The Consumer Financial Protection Bureau (CFPB) this week released its 2023 Consumer Response Annual Report, offering an overview of consumer complaints in a variety of industries overseen by the bureau.
While much of the report suggests “a continued increase in credit or consumer reporting complaints, with more than one million of these complaints being sent to the three nationwide consumer reporting companies,” the mortgage industry demonstrates general reactivity to the feedback, according to the report.
The CFPB received about 27,900 mortgage-related complaints in 2023 and sent 23,300 (84%) of them to companies for review and response. It referred another 10% to other regulatory agencies and found 6% to not require action. As of March 1, 2024, less than 0.1% of these complaints were pending with the consumer and less than 0.1% were pending with the bureau.
The response rate by mortgage companies to consumer complaints stands at 99%, according to the bureau, and relevant companies “closed 92% of complaints with an explanation, 2% with monetary relief, and 3% with non-monetary relief,” the report stated. Mortgage companies provided an administrative response for 2% of complaints.
The majority of consumer complaints in the mortgage arena (13,100, or 58%) were focused on conventional home loans, followed by Federal Housing Administration (FHA) loans (19%), U.S. Department of Veterans Affairs (VA) loans (9%) and home equity lines of credit, or HELOCs (6%).
Further down on the list were “other types of mortgages” (5%), reverse mortgages (2%), and negligible numbers of U.S. Department of Agriculture (USDA) loans and manufactured home loans (less than 1%).
More than 11,400 complaints dealt with “trouble during the payment process,” while more than 6,000 had to with consumers struggling to make mortgage payments.
Other common complaints included applying for a new mortgage or refinancing an existing one, closing on a mortgage, or a problem with a credit report or credit score. The company response rates in these instances was at or above 90%.
Mortgage complaints that were resolved with an explanation, however, decreased from the level observed in last year’s report, the bureau reported. HELOC-related complaints also increased by 21% compared to the monthly average observed over the prior two years.
Other product types also recorded increases in consumer complaints.
“The monthly average for [VA] mortgage complaints increased 11% compared to the monthly average for the prior two years,” the report explained. “The visible spikes in complaint volume in early 2023 appear to be related to an enforcement action announced by the CFPB against Wells Fargo.”
That enforcement action was announced in December 2022, compelling Wells Fargo to pay $3.7 billion in total to settle multiple consent orders related to auto lending, consumer deposit accounts and mortgage lending. The penalties totaled $1.7 billion and an additional $2 billion was ordered for redress to consumers.
With the next Federal Reserve meeting scheduled for April 30 — and the next inflation report slated for release on April 10 — many will be hopeful for some economic relief next month. If the inflation report shows a reduction in growth, the Fed may elect to keep interest rates unchanged or even reduce them if they feel confident that inflation is finally cooling.
However, if there is another disappointing inflation report, as there was this month, the Fed’s response may differ.
Against this backdrop, borrowers have limited options. Interest rate hikes have caused the cost of borrowing with mortgages, personal loans and other products to surge in recent years. One cost-effective alternative, however, has been home equity loans and home equity lines of credit (HELOCs). But which will be better this April, a month in which the trajectory of inflation and interest rates could change? That’s what we’ll break down below.
Are you considering tapping into your home equity? See what rate you could qualify for here now.
Will a HELOC or home equity loan be better this April?
Here’s what to consider when looking for a better home equity product in the new month.
Why a HELOC may be better this April
A HELOC operates like a revolving line of credit that allows homeowners to access their existing home equity. Unlike home equity loans, HELOCs come with variable interest rates that can change monthly. While today’s HELOC rates are slightly higher than home equity loan rates, they’re still competitive — and likely to fall if inflation improves and interest rates are reduced.
This could be a major advantage for HELOC users. While a reduction in rates won’t come in April, by securing one during the month users will be in a prime position to see their rate cut either in May or in June, when many experts predict the first rate cut of 2024. Home equity loan borrowers, meanwhile, would need to refinance to secure a lower rate.
Learn more about your HELOC options online today.
Why a home equity loan may be better this April
If your primary goal is to secure the lowest home equity rate possible right now, regardless of where the rate climate is headed, then a home equity loan may be better in April. Home equity loan rates, as of March 27, are 8.59% on average, with 10-year loans at 8.73% and 15-year loans at 8.70% — all three of which are lower than today’s 8.99% HELOC rate.
A home equity loan could also be preferable for you next month if you feel that there’s still work left to do to tame inflation — and that interest rate cuts will be delayed yet again. If this is how you’ve interpreted recent data (and some have), then it could make sense to lock in a home equity loan rate now, before any upward adjustments come later in the year.
The bottom line
The choice between a HELOC and a home equity loan is a personal one with many factors to consider, especially now, with the prospect of interest rate cuts higher than it’s been in years. While it’s important to pick the optimal borrowing product for your needs and goals, either option is better than popular alternatives like credit cards (which hover around 20% right now) and personal loans (which have an average interest rate of 12%). Cash-out refinancing, meanwhile, would change your mortgage terms and likely saddle you with a higher mortgage interest rate in the process. But by understanding the drawbacks of the alternatives — and the rate considerations of HELOCs and home equity loans in the weeks and months ahead — borrowers will be better prepared to make an informed, secure decision.
Matt Richardson
Matt Richardson is the managing editor for the Managing Your Money section for CBSNews.com. He writes and edits content about personal finance ranging from savings to investing to insurance.
Maximalism home décor is the “in” home design trend for 2024 and includes bold colors and unique pieces. By using maximalism for staging, sellers can highlight a home’s features and personality.
CHICAGO – Allie LeFevere describes her maximalist Chicago home as colorful and eclectic. When she and her husband moved into their home four years ago, she didn’t have a specific design in mind.
“I just wanted the house to feel vibrant,” says LeFevere, founder of branding agency Obedient. She wanted “a representation of our lives and the places we’ve explored and the memories we’ve made.”
The philosophy behind maximalism decor is “more is more,” according to Jean Whitehead, a senior lecturer on interior design at Falmouth University in county Cornwall, England. Bold colors, textures and unique pieces define this style, elements of which Vogue magazine says are “in” as design trends for 2024.
Going maximalist in your home can seem daunting and expensive — but it doesn’t have to be, say those who favor a bold aesthetic. Here’s how to achieve a maximalist look on a budget.
Shop at thrift and vintage stores
“One of the more economical ways to explore maximalism is through vintage and antique things that are available at thrift stores and estate sales,” says Daniel Mathis, who runs the Instagram account Not A Minimalist with over 70,000 followers.
Mathis’s home in Oklahoma City showcases his maximalist style, including many pieces purchased second-hand. To get a good bargain, Mathis suggests waiting until the last day of an estate sale when prices are typically reduced.
Alex Ammar, a certified financial planner and owner of Paradox Financial based outside Orlando, Florida, recommends setting a budget and decorating in stages.
“You might have different budgets for different tiers of interior decorating,” Ammar says. Second-hand and discount stores are great for decor and accent pieces, while you may spend more on distinct furniture, like a sofa.
Make it yourself
Maximalism can mean applying your own creativity to a space. Be bold with reinventing old furniture or items you have around the house. When Mathis fell in love with the Southwest design of a rug, he used the fabric to upholster an armchair in his sitting room.
For a simpler project, you can individually frame travel photos or children’s artwork and hang them together to create a gallery wall above a couch or along a hallway.
Finding ways to reimagine pieces already in your home adds a layer of individuality to the decor while saving you money. Look through your home for items that could use a boost, and browse art and home supply stores for ideas and tools you may need to revive them.
Consider meaningful pieces
Including noteworthy pieces in your decor is a way to create a one-of-a-kind space —- and it doesn’t have to be pricey. Keep an eye out for items that stand out to you, and be flexible, which can mean building up a collection over time or making minor alterations to a piece.
Mathis started collecting rare Ozark Roadside Tourist pottery about seven years ago. He currently has 150 pieces of the multi-colored, marbleized pottery.
“That’s maximalism for me,” says Mathis. “It’s about lots of color, lots of patterns … but I tried to do it in a very intentional and curated way.”
He purchased his first vase for $50; now, similar Ozark Roadside Tourist vases can sell for nearly $1,000.
LeFevere says her favorite piece in her home is an antique pie cabinet with mesh screens that she painted pastel green to match her kitchen.
“I’m not cooking any pie in my life,” LeFevere says, but the piece is “just really cool.”
Find your own style
LeFevere and Mathis both highlight the importance of knowing what you like while staying open to designs that surprise you. LeFevere visits sites like Pinterest to find styles or decor she likes and saves the images to a Google doc.
Similarly, Mathis built his personal style by clipping photos from decor magazines. He says the fun in maximalist design is the process of discovery.
By knowing what you like, you’ll be able to assemble pieces to fill your space, whether you find them in a thrift store, create them yourself or invest in a special piece.
Ammar says it’s also important to know yourself when it comes to money and how you manage expenses that arise from redecorating, especially if you’re financing purchases.
“If you’re the kind of person who can handle carrying debt, then it can be a really beneficial way to accelerate your timeline,” he says.
Maximalism is about having a home that reflects you and your life rather than any prescribed blueprint. Fill your space with color and mementos to create an aesthetic that brings you joy every time you walk in.
Copyright 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
Editor’s Note: Parts of this story were auto-populated using data from Curinos, a mortgage research firm that collects data from more than 250 lenders. For more details on how we compile daily mortgage data, check out our methodology here.
Mortgage rates have moved gradually over the past few weeks, with the 30-year fixed-rate mortgage reaching 7.20% APR today, after standing at 7.45% a month ago, according to data from Curinos analyzed by MarketWatch Guides.
Rates moved upward just before last week’s meeting of the Federal Reserve. While the Fed kept interest rates steady, Chairman Jerome Powell indicated in a press conference Wednesday that the board still expected to cut interest rates three times in 2024 despite “seasonal effects” causing a temporary rise in inflation.
Last month’s home prices rose 9.5% month-over-month for February, the largest increase in a year. The median home price increased 5.7% from last year, to $384,500, the National Association of Realtors reported on Thursday.
Here are today’s average mortgage rates:
30-year fixed mortgage rate: 7.20%
15-year fixed mortgage rate: 6.46%
5/6 ARM mortgage rate: 6.99%
Jumbo mortgage rate: 7.10%
Current Mortgage Rates
Product
Rate
Last Week
Change
30-Year Fixed Rate
7.20%
7.19%
+0.01
15-Year Fixed Rate
6.46%
6.48%
-0.02
5/6 ARM
6.99%
6.98%
+0.01
7/6 ARM
7.17%
7.14%
+0.03
10/6 ARM
7.20%
7.22%
-0.02
30-Year Fixed Rate Jumbo
7.10%
7.09%
+0.01
30-Year Fixed Rate FHA
6.93%
6.90%
+0.03
30-Year Fixed Rate VA
6.98%
6.98%
0.00
Disclaimer: The rates above are based on data from Curinos, LLC. All rate data is accurate as of Friday, March 29, 2024. Actual rates may vary.
>> View historical mortgage rate trends
Mortgage Rates for Home Purchase
30-year fixed-rate mortgages are up, +0.01
The average 30-year fixed-mortgage rate is 7.20%. Since the same time last week, the rate is up, changing +0.01 percentage points.
At the current average rate, you’ll pay $678.79 per month in principal and interest for every $100,000 you borrow. You’re paying more compared to last week when the average rate was 7.19%.
15-year fixed-rate mortgages are down, -0.02
The average rate you’ll pay for a 15-year fixed-mortgage is 6.46%, a decrease of-0.02 percentage points compared to last week.
Monthly payments on a 15-year fixed-mortgage at a rate of 6.46% will cost approximately $868.91 per $100,000 borrowed. With the rate of 6.48% last week, you would’ve paid $870.01 per month.
5/6 adjustable-rate mortgages are up, +0.01
The average rate on a 5/6 adjustable rate mortgage is 6.99%, an increase of+0.01 percentage points over the last seven days.
Adjustable-rate mortgages, commonly referred to as ARMs, are mortgages with a fixed interest rate for a set period of time followed by a rate that adjusts on a regular basis. With a 5/6 ARM, the rate is fixed for the first 5 years and then adjusts every six months over the next 25 years.
Monthly payments on a 5/6 ARM at a rate of 6.99% will cost approximately $664.63 per $100,000 borrowed over the first 5 years of the loan.
Jumbo loan interest rates are up, +0.01
The average jumbo mortgage rate today is 7.10%, an increase of+0.01 percentage points over the past week.
Jumbo loans are mortgages that exceed loan limits set by the Federal Housing Finance Agency (FHFA) and funding criteria of Freddie Mac and Fannie Mae. This generally means that the amount of money borrowed is higher than $726,200.
Product
Monthly P&I per $100,000
Last Week
Change
30-Year Fixed Rate
$678.79
$678.11
+$0.68
15-Year Fixed Rate
$868.91
$870.01
-$1.10
5/6 ARM
$664.63
$663.96
+$0.67
7/6 ARM
$676.76
$674.73
+$2.03
10/6 ARM
$678.79
$680.14
-$1.35
30-Year Fixed Rate Jumbo
$672.03
$671.36
+$0.67
30-Year Fixed Rate FHA
$660.61
$658.60
+$2.01
30-Year Fixed Rate VA
$663.96
$663.96
$0.00
Note: Monthly payments on adjustable-rate mortgages are shown for the first five, seven and 10 years of the loan, respectively.
Factors That Affect Your Mortgage Rate
Mortgage rates change frequently based on the economic environment. Inflation, the federal funds rate, housing market conditions and other factors all play into how rates move from week-to-week and month-to-month.
But outside of macroeconomic trends, several other factors specific to the borrower will affect the mortgage interest rate. They include:
Financial situation: Mortgage lenders use past financial decisions of borrowers as a way to evaluate the risk of loaning money.
Loan amount and structure: The amount of money that bank or mortgage lender loans and its structure (including both the term and whether its a fixed-rate or adjustable-rate).
Location: Mortgage rates vary by where you are buying a home. Areas with more lenders, and thus more competition, may have lower rates. Foreclosure laws can also impact a lender’s risk, affecting rates.
Whether borrowers are first-time homebuyers: Oftentimes first-time homebuyer programs will offer new homeowners lower rates.
Lenders: Banks, credit unions and online lenders all may offer slightly different rates depending on their internal determination.
How To Shop for the Best Mortgage Rate
Comparison shopping for a mortgage can be overwhelming, but it’s shown to be worth the effort. Homeowners may be able to save between $600 and $1,200 annually by shopping around for the best rate, researchers found in a recent study by Freddie Mac. That’s why we put together steps on how to shop for the best mortgage rate.
1. Check credit scores and credit reports
A borrower’s credit situation will likely determine the type of mortgage they can pursue, as well as their rate. Conventional loans are typically only offered to borrowers with a credit score of 620 or higher, while FHA loans may be the best option for borrowers with a FICO score between 500 and 619. Additionally, individuals with higher credit scores are more likely to be offered a lower mortgage interest rate.
Mortgage lenders often review scores from the three major credit bureaus: Equifax, Experian and TransUnion. By viewing your scores ahead of lenders considering you for a loan, you can check for errors and even work to improve your score by paying down balances and limiting new credit cards and loans.
2. Know the options
There are four standard mortgage programs: conventional, FHA, VA and USDA. To get the best mortgage rate and increase your odds of approval, it’s important for potential borrowers to do their research and apply for the mortgage program that best fits their financial situation.
The table below describes each program, highlighting minimum credit score and down payment requirements.
Though conventional mortgages are most common, borrowers will also need to consider their repayment plan and term. Rates can be either fixed or adjustable and terms can range from 10 to 30 years, though most homeowners opt for a 15- or 30-year mortgage.
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3. Compare quotes across multiple lenders
Shopping around for a mortgage goes beyond comparing rates online. We recommend reaching out to lenders directly to see the “real” rate as figures listed online may not be representative of a borrower’s particular situation. While most experts recommend getting quotes from three to five lenders, there is no limit on the number of mortgage companies you can apply with. In many cases, lenders will allow borrowers to prequalify for a mortgage and receive a tentative loan offer with no impact to their credit score.
After gathering your loan documents – including proof of income, assets and credit – borrowers may also apply for pre-approval. Pre-approval will let them know where they stand with lenders and may also improve negotiating power with home sellers.
4. Review loan estimates
To fully understand which lender is offering the cheapest loan overall, take a look at the loan estimate provided by each lender. A loan estimate will list not only the mortgage rate, but also a borrower’s annual percentage rate (APR), which includes the interest rate and other lender fees such as closing costs and discount points.
By comparing loan estimates across lenders, borrowers can see the full breakdown of their possible costs. One lender may offer lower interest rates, but higher fees and vice versa. Looking at the loan’s APR can give you a good apples-to-apples comparison between lenders that takes into account both rates and fees.
5. Consider negotiating with lenders on rates
Mortgage lenders want to do business. This means that borrowers may use competing offers as leverage to adjust fees and interest rates. Many lenders may not lower their offered rate by much, but even a few basis points may save borrowers more than they might think in the long run. For instance, the difference between 6.8% and 7.0% on a 30-year, fixed-rate $100,000 mortgage is roughly $5,000 over the life of the loan.
Expert Forecasts for Mortgage Rates
Mortgage rates have cooled significantly over the past several months. After the 30-year fixed-rate mortgage hit 8% last October, it ended 2023 closer to 7%. In fact, the average for Q4 2023 was 7.3%.
Analysts with Fannie Mae and the Mortgage Bankers Association (MBA) both project that rates will fall going into 2024 and throughout next year.
Fannie Mae economists expect rates to drop more quickly, falling below 6% by Q4 2024. Meanwhile, the MBA’s forecast for Q4 2024 is 6.1% and 5.9% for Q1 2025.
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More Mortgage Resources
Methodology
Every weekday, MarketWatch Guides provides readers with the latest rates on 11 different types of mortgages. Data for these daily averages comes from Curinos, LLC, a leading provider of mortgage research that collects data from more than 250 lenders. For more details on how we compile daily mortgage data, check out our comprehensive methodology here. Editor’s Note: Before making significant financial decisions, consider reviewing your options with someone you trust, such as a financial adviser, credit counselor or financial professional, since every person’s situation and needs are different.
US households have felt the pain of higher interest rates over the last two years. Homebuyers taking out a home loan with a 7% interest rate are likely budgeting hundreds more than expected to cover their average monthly mortgage payment.
A recent survey by Realtor.com noted that 22% of potential homebuyers said they’d be more willing to take on a mortgage if rates were to drop below 6%. Most mortgage forecasts don’t expect rates to dip below that number until 2025.
But you don’t have to wait for market rates to drop. Getting a 6% mortgage rate could be possible right now.
What are average mortgage rates now?
Mortgage rates change daily, but as of March, the average weekly rate on a 30-year fixed-rate mortgage has been around 7%, according to Bankrate, CNET’s sister site.
Rates generally climb higher when the economy is strong and drop at the sign of trouble. When the pandemic pushed the economy into uncertainty in 2020, rates plummeted to historic lows and hovered below 4% for the next two years.
Yet high inflation and the Federal Reserve’s aggressive interest rate hikes pushed rates higher, reaching 8% last October.
“What’s keeping rates volatile and higher is an underlying strong economy,” said Nicole Rueth, senior vice president with Movement Mortgage. “We continue to have economic reports and indicators that show consumers are spending and staying confident.”
The good news for homebuyers is that mortgage rates are expected to slowly decline in 2024, though they won’t reach record lows again.
Does 1% make a difference?
Snagging a 6% rate can offer savings on your monthly payment and over the life of the loan. A difference of 1 percentage point may not seem like much, but the savings add up over time.
For instance, let’s say you buy a home for $400,000 and make a down payment of 20% on a 30-year fixed-rate mortgage. The difference between a 7% rate and a 6% rate means a savings of $210 a month, which amounts to $75,746 saved over the life of the loan.
How can I get a 6% rate?
Many factors go into determining mortgage rates. You can’t control the economic factors, but there are ways to prepare your finances to get the best deal and lower your personal rate.
Buy mortgage points
A mortgage point, also known as a mortgage discount point, is an upfront fee you can pay the lender in exchange for a lower interest rate on your home loan. Each point costs 1% of the purchase price of a home and usually knocks the rate down by 0.25%.
On a $400,000 home, you’d pay $4,000 for one discount point. The lender may even allow you to buy four mortgage points to lower the rate from 7% to 6%, though you’d have to shell out $16,000 to get there.
To check whether this strategy is worthwhile, take the total cost of the points, and compare it to the overall monthly savings. “How long is it going to take you to pay it back? Are you going to be in the house that long?” Rueth asked.
In this case, when you pay $16,000 to buy four points and save $210 per month, it would take you more than six years to reach your break-even point.
Improve your credit score
Lenders look at your credit score to decide whether you qualify for a home loan and the interest rate you receive. Generally, a higher credit score shows you’ve managed debt responsibly in the past. A better credit history lowers your risk to a lender, which can help you secure a lower interest rate.
In fact, raising your credit score from the “fair” range to the “very good” range may help lower your rate by around 0.22 percentage points, according to a 2024 Lending Tree survey. In the survey example, that rate difference helped borrowers save $16,677 over the lifetime of a home loan.
Increase your down payment
Your down payment is the amount you can contribute to your home purchase upfront. Each type of home loan comes with a minimum down payment, usually ranging from 0% to 5%, but a higher down payment can help lower your rate. That’s because the lender takes on less risk when you contribute more toward the loan.
Because a down payment lowers your rate and contributes to your home equity, some home loan experts recommend making a larger down payment, around 20%, instead of buying mortgage points. That’s because if you sell the home or refinance before reaching your break-even point, you lose money. But the amount you spent for your down payment becomes part of your equity.
Take out an adjustable-rate mortgage
An adjustable-rate mortgage, or ARM, is a home loan with a fixed rate for a set introductory period, such as five years. Once that period ends, the interest rate can go up or down in regular intervals for the remaining term.
The big appeal of ARMs is that the introductory interest rate is often lower than the rate on traditional mortgages. In early March, the average 5/1 ARM rate was 6.61% compared to 6.98% for 30-year fixed-rate mortgages.
Negotiate your rate
When you’re applying for mortgage loans, you don’t have to go with the company that did your preapproval. In fact, research shows that getting rate quotes from multiple lenders and comparing offers can result in significant savings. If you want to use this strategy, start by submitting a mortgage application with lenders that fit your criteria. Once you have a few loan estimates in hand, use the best one to negotiate with the lender you want to work with.
The loan officer may lower your rate, help you save on closing costs or offer other incentives to get you onboard. In early 2022, one-third of homebuyers negotiated their mortgage rates and many were able to get a better deal, according to research from Fannie Mae.
Get a shorter loan term
Nearly 90% of homebuyers choose a 30-year fixed mortgage term because it offers the most flexibility and monthly payment affordability. Payments are lower because they’re stretched over a longer timeline, but you can always put more toward the principal here and there. But when you take out a longer-term home loan, “you’re holding up the lender’s money, and there’s an opportunity cost for the funds to be invested elsewhere,” Rueth said.
Shorter loan terms (10-year and 15-year mortgages) and ARMs have lower interest rates, giving you the option of reducing your rate now.
Choosing a shorter repayment term could help you save money since you’ll be paying less in interest over the long term. But don’t make the homebuying mistake of choosing a shorter loan term just for the lower rate. Because you’ll have less time to pay back the money you borrow, shorter loan terms break down to higher monthly payments, and you’ll need to make sure those fit within your budget.
Is a 6% mortgage rate even that good?
In short, yes — but it’s all relative.
“In today’s market, 6% is a great rate compared to the historic average of a little over 7%,” Rueth said. “However, 6% no longer looks good because homeowners were spoiled by 2.75% mortgage rates a few years ago.”
Homeowners are also feeling the burden of steep home prices, making those high rates hurt even more.
But you can save money on your mortgage by taking some (or all) of these steps. Improving your credit score, increasing your down payment, buying points and negotiating your rate may help bring your rate from 7% down to 6%, or even lower.
Now that we are right in the middle of the spring buying season, my inventory model is simple: with higher mortgage rates, just like last year, we should be able to grow weekly active inventory between 11,000 – 17,000 on some weeks. Unfortunately, I batted a whopping zero last year since inventory growth never hit that level for even one week — even when mortgage rates hit 8%. This model was based on rates over 7.25%, which is my peak rate forecast.
Weekly inventory change (March 22-29): Inventory rose from 512,759 to 517,355
The same week last year (March 23-30): Inventory fell from 413,883 to 410,734
The all-time inventory bottom was in 2022 at 240,194
The inventory peak for 2023 was 569,898
For some context, active listings for this week in 2015 were 1,012,704
New listings data
While I am thrilled that new listings data is growing year over year, something I have been anticipating for some time, the growth in 2024 has been disappointing because I had expected a bit more by now. This was my big talking point on CNBC earlier in the year. Still, new listing data is a positive story. Here are the number of new listings for last week over the last several years:
2024: 59,854
2023: 48,442
2022: 56,258
For context, new listings data at this time in 2010 ran at 326,266.
Price-cut percentage
Every year, one-third of all homes take a price cut before selling — this is regular housing activity and this data line is very seasonal. The price-cut percentage can grow when mortgage rates increase and demand gets hit.
As inventory and demand grow year over year, the price-cut percentage data increases year over year. So, we will keep tracking this data line to see how high it goes this year. We keep it simple: higher inventory softness in demand means price growth is weakening. As we can see below, the year-over-year data is showing a higher percentage of price cuts.
2024: 31.9%
2023: 30.5%
2022: 17.2%
10-year yield and mortgage rates
For those of you who have followed me for the last 12 months, you know how important the 4.34% level on the 10-year yield is for my economic work and therefore for the mortgage rate discussion. A break above this level would send mortgage rates toward 7.5%-8%. So far, so good here.
We had the PCE inflation report come out Friday and because some people were expecting a hotter number than estimates, it was perceived to be bullish for rate cuts. However, the markets were closed Friday, so we have to wait and see how trading goes on Monday. The 10-year yield channel is between 4.25%-3.80%, which looks correct as long as the economic data stays firm and jobless claims don’t break higher. This means mortgage rates will likely remain in the upper range of my 2024 forecast of 6.75%-7.25%.
There was not too much action in mortgage rates last week, but with jobs week coming up, we could see some movement. As you can see below, the 10-year yield has made a massive move from 2022 and has stayed above 4%, even with the progress we have made with inflation. Always remember, when it comes to discussions about rates and the Fed pivoting, it’s always labor over inflation data.
Purchase application data
Purchase application data didn’t move much last week. It was flat on a week-to-week basis and down 15% year over year.
Since November 2023, after making holiday adjustments, we have had 10 positive and six negative purchase application prints and one flat print. Year to date, we have had four positive prints versus six negative prints and one flat print.
What have 2022, 2023, and 2024 shown us? Purchase apps made a solid positive run up until mortgage rates started to get back over 7%. This was similar to 2023 data, when purchase apps had 12 weeks of a positive run-up until rates moved toward 7% and then 8%.
Week ahead: We’ll see trading off the inflation report and it’s jobs week
First, the trading on Monday will be exciting because of the PCE inflation report; some argue it was hot and some say it wasn’t. The market decides this, and bond trading will judge it on Monday morning.
Also, Federal Reserve Chairman Powell talked on Friday. I believe Powell’s crucial comment was that the Fed won’t overreact to significant disinflation or heated inflation reports. I think some people missed this. If you want to understand why the markets still have three rate cuts priced in, it’s this mindset.
Then it’s jobs week, with four labor reports, and, of course, for me, it’s labor over inflation data, so buckle up!
Want more context? On the PowerHouse podcast with HousingWire CEO Clayton Collins, I discussed why the data lines we look at in the Housing Market Tracker are so critical for those in the housing industry.
Utah’s dynamic cities are a haven for renters seeking the perfect balance between natural beauty and urban convenience. This ApartmentGuide article takes you on a journey through the serene landscapes and thriving communities of the Beehive State. From the lively cultural scene of Salt Lake City to the relaxed atmosphere of West Valley City, we delve into the rental markets, neighborhoods, and outdoor activities that make Utah’s largest cities so appealing. Here are the major cities in Utah to consider moving to.
1. Salt Lake City, Utah
Population: 199,723 Average rent for a one-bedroom apartment: $1,422 Average rent for a two-bedroom apartment: $1,967 Salt Lake City, UT apartments for rent Salt Lake City, UT homes for sale
Living in Salt Lake City offers a unique blend of outdoor adventure and urban convenience. Nestled against the stunning backdrop of the Wasatch Mountains, residents enjoy easy access to skiing, hiking, and biking trails. The city’s downtown area features a variety of shops, restaurants, and cultural venues, including the renowned Salt Lake Temple and the Utah State Capitol.
2. West Valley City, Utah
Population: 140,230 Average rent for a one-bedroom apartment: $1,429 Average rent for a two-bedroom apartment: $1,699 West Valley City, UT apartments for rent West Valley City, UT homes for sale
West Valley City is known for its friendly atmosphere and diverse community. The city hosts numerous parks and recreational facilities, including the Utah Cultural Celebration Center. It’s also home to the Maverik Center, where residents can enjoy concerts and sporting events. The city’s shopping and dining options cater to a wide range of tastes and preferences.
3. West Jordan, Utah
Population: 116,961 Average rent for a one-bedroom apartment: $1,389 Average rent for a two-bedroom apartment: $1,719 West Jordan, UT apartments for rent West Jordan, UT homes for sale
West Jordan offers a mix of suburban charm and natural beauty. The city is close to the Oquirrh Mountains, providing residents with stunning views and outdoor activities. The Jordan Landing shopping center is a popular destination for shopping, dining, and entertainment. The city also boasts excellent schools and a strong sense of community.
4. Provo, Utah
Population: 115,162 Average rent for a one-bedroom apartment: $1,337 Average rent for a two-bedroom apartment: $1,737 Provo, UT apartments for rent Provo, UT homes for sale
Provo is a dynamic college town, home to Brigham Young University. The city fosters a lively cultural scene with museums, theaters, and music venues. Outdoor enthusiasts will appreciate the proximity to Provo Canyon, offering breathtaking scenery and activities like hiking, biking, and fishing. The city’s economy is booming, with a focus on technology and education.
5. Orem, Utah
Population: 98,129 Average rent for a one-bedroom apartment: $1,364 Average rent for a two-bedroom apartment: $1,549 Orem, UT apartments for rent Orem, UT homes for sale
Orem prides itself on being a great place for education and family life. Known as “Family City USA,” it boasts a high quality of life with excellent schools, numerous parks, and community centers. The city is also a hub for tech companies, contributing to its dynamic and innovative atmosphere. Orem’s University Mall is a major shopping destination in the region.
6. Sandy, Utah
Population: 96,904 Average rent for a one-bedroom apartment: $1,684 Average rent for a two-bedroom apartment: $2,084 Sandy, UT apartments for rent Sandy, UT homes for sale
Sandy is a thriving suburb with a mix of residential, commercial, and natural spaces. The city is home to the Rio Tinto Stadium, where soccer fans gather to watch Real Salt Lake games. Sandy’s location at the base of the Wasatch Mountains offers easy access to ski resorts and outdoor recreation. The city also features a variety of shopping and dining options.
7. St. George, Utah
Population: 95,342 Average rent for a one-bedroom apartment: $1,524 Average rent for a two-bedroom apartment: $1,595 St. George, UT apartments for rent St. George, UT homes for sale
St. George is renowned for its stunning natural surroundings, including nearby Zion National Park. The city enjoys a warm climate year-round, making it a haven for golfers, hikers, and nature lovers. St. George’s arts scene, including the annual St. George Art Festival, adds to the city’s charm. Its growing economy is supported by tourism, healthcare, and education.
8. Ogden, Utah
Population: 87,321 Average rent for a one-bedroom apartment: $1,317 Average rent for a two-bedroom apartment: $1,523 Ogden, UT apartments for rent Ogden, UT homes for sale
Ogden offers a unique mix of historic charm and outdoor adventure. The city’s historic 25th Street is lined with restaurants, galleries, and shops in beautifully restored buildings. Ogden is also a gateway to some of Utah’s best outdoor activities, with easy access to skiing, kayaking, and hiking. The city has a strong sense of community and hosts numerous events throughout the year.
9. Layton, Utah
Population: 81,773 Average rent for a one-bedroom apartment: $1,448 Average rent for a two-bedroom apartment: $1,635 Layton, UT apartments for rent Layton, UT homes for sale
Layton is a growing city with a strong sense of community and a focus on family life. The city offers a variety of parks, recreational facilities, and shopping centers, including the Layton Hills Mall. Layton’s location between Salt Lake City and Ogden makes it an ideal place for those who want suburban comfort with easy access to urban amenities. The city also boasts excellent schools and healthcare facilities.
10. South Jordan, Utah
Population: 77,487 Average rent for a one-bedroom apartment: $1,626 Average rent for a two-bedroom apartment: $1,985 South Jordan, UT apartments for rent South Jordan, UT homes for sale
South Jordan is known for its high quality of life, with numerous parks, golf courses, and the scenic Oquirrh Lake. The city’s Daybreak community is a model of sustainable living, offering a mix of residential, commercial, and recreational spaces. South Jordan’s strong economy is supported by a mix of industries, including healthcare and information technology. The city also values education, with several top-rated schools.
Methodology : The population data was retrieved from the United States Census Bureau for 2021, while the average rental data was sourced from Rent.com in March 2024.
Homeownership affordability problems do not end once the consumer closes on the property, as nearly nine out of every 10 said the true cost is higher than expected, a Clever Real Estate study said.
Nearly three in five respondents, 58%, said they had buyers’ remorse, and among those that bought their property in 2020 (when the pandemic-fueled boom started) or later, the regret rate was over two-thirds at 68%. Purchasers before that time, 54% said they had buyers’ remorse.
The average homeowner spends $17,958 annually on expenses; if the borrower stays in the property for the entire 30-year term of a typical mortgage, that adds up to $538,740, Clever RE and its Real Estate Witch online publication found.
About 36% of homeowners believe owning their home has negatively affected their finances, with 23% stating it’s negatively impacted their mental health.
Had they known the total cost ahead of time, 60% of respondents claimed they would have made a different homebuying decision.
The top two choices about what they would have done differently is that they would have purchased a property that requires less maintenance, or negotiated a better price or contingencies, both at 21%. Waiting until mortgage rates fall was cited by 14%; respondents could choose more than one response.
Those who bought a home in 2023 or 2024 were more likely to say they overpaid than those who bought before 2010, 46% to 16%. From the entire sample, about 26% of homeowners say they overpaid.
Just under half stated they are spending more money owning a home than they would have on renting, supporting some recent studies on the costs of both. Meanwhile 28% stated if they had their druthers, they would prefer to return to renting.
Nearly two-thirds of respondents had regrets about their purchase, with 15% stating their mortgage payments are too high and 13% saying their interest rate is too high; more than one answer was possible for this question.
Clever/Real Estate Witch did an online survey of 1,000 U.S. homeowners on Feb.1 and 2. Each respondent answered 25 questions.
A separate study from Redfin released on Thursday found a buyer must earn $75,849 annually to afford the typical starter home as of February, up 8.2%, or $5,767 over a year earlier.
Different data Redfin put out that same day found for all homes, the average monthly payment on a purchase for the four weeks ended March 24 was at an all-time high.
“The most affordable homes are much smaller and often require a lot of work to make them habitable — which makes them cost even more,” Elijah de la Campa, senior economist at Redfin, said in a press release. “Today’s most affordable homes are still hard for the average American to afford, let alone the average first-time buyer who tends to put less money down in exchange for higher monthly payments.”
Virgin Voyages cruise line debuted its first ship, Scarlet Lady, in 2020. Founded by British entrepreneur and adventurer Richard Branson, this is not your typical cruise. To start, you must be at least 18 years old to sail on Virgin Voyages. And with plenty of restaurants, a food hall, a tattoo parlor and blush-inducing shows, Scarlet Lady has plenty to offer.
Following Scarlet Lady, Virgin Voyages added two other “lady ships” to its fleet — Valiant Lady and Resilient Lady. Here’s what you need to know when sailing aboard Virgin Voyages’ Scarlet Lady.
Scarlet Lady itinerary
Scarlet Lady really gets around. With a home port in Miami, the energy-efficient ship typically sails Caribbean itineraries, calling on ports in Mexico, Cuba, the Dominican Republic, the Bahamas and more.
The cruise line also has a private beach club in Bimini, with swimming pools, restaurants, a beach area and activities. All Virgin Voyages cruises with Caribbean itineraries make a stop here.
Seasonally, the ship makes a trans-Atlantic crossing, sailing around the Mediterranean and visiting several ports in the United Kingdom.
Scarlet Lady ship tour
These enormous ships are designed for adult vacations, providing plentiful recreation and activity options for every type of traveler. Scarlet Lady has 17 decks and capacity for around 2,800 passengers in its 1,400 cabins.
Cabins demonstrate Virgin’s trademark “cool” design, with mood lighting, minimalist furniture, a slightly nautical twist in the decor, and distinct red hammocks on the balconies.
The majority of cabins have balconies, which gives this ship an edge when courting travelers. The premium cabins are the RockStar and Mega RockStar Quarters, which come in various configurations and designs.
The most glamorous suites have whirlpools on the terrace, separate dining and living areas, and larger bathrooms — some even have an outdoor shower. All suites boast a record player. Even the stateroom attendants bear a unique title: Rock Star Coordinators.
Booking a premium cabin and suite gives guests access to Richard’s Rooftop, an alfresco lounge and patio with sitting areas, an open bar, whirlpools and live entertainment. Other perks include airport transfers, priority disembarkation and boarding in ports, access to the spa’s thermal suite, free laundry and clothes pressing, and comped minibars.
Other cabin types include those with bunk beds (ideal for friends traveling together) and solo cabins.
When out and about, there are plenty of shopping opportunities, including the chance to get inked at the onboard tattoo parlor (the first of its kind on a cruise ship).
As you meander the ship, you’ll discover everything from basketball courts, a boxing ring and gym equipment to a spa with a thermal area and relaxation nets that dangle over the sea.
Private deck cabanas at Mediterranean eatery The Dock feature day beds that look out toward the ocean, and ample lounge chairs ring the party-centric pool, where staffers circle with drinks.
In addition to a menu of spa services, there are also saunas, steam rooms, a salt room, a mud room, a beauty salon and plunge pools. Once the sun sets, a DJ sets up shop to create a party atmosphere in the same space.
One quick shake of your mobile device when using the onboard app summons an attendant with Champagne.
Scarlet Lady dining
Instead of one main dining room, there are individual restaurants and a food hall with dining options at all hours.
In the food hall, there are also takeaway bento boxes with snacks like sushi, fresh fruit, salads and sandwiches. Other options include a burger bar, a taco shack, a sushi station and a ramen shop. It’s all included in the cruise price, and everything is made fresh to order.
Among other dining options on the ship are a Korean barbecue eatery, a steak and seafood cafe, molecular fusion cuisine where dishes are served in opulent style with a scientific twist (think test tubes and beakers for some dishes), Italian, Mexican, a pizza bar and an all-vegan/vegetarian option.
There are several bars on board, including a tap room called the Draught Haus, which offers an array of beers on tap and by the bottle. Among the options in the Draught Haus and elsewhere on the ship is Virgin’s own bespoke beer, an English Pale Ale with a hint of red, brewed by Miami’s Wynwood Brewing Company.
Made-to-order barista coffee from Intelligentsia is available, and there’s a cold-pressed juice bar for those looking for a healthy refreshment.
Scarlet Lady bars, nightlife and shows
For entertainment, passengers can head to The Manor, a multi-bar nightclub with a ’70s punk vibe, which features a rotating line-up of comedy acts.
The party atmosphere lasts late into the night. As you wander the ship, keep an eye out for “Happenings,” the unscheduled improv acts and performances that the staff do to spice up things when you least expect it.
Other destinations for activities include a karaoke room, a casino, a private gaming area, a poker room, a cinema and a record store. The occasional fashion show also takes place on board.
One thing that Scarlet Lady does not offer is the typical stage show with singers and dancers performing to a prerecorded soundtrack. The onboard entertainers do, however, sing and dance by the pool, in the nightclub and on the stage.
There are no Broadway-style shows, either. Instead, look for solo performers in various bars and by the pool. The space is carefully curated so that no matter where you are, there is something to enliven the atmosphere (whether through art, design, music, or simply the view).
The bottom line
Sailing with Virgin Voyages is not your standard cruise experience. While the adult-themed onboard vibe is playful, this is not the jam-packed ship with waterslides and bingo cards some might imagine.
Step aboard with an open mind and some knowledge of Richard Branson’s Virgin Group brand track record, and you’ll be sure to enjoy a different type of cruise vacation.
(Top photo courtesy of Virgin Voyages)
How to maximize your rewards
You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2024, including those best for:
National mortgage rates edged higher for all loan terms compared to a week ago, according to data compiled by Bankrate. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans increased.
While it’s expected that rates will gradually come down this year, it may not be a straight downward path.
“Where the 10-Year Treasury yield goes, mortgage rates will follow,” says Ken Johnson of Florida Atlantic University. “In roughly the last two months, the 10-year Treasury yield is up 50 basis points. Depending on the source, the 30-year mortgage rate is up 48 basis points. Treasurys’ path remains a coin toss at this point.”
Rates last updated March 26, 2024.
The rates listed above are Bankrate’s overnight average rates and are based on the assumptions indicated here. Actual rates listed on-site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Tuesday, March 26th, 2024 at 7:30 a.m.
30-year mortgage rate trends upward, +0.10%
The average rate for a 30-year fixed mortgage for today is 6.98 percent, an increase of 10 basis points over the last seven days. Last month on the 26th, the average rate on a 30-year fixed mortgage was higher, at 7.15 percent.
At the current average rate, you’ll pay a combined $663.96 per month in principal and interest for every $100,000 you borrow. That’s $6.70 higher compared with last week.
There are various advantages to choosing a fixed-rate mortgage when buying new house, including predictable mortgage payments.
Learn more: What is a fixed-rate mortgage and how does it work?
15-year mortgage rate trends higher, +0.06%
The average 15-year fixed-mortgage rate is 6.47 percent, up 6 basis points over the last seven days.
Monthly payments on a 15-year fixed mortgage at that rate will cost $869 per $100,000 borrowed. Yes, that payment is much bigger than it would be on a 30-year mortgage, but it comes with some big advantages: You’ll save thousands of dollars over the life of the loan in total interest paid and build equity much more rapidly.
5/1 adjustable rate mortgage advances, +0.13%
The average rate on a 5/1 adjustable rate mortgage is 6.51 percent, rising 13 basis points from a week ago.
Adjustable-rate mortgages, or ARMs, are home loans that come with a floating interest rate. In other words, the interest rate will change at regular intervals, unlike fixed-rate mortgages. These loan types are best for those who expect to refinance or sell before the first or second adjustment. Rates could be substantially higher when the loan first adjusts, and thereafter.
While borrowers shunned ARMs during the pandemic days of super-low rates, this type of loan has made a comeback as mortgage rates have risen.
Monthly payments on a 5/1 ARM at 6.51 percent would cost about $633 for each $100,000 borrowed over the initial five years, but could ratchet higher by hundreds of dollars afterward, depending on the loan’s terms.
The average rate for the benchmark jumbo mortgage is 7.09 percent, up 11 basis points since the same time last week. A month ago, the average rate for jumbo mortgages was higher at 7.13 percent.
At the current average rate, you’ll pay principal and interest of $671.36 for every $100,000 you borrow. That’s an extra $7.40 compared with last week.
Mortgage refinance rates
Current 30 year mortgage refinance rate goes up, +0.12%
The average 30-year fixed-refinance rate is 6.99 percent, up 12 basis points since the same time last week. A month ago, the average rate on a 30-year fixed refinance was higher at 7.16 percent.
At the current average rate, you’ll pay $664.63 per month in principal and interest for every $100,000 you borrow. That’s $8.04 higher compared with last week.
Where are mortgage rates going?
“The Federal Reserve will not cut interest rates in the first half of this year, in my view,” says Lawrence Yun, chief economist of the National Association of Realtors, “but rate cuts of three, four or even five rounds will be possible in the second half of the year as rent measures will be much more well-behaved.”
The rates on 30-year mortgages mostly follow the 10-year Treasury, which shifts continuously as economic conditions dictate, while the cost of variable-rate home loans mirror the Fed’s moves.
These broader factors influence overall rate movement. As a borrower, you could be quoted a higher or lower rate compared to the trend.
What these rates mean for you and your mortgage
While mortgage rates change daily, it’s unlikely we’ll see rates back at 3 percent anytime soon. If you’re shopping for a mortgage now, it might be wise to lock your rate when you find an affordable loan. If your house-hunt is taking longer than anticipated, revisit your budget so you’ll know exactly how much house you can afford at prevailing market rates.
Keep in mind: You could save thousands over the life of your mortgage by getting at least three loan offers, according to Freddie Mac research. You don’t have to stick with your bank or credit union, either. There are many types of mortgage lenders, including online-only and local, smaller shops.
“All too often, some [homebuyers] take the path of least resistance when seeking a mortgage, in part because the process of buying a home can be stressful, complicated and time-consuming,” says Mark Hamrick, senior economic analyst for Bankrate. “But when we’re talking about the potential of saving a lot of money, seeking the best deal on a mortgage has an excellent return on investment. Why leave that money on the table when all it takes is a bit more effort to shop around for the best rate, or lowest cost, on a mortgage?”
More on current mortgage rates
Methodology
Bankrate displays two sets of rate averages that are produced from two surveys we conduct: one daily (“overnight averages”) and the other weekly (“Bankrate Monitor averages”).
The rates on this page represent our overnight averages. For these averages, APRs and rates are based on no existing relationship or automatic payments.
Learn more about Bankrate’s rate averages, editorial guidelines and how we make money.