job market and its future was likely to be the reason behind tightening credit. When lending standards become tighter, fewer mortgages are available and fewer still borrowers…continue reading →

Mortgage Rates Slip Again after Making Symbolic Recovery

Having slipped below 3% for the first time in retrievable memory, the 30-year fixed-rate mortgage had made a symbolic return to 3.01% before slipping once again to 2.99% (for the week ending July 30). Sam Khater, Freddie Mac’s chief economist believes that "It's Groundhog Day in the mortgage market as rates continue to remain near historic lows, driving purchase demand over 20% above a year ago," He further stated in a press release that "Real estate is one of the bright spots in the economy, with strong demand and modest slowdown in home…continue reading →

Pending Home Sales Index Posts Surprising Numbers

Riding on the declining mortgage rates, pending home sales have come around really well, beating all expectations. This further asserts that the housing market is the only silver lining in the Coronavirus-affected economy.  The National Association of Realtors  (NAR) has an index that puts the contract signings into perspective. According to it, the signings to buy previously owned houses have shot up 16.6% once again, building on the excellent show in May (44.3% rise). Lawrence Yun, the chief economist for NAR is surprised. In his statement, he suggested, “It is quite surprising and…continue reading →

Mortgage Rates Up After Falling for 6 Weeks

Having fallen below 3% for the first time since Freddie Mac started recording, the mortgage rates have risen above 3% once again, thus arresting a fall which began 6 weeks ago. At this point, it is only symbolic though. From 2.98% on July 16, we are at 3.01% (July 23). On the year-to-year chart, the 30-year fixed-rate mortgage traded at 3.75%. To quote Freddie Mac’s chief economist, Sam Khater, "While housing demand continues to rebound, the month-long swoon in economic activity has caused the 10-year Treasury benchmark to drop," He added, "In the…continue reading →

In a First, Mortgage Rates Fall Below 3%

For the first time in the last 50 years, the mortgage rates for the 30-year fixed-rate loan have come below 3%. Freddie Mac reveals that the rates sat at 2.98% for the week closing on July 16. On the year-to-year chart, it is a 22% decline.   Unsurprisingly, the rate drop has raised the demand for homes and the meager rates have been "capitalized into asset prices in support of the financial markets," divulges Freddie Mac's chief economist, Sam Khater. Things might still get tight though, thinks Khater, if the reemergence of Covid-19 cases…continue reading →

Strengthened by Refinance Volume, Mortgage Applications Shoot Up

The 5.1% week-to-week hike in mortgage applications has piggybacked largely on robust growth in the volume of refinancing. The MBA's Weekly Mortgage Applications Survey (for the week closing on 10th July) reveals that the refinance index has more than doubled on the year-to-year chart and shot up 12% on the week-to-week chart. The weekly result has been adjusted for the 4th of July.  From 60.1% a week prior, refinance levels have hiked to total application’s 64.2% this week. To paraphrase Joel Kan, the MBA's associate vice president of economic and industry forecasting, the…continue reading →

Record-High Home Equity Levels Left Unused in Q1

Despite exceedingly low interest rates, a very limited number of borrowers pulled cash out of their houses in Q1. This led to a record-high for the dollar value of usable home equity, reports Integrated Technology firm, Black Knight.  The mind goes back to the housing boom when homeowners tapped their equity to buy cars and fund vacations. When the market crashed, many such owners were left with no equity at all in their homes. There is enough evidence to believe that many still fear cash-outs due to the memory of those days. Cash-out…continue reading →

Housing Supply Shortage Hurts May Home Sales

May ‘20’ is not as encouraging for home purchases as May ‘19’ had been and we needn’t be told the reason for it. Closed transactions dropped by 3.9% compared to April and a mammoth 33.7% on the Year-over-Year chart.  Each housing market in the country has reported an annual drop in double figures (Iowa cutting the best picture with a 14.3% drop while Detroit the sorriest picture with a 64.8% drop). Inventory constraint hasn’t helped one bit. Housing supply in May is lowest since 2008. It has come down by 25% compared to…continue reading →