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If you use your credit card for everything, from paying bills to ordering takeout to booking trips, you put yourself at risk for fraudsters to steal your credit card information.

One way to protect your sensitive information is to put a freeze on your credit report. A credit freeze provides you with an extra layer of security because it prevents anyone from running a hard inquiry on your report or potentially opening a new line of credit without your permission.

But at some point you might want to open a new credit card or apply for a loan. So how do you unlock a credit freeze? In this guide, you’ll learn all about how to unfreeze credit.

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What Does it Mean to Unfreeze Credit?

When you freeze your credit report, you can’t open a new line of credit, whether that’s a credit card, mortgage, auto loan, or something else. At the same time, no one can run a hard inquiry on your credit report — so lenders, landlords, even potential employers can’t access it. While there are limits on who can legally look at your credit report, a credit freeze can provide peace of mind that no one can open an account in your name.

When you unfreeze your credit, it’s like you’re turning back on the credit report. Once your credit is unfrozen, you can once again open a new line of credit, and lenders can run a hard pull on your report.

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How a Credit Freeze Works

Also known as a security freeze, a credit freeze restricts access to your credit file. Credit freezes don’t happen automatically. You have to reach out to each of the three credit bureaus — Experian, Equifax and TransUnion — to ask for a credit freeze.
Thanks to the Fair Credit Reporting Act, if you request a credit freeze over the phone or online, the credit bureaus are required to freeze your report within 24 hours. If you send the request via mail, they have up to three business days.

When you make a credit freeze request, each bureau will give you a PIN (personal identification number) or password that you need when you decide to lift the freeze.

A credit freeze is often confused with a credit lock, but they’re two separate things. A credit lock is a service you sign up for, and there’s usually a subscription fee. It’s similar to a credit freeze as you block access from most lenders. However, you can freeze or unfreeze it at any time on your phone or computer, and you don’t have to wait for it to go into effect.

A credit freeze is free, and you have to go through the credit bureaus to thaw your credit, and it takes about an hour to go into effect.

Types of Credit Freeze Lifts

At some point you may think about unlocking your credit freeze. When the time comes, there are two main types of credit freeze lifts:

Temporary lift

A temporary lift will unfreeze your credit report for a designated time period. You can choose how long you’d like your credit to be thawed, but it’s typically anywhere from one to 30 days.

You can thaw your credit freeze temporarily to apply for new credit, take out a loan, or apply to rent an apartment. But once you’re done with that financial task, the freeze restarts.

Permanent lift

A permanent lift will thaw your credit freeze for an indefinite amount of time. You might want to go this route if you don’t want to go through the steps of freezing and unfreezing your credit and find that the trouble isn’t worth the benefits.

Recommended: How to Read and Understand Your Credit Report

Ways to Unfreeze Credit Using Bureaus

How do you unfreeze your credit? You just need to contact each of the credit bureaus. You can do it in one of three ways:

•   Phone: If you request a lift by phone, the credit bureaus are required to thaw your credit within an hour.

•   Online: If you make the request online, your credit freeze will also be lifted within the hour.

•   Mail: You can also request a credit thaw by mail. If you go this route, expect the lift to happen within three business days.

Recommended: How to Dispute a Credit Report and Win Your Case

When You Should Unfreeze Your Credit

Generally, you need to unfreeze your credit anytime someone needs to review your credit report, like if you’re opening a new line of credit or applying for a loan. Some common scenarios of when you’ll need to unfreeze your credit:

•   Applying for a credit card

•   Applying for a mortgage, personal loan, or car loan

•   Applying for a line of credit

•   Hunting for an apartment

Recommended: Common Credit Report Errors and How to Dispute Them

Credit Freeze vs. Fraud Alert

If you’re at high risk for fraud, or you suspect you’ve been a victim of a credit card scam, or you just want to take extra precautions, you can set up a fraud alert on your credit report. When you have a fraud alert in place, a lender or creditor needs to verify your identity before they can issue you a new line of credit or approve you for a loan.

To place a fraud alert, you only need to reach out to one of the three credit bureaus. By law, that credit bureau must let the other two credit bureaus know you placed a fraud alert. In turn, all three credit bureaus will place a fraud alert on your credit file.

Initial fraud alerts are free, and initial fraud alerts last one year. After one year, you can renew it. Extended fraud alerts last for seven years, but they are for victims of identity theft, and you must submit a police report to qualify.

A credit freeze, on the other hand, blocks any party, including lenders and creditors, from accessing your credit. You need to place a credit freeze separately with each of the three credit bureaus, which lasts indefinitely. They can only be lifted when you make a request.

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The Takeaway

Unfreezing your credit report is relatively simple, and it’s easy to set up a temporary lift should you decide you want to apply for a new credit card or personal loan. There are a few different ways you can go about thawing your credit as needed, and the credit bureaus have to unfreeze your credit within an hour of you making the request by phone or online.

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Take advantage of this offer by applying for a SoFi credit card today.

FAQ

Can I unfreeze my credit?

You can unfreeze your credit anytime by going through each of the three credit bureaus — Experian, Equifax, and TransUnion — and requesting a lift on your credit freeze. You can ask for either a permanent or temporary lift. The thaw usually lasts anywhere from one to 30 days if it’s temporary.

Can you freeze your credit automatically?

Credit freezes don’t happen automatically. You will need to contact the three credit bureaus and make a proper request. You can do so online, by telephone, or via snail mail.

How soon can I unfreeze my credit after freezing?

You can unfreeze your credit as frequently as you like and request a credit lift as soon as you freeze it. If you made the request online or over the phone, it can take up to an hour to unfreeze your credit. If you send the request in the mail, it can take up to three business days.

How long does it take to unfreeze your credit?

It depends on the credit bureau and how you made your request. If you requested your credit to unfreeze or “thaw” over the phone or email, the credit bureaus must lift it within an hour. If you made the request by mail, the credit bureaus must unfreeze your credit within three business days.

Can I still use my credit card after freezing my credit?

Freezing your credit doesn’t impact your ability to use your credit card. You can freely make purchases on your card, book trips, redeem your cash-back points, and so forth. But if you want to do something that requires a hard pull of your credit — apply for new credit, loan, or submit a rental application for an apartment — you’ll need to unfreeze first.

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Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

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There’s been a lot of apprehension regarding the role investors have played in the ongoing real estate market recovery.

Specifically, what they plan to do with their thousands and thousands of properties nationwide. And what that might mean for housing going forward.

As we roll into 2014, one thing is becoming obvious, demand from institutional investors, defined as entities that purchase 10+ properties annually, is fading.

Last month, such investors accounted for 5.2% of all U.S. residential property sales, down from 7.9% in December and 8.2% a year earlier, according to the latest Residential & Foreclosure Sales Report from RealtyTrac.

The January numbers were the lowest since March 2012, a full 22 months, and no, cold weather was certainly not to blame.

Do Investors Know Something We Don’t Know?

At first glance, you might be wondering why big-time investors are exiting the once hot real estate market.

But before we get too negative, you have to realize that investors aren’t the same as everyday home buyers.

The former need to make a profit, ideally a quick one, so if home prices are more reasonably priced, it makes for fewer big opportunities.

That doesn’t necessarily mean it’s a bad time to buy a home, it just means it might not be a great time anymore.

Furthermore, investors haven’t left entirely, they’ve just changed their focus. As the table above illustrates, investors have reduced buying in certain markets and increased it in others.

In fact, the institutional investor share was up a staggering 162% in Austin, TX last month from a year earlier, 83% in Cincinnati, 30% in Dallas, 21% in Denver, 15% in Raleigh, and 9% in Atlanta.

Additionally, all-cash sales accounted for nearly half (44.4%) of all U.S. residential home sales in January.

On the other hand, the institutional share was down 70% in Cape Coral-Fort Myers from a year earlier, down 64% in Memphis, 59% in Tucson, 48% in Tampa, and 21% in Jacksonville. Phoenix and Orlando also took a knock in that department.

So apparently there’s still opportunity out there, it’s just in different metros and the pickings might be a little slimmer.

Overall, metros with the highest share of institutional investor purchases last month included Jacksonville (25.5%), Atlanta (25.1%), Austin (18%), Charlotte (14.9%), and Greenville, S.C. (14%).

Prospective Buyers Want to Rent Their Homes, Not Sell

In other news, Redfin pointed out today that 39% of prospective home buyers that already own a home want to rent out their current properties.

A Redfin agent noted that many of his clients refinanced into “very low” mortgage rates over the past few years, so the interest rate lock-in, combined with a strong rental market means holding onto the property.

There’s also fear of becoming homeless if you sell your existing home and don’t have something else immediately lined up.

Ironically, it is buyers like this that are adding to inventory constraints, making it more difficult to find a home to purchase.

But with investor appetite dwindling, it might be a tad easier to get your hands on a home, even with so many rentals beginning to flood the market.

Still, 46% of respondents said tight inventory had limited their number of home tours “a lot,” and another 44% said it had “somewhat.”

So this could mean even higher home prices to come, at least in the desirable areas, and perhaps a bump in fringy locations as well as buyers are pushed out of their first-choice destinations once again.

Source: thetruthaboutmortgage.com

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Broker Pricing, Non-QM, Lead sourcing, Tech Products; STRATMOR on Employee Culture; The Fed and Rates

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Broker Pricing, Non-QM, Lead sourcing, Tech Products; STRATMOR on Employee Culture; The Fed and Rates

By:
Rob Chrisman

7 Hours, 34 Min ago

For those attending the Western Secondary, remember, it never rains in Southern California. Except for now. Here’s one person who won’t be seeing So Cal any time soon, and dare I say, every honest person in our biz is happy when this happens. Daniela Rendon, 31, was a Miami real estate broker but was sentenced to three-and-a-half years in prison for stealing $381,000 in COVID relief funds, wire fraud, money laundering, and identity theft. Rendon probably won’t care too much about what the Federal Reserve does while she’s working in the laundry room or serving up oatmeal, but the Fed will probably restate, through Chairperson Powell speaking at the end of the week, its intent to keep interest rates high for an extended period to make sure inflation does not flare up again. In other legal and compliance news, Freedom Mortgage’s RESPA Consent Order with the CFPB is getting some attention from Mortgage Musings author and attorney Brian Levy. (Today’s podcast can be found here and this week’s is sponsored by PHH Mortgage. For over 30 years, PHH Mortgage has provided industry-leading mortgage services and helped countless homebuyers and homeowners find financing solutions to meet their needs. Hear an interview with Arrive Home’s Matt Pettit on down payment assistance programs and the push for more affordable housing.)

Lender and Broker Software and Services

If you’re in Dana Point for CMBA Western Secondary, you may be able to spot a blue whale lobtailing or a playful pod of dolphins on the water. But inside the Waldorf Astoria, there is ample opportunity for a type of spectating to help you run your business better. On Wednesday at 11 am PT, grab a seat for the engaging session, “How is Technology Providing Efficiencies in the Secondary Market.” Jay Arneja of SimpleNexus, an nCino company, will be weighing in on a wide range of technology options that can make your firm nimbler during a time of market volatility. If you can’t make the show, check out this blog on how different types of eClosings can save you $160-$440 per loan.

Nationwide Appraisal Network (NAN) is thrilled to announce that it has made the 2023 Inc. 5000 list of fastest-growing private companies in America for the fifth time. This accomplishment is a testament to its sustained commitment to excellence and growth. The Inc. 5000 recognition underscores NAN’s dedication to providing top-notch appraisal services and fostering innovation in the industry. Through its unwavering commitment to client satisfaction and technological advancement, the company is proud to have achieved this milestone for three consecutive years, demonstrating resilience and adaptability in a dynamic market landscape. “We are honored to once again be recognized on the Inc. 5000 list as we continue to grow at an extraordinary pace, even after 19 years in business. This achievement reflects the hard work of our team, and their commitment to deliver concierge-level service for our valued clients on every order” said Steve Sussman, Chief Business Development Officer.

It’s been an impressive year for Flagstar Bank, a business that now has nearly $119 billion in assets, thanks to the merger with New York Community Bank and acquisition of certain lines of business from Signature Bank. Flagstar continues to expand their products and services for their customers, further highlighting that their commitment to the mortgage space is just as strong as it has been for the last 35 years. The newest addition to the Flagstar mortgage family is the Specialized Mortgage Banking Solutions (SMBS) group. This team of seasoned financial professionals focuses on deposit gathering and customized treasury management services and products for all types of businesses connected to mortgage loans. Structured Cash Management Services from SMBS is designed to simplify and streamline operational costs and improve your cash position. At Western Secondary this week? Be sure to connect with a Flagstar team member to learn how their many offerings can help your business thrive in today’s market.

Free report: These growing borrower segments present opportunities for new business in 2023’s market. Wondering how to fill your pipeline when loan volume is scarce? New data from Maxwell gives lenders an exclusive look into home buyer groups taking on higher rates head-on. Did you know, for instance, that the share of 18 to 24-year-old borrowers has increased by 18 percent year-over-year? Now is the time to cater to these rising home buyers. For exclusive data and actionable takeaways, click here to download Maxwell’s Q2 Mortgage Lending Report.

Take Advantage of LoanStream’s Summer Specials to help you Grow that Pipeline! NON-QM Special for Purchase, Refinance & Cash-Out Programs. 50 BPS Price Improvement on all 740+ FICO Non-QM Programs (Special may not be combined with Select Non-QM Programs). Only Non-QM Special available for Correspondent. Prime Special: 35 BPS Price Improvement on Government Purchase Loans, 35 BPS Price Improvement on Government and Conventional High-Balance Purchase, Refinance and Cash-Out Loans (Specials are not available for use with DPA loans and cannot be combined together or with Select Loan Promotions. Restrictions apply. For loans locked 8/1/2023 through 8/31/2023. Visit LoanStream for more information or speak with your Account Executive.

“In this market, hustle is everything. You can’t afford to waste a single dealor a single minute. That’s why ReadyPrice has launched its innovating new Shop, Lock, & Deliver loan exchange platform, designed to help independent mortgage brokers like you save time and money. Now you can shop competitive loan offerings from multiple lenders, get rate lock guarantees in real time, receive underwriting findings, and deliver the borrower’s complete loan file to lenders and all on a single platform, at no cost to brokers. It’s the industry’s most powerful universal delivery portal, and it’s already helping brokers around the country thrive and compete in even the toughest market environments. Multiple lenders. One platform. Zero b.s. Check us out today.”

STRATMOR on Employee Culture

Have you visited a Chick fil A restaurant lately? When the employes say, “It’s my pleasure,” and not just “you’re welcome,” you believe them. They seem genuinely happy to serve their customers, and their happiness makes their customers smile. Maybe the mortgage industry can learn something from this fast-food giant’s approach to employee engagement. In his August Customer Experience Tip, STRATMOR Group’s MortgageCX Director Mike Seminari addresses how lenders can build a vibrant, positive employee culture that begets a world-class customer experience. He suggests three steps lenders can take to foster an employee-prized culture that can’t help but make for a better customer experience. Check out the new Customer Experience Tip, “Happy Employees, Happy Customers: A Page From a Fast-Food Giant’s Playbook.”

Capital Markets

Stocks and bonds both fell last week as healthy economic data drove the narrative that the Federal Reserve will keep interest rates higher for longer, though prices stabilized on Friday. After settling Thursday at its highest level since November 2007, the benchmark 10-year U.S. Treasury yield fell back below 4.3 percent but still logged its fifth straight week of higher rates, once again proving that rate predictions should be taken with a grain of salt.

The steady rise in yields is making investors nervous because past surges have at times proved destabilizing for markets. With the 10-year yield still well below the level of short-term rates set by the Fed, some analysts see room for the benchmark rate to keep climbing. Bond yields continued to rise across the board, extending an upswing that began nearly three months ago at the beginning of the summer. The latest FOMC minutes, which stressed that additional interest rate hikes might be needed, nudged rates even higher. Investors are still sizing up how rising yields compare with stock valuations, but the immediate consequences might be more apparent in the housing market. LOs everywhere know that 30-year fixed-rate mortgages solidly topped 7 percent on the latest developments, marking the highest level seen in more than 20 years.

Fed Chair Powell speaks at the end of the week, and is expected to highlight some of the progress made in combating inflation but stay on script with his most recent commentary about the need to stay vigilant. Some think Powell leaves enough of a hawkish edge that the door remains open to more rate hikes. Certainly, he is likely to reiterate the Fed’s commitment to its 2 percent inflation target and to push back (implicitly or explicitly) against the degree of rate hikes that markets are pricing for next year.

As the Federal Reserve looks to restore its dual mandate of price stability and maximum employment, originators are looking at long-term mortgage rates in the U.S. reached a two-decade high. The 30-year fixed mortgage rate hit 7.09 percent, a level not seen since April 2002, crimping both sales and refinancing activity. Back then, the average U.S. home price was roughly $187,000 versus $416,000 today. Despite elevated mortgage rates, there is activity amongst potential home buyers, especially in the new home market where builders have been offering seller concessions, rate incentives, and price cuts to move inventory. New home building permits increased in July to a 930,000-unit annual pace.

And our market has taken note of troubling data out of China. This adds to the hawkish rhetoric from Federal Reserve officials and has investors rethinking the economic landscape which led to last week’s Treasury rout. That rout pushed 10-year yields close to their highest point since 2007. It has also spurred a debate over why the bond market has turned dangerous. Economic activity continues to expand and has led many analysts to shift their outlooks regarding possible contraction. However, monetary policy lags (e.g., the time it takes before central bank tightening fully works through the economy) are longer now. The reasons include fewer variable rates on U.S. debt relative to a few years ago, businesses’ reluctance to let go of workers after the pandemic shortages, and the Fed’s large balance sheet that currently contains over $8 trillion in assets.

If Fed officials think interest-rate hikes are going to impact the economy sooner than in actuality, that means the Fed is very likely to keep rates too high for too long, raising the risk of a larger-than-expected decline in growth, and eventually, inflation. Pricing in futures markets now implies that the first Fed Funds rate easing won’t come until the Spring of 2024. The minutes from the Fed’s July meeting echoed those sentiments as well as noted that upside risks to inflation remain which would necessitate further tightening. For now, the message may be as important as any action as interest rate markets resign themselves to adjust to a higher for longer mindset.

After last week closed with a rally in bond markets due to China debt and financing concerns, this week brings the Kansas City Fed’s Jackson Hole Economic Symposium over Thursday to Saturday, with Fed Chair Powell scheduled to speak on Friday. Economic data releases are mostly second tier including regional Fed surveys, housing data, durable goods orders, S&P Global PMIs, and Michigan sentiment. Supply consists of the usual T-bills, as well as $16 billion 20-year bonds, $24 billion reopened 2-year FRNs, and $8 billion reopened 30-year TIPS. With no economic releases of note scheduled today, we begin the week with Agency MBS prices worse .125-.250 and the 10-year yielding 4.29 after closing last week at 4.25 percent.

 Download our mobile app to get alerts for Rob Chrisman’s Commentary.

Source: mortgagenewsdaily.com

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Proposed legislation that would allow bankruptcy judges to modify the terms of mortgages on primary residences could reduce foreclosures by 20 percent, according to a report from Credit Suisse.

The investment bank’s analysts believe that if such legislation were to become law, it would prompt banks and lenders to step up loan modification efforts.

“We expect the new bankruptcy reform will increase loan mods, particularly principal reduction mods, as it is likely to both pressure and also give justification to servicers to more actively pursue principal reduction mods,” said a report from Credit Suisse Fixed Income Research.

Of course, true foreclosure prevention depends on how much mortgage lenders are willing to budge, considering many borrowers are well underwater, even with a sizable principal reduction factored in.

It’s hard to believe many borrowers will stick around unless they have at least some amount of home equity, and with prices continuing to slide, that task is becoming increasingly difficult.

By the way, the average foreclosure in California now has $180,000 in negative equity.

Opponents of a so-called mortgage cram down, such as the Mortgage Bankers Association, believe it will lead to interest rates one-and-a-half to two points higher, making homeownership that much less affordable.

They also believe it would make it more difficult to accurately appraise property values, and lead to higher down payment requirements and closing costs.

Second mortgage holders would also likely see their positions disappear in the event of a bankruptcy proceeding, spelling trouble for these types of lenders and investors.

But sentiment has shifted in recent months, with the National Association of Home Builders even pulling a 180 in support of such a bill in their latest bid to stem foreclosures and buoy home prices.

Currently, bankruptcy judges are allowed to modify the terms of second homes and even yachts.

Source: thetruthaboutmortgage.com

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Renters are accusing Invitation Homes Inc., an investment firm that owns the most single-family homes in the U.S., of not properly maintaining their properties.

The allegations came via a Reuters investigative report, and pertain to problems such as insect infestations, unfixed water leaks, toxic mold, broken appliances and even raw sewage seeping into crawl spaces.

Renters told Reuters they’ve filed numerous complaints to Invitation Homes, which is owned by the private equity giant Blackstone Group. However those requests have been largely ignored. In one complaint, a renter told Reuters that they’d complained to the company of an infestation of black widow spiders as well as water leaks in the property, only to find that the matter was not handled in a timely fashion. As a result, the situation actually got worse, with roaches and ants also infesting the property.

Invitation Homes responded to Reuters by saying it offered the tenants $887.30 to cover maintenance and utility billing issues caused by a plumbing leak, in addition to two week’s rent. The black widow spider infestation was referred to as a “housekeeping issue”.

Besides the infestations and leaks, several tenants have also complained of “excessive rent increases and fees”, which add up to hundreds of dollars a year in extra costs. The issue prompted several tenants of the compant to file a class-action lawsuit in the U.S. District Court for Northern California, in which Invitation Homes is accused of “fee stacking”. The litigants claim that Invitation Homes charges them $95 if their rent is just one minute late – even if the delay is the fault of the company due to problems with its payment portal. As well as the fine, Invitation Homes also files an eviction notices, and threatens more fees, penalties and legals costs if they wish to remain in the property.

Invitation Homes on July 20 filed a motion to dismiss the case against it, saying the complainants failed to prove its fees are “unfair”.

Blackstone is one of the leading single-family home rental companies in the U.S. Through Invitation Homes, it snapped up thousands of low costs properties that had been foreclosed on during the last recession, before doing them up and offering them as rentals. Invitation Homes reportedly manages 82,000 homes in the U.S., including thousands of three and four bedroom entry-level homes in 17 metros areas across the Sun Belt.

But real estate experts told Reuters that Invitation Homes may have overstretched its push into the rental market, as the growing number of complaints suggests it cannot maintain its enormous portfolio of homes.

In response, Invitation Homes says it’s committed to operating in accordance with federal, state and local housing laws.

The company’s chief operating officer Charles Young insisted that it does not skimp on repairs or maintenance costs, telling Reuters: “We ultimately are trying to do the right thing by our communities and for our residents to provide the service we can live up to.”

Young also claimed the company’s investments in renovations and property upkeep have helped foreclosure-ravaged neighborhoods to recover since the Great Recession. He also notes that 70 percent of its tenants renew their leases.

Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at [email protected].
Latest posts by Mike Wheatley (see all)

Source: realtybiznews.com

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The average U.S. mortgage rate for a 30-year fixed loan fell to 2.81% this week, the lowest in Freddie Mac’s survey history, the mortgage giant said in a report on Thursday. The rate fell six basis points from the week prior and is now five basis points lower than the original all-time low set in mid-September.

The average fixed rate for a 15-year mortgage was 2.35%, falling from last week’s 2.37% — matching the record set three weeks ago.

There have now been 12 consecutive weeks when average mortgage rates have been below 3% and this is the tenth record broken this year, said Sam Khater, Freddie Mac’s chief economist.

“Low mortgage rates have become a regular occurrence in the current environment,” Khater said. “Many people are benefitting as refinance activity remains strong. However, it’s important to remember that not all people are able to take advantage of low rates given the effects of the pandemic.”

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Although mortgage applications fell seven basis points last week, purchase applications have now boasted 21 weeks of year-over-year gains.

In September, the Federal Reserve predicted that rates will remain low through 2023.

Source: housingwire.com

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The average daily rate for a  30-year fixed-rate loan was 6.85%. That’s 12 basis points lower than this time last week.


Joe Raedle/Getty Images

U.S. mortgage rates fell yet again this week. Data from Freddie Mac on May 4 showed that 30-year, fixed-rate mortgage rates dipped to 6.39%. And according to Bankrate data, which looked at overnight averages of advertisers on its site, 30-year fixed-rate loans are now hovering around 6.85% after sliding 7 percentage points to 6.93% last week, according to Bankrate data. (See the best mortgage rates you can get now here.) One mortgage expert says much of the reason for the consecutive declines has to do with the latest benchmark rate hike from the Federal Reserve and the overall outlook for the year ahead.

Although the Fed raised rates for the 10th consecutive time this week, Jeff Ostrowski, senior mortgage reporter at Bankrate, says signs are largely pointing to a changing tide when it comes to the housing market. “The consensus is that the Federal Reserve is done raising interest rates, and that mortgage rates will drift lower from here,” Ostrowski suggests, adding however that “just when you think you know where rates are going, the market gets a surprise, such as Friday’s strong jobs report.”

Nevertheless, Ostrowski says most experts predict mortgage rates will indeed fall when the economy slows down. And although there were many predictions last year that we would surely hit a recession in 2023,  “as the Fed’s tightening finally has its effect, mortgage rates are likely to fall below 6% by the end of the year,” he predicts.

See the best mortgage rates you can get now here.

For house hunters worried about high rates, Ostrowski says mortgage rates should not dictate your decision to buy a home or not. “Rates are unlikely to return to the record-low levels seen during the depths of the pandemic,” he says, adding that while “mortgage rates are incredibly difficult to predict,” you can still provide some “protection against increases by locking in a rate. And if rates fall before you close, you still can take advantage of a better deal.” 

Here’s what rates have done in the week ending on May 5, 2023, according to overnight average data from Bankrate: 

30-year fixed-rate loans

The average daily rate for 30-year, fixed-rate mortgages was 6.85%, down 12 basis points from last week (each 1% of a mortgage rate is made up of 100 basis points). The refinance rate for 30-year, fixed-rate loans was 7.02%, declining 15 basis points from the previous week.

15-year fixed-rate loans

Mortgages with a 15-year fixed rate averaged 6.18%, a decline of 9 basis points from the prior week.

Jumbo mortgages

For jumbo loans, which cover properties that are more expensive than those under a conventional conforming loan — about $647,000 in most areas — the rate was 6.94%, a decrease of 14 basis points from the same day last week.

See the best mortgage rates you can get now here.

ARMs

As for 5/1 adjustable-rate mortgages, which carry a fixed rate for five years that can then rise or fall each year after, the average was 5.75%, unchanged from last week.

FHA and VA loans

The average rate for 30-year Federal Housing Administration-insured mortgages was 6.06%, down 25 basis points from a week ago. Mortgages backed by the Department of Veterans Affairs, meanwhile, reached a rate of 6.02%, a decrease of 22 basis points from the previous week.

Editor’s Note: Parts of this story were auto-generated by Automated Insights, an automation technology provider, using data from Bankrate. See our market data terms of use.

Mortgage rates in this article reflect Bankrate’s average rates. A previous version simply referred to them as average rates.

Source: marketwatch.com

Apache is functioning normally

A new report from Black Knight Financial Services revealed that monthly mortgage origination volume fell to its lowest point on record in February.

And recent prepay speeds signal even more declines in refinance volume in the near future.

The company said mortgage originations hit at least a 14-year low during the second month of the year, thanks in part to an elevated share of all-cash transactions.

The government share of originations has also taken a hit, with HARP refinancing continuing to slow as the pool of eligible borrowers shrinks.

Homes Are Still Selling, Even If Mortgages Aren’t Being Originated

Despite the mortgage slowdown, traditional home sales (non-distressed) were up nearly 15% from a year earlier.

At the same time, distressed transactions continue to dwindle as short sales and foreclosures become less and less common.

Overall, residential real estate sales remained close to flat year-over-year, again because of the all-cash buyers, many of which were assumed to be investors.

Black Knight’s Data and Analytics division SVP Herb Blecher noted in a press release that cash sales accounted for nearly half of all transactions.

Mortgage Delinquencies Fall Below 6%

The good news is that mortgage delinquencies fell below six percent (5.97%) for the first time since 2008, and foreclosures were down 34% from a year ago to their lowest level since 2007.

Unfortunately, this means the foreclosure pipeline is steadily growing, with the average loan in foreclosure now 2.6 years past due, compared to 0.7 years in 2008.

The new CFPB rules don’t allow foreclosure proceedings to begin until after 120 days of delinquency, and data has revealed that foreclosure starts at the 90-day mark have pretty much come to a halt.

Florida, New Jersey, and New York have the highest level of seriously delinquent loans (90+ days late or in foreclosure), but foreclosure backlogs have grown the most in non-judicial states like California and Nevada thanks to newly imposed legislation.

Loan modification volume has also taken a hit, with activity ending the year around post-crisis lows. The only bright spot is the FHA-HAMP program, which has gotten a boost thanks to some recent program changes.

Those include eliminating the maximum back-end DTI ratio requirement of 55%, and allowing FHA borrowers to be more than 12 full payments past due.

Speaking of modifications, borrower equity continues to dictate re-default rates, with borrowers falling behind a second time 30% more when underwater.

Loose Mortgage Lending Hasn’t Arrived Yet

Black Knight also noted that only about 30% of mortgages last year went to borrowers with credit scores below 720, so it’s still very much about the most creditworthy individuals.

And though some lenders have announced pretty aggressive offerings of late, such as Carrington’s 550 minimum FICO score for an FHA loan, that type of subprime lending is still few and far between.

In fact, originations in the sub-620 bracket still account for less than five percent of residential mortgage lending volume, despite ticking up in recent years.

Many expect volume in this higher-risk band to increase as banks continue to grapple with flagging volume.

And the trend is already apparent in the FHA realm, where lending to borrowers with scores between 620-719 increased year-over-year after steadily declining.

However, the sub-620 category is still pretty flat and that doesn’t appear to be changing anytime soon.

Source: thetruthaboutmortgage.com