• Rentals
  • Sales
  • About
  • Videos
  • Contact
  • Payments
  • Log In

Skyrocketing rates lead to sharp decline in mortgage applications

October 23,2023 | By ERICKSON J OCASIO
Blog Image

30-year fixed mortgage rate hits staggering 7.7%, dampening homebuying activities. Mortgage applications plummeted to their lowest level in 28 years after weeks of consecutive increases in mortgage rates. The Mortgage Bankers Association (MBA) reported today that its Market Composite Index – a measure of loan application volume – fell 6.9% in the week ending October 13, marking the lowest level since 1995. This decline is attributed to the surge in the 30-year fixed mortgage rate, which has been on an upward trajectory for six consecutive weeks, reaching 7.7% – a peak not seen since November 2000. MBA's data also revealed a 10% decrease in the refinance index from the previous week and a 12% decline compared to last year. The seasonally adjusted purchase index fell by 6%, while the unadjusted version saw a 5% reduction, representing a 21% year-over-

Continue reading

Long-term mortgage rates show no sign of slowing

October 22,2023 | By ERICKSON J OCASIO
Blog Image

The 30-year fixed-rate mortgage is on the brink of 8%. Even though the Fed paused any rate hike at its last meeting, long-term mortgage rates still continued to approach 8%, according to Freddie Mac. As of October 19, the average 30-year fixed-rate mortgage rose six basis points to 7.63%, while the 15-year loan saw a three-basis-point increase to 6.92%. Freddie Mac chief economist Sam Khater noted the broader implications of the rising rates, saying, "Not only are homebuyers feeling the impact of rising rates, but home builders are as well. Incoming data shows that the construction of new homes rebounded in September, but as rates keep rising, home builders appear to be losing confidence. As a result, we expect construction to trend

Continue reading

Mortgage rates in the US now at highest levels for two decades

September 30,2023 | By ERICKSON J OCASIO
Blog Image

Freddie Mac reveals the latest. Mortgage rates in the US climbed to the highest since 2000, ramping up the pressure on potential buyers. The average for a 30-year, fixed loan rose for a third week, reaching 7.31%, up from 7.19% last week, Freddie Mac said in a statement Thursday. Mortgage rates topping 7% for the past seven weeks are hurting affordability for buyers and weighing on purchases. Contracts to buy previously owned homes slipped 7.1% in August from a month earlier, according to National Association of Realtors. “Unlike the turn of the millennium, house prices today are rising alongside mortgage rates, primarily due to low inventory,” Sam Khater, Freddie Mac’s chief economist, said in the statement. “These headwinds are causing both buyers and sellers to hold out for better circumstances.” Tightening inventory pushed

Continue reading

Washington Trust agrees to settlement over discrimination allegations

September 30,2023 | By ERICKSON J OCASIO
Blog Image

The bank agrees to a $9 million, five-year settlement. Washington Trust has agreed to a settlement with the Department of Justice alleged redlining or discriminating practices against communities of color by not providing them with services, as reported in an article by The Providence Journal. In a complaint filed to the federal District Court, the Rhode Island US Attorney’s Office said that the bank did not provide Black and Hispanic residents with their services in Rhode Island between 2016 and 2021. Allegations of discrimination The complaint outlined that Washington Trust had set the entire state of Rhode Island as its target area and began an expansion by opening of more branches. US Attorney Zachary Cunha argued that when the bank established this goal, its market should have included the majority Bla

Continue reading

US mortgage rates hit 22-year high

September 28,2023 | By ERICKSON J OCASIO
Blog Image

Applications hit once more. US mortgage rates jumped last week to the highest level since 2000, taking a toll on already depressed home-purchase applications. The contract rate on a 30-year fixed mortgage rose 10 basis points to 7.41% in the week ended Sept. 22, according to Mortgage Bankers Association data out Wednesday. As a result, the index of home-purchase applications fell to 144.8, one of the lowest readings in decades. The latest pickup in borrowing costs is making the housing market — already one of the least affordable on record — even worse. Despite elevated financing costs, home prices continue to rise amid the limited supply of homes for sale. Part of the reason for that lean inventory is because many homeowners don’t want to move in the current high-rate environment. Moving would cause them to lose the lower mortgage rat

Continue reading

Mortgage applications decrease amid high rates

September 28,2023 | By ERICKSON J OCASIO
Blog Image

Economist notes mortgage rates are at a 20-year high. ?The Market Composite Index, a measure of mortgage loan application volume, decreased by 1.3% on a seasonally adjusted basis from a week earlier, according to new data from the Mortgage Bankers Association (MBA). The composite index, on an unadjusted basis, decreased 2% compared to a week before. The refinance index decreased by 1% from a prior week. The seasonally adjusted purchase index also went down by 2% from a week earlier. The unadjusted purchase index decreased 2% compared to the previous week. MBA noted all these results emerged amid elevated mortgage rates, which have been described as being at their 20-year high. “Mortgage rates moved to their highest levels in over 20 years as Treasury yields increased late last week,” said Joel Kan, vice president and deputy chief economist at the MBA. “The 3

Continue reading

Better announces major layoffs after public listing

September 26,2023 | By ERICKSON J OCASIO
Blog Image

Elevated interest rates impacting tech-based mortgage lender Just weeks after going public, tech-based mortgage lender Better issued pink slips to employees in a new round of layoffs. An Insider report said the company’s stock debut is a result of a special purpose acquisition company (SPAC) merger with Aurora Acquisition Corp., and it would give the lender access to at least $565 million in capital, which would be used to improve the company as it waits for mortgage demand to pick up. On the first day of trading on August 24, the shares of the newly formed company plummeted 93% from where Aurora had traded the day before. Meanwhile, the shares of Nasdaq-listed Better Home & Finance, excluding Aurora’s stock price, plunged by over 59% from the opening day.

Continue reading