Mortgage Market Update
mortgage
RISING RATES AND HIGH PRICES – Housing Sentiment Falls
Based on Fannie Mae’s monthly sentiment survey, the overall housing sentiments have been the lowest since May 2020, the start of the pandemic. Only 25% of the homeowners say that now is a good time to buy, which is a record low; while nearly 70% claim that it’s a good time to sell.
Home prices are still gaining, and the gains are accelerating. According to Corelogic, the latest reading has them on 18.5% YOY. Home price appreciation more than doubled last year, averaging 15% for the full year compared to the 6% in appreciation in 2020.
Rates began rising in January sharply since the first week. Average on the 30YR Fix stands at 3.87% as at today, a full 1% higher than it was a year ago. The rate is also 50bps higher than it was at the beginning of this year and is likely to climb as the Federal Reserve dives downs back its purchases and holdings of mortgage-backed bonds.
However, on the flip side, even though the rates are up, they are still low historically. Questions most buyers have is that even if the rate goes higher should they expect some relief on the pricing side or not?
Prices usually lags sales, so at first, we are going to see the sales pull back. We’ve started to see a little bit of that already in what some would say that it would takes nearly 6 months for the price to catch up with those lower sales. However, we still have those incredibly strong demand, which is unlike any other housing market, historically. And because of this very strong demands and very low supply, the rates aren’t going down anytime soon.
Today’s Rate
Daily rate based on: SFR/Primary/LTV60/FICO 780/Purchase
IMPORTANT: Advertised rates were valid and effective as of the date reflected above, are for informational purposes only, and are subject to change without notice.
Loans are subject to credit and collateral approval. Advertised rates are based on a set of loan assumptions including a borrower with excellent credit history and optimal loan characteristics. Your final interest rate and annual percentage rate (APR) may differ depending on your individual transaction’s specific characteristics, and certain products may not be available for your situation. Several determining factors include, but are not limited to, the state of the property location, loan amount, documentation type, loan type, occupancy type, property type, loan to value, and credit score.
APR reflects the cost of credit over the term of the loan expressed as an annual rate. For mortgage loans, APR may include the interest rate, discount points (also referred to as “points”), and other charges or fees (such as mortgage insurance and origination fees), but does not necessarily take into account other loan-specific finance charges you may be required to pay.
Golden Star, Inc. dba Transglobal Lending, 185 W. Chestnut Ave., Monrovia, CA 91016, NMLS # 1437002 (www.transgloballending.com). All rights reserved. Equal Opportunity Employer and Equal Housing Lender. All mortgage products are subject to credit property approval. Rates, Program terms and conditions are subject to change without notice. Additional conditions, qualifications, and restrictions may apply. This is not an offer for extension of credit or a commitment to lend.
