iMove Chicago- Real Estate Rentals and Sales

Federal Reserve makes another big rate hike

November 7,2022 | By ERICKSON J OCASIO

What does the increase mean for the interest-rate-sensitive housing market? Experts answer. The US Federal Reserve raised interest rates by another 75 basis points as its war against inflation rages on. This is the Fed's fourth consecutive 0.75% rate hike, and chairman Jerome Powell warned it might have to continue increasing. "Financial conditions have tightened significantly in response to our policy actions, and we are seeing the effects on demand in the most interest-rate-sensitive sectors of the economy, such as housing," Powell said. "It will take time, however, for the full effects of monetary restraint to be realized, especially on inflation. At some point, it will become appropriate to slow the pace of increases as we approach the level of interest rates that will be sufficiently restrictive to bring inflation down to our 2% goal."

Interest rates top 7% – industry reacts

October 30,2022 | By ERICKSON J OCASIO

Highest level for 30-year fixed-rate mortgages since 2002. It’s official - mortgage rates have reached their highest level in more than 20 years. According to Freddie Mac’s widely used benchmark, the 30-year fixed-rate mortgage averaged 7.08% in the week ending October 27, up from 3.14% a year ago. The last time the average rate went beyond 7% was in April 2002. Mortgage rates have more than doubled since the beginning of the year and been increasing almost week by week since the end of August, much in response to the Federal Reserve’s efforts to rein in inflation, which currently stands close to a 40-year high of 8.2%. At the same time, compared to a year ago, refi loan volume has slumped by 86% and purchase demand is down 39% as borrowers feel the pinch. In response to the latest data, Kate Wood, home expert at NerdWallet, agreed that t

Mortgage rates remain just shy of 7%

October 21,2022 | By ERICKSON J OCASIO

Surging rates are "adversely impacting the housing market," Freddie Mac says. The 30-year fixed mortgage rate is now mere basis points away from reaching 7%, Freddie Mac reported Thursday. Freddie’s latest survey showed that the 30-year fixed-rate mortgage averaged 6.94% as of Oct.20, up from 6.92% last week and 3.09% a year ago. The 15-year fixed-rate mortgage posted a 14-basis-point jump to 6.23%, and the five-year Treasury-indexed hybrid adjustable-rate mortgage was up 10 basis points week over week to 5.71%. Sam Khater, chief economist of Freddie Mac, noted that while mortgage rates slowed their upward trajectory this week, “the 30-year fixed-rate mortgage continues to remain just shy of 7% and is adversely impacting the housing market in the form of declining demand.” According to the Mortgage Bankers Association, mortgage application vol

Fed expected to begin taper in November

November 2,2021 | By Erickson Ocasio

Economists say the central bank will scale back program as inflation concerns grow. Federal Reserve policy makers are expected to announce this week that they will start scaling back their massive asset-purchase program amid greater concern over inflation, economists surveyed by Bloomberg said. A majority of the 49 economists in the survey predicted the U.S. central bank will begin the taper in November and wrap it up by mid-2022, curbing the current $120 billion monthly buying pace by reducing Treasuries by $10 billion a month and mortgage-backed securities by $5 billion. They are closely divided on whether interest-rate liftoff will be in 2022 or early 2023, with a slim majority estimating the latter timing while they see rates rising to 1.75% by the end of 2024, a quarter point more than the survey projected in September. The Federal Open Market Committee meets for tw

Interest Rates Are Low, but Loans Are Harder to Get. Here’s Why.

August 4,2020 | By Erickson Ocasio

As public school teachers, Tori Smith and her husband have careers that should survive the coronavirus economy, but their mortgage lender wasn’t taking any chances. It told them that they would have to put down more money to keep the interest rate they wanted, then dialed back what it was willing to lend them. And Ms. Smith said it had checked their employment status several times during the approval process — and again a few days before the couple closed on their home in Zebulon, N.C., last month. Ms. Smith said she had never gotten a straight answer about the new requirements, but she ventured a guess. “I felt like we had to bring more just because of Covid,” she said. The economic crisis caused by the pandemic has driven interest rates to rock-bottom levels, meaning there has hardly been a better time to borrow. But with tens of million of people out of work and coronavirus infections surging in many parts

Federal Reserve makes another big rate hike

Interest rates top 7% – industry reacts

Mortgage rates remain just shy of 7%

Fed expected to begin taper in November

Interest Rates Are Low, but Loans Are Harder to Get. Here’s Why.

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