The week is winding down and mortgage rates are on track to finish out the week very close to where they started. Current mortgage rates are expected to continue moving higher over the coming weeks and months so if you’re thinking about taking action on a purchase or refinance, our recommendation is to lock a rate soon. Read on for more details.
Where are mortgage rates going?
Rates on track to finish out the week mostly flat
It’s been another up and down week for financial markets in the United States. The big event of the week–the FOMC minutes–didn’t fail to disappoint, signaling to investors that the Federal Reserve might be ready to hike the federal funds rate at a quicker than expected pace in 2018.
Click here to get today’s latest mortgage rates (Jul. 14, 2023).
How fast are we talking? You’ll get a different answer depending on who you talk to, but the general consensus is at least three, possibly four.
There are even some outliers now who are making the claim that there could be five increases this year. We’re talking about quarter point increases, so four rate hikes would bump the federal funds rate up from 1.25-1.50% to 2.25%-2.50%.
The next opportunity for the Fed to take action is in one month at their March meeting on the 21st. The fed is widely anticipated to follow through with their first quarter point increase of the year at that time.
For now, though, the speculation will continue about what happens after March. The greater the belief in a faster tightening schedule from the Fed, the more likely it is that mortgage rates will increase.
Already this year we’ve seen a huge jump in mortgage rates, with the average rate on a 30-year fixed rate mortgage up forty-five basis points to 4.40%, according to the latest numbers from the Freddie Mac Primary Mortgage Market Survey. That’s no small spike and the climb isn’t expected to end anytime soon.
Rates Rise in Freddie Mac Primary Mortgage Market Survey
Here are the numbers:
The average rate on a 30-year fixed rate mortgage moved up two basis points to 4.4% (0.5 points)
The average rate on a 15-year fixed rate mortgage ticked up one basis point to 3.85% (0.5 points)
The average rate on a 5/1-year adjustable rate mortgage rose two basis points to 3.65% (0.4 points)
Here is what the Freddie Mac’s Economic and Housing Research Group had to say about rates this week:
“Fixed mortgage rates increased for the seventh consecutive week, with the 30-year fixed mortgage rate reaching 4.40 percent in this week’s survey; the highest since April of 2014. Mortgage rates have followed U.S. Treasurys higher in anticipation of higher rates of inflation and further monetary tightening by the Federal Reserve. Following the close of our survey, the release of the FOMC minutes for February 21, 2018 sent the 10-year Treasury above 2.9 percent. If those increases stick, we will likely see mortgage rates continue to trend higher.”
It’s important to note that data for the PMMS is collected early on in the week and therefore doesn’t necessarily reflect current market conditions. Given that we’ve come back down off of the mid-week highs, the survey is fairly close to an accurate assessment of the present rate environment.
Rate/Float Recommendation
Lock in a rate soon
Mortgage rates are expected to continue rising throughout 2018, with many analysts calling for the 30-year fixed rate to hit 5% at some point.
Learn what you can do to get the best interest rate possible.
If you don’t want to risk getting a significantly higher rate, then you will want to lock in a rate on a purchase or refinance sooner rather than later.
Today’s economic data:
Fedspeak
Boston Fed President Eric Rosengren at 10:15am
New York Fed President William Dudley at 10:15am
Cleveland Fed President Loretta Mester at 1:30pm
San Francisco Fed President John Williams at 3:40pm
Notable events this week:
Monday:
Markets Closed: President’s Day
Tuesday:
Wednesday:
Fedspeak
PMI Composite Flash
Existing Home Sales
FOMC Minutes
Thursday:
Jobless Claims
Fedspeak
EIA Petroleum Status Report
Friday:
*Terms and conditions apply.
Carter Wessman
Carter Wessman is originally from the charming town of Norfolk, Massachusetts. When he isn’t busy writing about mortgage related topics, you can find him playing table tennis, or jamming on his bass guitar.
Boise, Idaho, is not only known for its thriving city life and vibrant culture, but also for its exceptional parks that provide residents and visitors with opportunities to immerse themselves in nature. If you’re considering relocating and renting an apartment in Boise or buying a home, you’ll be delighted to discover the abundance of well-loved parks that are cherished by the local community. In this Redfin article, we’ll take a closer look at some of the most popular parks in Boise, Idaho. Let’s get started.
1. Julia Davis Park
Situated in the heart of downtown Boise, Julia Davis Park is a beloved urban oasis that offers a variety of attractions and recreational opportunities. Spanning over 89 acres, this park is home to the Boise Art Museum, the Idaho State Historical Museum, and the Boise Zoo. With its scenic walking paths, beautiful rose garden, and a serene lagoon, Julia Davis Park is a favorite destination for families, art enthusiasts, and nature lovers.
2. Kathryn Albertson Park
Nestled along the banks of the Boise River, Kathryn Albertson Park is a picturesque park known for its tranquil atmosphere and stunning landscapes. This 41-acre park features a diverse range of flora and fauna, including vibrant wildflowers, graceful willow trees, and a variety of bird species. Visitors can enjoy leisurely strolls on the park’s winding pathways, relax by the ponds, and take in the scenic views.
3. Camel’s Back Park
With its distinctive camel-shaped ridge, Camel’s Back Park offers a unique outdoor experience in Boise. This popular 11-acre park is located in the North End neighborhood and is a favorite among hikers, trail runners, and outdoor enthusiasts. The park features a network of trails that lead to the summit of Camel’s Back Hill, providing panoramic views of the city and the Boise Foothills. Additionally, visitors can enjoy tennis and volleyball courts, playgrounds, and shaded picnic areas.
4. Ann Morrison Park
Spanning over 153 acres along the banks of the Boise River, Ann Morrison Park is a cherished destination for recreational activities and gatherings. The park offers many amenities, including soccer fields, baseball diamonds, a disc golf course, and a spacious picnic area. Visitors can also take advantage of the park’s river access for fishing, kayaking, and paddleboarding. Ann Morrison Park hosts numerous community events throughout the year, such as the Spirit of Boise Balloon Classic, Greenbelt walks, and more, making it a vibrant hub of activity and celebration.
5. Hulls Gulch Reserve
Hulls Gulch Reserve offers a pristine natural setting for anyone who loves the great outdoors. This 292-acre reserve has an extensive trail system that meanders through diverse ecosystems, including sagebrush slopes, riparian areas, and shaded forests. Hikers, mountain bikers, and trail runners can explore the scenic trails that lead to stunning viewpoints, such as the popular “Shafer Butte” trailhead.
6. Barber Park
For those seeking outdoor adventures and riverfront fun, Barber Park is the perfect destination. Located on the Boise River, this park serves as a popular starting point for floating trips and offers rentals for tubes, rafts, and kayaks. The park also features picnic areas, barbecue grills, and a playground, making it an excellent spot for a family outing or a relaxing day by the water. Barber Park is a gateway to the natural beauty of the Boise River and provides a refreshing escape from the city.
7. Municipal Park
Found in the Warm Springs neighborhood, Municipal Park is a hidden gem that showcases Boise’s rich history and offers recreational opportunities for all ages. This 15-acre park is home to the historic Natatorium, a geothermal swimming complex that has been converted into a community gathering space. The park also features tennis and basketball courts, a skate park, and open green spaces for picnics and leisure activities.
8. Hyatt Hidden Lakes Reserve
For nature lovers and birdwatchers, Hyatt Hidden Lakes Reserve provides a peaceful retreat in the heart of the city. This 44-acre nature reserve offers a network of walking trails that wind through wetlands, ponds, and forests, providing ample opportunities to observe native wildlife and bird species. Hyatt Hidden Lakes Reserve is not only a sanctuary for those who love nature but also an educational hub with informative signage and nature programs for all ages.
A final note on parks on Boise
Boise, Idaho, boasts an array of well-loved parks that cater to various interests and offer a chance to connect with nature. From urban parks with cultural attractions to serene riverfront escape, Boise’s parks provide a balance between city living and natural beauty. So, lace up your walking shoes, pack a picnic, and immerse yourself in the abundant natural wonders that await you in these remarkable parks in Boise, Idaho.
“The housing market tends to be ‘downside sticky,’ which means rents don’t typically fall much even when renter demand pulls back,” Redfin Deputy Chief Economist Taylor Marr said in a statement. “Instead of lowering rents when business is slow, many landlords offer perks like a free month’s rent or discounted parking, which tends to be less of a hit to profits.”
Marr added: “The steep slowdown in rent growth over the last year is providing some relief for renters, who now have more room to negotiate as their landlords grapple with rising vacancies. But with rents near their record high, most renters still aren’t finding big bargains.”
Though the $24 decline in rent growth from August 2022 isn’t much solace to renters, it has helped ease the inflation, according to Bureau of Labor Statistics data released Wednesday.
Consumer prices were up 3% this year through June, a deceleration from the 4% level reported in May and the peak of about 9% last summer. The cost of shelter, with rent being 70% of the indexes weight, rose 0.4% from a month earlier in June on a seasonally adjusted basis—a significant cooling from 0.8% at the end of last year. The slowdown in inflation reported Wednesday is in large part due to the deceleration in rent growth over the past year.
“Inflation should continue easing this year and into 2024, partly because the recent slowdown in rent growth isn’t fully baked into inflation data yet, and partly because rents have room to fall,” said Chen Zhao, an economist at Redfin. “Rents have room to come down because there remains a backlog of under-construction rentals that have yet to hit the market, which means landlords will continue grappling with vacancies and won’t be able to hike rents as rapidly.”
Economic uncertainties and surging options for renters kept rent growth under control
A year ago, most of the nation’s 150 largest markets were seeing asking rent growth north of 6% but in June only 18 were, noted Jay Parsons, rental housing economist at RealPage.
“And it’s definitely not the institutionally favored markets right now,” he said in a LinkedIn post. “The list is dominated by a mix of a) college towns, b) energy markets, and c) metros in the Northeast or Midwest.”
Per RealPage, the top asking rent growth leaders year-over-year in June were Midland/Odessa, Texas at 18%, followed by Madison, Wisconsin (10%), Champaign, Urbana, Illinois (8.6%), Springfield, Massachusetts (8.3%) and Knoxville, Tennessee (8.2%). Meanwhile, the metros with the biggest rent growth declines were Boise (-6.2%), Phoenix, Arizona (-4.7%), Las Vegas, Nevada (-4.0%), Vallejo/Fairfield/Napa, California (-3.9%), Fort Walton Beach, Florida (-3.5%).
Rent growth has cooled from its 2022 high partly because fewer people are moving due to economic uncertainty and slowing household formation, and partly because the number of options for renters has surged. Completed residential projects in buildings with five or more units rose 23.9% year over year to 493,000 on a seasonally adjusted basis in May. This means landlords have more vacancies to fill and less leeway to raise prices, according to the report.
While a homebuilding boom has led to more multifamily rentals on the market, it is letting up. The number of permitted residential projects in buildings with five or more units fell 12.2% year over year to 540,000 on a seasonally-adjusted basis in May.
Median asking rents were highest in the Northeast
In the Northeast, the median asking rent rose 4.3% year over year to a record $2,503 in June, according to Redfin. By comparison, asking rents rose 3.7% to $1,396 in the Midwest, 0.8% to $1,670 in the South, and fell 0.3% to $2,452 in the West. Rent growth has been slowing fastest in the West and South in part because it exploded so quickly during the pandemic, with renters scooping up apartments in Sun Belt cities like Phoenix, Miami and Dallas.
Librarian Miki Goral has lived in the massive Westside residential complex Barrington Plaza for more than three decades. She swims in the large heated pool nearly every day and, from her one-bedroom apartment on the 10th floor, she has a view of the ocean. The building is a 15-minute bus ride from her job at UCLA and it’s rent-controlled, allowing her to retain some certainty over housing costs even as rents in the neighborhood have skyrocketed.
Like many of the Plaza’s long-term tenants, Goral had planned to stay for many more years.
This month, she learned that she and each of the residents of the complex’s 577 occupied units were being evicted so that the owner could install fire sprinklers and other safety upgrades. Most were given four months to leave, though Goral and others who are at least 62 or disabled can take up to one year. But Goral can’t imagine leaving.
“I don’t want to move,” she said. “I’ve been here for 34 years. It’s my home.”
Three months after the end of pandemic-era protections limiting the ability of landlords to evict tenants,the owner of Barrington Plaza has initiated one of the largest mass evictions in L.A. in recent years, pushing hundreds of Westside tenants out of their homes at the same time that the city grapples with a housing crisis.
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Landlord Douglas Emmett Inc. says the move is necessary to install the sprinklers and other safety equipment in a complex with a history of dangerous fires. It has invoked the Ellis Act, which allows landlords to evict rent-stabilized tenants to remove units from the rental market.
Some tenants are already in the process of leaving, facing a significant jump in rent and the potential cruel irony that their own evictions — hundreds of Barrington residents dumped into the market at once — might drive up prices even more.
But Goral and others believe the company is improperly applying the law and that it can make the safety upgrades without permanently displacing them. They say they will fight to stay.
“In a period where we’re dealing with homelessness throughout the city and county, it’s a major issue that this company would suddenly put almost 600 people on the housing market to compete for housing,” Goral said. “It’s not a sensible thing to do.”
Housing officials say the city has little discretion once a property owner says they are taking a property off the rental market under the Ellis Act but that they are working to help residents relocate. City rules require landlords to pay tenants relocation assistance, amounts that range from about $9,000 to about $23,000, depending on how long they have lived in the apartment, their age, income and other factors.
“The impact of this is profound,” said Greg Good, senior advisor on policy and external affairs for the Los Angeles Housing Department. “There’s no way around that. It’s 577 units, and it will create significant disruption.”
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When it opened in 1962, Barrington Plaza was celebrated as the tallest residential complex west of Chicago and the biggest urban renewal project ever insured by the Federal Housing Administration. There were extensive gardens, a nine-hole putting green and a unique intercom system that allowed residents to dial two digits to call down for maids, sitters and caterers.
Over the decades, the apartments would change ownership multiple times and residentswould raise repeated safetyconcerns at the complex, which was exempted from laws requiring fire sprinklers because of when it was built.
On New Year’s Day in 1971, a Christmas tree caught fire, causing the building to be evacuated and the elevators to be removed from service for several days. In 2013, another fire injured several people, including a toddler, and displaced the residents of dozens of units. And in January 2020, another fire left a 19-year-old exchange student dead and several others injured. News stories featured images of a man clinging to the outside of the building several stories up as he tried to escape the blaze.
After that fire, eight floors in the complex’s tallest building were red-tagged, and they have remained vacant since.
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Eric Rose, a public relations executive working for Douglas Emmett, said in written responses to questions that when the company submitted plans to rebuild the damaged floors, the city conditioned its approval on the installation of sprinklers and other safety equipment throughout Barrington Plaza’s three towers.
Those changes cannot be done without vacating the three towersat the same time, Rose said, because building systems are shared among them and “structural changes, including changes to ceilings and walls, need to be made in order to carry the weight of the sprinkler system.”
This month, the company notified the city that it would withdraw the complex from the rental market under the Ellis Act, a 1985 state law that allows landlords to evict tenants in rent-stabilized apartments if, for instance, they are taking the building off the rental market to convert the units to condos.
Under city rules, owners invoking the Ellis Act must seek “in good faith” to remove it “permanently from rental housing use.”
Tenants and advocates say they believe the long-term plan is to rent the apartments once again. Because of that, they say, the evictions would be an improper use of the law.
“They want to renovate it. And they clearly want to re-rent it, and that’s not what the Ellis Act is about,” said tenant rights advocate Larry Gross, of the Coalition for Economic Survival.
He said the company should have used the city’s Tenant Habitability Program, under which landlords doing major renovations can temporarily relocate residents to comparable units until the work is done.
Rose says the Tenant Habitability Program is typically used for renovations that last days or months, not years.
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“At this time, the owners of Barrington Plaza are removing the units from the market and have options as to how those units will change, be rehabilitated through new life-safety measures or become something different,” Rose said.
He suggested that the apartments could eventually return to the rental market under rules laid out by the city.
Any rehabilitation of the complex will take years, he said, and “after that time, if the units were brought back onto the rental market, the owner would follow the obligations relative to former tenants as provided in those state and local rules.”
There are no plans to build new condominiums on the site, Rose said.
Residents have struggled to make sense of the lack of clarity about the building’s future.
Attorney Nima Farahani, who has conducted legal clinics and met with several of the Barrington tenants, said that under the Ellis Act, “if you really, in good faith, can’t be a landlord, you can stop being a landlord.”
But, he said, “you’ve got to go out of the rental business. End of story.”
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Under the law, if within two years a landlord rents an apartment vacated under the Ellis Act, they can be liable to former tenants for damages.
But after that, the consequences are less severe. If they rent within five years of the evictions, they must offer tenants a right of return with the same rent that they were paying when they were evicted, plus certain approved increases.
If the company rents again between five and 10 years, it must offer a right of return but can charge a market rate rent.
Advocates say that after two years, most residents will have resettled and be unlikely to return.
Residents have formed a tenants association, and many are preparing for fight the eviction. Some see it as part of a larger effort to protect affordable housing in Los Angeles.
A majority of the building’s tenants — who include a mix of retirees, working-class and white-collar workers and students — moved into the building in recent years. But more than 100 residents have lived at the Plaza for five or more years, according to city records. The median length of residency among those long-term tenants was 12 years. Some have lived there since the 1960s.
But even among those who have moved in more recently, there are residents who don’t want to go. Many say they chose the building because it was rent-stabilized, and that finding something similar will be next to impossible.
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Jacqui Fournier, 56, moved in to Barrington Plaza during the pandemic, in August 2020. She pays $1,595 for a studio on the 10th floor, a rate she believes was lower than it might have been under normal circumstances.
“We want to stay in our homes,” she said. “We cannot get, on the Westside, a comparable apartment at what we are paying now.”
The going rate for a studio apartment in the vicinity of Barrington Plaza is about $2,600, said Ryan Patap, senior director of market analytics with CoStar, which tracks real estate data.
The median rent paid by tenants at Barrington is $2,295, according to city data. That amount includes studios, one-bedroom and two-bedroom apartments.
Patap said it is possible that the large-scale evictions themselves could cause moderate rent increases in the surrounding neighborhood.
“This many renters probably would push up the rents. But to what extent, it’s hard to quantify,” he said.
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At the same time, it’s likely that many tenants won’t be able to remain in the neighborhood at all, because they wont be able to afford it, he said.
Chuck Martinez, a driver for Uber Eats, moved into Barrington Plaza in 2021. He knew it was the right place when he learned it was rent stabilized.
“I thought, ‘I’m going to need this,’ ” he said. “Looking back, I was happy I made the decision because now we’re dealing with inflation. The price of everything has gone up.”
He pays $1,850 a month for his studio on the 12th floor. From the windows that wrap around the corner unit, he can see Griffith Observatory and the Getty Center on a clear day.
“It’s a million-dollar view for $1,850,” he said.
For the last couple of weeks, when he’s not working he’s been meeting with other tenants, lawyers and advocates, trying to figure out if there is a way for him and others to avoid leaving.
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“I’m trying to save myself from losing my rent-stabilized apartment,” he said. “It’s the only way to try to keep something livable.”
Author note: This story was initially published in early July of 2023, before the “Barbie” movie’s initial release date. Some of the verbiage will be updated after the film’s public premiere.
Think pink.
It was once an unassuming sleeper hit directed by Greta Gerwig (the mind behind the films “Little Women” and “Lady Bird”). However, because of some cleverly teased marketing and some timely escapism, now it’s the movie of the summer. And it isn’t even out yet.
“Barbie” is now receiving high praise from the lucky critics that have gotten to see it. More importantly, its public approval soars as social media is exploding with pink, flashing pictures of what has come to be known as “Barbiecore.” What started with runway couture fashions has trickled into home fashion, as home decor publications are starting to show off a variety of 80s-esque vintage furniture and multiple shades of pink. Barbiecore became a cultural phenomenon, a feeling reflecting where we are in 2023 and where we wish to be.
What is Barbiecore, how did such an unusual trend emerge and how can you recreate its glossy joie de vivre in your own home? Find out here, and find some pieces that will fit your fantastic new life in plastic.
Barbiecore defined
Barbiecore is seeing life through rose-colored sunglasses. It is the essence of pink, of opulence and happiness. Summer drives with the windows down in a shiny coupe. ’80s-inspired party houses that people in the 2020s only dream of spending the night in. Perfectly swirled strawberry ice cream and sparkly designer pumps.
Barbiecore is a feeling — an escapist dream, a sweet, pink cloud of cotton candy plastered onto the COVID-weary, austere reality. Or as Emily Huggard, an assistant professor of fashion communication at Parsons School of Design states, “People are really latching on to escapism and things that they know and feel safe with. When we think about this trend [Barbiecore], it’s pretty, it’s hot pink, it’s not too complex — I think people are craving a time when things felt less heavy.”
How the Barbiecore trend is owning home decor
In fashion, this trend dominated the runway in 2022 via an all-pink Valentino fashion show. Since then, “dopamine dressing” has been popping up on social media, featuring showy, often bright designs that the pre-pandemic world might have deemed gaudy.
This same concept permeates all the home decor it touches too. Though everyone has their own personal take on the aesthetic that works for their home’s personality, the style features many high-contrast, high-gloss colors and textures — blended with fluffy, dreamy textiles in accents rugs and pillows. Meanwhile, the furniture often has vintage touches and bubbly, simple shapes that hearken back to happier times: You might even see some hearts, stars and glitter thrown in for good measure. And don’t forget the color pink.
Barbiecore spans design styles and decades
Many designers are opting to mix the style to their liking with cottagecore, shabby-chic and even coastal grandmother. After all, Barbie’s versatility made her famous, as she’s had more careers than anyone else you’ve ever met.
Just as Barbie has been celebrated throughout the years, you’ll find Barbiecore inspiration in multiple aesthetics, spanning each decade since she arrived in 1959. Barbie represents all that feels fun, luxurious and light in every era. Whether it’s the economic prosperity and traditionalism of the ’50s; the bold modernism of the ’60s; the sparkly disco balls of the ’70s; the brash consumerism of the ’80s; the sophistication and social progress of the ’90s; the pop music craze of the ’00s; the eclectic, identity-challenged 2010s or the social consciousness and maximalism of the 2020s, there’s a version of Barbiecore for all of our homes, too.
Vintage and modern Barbie
For example, if you love the geometric simplicity of the midcentury’s take on modern, opt for furniture with hairpin chair legs and pink upholstery. Capture the ’60s and ’70s with lucite furnishings because life in plastic is fantastic.
Live out your ’80s bubblegum dreams with glitter and crystalized accents galore. Find the ’90s aesthetic in floral wallpapers with pink accents, or go all out on early-aughts style with butterfly chairs, inflatable furnishings and textured walls.
If you don’t want to time-travel back that far, the 2010s and 2020s offer plenty of style varieties to try. After all, the 2010s gave us none other than Millennial pink, a more subdued take on Barbie’s signature hue. Rose gold finishings and chevron prints also dominated these years, both perfect for Barbiecore. The 2020s saw a resurgence in curvy furniture and maximalism, so if you’ve ever wanted to spring for something heart-shaped and over the top, do so now while it’s still on trend to also get it in pink.
Barbie buying guide
Now that you have more ideas about the Barbiecore concept, we’ll bring it down to earth with some Barbie-ish pieces you can buy, suiting many design tastes.
1) This fabulous, full-length mirror
IMAGE SOURCE: AMAZON.COM
It’s pink, it has rhinestones, and it’s long enough to see if your shoes match your dress. What more could you want if you’re unashamed of your new Barbiecore aesthetic? Outfits sold separately.
2) These flirty champagne flutes
IMAGE SOURCE: AMAZON.COM
Drink to your dream house with these high-quality champagne flutes, thanks to a collaboration with drinkware creator, Dragon Glassware. If you’d prefer coffee to champagne, the designer makes some gorgeous Barbiecore mugs as well.
3) This delightfully fluffy rug
IMAGE SOURCE: AMAZON.COM
Sink your heels into this plush, pink rug when you come home. Or pump up the pop music and invite your slumber party friends to a dance contest. Either way, this floor piece sets the foundation for a Barbiecore room layout.
4) This classy acrylic table
IMAGE SOURCE: AMAZON.COM
Accent any room with this rose-colored table. Though the design looks subtle, it screams Barbie, especially if paired with other pink decor items.
4) This idyllic wall art
IMAGE SOURCE: AMAZON.COM
If a season could be Barbiecore, it would be summer. You can practically smell the sweet drinks, chlorine and sunscreen through the wall. Dream of a world where your swimsuit always fits, where you tan but don’t burn while spending uninterrupted hours by the pool, unencumbered by chores and work. That’s all true, if only for a moment, when you look at this fun decor.
Anything in Viva Magenta
It’s almost as though PANTONE® knew this would be Barbie’s year when they announced the Color of the Year for 2023 as Viva Magenta. Thanks to its newfound fame and the movie’s hype, you’ll find this bright, saturated lipstick-pink shade everywhere. We covered the trend late last year, so check out some additional decor suggestions there as well.
Bring Barbiecore to life at home
Even if you choose not to see the movie, you’ll see enough Barbiecore images and items in the coming months to fulfill your Barbie needs. If you like what you see here, we suggest learning more about the trend and keeping your eye out for decor that fits your ideal aesthetic. Remember, life is your creation with this look, so don’t limit yourself to stereotypes, styles, age, gender norms or timelines. Just like with Barbie’s outfits and shoes, you can always begin with one piece at a time and build your collection.
But wait, are you still looking for a place to convert into your personal Barbiecore dream house? Start your summer here, looking at thousands of fabulous rentals. Make sure to get a place with a pool!
Maggie McCombs is the managing editor at Rent., where she oversees the content calendar and production schedule for three high-traffic websites. She studied linguistics and Spanish at the University of Georgia, where she learned the fundamentals of languages like Arabic, Latin, French and Old English and mastered Spanish literature. Since college, Maggie has developed a strong portfolio of blogs and journalistic pieces alike. Outside of work, Maggie spends time playing video games (especially anything Zelda!), competing in trivia contests, listening to audiobooks, exploring new cities and relaxing with her husband, dogs and cat.
Mortgage applications dipped 2.4% for the week ending Aug. 27, with a notable drop in refinance applications, according to the latest report from the Mortgage Bankers Association.
On an unadjusted basis, the weekly mortgage application survey by the trade organization decreased 3% compared to the prior week. The refinance index fell 4% but was still higher than it was a year ago. The seasonally adjusted purchase index dropped 2% compared to the previous week and was 16% lower than it was a year ago, largely due to soaring prices and paltry inventory.
Unlike prior weeks, there was little movement of mortgage rates or Treasury spreads. The 30-year-fixed-rate mortgage stayed at 3.03%.
“Despite low rates, refinance applications declined, with some borrowers still waiting for rates to drop even lower. Recent uncertainty around the economy and pandemic have kept rates low over the past month, which is why the refinance index has oscillated around these levels,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting. “Even with a slight increase, purchase activity hit its highest level since early July, as applications for conventional and government loans increased.”
Kan noted that home purchase activity is disproportionately concentrated in the higher price tiers of the housing market. The average purchase loan size hit $396,500 for the week ending Aug. 27, the highest average in five weeks.
What does the future hold for loan origination systems?
As the industry shifts from an emphasis on refinance to purchase originations, mortgage bankers are looking to leverage technology to speed up their origination processes and make them more efficient. They also want to meet customer demands for a contact-free, tech-enabled digital mortgage. This white paper will cover how cloud-based LOS’s can help mortgage bankers tackle purchase demands in a hot market.
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“According to FHFA, June’s year- over-year increase in home prices was 18.8 percent, while the second quarter saw a 17.4 percent increase overall,” Kan said in a statement. “Both measures set new records, as housing demand continued to outpace the inventory of homes for sale.”
The refinance share of mortgage activity fell to 66.8% from 67.3% the week prior. According to the MBA, the adjustable-rate mortgage rose slightly to 3.2% of total applications. The FHA share of total mortgage applications rose to 11.2% from 11.0% the prior week.
The average contract interest rate for the 30-year-fixed-rate mortgage with a jumbo balance (north of $548,250) remained unchanged at 3.13%, according to the MBA.
Mortgage rates continue to tick higher in 2018. Fed Chair Jerome Powell is back on Capitol Hill today, so there’s the potential for him to make some comments that impact the direction of current mortgage rates today. Long-term, rates are expected to continue to move higher. Read on for more details.
Where are mortgage rates going?
Rates up again in Freddie Mac PMMS
Every Thursday at 10:00am the Freddie Mac Primary Mortgage Market Survey (PMMS) gets released, revealing where mortgage rates are at for borrowers in the U.S. For the past two months now, we’ve seen mortgage rates steadily climb higher. Here are the numbers from today’s survey:
The average rate on a 30-year fixed rate mortgage moved up three basis points to 4.43% (0.5 points)
The average rate on a 15-year fixed rate mortgage went up five basis points to 3.90% (0.5 points)
The average rate on a 5-year adjustable rate mortgage fell three basis points to 3.62% (0.4 points)
This is what the Freddie Mac Economic & Housing Research Group had to say about mortgage rates this week:
“An optimistic testimony on Capitol Hill from Federal Reserve Chairman Jerome Powell sent Treasury yields higher as Powell stated his outlook for the economy has strengthened since December. Following Treasurys, the 30-year fixed mortgage rate jumped 3 basis points to reach 4.43 percent. The benchmark 30-year rate has been on a tear in 2018, climbing 48 basis points since the start of the year and increasing for 8 consecutive weeks. The 30-year fixed mortgage rate averaged 4.33 percent in February, up 30 basis points from last month and the highest monthly average since April of 2014.
As we documented, historically when mortgage rates surge, housing swoons. But we think strength in the economy and pent up housing demand should allow U.S. housing markets to post modest growth this year even with higher mortgage rates. We really have to wait for housing markets to heat up in spring, but early indications are that housing demand remains robust to these rate increases. The MBA reported in their latest weekly applications survey that home purchase mortgage originations were up 3 percent from a year ago.”
Rate/Float Recommendation
Lock in a rate soon before they rise significantly
Mortgage rates have moved higher for two months. The average rate on a 30-year fixed has shot up forty-eight basis points since the first survey in January. Looking ahead to the rest of the year, the general consensus is that mortgage rates will continue to rise, potentially reaching past 5%.
Learn what you can do to get the best interest rate possible.
Given this expectation, it stands to reason that borrowers who take action on a purchase or refinance soon will likely get the better deal. The longer you wait, the more risk there is for a higher mortgage rate.
Today’s economic data:
Jobless Claims
Applications for U.S. unemployment benefits came in at 210,000 for the week of 2/24/18. That puts the four-week moving average at 220,500.
Personal Income and Outlays
The personal income and outlays report for January got released this morning showing the personal income rose 0.4% from the prior month. Consumer spending rose 0.2%. The PCE Price Index ticked up 0.4%, putting it at 1.7% year over year. Core PCE rose 0.3%, month over month, bringing it to 1.5% year over year.
PMI Manufacturing Index
The PMI Mfg Index hit a 55.3 for February. That’s slightly below the consensus for 55.7.
ISM Mfg Index
The ISM Mfg Index came in at 60.8 for February. That’s higher than both the consensus and prior reading.
Construction Spending
Construction spending was unchanged in January, putting it at 3.2% year over year.
Fedspeak
New York Fed President William Dudley will speak at 11:00am.
Jerome Powell Testimony
Fed Chair Jerome Powell will go before the Senate Banking Committee today.
Notable events this week:
Monday:
Fedspeak
Chicago Fed National Activity Index
New Home Sales
Dallas Fed Mfg Survey
Tuesday:
Durable Goods Orders
International Trade in Goods
Jerome Powell Testimony
FHFA House Price Index
Consumer Confidence
Richmond Fed Manufacturing Index
Wednesday:
GDP
Chicago PMI
Pending Home Sales Index
EIA Petroleum Status Report
Thursday:
Jobless Claims
Personal Income and Outlays
PMI Manufacturing Index
ISM Mfg Index
Construction Spending
Fedspeak
Jerome Powell Testimony
Friday:
Consumer Sentiment
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Carter Wessman
Carter Wessman is originally from the charming town of Norfolk, Massachusetts. When he isn’t busy writing about mortgage related topics, you can find him playing table tennis, or jamming on his bass guitar.
So far in 2009, 81 banks have failed, a large number by any stretch, but nowhere near the total one private equity CEO believes will eventually succumb to the crisis.
John Kanas, who now heads BankUnited after acquiring it post-failure, told CNBC he expects 1,000 banks to fail over the next two years.
Of course, most will be small, private banks that no one has even heard of, but the carnage could be enough to sink the ever-powerful FDIC.
However, FDIC Chairman Sheila Bair noted yesterday that the agency already factored in bank failures expected to occur over the next year.
Problem Institutions Are on the Rise
Meanwhile, so-called “problem institutions” rose to a 15-year high, with 416 sharing that distinction as of June, more than triple the number from a year ago.
Though the FDIC’s Deposit Insurance Fund (DIF) slipped to just $10.4 billion in June, combined with the contingent loss reserve for expected failures, over $42 billion is at their disposal.
“The DIF balance reflects the net worth of the insurance fund,” said Bair in prepared remarks. It’s also a guide for setting deposit insurance premiums for our industry-funded system.”
“So when a bank fails, to the extent that we have already reserved for a failure, the loss comes out of the contingent loss reserve. For example, when Colonial Bank failed two weeks ago … there was no reduction in the fund because the estimated loss had already been reserved for.”
Still, the FDIC will likely need more private equity firms to step in to buy up failing banks, though guys like John Kanas aren’t happy with the high standards the FDIC is holding potential buyers to.
Private equity firms, in particular, would need double the capital of their competitors in order to buy these banks, something Kanas believes could deter interest.
The U.S. Federal Reserve just gave stretched-thin homebuyers a rare break.
The Fed held interest rates steady on Wednesday, declining to jack them up higher this month in its fight to tame inflation. That’s expected to nudge mortgage interest rates down a little by year’s end, potentially saving buyers some money. (While mortgage rates are separate from the Fed’s rates, they often move in the same direction.)
“Mortgage rates have likely peaked,” says Realtor.com® Chief Economist Danielle Hale. “But we’re not going to see a sudden or sharp decline. It’s going to be gradual.”
By year’s end, mortgage rates nationally could drop to the low 6% range as long as inflation continues to slow, predicts Hale. She expects they will eventually head back down to around 5% over the next few years.
Mortgage rates averaged 6.71% for 30-year fixed-rate loans in the week ending June 8, according to Freddie Mac. They averaged 6.95% as of Wednesday, according to Mortgage News Daily. They had fallen below 3% in 2020 and 2021.
“Activity in the housing sector remains weak, largely reflecting higher mortgage rates,” Fed Chair Jerome Powell said during a Wednesday press conference. “Certainly, housing is very interest rate-sensitive, and it’s the first place, really, or one of the first places, that’s either helped by lower rates or is held back by higher rates. And we certainly saw that over the course of the last year. We now see housing putting in a bottom and maybe moving up a little bit. We’re watching that situation carefully.”
Slowing inflation likely helped the Fed decide against jacking interest rates up any further this month. In May, inflation rose 4% year over year. While inflation is roughly double the Fed’s 2% target, inflation isn’t rising as much as April’s 4.9% year-over-year jump, according to the government’s consumer price index. And it’s far below the 9.1% surge of last June.
Plus, the cost of housing, which makes up about a third of the goods and services that are used to measure inflation, is expected to come down this year. That will mostly be a result of falling rental prices, although moderating homeownership costs could also help bring inflation down as well.
The Fed also doesn’t want to put any additional pressure on the banking industry, after several banks recently failed.
“We’ve still got a ways to go, but we’ve made some substantial progress in inflation,” says Hale.
However, the Fed indicated it will likely raise rates next month if inflation doesn’t fall further and the economy continues on its hot streak. Another hike could also happen later this year.
That would likely boost mortgage rates higher than Hale originally anticipated.
“We’ll still be under 6.5%,” she says. “We just won’t get as close to 6%.”
Falling home prices could also help cash-strapped homebuyers. Nationally, the median home list price dipped for the first time year over year since Realtor.com began collecting weekly data in mid-2017. Prices slipped 0.9% for the week ending June 10, according to the most recent data.
Sellers have been forced to adjust their prices to a reality where buyers’ budgets can’t stretch quite as high anymore. Sale prices have been dropping for existing homes, which excludes new construction, since February, according to the National Association of Realtors®. Now, asking prices are catching up.
“There will be some relief,” says Hale. “The number of homes for sale is still pretty limited, so we don’t expect to see big price declines.”
Renters and homeowners are experiencing inflation differently, according to new data from Bank of America — and, unsurprisingly, renters are taking the hit.
Using Bank of America internal data to identify homeowners and renters by housing-related payments in bank accounts — mortgage payments, homeowner association fees or rent payments — analysts found that a wedge has opened between spending by renters and homeowners. Renters are seeing weaker spending growth outside of housing.
Two things are causing the split in spending.
First, while the majority of homeowners’ monthly payments have not risen, the cost of renting has surged. Rent inflation jumped from around a 2% year-over-year increase in 2021 to 8.8% year over year in March 2023, according to the Consumer Price Index, although it has moderated marginally in recent months.
Meanwhile, the majority of US homeowners with outstanding mortgage balances have fixed interest rates that were locked in at ultra-low levels prior to the slew of recent interest rate hikes from the Federal Reserve.
Higher inflation and interest rate hikes have caused mortgage rates to climb from an average rate for a 30-year fixed mortgage of 2.65% in January 2021 — the lowest average weekly rate since the beginning of Freddie Mac’s records going back to 1971— to last week’s 6.81%, according to Freddie Mac.
The analysts say those homeowner households are not yet feeling the direct impact from rising rates. Only the handful of total homeowners who got a mortgage after early 2022 or those with floating mortgage rates (a very small number) are feeling pinched.
Secondly, even if a typical mortgage payment is higher than a typical monthly rent payment, because renters’ income tends to be less than homeowners, more renters put a larger share of their income toward rent than homeowners put toward mortgage payments. That is leading renters to pull back on their discretionary spending more than homeowners, according to Bank of America.
More renters are becoming “cost burdened,” which means households are paying more than 30% of theirincome toward housing, generally considered to be a financially sound share.
High housing costs hit renters hardest. Nearly half of renters — an estimated 49% — are cost burdened, according to a recent report from the Joint Center for Housing Studies at Harvard University. Between 2019 and 2021 (the most recent data available) the number of cost-burdened renters increased by 1.2 million to a record 21.6 million households. Among these, 11.6 million were severely cost burdened, meaning they spent more than 50% of their income on housing. Although the share of renter households experiencing cost burdens had been steadily declining over the past decade, the trend reversed during the pandemic.
While the share of homeowners who were cost burdened also rose during the same time — increasing by 2.3 million to 19 million homeowners, including 8.7 million households that were severely cost burdened in 2021 — only 23% of all homeowners are cost burdened, the Joint Center for Housing Studies report found.
That means they are likely to have more money for discretionary spending.
The year-over-year rate of total spending from the accounts, not including rent, has been weaker for renters since the start of 2022, the Bank of America report said, which coincides with the rise of rent inflation. Year-over-year spending by renters dropped in June by 1.4%, according to the report. But for homeowners, it was up 0.8% over the same period.
This trend is visible by spending sector, too, the report showed. Homeowners showed relative spending strength in all major sectors except furniture. (The weakness in furniture spending is likely related to weak home sales, analysts noted, which would impact homeowners more since they are less likely to be switching homes and have less need for new furniture.)
Restaurants are the only sector where homeowners and renters are both still showing an increase in spending from last year, and homeowners significantly outpace renters.
Even controlling for income — which is necessary because renters tend to have lower incomes than homeowners — renters are showing less spending strength than homeowners in their same income group in most spending categories. The disparity tends to be greater at lower income brackets with the difference between owners and renters less notable for the highest-income group, those earning over $125,000.
Looking ahead, however, this wedge between the spending of renters and homeowners may narrow, the report points out.
As the share of homeowners who have bought a home with higher mortgage costs increases and rent inflation moderates as the Fed winds down its rate hikes, the analysts say some convergence between the spending growth rates for the two groups is likely.