Home prices posted gains during the month of May thanks to near-record low interest rates and limited housing supply. Meanwhile, the number of home loans in patience continued to slow down last week.
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Mortgage-rate-July-28-2020
Home prices increased 4.5% yoy during the month of May, according to data from the S&P CoreLogic Case Shiller Index, a leading measure of home prices in the US Phoenix recorded a 9% increase, leading the way in home prices for the twelfth consecutive month, followed by Seattle with a price increase of 6.8% and Tampa with 6%.
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“House prices in May were stable. In contrast to the past eight months, earnings in May were lower than in April, ”said Craig Z. Lazzara, head of index investment strategy at S&P Dow Jones Indices. “Although prices increased in May, in other words, they did so at a slowdown rate.” In April, prices rose at an annual rate of 4.6%.
“Obviously more data will be needed to know whether May’s report represents a reversal of the previous trajectory of accelerating prices or simply a slight deviation from an intact trend. Even if prices continue to decelerate, that is quite different from an environment in the that prices really decrease, “added Lazzara
As for homeowners navigating recent uncertainty about a sustainable economic recovery, the leniency share of leniency declined, for the sixth consecutive week, falling 6 basis points to 7.74% for the week ending July 19, according to the Association of Mortgage Bankers.
“The proportion of leniency loans decreased by less than in previous weeks as the pace of borrowers who abandoned leniency slowed,” said Mike Fratantoni, chief economist at MBA. “Although the [government-sponsored enterprise] As the patience loan portfolio should continue to improve, Ginnie Mae’s portfolio saw an uptick in both patience loans and patience borrowers. The high level of jobless claims in recent weeks may be playing a role, as weakness would likely affect Ginnie Mae’s portfolio first. “
What are people paying for mortgages right now?
Borrowers with 700 credit scores were charged an average of 3,725% to guarantee a 30-year fixed-rate purchase mortgage on Monday, according to Money’s survey of more than 8,000 mortgage lenders across the country. The average rate for a 30-year refinance was 4,528%.
What do the experts say about house prices?
Jeffrey Taylor, co-founder and managing director of Digital Risk, a mortgage technology company, recently told Money:
“Home prices have increased again, mainly because inventory is very low, 19% less than in May 2019. Purchases of first-time buyers increased to 34% in May, compared to 33% of the last year. This means that Millennials continue in the market ”.
For a more expert prediction of home prices, read: How Low Will They Go? 6 mortgage experts predict the future of rates
What else should house hunters see this week?
On Wednesday, Federal Reserve policy makers will end their two-day meeting. While no major changes in Fed policy are expected to be announced, the central bank is expected to describe additional steps it could take to support an economy that is reeling from rising virus hotspots across the country. . In June, committee members indicated that they anticipate keeping short-term interest rates, which indirectly influence mortgage rates, near zero until 2022.
What are the rates announced today?
Of course, mortgage rates vary widely by location and personal factors such as location, the size of your down payment, and your credit score. Here are the mortgage rates announced today by some of the largest lenders in the mortgage industry. (All rates are APR. The rates you see may be different.)
JPMorgan Chase
Based in New York, JP Morgan Chase has almost 5,000 branches in the United States.
Mortgage rates announced for July 28:
30 year fixed: 2.961%
15 years fixed: 2.533%
5-YEAR ARM: 2,698%
(Rates based on New York City ZIP code 10006).
Speed up
Quicken, a Detroit-based non-bank lender, is the nation’s largest mortgage lender by dollar origination volume.
Mortgage rates announced for July 28:
30 year fixed: 3,236%
15 year fixed: 2.942%
(Quicken does not announce a five-year adjustable rate.)
Wells Fargo
Based in San Francisco, Wells Fargo has more than 7,000 locations.
Mortgage rates announced for July 28:
30 year fixed: 3.123%
15 year fixed: 2.937%
5-YEAR ARM: 2,851%
Bottom line:
How long will housing prices continue to rise? 8 experts weigh
Don’t have a 20% down payment? Here’s how to buy a home with less
How low will they go? 6 mortgage experts predict the future of rates
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