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The average 30-year fixed mortgage interest rate is 7.08% today, up 0.04% from seven days ago. The average rate for a 15-year fixed mortgage is 6.54%, which is an increase of 0.08% since last week. For a look at mortgage rate movement, see the chart below.

Because inflation data hasn’t been improving, the Federal Reserve has been pushing off rate cuts. Though mortgage rates could still move down later in the year, housing market predictions change regularly in response to economic data, geopolitical events and more.

Today’s average mortgage rates


Today’s average mortgage rates on May. 27, 2024, compared with one week ago. We use rate data collected by Bankrate as reported by lenders across the US.

Mortgage rates change every day. Experts recommend shopping around to make sure you’re getting the lowest rate. By entering your information below, you can get a custom quote from one of CNET’s partner lenders.

About these rates: Like CNET, Bankrate is owned by Red Ventures. This tool features partner rates from lenders that you can use when comparing multiple mortgage rates.

How can I choose a mortgage term?

Each mortgage has a loan term, or payment schedule. The most common mortgage terms are 15 and 30 years, although 10-, 20- and 40-year mortgages also exist. With a fixed-rate mortgage, the interest rate is set for the duration of the loan, offering stability. With an adjustable-rate mortgage, the interest rate is only fixed for a certain amount of time (commonly five, seven or 10 years), after which the rate adjusts annually based on the market. Fixed-rate mortgages are a better option if you plan to live in a home in the long term, but adjustable-rate mortgages may offer lower interest rates upfront.

30-year fixed-rate mortgages

The 30-year fixed-mortgage rate average is 7.08% today. A 30-year fixed mortgage is the most common loan term. It will often have a higher interest rate than a 15-year mortgage, but you’ll have a lower monthly payment.

15-year fixed-rate mortgages

Today, the average rate for a 15-year, fixed mortgage is 6.54%. Though you’ll have a bigger monthly payment than a 30-year fixed mortgage, a 15-year loan usually comes with a lower interest rate, allowing you to pay less interest in the long run and pay off your mortgage sooner.

5/1 adjustable-rate mortgages

A 5/1 adjustable-rate mortgage has an average rate of 6.61% today. You’ll typically get a lower introductory interest rate with a 5/1 ARM in the first five years of the mortgage. But you could pay more after that period, depending on how the rate adjusts annually. If you plan to sell or refinance your house within five years, an ARM could be a good option.

Are mortgage rates considered high right now?

Over the last few years, high inflation and the Federal Reserve’s aggressive interest rate hikes pushed up mortgage rates from their record lows around the pandemic. Since last summer, the Fed has consistently kept the federal funds rate at 5.25% to 5.5%. Though the central bank doesn’t directly set the rates for mortgages, a high federal funds rate makes borrowing more expensive, including for home loans.

Mortgage rates change daily, but average rates have been moving between 6.5% and 7.5% since late last fall. Today’s homebuyers have less room in their budget to afford the cost of a home due to elevated mortgage rates and steep home prices. Limited housing inventory and low wage growth are also contributing to the affordability crisis and keeping mortgage demand down.

Will mortgage rates fall in 2024?

Most housing market experts predict rates will end the year between 6% and 6.5%. Ultimately, a more affordable mortgage market will depend on how quickly the Fed begins cutting interest rates. The central bank could start lowering interest rates in the fall, but it will depend on how the economy fares in the coming months.

Mortgage rates fluctuate for many reasons: supply, demand, inflation, monetary policy, jobs data and market expectations. Homebuyers won’t see lower rates overnight, and it’s unlikely there will ever be a return to the 2-3% mortgage rates we saw between 2000 and early 2022.

“We are expecting mortgage rates to fall to around 6.5% by the end of this year, but there’s still a lot of volatility I think we might see,” said Daryl Fairweather, chief economist at Redfin.

Every month brings a new set of inflation and labor data that can influence the direction of mortgage rates, said Odeta Kushi, deputy chief economist at First American Financial Corporation. “Ongoing inflation deceleration, a slowing economy and even geopolitical uncertainty can contribute to lower mortgage rates. On the other hand, data that signals upside risk to inflation may result in higher rates,” Kushi said.

Here’s a look at where some major housing authorities expect average mortgage rates to land.

Calculate your monthly mortgage payment

Getting a mortgage should always depend on your financial situation and long-term goals. The most important thing is to make a budget and try to stay within your means. CNET’s mortgage calculator below can help homebuyers prepare for monthly mortgage payments.

What are some tips for finding the best mortgage rates?

Though mortgage rates and home prices are high, the housing market won’t be unaffordable forever. It’s always a good time to save for a down payment and improve your credit score to help you secure a competitive mortgage rate when the time is right.

  1. Save for a bigger down payment: Though a 20% down payment isn’t required, a larger upfront payment means taking out a smaller mortgage, which will help you save in interest.
  2. Boost your credit score: You can qualify for a conventional mortgage with a 620 credit score, but a higher score of at least 740 will get you better rates.
  3. Pay off debt: Experts recommend a debt-to-income ratio of 36% or less to help you qualify for the best rates. Not carrying other debt will put you in a better position to handle your monthly payments.
  4. Research loans and assistance: Government-sponsored loans have more flexible borrowing requirements than conventional loans. Some government-sponsored or private programs can also help with your down payment and closing costs.
  5. Shop around for lenders: Researching and comparing multiple loan offers from different lenders can help you secure the lowest mortgage rate for your situation.

Source: cnet.com

Apache is functioning normally

The Federal Housing Administration is tightening its data breach reporting requirements for mortgage lenders.

Effective immediately, lenders must report any cybersecurity attacks within 12 hours of detection to the Department of Housing and Urban Development, FHA wrote May 23 in a mortgagee letter.

Cybersecurity incidents include those that actually or potentially jeopardize “the confidentiality, integrity, or availability of information,” the FHA wrote. Making all events – big or small – fall into that purview. 

Lenders must report the date and cause of a cyber incident and its impact on personally identifiable information.

Once notified of an incident, HUD will contact the impacted institution “to determine the appropriate mitigation steps based on the nature of the incident.”

These requirements are part of the Department of Housing and Urban Development’s commitment to security and integrity of its systems and technology supporting FHA operations, the housing agency said.

“HUD issued this mortgagee letter to reinforce with program participants the importance of quickly reporting to HUD, addressing, and tracking cyber-security incidents in light of the nationwide increase in incidents in recent years,” a HUD spokesperson wrote in an email Thursday.

The announcement comes during a time of increased data breach activity.

In recent months, numerous megalenders have had their systems hit. In some cases, the attacks have been carried out by way of third-party vendors.

Loandepot, Mr. Cooper, Academy Mortgage and Planet Home Lending are among mortgage shops impacted by such incidents. Title companies have also been hit, including First American and Fidelity National Financial. 

All in all, millions of customers have had their personal identifiable information stolen and some litigation has sprouted because of it. 

Most recently, Planet Home Lending moved to settle a consolidated class action pegged against it for allegedly failing to protect the PII of customers during a hack in late 2023.

On May 13, a Connecticut federal judge issued a preliminary order approving a $2.42 million settlement between the plaintiffs and PHL. Over 200,000 Planet Home Lending customers had their data and PII leaked to the web.

Fannie Mae and Freddie Mac also have breach reporting requirements, though they are far less stringent for now. Fannie requires lenders to report within 72 hours if a potential hack has taken place, while Freddie requires lenders to report within 48 hours of detection.

Source: nationalmortgagenews.com

Apache is functioning normally

It’s day 6 of the increasingly famous 11-day weekend (1 normal weekend plus the 3 day Memorial Day weekend and the 5 days in between without any big ticket market movers on the calendar).  There was no way to know for sure that this week would be as flat and uninspired as it has been, but here on Thursday morning, we have yet to see any other indication.  This morning’s Jobless Claims data was one of the only scheduled reports this week.  It typically doesn’t move the needle and today is no exception.  Yields were mostly flat overnight with a bit of volatility in sympathy to European bond market volatility, but the domestic session is underway at almost perfectly unchanged levels.

Source: mortgagenewsdaily.com

Apache is functioning normally

The average rate on a 30-year mortgage dipped this week to just below 7% for the first time since mid-April, a modest boost for home shoppers navigating a housing market dampened by rising prices and relatively few available properties.

The rate fell to 6.94% from 7.02% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.57%.

This is the third straight weekly decline in the average rate.

The recent pullbacks follow a five-week string of increases that pushed the average rate to its highest level since Nov. 30.


The rate on a 30-year mortgage fell to 6.94% from 7.02% last week, mortgage buyer Freddie Mac said. A year ago, the rate averaged 6.57%. AP

Higher mortgage rates can add hundreds of dollars a month in costs for borrowers, limiting homebuyers’ purchasing options.

Federal Reserve Chair Jerome Powell said earlier this month that the central bank remains closer to cutting its main interest rate than hiking it.

Still, the Fed has maintained it doesn’t plan to cut interest rates until it has greater confidence that price increases are slowing sustainably to its 2% target.

Until then, mortgage rates are unlikely to ease significantly, economists say.

After climbing to a 23-year high of 7.79% in October, the average rate on a 30-year mortgage stayed below 7% this year until last month.

Even with the recent declines, the rate remains well above where it was just two years ago at 5.25%.


Jerome Powell’s Fed has maintained it doesn’t plan to cut interest rates until it has greater confidence that price increases are slowing sustainably to its 2% target.
AP

Last month’s rise in rates were an unwelcome development for prospective homebuyers in the midst of what’s traditionally the busiest time of the year for home sales.

On average, more than one-third of all homes sold in a given year are purchased between March and June.

Sales of previously occupied US homes fell in March and April as home shoppers contended with rising mortgage rates and prices.

This month’s pullback in mortgage rates has spurred a pickup in home loan applications, which rose last week by 1.9% from a week earlier, according to the Mortgage Bankers Association.

“May has been a better month for the mortgage market, with the last three weeks showing declining mortgage rates and increasing applications,” said MBA CEO Bob Broeksmit. “Rates below 7% are good news for prospective buyers, and MBA expects them to continue to inch lower this summer.”

Source: nypost.com

Apache is functioning normally

Independent mortgage bankers continued to lose money on every loan origination, making that eight consecutive quarters of losses, and confirming what was preliminarily disclosed earlier this week by the Mortgage Bankers Association.

But some of the damage to origination loan profitability is self-inflicted, a report from Intercontinental Exchange found. 

The first quarter net loss of $645 per loan is the smallest since the second quarter of 2023 and the number improved on the fourth quarter loss of $2,109 and the year ago loss of $1,972, the MBA’s Quarterly Mortgage Bankers Performance Report noted.

“In basis points, production revenue rose above the historical average and production costs declined,” Marina Walsh, vice president of industry analysis, said in a press release. “This led to an improvement in the production bottom line by almost 50 basis points during the quarter.”

The average pretax production loss was 25 basis points in the first quarter, compared with a loss of 73 basis points in the fourth quarter, and a loss of 68 basis points one year ago.

Production revenue, including fee income, secondary marketing income and warehouse spread, was 371 basis points, up from 334 basis points one quarter ago and the historical average since the MBA has performed this study of 347 basis points.

In dollar terms, production revenues increased to $11,947 per loan in the first quarter, up from $10,376 in the fourth quarter.

Total loan production expenses in the first quarter averaged 395 basis points versus 407 basis points in the fourth quarter. However, per-loan costs increased to $12,593 per loan from $12,485. Costs remain much higher than the historical average of $7,472 per loan.

ICE cited earlier editions of the MBA report in its whitepaper. Making mistakes in the TILA-RESPA Integrated Disclosures results in hits to a lender’s bottom line, as they are subject to certain error tolerances between the initial loan estimate form and the closing disclosure

The data was crunched by ICE Fee Solutions, whose parent company now owns the most used loan origination system, Encompass; the top servicing system of record, MSP; and the MERS loan registry.

A review of nearly 90,000 mortgages found lenders paid an average of $1,225 per loan on fee cures and related expenses.

“Every basis point counts,” said Tim Bowler, president of ICE Mortgage Technology, in a press release. “Unfortunately, fee cures and the costs associated with them — entirely preventable expenses — are contributing to the already ballooning cost to originate a mortgage.”

The whitepaper noted that 28% of closing disclosures had significant revisions from the loan estimate according to a 2020 Consumer Financial Protection Bureau assessment report of TRID.

A CFPB loan officer survey also cited in the paper found that 31% of respondents said the CD was an almost always accurate representation of final loan terms and costs, while 47% said that was the case often or sometimes and 16% commented it was rarely or never.

The study found that fee cures occurred on 35% of mortgages on average. That direct cost of making reimbursements was an average of $128.50 per loan; the total cost for tolerance violations was over $4 million. But lenders also had to absorb the costs of the labor associated with a fee cure review and document processing. That amounted to an average of $1,096.50 per loan.

Some fees have zero tolerance for variation between the loan estimate and closing disclosure, others allow for a 10% change from the LE.

For the zero tolerance category, the fee type which was the costliest for an error was for the payment of discount points; this was 47.5% of fee cure expenditures. The No. 2 type, the credit report fee, was 15.6%.

The MBA also found that servicing net financial income for the first quarter was $82 per loan, up from a loss of $24 in the fourth quarter and income of $54 one year earlier.

Servicing operating income, which excludes mortgage servicing rights amortization as well as gains and loss in the valuation of servicing rights net of any hedging results, and any income or losses on the bulk sale of MSRs, was $93 per loan in the period, down from $108 three months prior and $102 for the first quarter of 2023.

Source: nationalmortgagenews.com

Apache is functioning normally

The 11-Day Weekend is Now Official

By:
Matthew Graham

Fri, May 24 2024, 2:57 PM

The 11-Day Weekend is Now Official

If there was one objective hurdle to clear in order to consider the present week completely uneventful in terms of big picture rate momentum, it would have been that the 10yr Treasury yield hold inside the 4.34 – 4.50 range.  Thanks to today’s friendly revision in consumer inflation expectations, the hurdle was cleared without a millimeter to spare.  With that, these business days plus the adjacent weekend days add up to 11 uneventful days for the bond market. Next week isn’t much better in terms of big ticket data, but Friday’s PCE price index is a notable exception.  

    • Durable Goods
      • 0.7 vs -0.8 f’cast
      • last month revised to 0.8 from 2.6
    • Consumer Sentiment, final
      • 69.1 vs 67.5 f’cast
    • 1yr inflation expectations
      • 3.3 vs 3.5 f’cast
    • 5yr inflation expectations
      • 3.0 vs 3.1 f’cast

10:07 AM

Buyers held out until the safe read on consumer inflation expectations.  Now turning green with 10yr down 0.2bps at 4.474 and MBS unchanged (up an eighth from lows).

12:47 PM

Steady at modestly stronger levels.  MBS up 2 ticks (.06) and 10yr down .6bps at 4.47

02:50 PM

Early close has come and gone without any major changes to mid-day prices seen in the last update.

 Download our mobile app to get alerts for MBS Commentary and streaming MBS and Treasury prices.

Source: mortgagenewsdaily.com

Apache is functioning normally

Continuing their downward trend of recent weeks, rates for the 30-year fixed mortgage fell back under 7% for the first time since April 11, Freddie Mac said.

The 30-year FRM declined 8 basis points, to 6.94% on May 23 from the prior week’s 7.02%, the Freddie Mac Primary Mortgage Market Survey reported. For the same week in 2023, the rate averaged 6.57%.

Meanwhile the 15-year FRM had a smaller drop of 4 basis points to 6.24% from 6.28%, but up from 5.97% one year ago.

This creates an “unexpected windfall” for homebuyers, said Freddie Mac Chief Economist Sam Khater.

“Although this week’s data on previously owned home sales showed a decline, total inventory of both new and existing homes is up,” Khater said in a press release. “Greater supply coupled with the recent downward trend in rates is an encouraging sign for the housing market.”

The drop in rates took place even though the 10-year Treasury went through some gyrations in the past seven days. It closed at 4.38% on May 16, with a low of 4.32% that day.

The next day’s intraday low was 4.39%, while the 10-year yield hit a high of 4.46% on Wednesday and in early trading on Thursday reached 4.5%, and by 11:30 a.m. was at 4.49%.

Other indicators, which use different methodologies (Freddie Mac uses rates on Loan Product Advisor submissions), were higher on the week-to-week comparison.

Lender Price product and pricing engine data on the National Mortgage News website at 11:30 a.m. on Thursday had the 30-year FRM at 7.03%, up from 6.856% seven days prior.

The Zillow website had the 30-year fixed at 6.71% at that time, up 4 basis points from Wednesday’s 6.67% and 7 basis points from the previous week’s average of 6.64%.

The minutes from the last Federal Open Market Committee meeting caused bond investors to reassess their forecasts for inflation and the economic outlook,” said Orphe Divounguy, senior economist at Zillow Home Loans, in a Wednesday night statement.

While the April data showed inflation is once again moving in the right direction, “there are still questions among Fed committee members about whether policy is restrictive enough to bring inflation down to the 2% target,” Divounguy said. “Although a moderation in consumer spending is expected to pull inflation lower, progress on inflation has been modest at best in the first quarter.”

Divounguy pointed to the prevailing view that the FOMC will make one or two rate cuts this year. When it comes to mortgages, the Personal Consumption Expenditures price index report next week should likely cause some repricing activity.

Source: nationalmortgagenews.com

Apache is functioning normally

Hedging, TPO, ROV, Fee Collection Tools; STRATMOR on Bank Strengths; Training and Webinars

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Hedging, TPO, ROV, Fee Collection Tools; STRATMOR on Bank Strengths; Training and Webinars

By:
Rob Chrisman

Thu, May 23 2024, 11:45 AM

Some people say, “You’re crazy to stay in residential lending in this environment, and it’s not going to improve dramatically in the near future.” No, this is crazy. Owners of vendors and lenders who are barely eking by, or losing money quarter after quarter, aside, there is plenty of sanity remaining. Given what I heard in Manhattan, we can expect many, many offerings of 2nd mortgage programs and HELOCs from investors and therefore the lenders that sell to them, given the amount of equity that’s out there. LOs know that these are homes, not houses, and many owners focus on their life there at that address and need to be shown how a 2nd may make sense. But if your client wants to treat house prices like shares of stock, here’s a zip code map showing price appreciation in this part of the business cycle. Speaking of business cycles, Bill Dallas has been through a few, and joins The Big Picture today at 3PM ET to discuss Rohit Chopra firing a missile across the bow of the credit reporting agencies, the evolving post-NAR settlement landscape, and more. (Found here, this week’s podcasts are Sponsored by Truv. Truv lets applicants verify income, employment, assets, insurance, and switch direct deposits. Unlock the power of open finance, with Truv. Today’s has an interview with Experian’s Ken Tromer and Jamie Norris on helping mortgage companies optimize their business expenses and protect prospects using Experian Verify and Power Profile Plus.)

Lender and Broker Services and Products

Operations Masterclass for lenders looking to drive change in their organizations: Do you want to know how the pros, category 1 operations leaders, implement new technologies? This is your event. From Vision to Reality: Driving Large Scale Transformation with Change Experts. Join Liz Short (CEO of Short Solutions and former SVP at Fairway Independent Mortgage Corporation), Misti Snow (Founder of GRITT and former SVP at loanDepot), and Kristin Broadley (Founder of Excelerate Advisors and former VP at Rocket Mortgage) along with Richard Grieser (VP of Marketing at Truv), as they share a framework with tangible paybooks for success, and apply it to Truv’s cutting edge income and employment verifications platform as a real world example. May 29 at 1pm CT. All attendees will receive an exclusive Change Management Playbook to download after the live webinar! Start driving transformational change today! Register here.

“Are you a lender seeking to help customers realize the dream of homeownership and grow your business? Partner with Ameris Bank for your warehouse lending needs, and we’ll ensure you receive the resources, support, and service you need to close loans and grow your business. In fact, our warehouse customers have one-on-one access to specialty treasury management professionals who offer tailored financial solutions for their business. With Warehouse lines of credit ranging from $1.5 million to $150 million, we offer competitive interest rates, low fees and industry-leading technology to our customers. Contact Jill Gainer or Jessica Lapresi to learn why their clients trust Ameris Bank for their Warehouse lending needs and how we can help your business grow in today’s market.”

“Approximately 200 originators have turned to MAXEX for better liquidity on Agency-eligible NOO, second homes and high balance loans. Avoid costly LLPAs. Trade it mandatory bulk or best-efforts flow. Get competitive bids from FIVE leading non-agency buyers with ONE contract and ONE set of guidelines. Get access to another premium buyer this summer, available exclusively through MAXEX. Visit us at maxex.com/conforming to learn more.”

Walking around Times Square this week for the MBA Secondary conference, one thing was very clear: the guys selling knock-off purses have a better payment collection system than most lenders. Fortunately, Fee Chaser lets lenders collect appraisals, credit reports, or any other fee with a click of a button. Borrower gets a text message, pays on their device, and the LOS is updated immediately. Give your borrowers the 5th Avenue treatment with Fee Chaser.

On May 1, 2024, Fannie Mae and Freddie Mac, along with the FHFA, announced new requirements for reconsiderations of value (ROVs). The requirements help educate the borrower on the right to appeal an appraisal and how to do it. They also help create uniform industry-wide expectations for how to manage ROVs. Watch this complimentary webinar hosted by ICE to hear directly from Fannie Mae and Freddie Mac about their implementation of these new ROV requirements, followed by a demo of ICE’s ValidateROV, a new solution that can help lenders address these changes. *Check with your compliance or legal department for information on complying with applicable law.

Correspondent and Broker Products

“Elevate your non-QM investments with Planet’s expert asset management and commercial servicing offerings. If you’re an investor in non-QM, Residential Transition Loans (RTL/fix-and-flip), DSCR, multifamily, or Single-Family Rentals (SFR), seize the opportunity to meet with us at IMN’s 5th Annual Non-QM Forum June 13-14 in Dana Point, CA. Discover how Planet’s specialized platform and veteran advisors can help you maximize returns by reducing risk, providing real-time insights, and maximizing recovery, all at competitive pricing. Don’t miss out on this chance to gain a strategic edge. Contact Jim DePalma, Samantha Manfer, or Caitlin Moynihan or (585) 512-1030. Let’s connect in Dana Point and elevate your non-QM portfolios.”

“Newrez Correspondent is thrilled to announce that Co-Issue has been added to our suite of delivery methods. If you are interested in Newrez’s Co-Issue program, please contact your Regional Sales Manager. In addition to Co-Issue, we have several other delivery methods and executions that will help you succeed in today’s market. We have also added Delegated Non-QM and Closed-end Home Equity products to enhance your product offering. Not approved? Sign up today! A big thank you to all of our clients, prospects and industry partners for spending your valuable time with our team at the National Secondary in NY. You can meet Tom Van Auken, Alex Weems and Chris Nobile at the upcoming 40th Regional Conferences of the MBAs in Atlantic City, NJ, June 4-7 at the Hard Rock Hotel and Casino to discuss all that Newrez has to offer.”

STRATMOR on Banks Playing to Their Strengths

According to STRATMOR, there are several strategies banks and credit unions can work on right now that don’t directly relate to pricing discipline, cost cutting or operational efficiency, but that can move the dial in terms of gaining market share and improving profitability. Most revolve around improved execution of critical business development activities, rather than on new investments in technology or systems. In STRATMOR’s May InFocus article, “All Hands on Deck: Action Ideas for Banks Navigating This Tough Mortgage Market,” Principal Tom Finnegan outlines a roadmap for banks to leverage their strengths and regain their competitive edge. He offers recommendations for uncovering new leads and shares strategies for creating an improved operating model that will pay dividends both today and in future, more robust volume periods. To learn more about strategies for banks and credit unions, check out STRATMOR’s May Insights Report.

Training, Events, and Conferences

A good place for longer term conference planning is to start is here, and click on “Conference List” for in-person events in the future.

Today at 3PM ET, Rich Swerbinsky is interviewing industry vet Bill Dallas on The Big Picture.

Join MBA as they delve into the fundamentals and complexities of mortgage accounting. Anyone who desires to increase their knowledge of mortgage loan accounting will benefit from this session that is designed for business owners, executive management, accountants, and non-CPA accounting managers. Complete the full series, and you’ll have the information necessary to master mortgage accounting. Mortgage Accounting Webinar Series: Part IV: Hedge Accounting and GAAP Reporting today from 2:00 PM-3:30 PM.

Join Lisa Green from Atlantic Bay as she hosts Katherine Campbell Chief Marketing Officer from Shape Software for a session on “Adapting to AI.” May 23 at 11:00 EST. Discover how to embrace AI’s capabilities instead of viewing it as competition. Learn how to leverage AI to support sales, improve customer service, and streamline operational tasks. Explore the use of tools like CRMs and social media to boost lead generation.

Tomorrow we’ll see an episode of The Mortgage Collaborative’s Rundown covering current events in the mortgage market for 30 minutes starting at noon PT, 3PM ET, in “The Rundown”. Tomorrow’s co-host is Mike Pulver, the incoming NY MBA President and the SVP of Mortgage for GRB Bank.

Webinar: Surprise: First-time home buyers are on the rise. Here’s how to earn their business. Interest rates and housing inventory haven’t been hospitable for first-time buyers. Despite challenges, this segment made a notable jump in Q1 2024. What drove first-time buyers onto the property ladder, and how can lenders win their business? In this webinar, presented by Maxwell on May 29 at 1 p.m. CT, we’ll dig into Maxwell’s exclusive data to better understand today’s first-time buyers and explore how to cater to this valuable segment. Click here to save your seat (and if you can’t make the live event, you can still register for the on-demand recording!).

There’s the 2024 NRMLA Eastern Regional Meeting May 29th, 9:30 am – 5:30 pm. A representative from the CFPB’s Mortgage Markets division will address the 2024 Eastern Regional Meeting in Washington, DC on May 29 to discuss marketplace issues and trends that the CFPB is closely monitoring, and other initiatives related to reverse mortgages. In addition to the CFPB, you’ll hear from FHA, Ginnie Mae, Urban Institute, NRMLA’s legislative team, and other subject matter experts.

Looking for more in-depth commentary on weekly mortgage news? Register here for “Mortgage Matters: The Weekly Roundup” presented by Lenders One. Every Wednesday at 2:00 PM EST/11:00 AM PT join Robbie Chrisman and Justin Demola for a dive into a range of mortgage-related topics, including market trends, interest rate fluctuations, innovative mortgage products, and industry advancements.

Operations Masterclass for lenders looking to drive change in their organizations! Join Liz Short (CEO of Short Solutions and former SVP at Fairway Independent Mortgage Corporation), Misti Snow (Founder of GRITT and former SVP at loanDepot), and Kristin Broadley (Founder of Excelerate Advisors and former VP at Rocket Mortgage) along with Richard Grieser (VP of Marketing at Truv), as they share a framework with tangible paybooks for success, and apply it to Truv’s cutting edge income and employment verifications platform as a real world example. May 29 at 1pm CT. Register here.

Webinar: Surprise: First-time home buyers are on the rise. Here’s how to earn their business. In this webinar, presented by Maxwell on May 29 at 1 p.m. CT, we’ll dig into Maxwell’s exclusive data to better understand today’s first-time buyers and explore how to cater to this valuable segment. Click here to save your seat (and if you can’t make the live event, you can still register for the on-demand recording!).

Register for American Banker’s webinar on Thursday, May 30, 2:00 p.m. ET / 11:00 a.m. PT. Executives from Plaid and American Bankers Association will discuss the impact open banking could have on the digital financial ecosystem, challenges and opportunities for small and medium sized financial institutions, and what they can be doing now to prepare.

Thursday the 30th will be another episode of The Big Picture at 3PM ET, Rich Swerbinsky is interviewing industry vet Sue Woodard from The STRATMOR Group.

Friday the 31st will see an episode of The Mortgage Collaborative’s Rundown with Melissa Langdale and me covering current events in the mortgage market for 30 minutes starting at noon PT, 3PM ET, in “The Rundown”.

Capital Markets

“The base rate generator allows you to be more efficient on your lock desk, particularly with hedgeable production. You can auto-lock anything that’s priced to that hedgeable product that you’re powering with your backend execution.” In this latest video, MCT’s CAO, Chris Anderson, describes how the Base Rate Generator allows mortgage lenders to directly inform their front-end rate sheet pricing with their back-end capital markets executions. By combining live agency API connections, co-issue executions, aggregator pricing, and custom TBA indications, the MCT Base Rate Generator allows mortgage lenders to improve margin management and competitive performance. Originators interested in learning more about the industry-first features included in Base Rate Generator should register for the upcoming webinar on June 4th.

The Minutes from the May FOMC meeting released yesterday showed that policymakers are still expecting inflation to return to target, but at a slower pace than previously thought. On aggregate, the minutes were deemed hawkish after ‘various’ Fed officials mentioned the willingness to tighten policy further should risks to the outlook materialize in causing such action. However, Fed Chairman Powell said last week that he does not anticipate that a rate hike will be the next policy move.

No surprise here, but higher mortgage rates are pouring cold water on the resale market. Existing home sales dipped for the second consecutive month in April, down both 1.9 percent month-over-month and year-over-year to 4.14 million, corresponding with an increase in the 30-year fixed rate over the months prior. The median existing-home sales price grew 5.7 percent from a year ago to a new April-record $407,600, the tenth consecutive month of year-over-year price gains. The inventory of unsold existing homes climbed 9 percent from one month ago to 1.21 million at the end of April, or the equivalent of 3.5 months’ supply at the current monthly sales pace. Sales activity was much stronger amongst homes priced $1 million or more, with inventory up 34 percent year-over-year and sales up 40 percent year-over-year. This gives some validity to the theory that pent-up demand will be unleashed when more inventory for lower-priced homes becomes available.

The Chicago Fed National Activity Index for April and weekly jobless claims (215k, about as expected… slight drop in continuing claims to 1.794 million) kicked off today’s calendar. Later today brings S&P Global flash PMIs, new home sales for April, KC Fed manufacturing for May, Treasury announcing month-end supply (consisting of 2-year, 5-year and 7-year notes, a Treasury auction or $16 billion reopened 10-year TIPS, Freddie Mac’s Primary Mortgage Market Survey, and remarks from Atlanta Fed President Bostic. We begin Thursday with Agency MBS prices hardly different than Wednesday’s close, the 10-year yielding 4.41 after closing yesterday at 4.43 percent, and the 2-year at 4.86.

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Source: mortgagenewsdaily.com

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Mortgage rates stayed relatively low this week, with 30-year mortgage rates averaging around 6.65%, according to Zillow data. Rates have generally held steady after dropping earlier this month, but incoming economic data could cause some fluctuations next week.

Recently, mortgage rates have been extremely sensitive to what’s happening in the broader economy. Next week, the Bureau of Economic Analysis will release April’s personal consumption expenditures data. The PCE price index is the Federal Reserve’s preferred measure of inflation.

As inflation slows and the Fed is able to start lowering the federal funds rate, mortgage rates are expected to fall. According to the Federal Reserve Bank of Cleveland’s Inflation Nowcast, the PCE price index may have slowed in April on both a monthly and yearly basis. This would be good news for mortgage rates.

But even if next week’s inflation report shows signs of cooling, mortgage rates may only inch down slightly. We’ll need several months of data showing that inflation is decelerating before rates can drop substantially.

Mortgage Rates Today

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Mortgage Refinance Rates Today

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Mortgage Calculator

Use our free mortgage calculator to see how today’s mortgage rates will affect your monthly and long-term payments.

Mortgage Calculator

$1,161
Your estimated monthly payment

Total paid$418,177
Principal paid$275,520
Interest paid$42,657
  • Paying a 25% higher down payment would save you $8,916.08 on interest charges
  • Lowering the interest rate by 1% would save you $51,562.03
  • Paying an additional $500 each month would reduce the loan length by 146 months

By plugging in different term lengths and interest rates, you’ll see how your monthly payment could change.

30-Year Fixed Mortgage Rates

The average 30-year fixed mortgage rate was 6.94% last week, according to Freddie Mac. This is eight basis points lower than it was the week before.

The 30-year fixed-rate mortgage is the most common type of home loan. With this type of mortgage, you’ll pay back what you borrowed over 30 years, and your interest rate won’t change for the life of the loan.

The lengthy 30-year term allows you to spread out your payments over a long period of time, meaning you can keep your monthly payments lower and more manageable. The trade-off is that you’ll have a higher rate than you would with shorter terms or adjustable rates. 

15-Year Fixed Mortgage Rates

Average 15-year mortgage rates were 6.24% last week, according to Freddie Mac data, which is a four-basis-point decrease from the previous week.

If you want the predictability that comes with a fixed rate but are looking to spend less on interest over the life of your loan, a 15-year fixed-rate mortgage might be a good fit for you. Because these terms are shorter and have lower rates than 30-year fixed-rate mortgages, you could potentially save tens of thousands of dollars in interest. However, you’ll have a higher monthly payment than you would with a longer term.

Are Mortgage Rates Going Down?

Mortgage rates increased throughout most of 2023. But mortgage rates are expected to trend down in the coming months and years.

In the last 12 months, the Consumer Price Index rose by 3.4%. As inflation comes down and the Federal Reserve is able to start cutting the federal funds rate, mortgage rates should fall further as well.

For homeowners looking to leverage their home’s value to cover a big purchase — such as a home renovation — a home equity line of credit (HELOC) may be a good option while we wait for mortgage rates to ease. Check out some of our best HELOC lenders to start your search for the right loan for you.

A HELOC is a line of credit that lets you borrow against the equity in your home. It works similarly to a credit card in that you borrow what you need rather than getting the full amount you’re borrowing in a lump sum. It also lets you tap into the money you have in your home without replacing your entire mortgage, like you’d do with a cash-out refinance.

Current HELOC rates are relatively low compared to other loan options, including credit cards and personal loans. 

How Do Fed Rate Hikes Affect Mortgages?

The Fed aggressively raised the federal funds rate in 2022 and 2023 to slow economic growth and get inflation under control. As a result, mortgage rates spiked.

Mortgage rates aren’t directly impacted by changes to the federal funds rate, but they often trend up or down ahead of Fed policy moves. This is because mortgage rates change based on investor demand for mortgage-backed securities, and this demand is often impacted by how investors expect Fed hikes to affect the broader economy. 

Now that the Fed has paused hiking rates, mortgage rates have come down a bit. Once the Fed starts cutting rates, which is likely to happen this year, mortgage rates should fall even further.

Molly Grace

Mortgage Reporter

Source: businessinsider.com