Video Credit: Wibbitz Top Stories - Duration: 01:30s - Published
Mortgage Rates Reach Over 7%
Mortgage Rates , Reach Over 7%.
In early August, the
30-year mortgage
rate soared to 7.09%,
according to the Mortgage
Bankers Association.
Historic data from Freddie Mac indicates that's been the highest rate since 2002.
Rates aren't expected to decrease
in the near future, CBS News reports.
.
[Mortgage rates] are about twice as high as they were during the pandemic.
So owing to that, buying a house, even if prices stay the same or fall, is much more expensive in most circumstances because rates are so much higher.
, Jacob Channel, LendingTree senior economist, to CBS MoneyWatch.
Two main factors have reportedly
contributed to rising rates.
They are the Federal Reserve's continued interest rate hikes and "Fitch Ratings' downgrading of U.S. debt," CBS News reports.
.
They are the Federal Reserve's continued interest rate hikes and "Fitch Ratings' downgrading of U.S. debt," CBS News reports.
.
When that happens, people can panic and sell bonds, interest rates have to
go up, so mortgage rates follow, Jacob Channel, LendingTree senior economist, to CBS MoneyWatch.
Experts say that over the next few weeks, homebuyers should anticipate rates to fluctuate.
.
They are often volatile on week to week basis.
Generally speaking, they don't stay flat, they are often moving up or down, Jacob Channel, LendingTree senior economist, to CBS MoneyWatch.
Buyers shouldn't expect a ton of relief.
They should expect mortgage rates to remain relatively steep, in the 6% to 7% range.
But just because they've risen over last few weeks doesn't mean they'll keep rising in perpetuity.
, Jacob Channel, LendingTree senior economist, to CBS MoneyWatch
Homebuyers , Take Advantage of , Easing Mortgage Rates.
'Newsweek' reports that the number of mortgage
applications increased for the week ending June 21
as the cost of home loans has begun to ease. .
According to the Mortgage Bankers Association (MBA)
Market Composite Index, there was a nearly 1% increase
in mortgage applications from the week before.
MBA data shows that it is the third
consecutive week of an increase
in application numbers. .
At the same time, refinancing
activity was up 28% compared
to the same time in 2023.
In recent weeks, mortgage rates have trended
below 7%, helping to slightly reduce the cost of
monthly payments for potential homebuyers.
Mortgage rates were mostly
lower last week, with the 30-year
fixed rate declining slightly to
6.93 percent, the lowest level
in more than three months, Joel Kan, MBA's deputy chief economist, via 'Newsweek'.
According to Joel Kan, MBA's deputy chief economist,
the drop in rates has failed to convince more
homeowners to change the terms of their existing loans.
According to Redfin data, almost 90% of U.S.
homeowners have mortgages below 6%,
cheaper than the current market.
Purchase applications did see
a small increase after adjusting
for the Juneteenth holiday, Joel Kan, MBA's deputy chief economist, via 'Newsweek'.
Government purchase loans,
primarily FHA and VA, saw
gains of more than 2 percent
over the previous week,
as homebuyers in those segments
sought to take advantage
of the recent rate relief, Joel Kan, MBA's deputy chief economist, via 'Newsweek'
Credit: Wibbitz Top Stories Duration: 01:31Published
Mortgage Rates Continue , to Fall, Raising Hopes of the , Fed Cutting Rates.
ABC reports that borrowing costs for
home loans continued to ease this week,
with the average rate on a 30-year mortgage
falling to its lowest level since April.
According to mortgage buyer
Freddie Mac, the rate fell from
6.95% to 6.87% last week. .
That figure is still significantly higher than
what the rate was during the same time last year,
which was at an average of 6.67%. .
15-year fixed-rate mortgages
also eased, falling from
6.17% last week to 6.13%. .
During the same time last year,
the average rate was at 6.03%.
Those higher rates can add hundreds of dollars
to monthly costs for borrowers, which limits the
purchasing options of potential homebuyers.
Mortgage rates fell for
the third straight week
following signs of cooling
inflation and market
expectations of a
future Fed rate cut, Sam Khater, Freddie Mac’s chief economist, via ABC.
ABC reports that rates are influenced by a number
of factors, including the Federal Reserve's interest
rate policy and the 10-year Treasury yield.
ABC reports that rates are influenced by a number
of factors, including the Federal Reserve's interest
rate policy and the 10-year Treasury yield.
Due to yields also beginning to ease, the Federal
Reserve could start to drop its main interest rate
after hiking it up to the highest level in over 20 years.
Last week, Fed officials suggested that they would make
just one cut to their benchmark interest rate in 2024,
down from previous projections of three cuts for the year.
Credit: Wibbitz Top Stories Duration: 01:31Published
New US Home Construction , Sinks to Slowest Pace in 4 Years.
Government data released on June 20 indicates that new home construction in America dropped in May to the slowest pace since June 2020, Yahoo Finance reports. .
Housing starts dropped 5.5%,
and building permits dipped 3.8%.
Home completions also fell to the lowest amount since September 2022.
High interest rates, set by the Fed to help tame inflation, have resulted in high mortgage rates.
But recent data has suggested that inflation has started to cool, which may give the Fed the confidence it needs to lower rates.
The weakest U.S. housing starts
since the pandemic-led shutdowns
are fairly convincing evidence of
restrictive monetary policy. , Sal Guatieri, senior economist at BMO Capital Markets, via note.
While a growing population and
workforce are providing some support,
US home builders won’t become
busier until borrowing costs fall, Sal Guatieri, senior economist at BMO Capital Markets, via note.
Meanwhile, other data released on June 20 showed that first-time applications for unemployment benefits dropped last week.
However, continuing claims rose
for a seventh consecutive week
Credit: Wibbitz Top Stories Duration: 01:30Published
Surge of New Applications for , Unemployment Benefits , May Signal Cooling Job Market.
Last week, the number of people in the
United States filing for unemployment benefits
reached the highest level in ten months last week. .
ABC reports that the news comes as a potential
sign that the U.S. labor market may be slowing
under the burden of high interest rates. .
The week ending June 8 saw
applications for jobless benefits
rise by 13,000 to reach 242,000. .
According to Labor Department
data, that is up from 229,000 new
applications the week before.
The number also represents the highest
number of new applications since August
of 2023, while also being significantly higher
than the 225,000 new claims forecast.
ABC reports that weekly unemployment claims have
lingered at historically low levels since millions of
jobs disappeared with the COVID-19 pandemic.
ABC reports that weekly unemployment claims have
lingered at historically low levels since millions of
jobs disappeared with the COVID-19 pandemic.
Since March of 2022, the Federal Reserve has raised
benchmark rates 11 times in an attempt to reign in
inflation which has risen to a four-decade high.
While the latest data suggests that consumer
inflation cooled in May, the Federal Reserve
has decided to leave rates at a 23-year high.
According to Fed Chair Jerome Powell, officials
are waiting for more evidence that prices
are reaching their target of two percent.
ABC reports that a total of 1.82 million
Americans were collecting unemployment
benefits in the week ending June 1. .
ABC reports that a total of 1.82 million
Americans were collecting unemployment
benefits in the week ending June 1.
Credit: Wibbitz Top Stories Duration: 01:30Published
Fed Holds Steady , With Interest Rates at , 2-Decade High.
On June 12, the Federal Reserve chose to hold
interest rates at a two-decade high while it
waits to see more signs of inflation going down.
'The Guardian' reports that officials at the United States
central bank expect to make a single rate cut
in 2024, according to the latest projections.
In previous projections,
policymakers expected the Fed
to make three cuts in 2024. .
At the latest meeting, the Fed chose to
keep rates at the same place they've been
for nearly a year, between 5.25% and 5.5%.
Despite recent data suggesting that inflation
may be easing, the Fed clearly doesn't see it moving
at a pace that would lead it to start cutting rates.
In May, inflation cooled slightly across the U.S.,
according to the latest consumer price index, however
consumers remain frustrated over skyrocketing prices.
In May, inflation cooled slightly across the U.S.,
according to the latest consumer price index, however
consumers remain frustrated over skyrocketing prices.
'The Guardian' reports that price growth has
slowed significantly since surging over 9%
in 2022, its highest level in a generation.
'The Guardian' reports that price growth has
slowed significantly since surging over 9%
in 2022, its highest level in a generation.
May saw prices for air fare and fuel go
down, inflation for grocery prices remained
flat, and shelter costs continued to rise.
May saw prices for air fare and fuel go
down, inflation for grocery prices remained
flat, and shelter costs continued to rise.
Overall, prices remained unchanged on a month-to-month
basis as the Fed emphasized that it would wait for
inflation to hit its previously-stated target of 2%.
The committee does not expect
it will be appropriate to reduce
the target range until it has
gained greater confidence
that inflation is moving
sustainably toward 2%, Federal Reserve statement, via Fox News
Credit: Wibbitz Top Stories Duration: 01:31Published
European Central Bank , Cuts Interest Rates.
The action was confirmed on June 6 at
the central bank's meeting, CNBC reports. .
The European Central Bank's (ECB) key
rate will go from 4% down to 3.75%.
The ECB Governing Council issued a statement.
Based on an updated assessment of
the inflation outlook, the dynamics of
underlying inflation and the strength
of monetary policy transmission, , ECB Governing Council, via statement.
... it is now appropriate to
moderate the degree of monetary
policy restriction after nine months
of holding rates steady, ECB Governing Council, via statement.
This is the first time that interest rates
have been cut since September 2019. .
Updated macroeconomic projections indicate that 2024's "annual average headline inflation outlook" has been increased from 2.3% to 2.5%, CNBC reports.
For 2025, it was raised from 2% to 2.2%.
The projection for 2026 stayed at 1.9%.
The ECB's next meeting is in July, where another rate cut is unlikely, experts say.
The slight upgrade to the inflation forecast
was to be expected, inflation has been printing
a little bit hotter than markets were expecting,
but in terms of the timing of the next cut
I’d still be looking to September, Dean Turner, chief euro zone economist at
UBS Global Wealth Management, to CNBC.
Canada also cut interest rates on June 5, while Sweden and Switzerland cut rates earlier this year.
Canada also cut interest rates on June 5, while Sweden and Switzerland cut rates earlier this year.
Canada also cut interest rates on June 5, while Sweden and Switzerland cut rates earlier this year.
The U.S. Federal Reserve continues
to battle America's rate of inflation.
Credit: Wibbitz Top Stories Duration: 01:31Published
No Relief In Sight as, Interest Rates , Continue to Rise.
NBC reports that mortgage rates continue to
climb, with the average interest rate on
a 30-year-mortgage rising to 7.48%.
According to..
Credit: Wibbitz Top Stories Duration: 01:30Published
Our country has been edging along and narrowly avoiding a recession for months, finally seeing inflation falling from record levels. However, after interest rate hikes including those related to home..
Today, The Two Mikes spoke with Gordon Oliver from Cambridge Credit Counseling for an update on America’s economic situation. Mr. Oliver explained that the economy continues to struggle..
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