Mortgage Market Update
Here’s a quick Mortgage Market Update from Adam Halem, Senior Mortgage Consultant of OptionOne Lending. He said, “The main thing the markets will be listening for is direction on whether the Fed will hike rates again in December and how many rate hikes next year.”
Let’s discuss the rates first.
We can observe an uptrend with the 30-year fixed rate with 4.97%, it’s highest level since April 2011. Other rates are all up across the board. Jumbo rate with 4.92% growth. FHA’s rate also grew by 4.94% 15-year fixed and 5/1 Arm grew bigger by 4.38% and 4.22% respectively. All information were from MBA.
Meanwhile, mortgage volume increased again last month and applications to purchase a home were up 3% last week and are up 4% year over year. Refinances also rose 3% last week but they are still down 35% from this time last year. Inventory has been moving up a bit which is likely why purchases increased. This just goes to show that even with higher interest rates, demand is there and purchases remain strong. All data were also according to Adam Halem.
New Home Sales which measures signed contracts on new built homes increased 3.5%
Sales are up 12.47% year over year
The Median Home Price is $320,000 which is up 1.9% year over year.
Inventory is growing. There were 318,000 new homes for sale which represents a 6 month supply and is now at the highest level of the year. 6 months is considered balanced.
Also according to MBA “Post-labor day growth continued for both purchase and re-finance applications despite the increase in interest rates.”