Fannie Mae, Freddie Mac Forbearance Rate Drops Below 5%
The forbearance rate for mortgages backed by Fannie Mae and Freddie Mac dropped 4.94% in the first week of August. The forbearance rate is now at 7.21%, representing 3.6 million mortgages in forbearance. Economists are watching to see what impact the July 31st expiration of the $600 a week enhanced unemployment benefits will have on the forbearance numbers. Although short term forbearance numbers may be lowering, with more time we should see a clearer picture of the true forbearance levels without the aid of the CARES...Low Mortgage Rates and Low Inventory Cause Bidding Wars in June
As home mortgage interest rates and housing inventory continue to hit record lows, potential homebuyers are facing an increasingly competitive environment. According to Redfin more than half of the offers tracked in July faced competition. Homes priced between $400,000 and $500,000 were the most likely to be in a bidding war with over 55% of these homes facing a multiple offer situation. In the market for homes listed over $1.5 million, 46% of them received multiple offers in the month of July. As the already low home mortgage interest rates continue to drop, more homeowners will face competition for the median priced homes on the market. Being pre-approved and ready to put an offer on a home could make the difference in your offer being accepted or giving competition a chance to beat you to it! https://www.redfin.com/news/june-2020-real-estate-bidding-wars-increase/ ...Mortgage Application Slightly Drop Despite Record Low Rates
Despite historically low home mortgage loan interest rates, mortgage applications fell 5.1% last week according to the Mortgage Bankers Association. The refinance index fell 7% from one week earlier, but is still 84% higher than the same time last year. This week marked 11 straight weeks of year-over-year refinance activity growth. Mortgage refinance levels will continue to be high as people seek to lower their monthly mortgage payments in this uncertain...Mortgage and Real Estate Trends to Watch for the Rest of 2020
When discussing the mortgage and real estate markets, forecasting is very important. With today’s very uncertain future there are a few things regarding these markets we may be able to predict to take advantage of buying conditions. Homes may be harder to find for buyers. Inventory has been low in 2020 and with 20% fewer existing homes for sale in May 2020 than May 2019, one could expect this trend to continue. Sellers may be uneasy opening their homes for open houses and prospective buyers. Lack of affordability may hold back home sales. Resale home sales are up 30% year over year. The scarcity level of homes in the entry level-priced market has continued into the middle of the year causing first-time buyers to have less choice in options available to their budget. Refinances levels continue to boom. Low mortgage rates make now a great time for home owners to refinance and this trend should continue as rates stay low throughout the end of...Connect With Us
