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With great weather, friendly people and enough museums and historic spots to keep you busy for months, Raleigh is a great place to live. Known as the City of Oaks thanks to its trees, what pulls people in is the warm atmosphere you’ll find throughout the city.

The cost of living is another reason people like living here. Overall, living in Raleigh costs 3.8 percent less than the national average. This puts the city smack in the middle of North Carolina towns, with places like Chapel Hill being 6.1 percent more, and Thomasville being 14.2 percent less.

Sitting below the national average can make Raleigh a pretty affordable town. But the best way to calculate if the city will fit into your budget is to break down the cost of living in Raleigh into its most essential parts.

Housing costs in Raleigh

Although housing prices in Raleigh are rising by a decent amount, overall costs are still 3.5 percent below the national average. Again, this hits a more middle range when looking across the state. Costs are nowhere near as high as in Chapel Hill, at 18.7 percent above the national average, but they’re also not as low in places like Winston-Salem at 23.1 percent below.

Looking at specific rent averages, you’ll most likely find Raleigh somewhere between reasonable and slightly high. A one-bedroom apartment in Raleigh is up 12 percent, with an average monthly rent of $1,520. A two-bedroom apartment is up a little less, at only 10 percent, and has an average monthly rent of $1,759.

Home prices are increasing at a similar rate for those who want to bypass being a renter. The median sale price in Raleigh is $410,000, up 12.5 percent over last year.

Apartment hunting

Deciding where to live in Raleigh can depend on a lot of factors. You may want to live close to your job or prefer a suburb over a more urban neighborhood. Regardless of your amenity wish list or rental parameters, Raleigh offers up plenty of friendly, comfortable neighborhoods at multiple price points.

For those with a little extra money to spend on rent, Glenwood tops the list when it comes to cost. The average one-bedroom here is $2,269. Also toward the higher end when it comes to renting is North Hills. One of Raleigh’s fastest growing areas, North Hills is full of good schools, great shopping, plenty of parks and popular restaurants and entertainment. The average one-bedroom apartment here is $1,923.

For neighborhoods closer in price to the average, check out Wakefield. One-beds here rent at an average of $1,578. Locals love this suburban neighborhood with its easy access to the city center. Also relatively affordable, Downtown Raleigh averages out at $1,619 a month for a one-bedroom apartment. That will definitely keep you close to all the city’s happenings.

If you need to save a little on rent, check out Cameron Village. This popular, affordable neighborhood has it all, and it’s all within walking distance. Situated near North Carolina State, you’ll also find a lot of college students close by. The average one-bedroom rent here is $1,304.

Food costs

Yet another city that excels at Southern cuisine, Raleigh is famous for a variety of classic main dishes and sides. This includes everything from the city’s unique style of barbecue to the hush puppies and collard greens you might pair with that rack of ribs. You may also want to try some juicy fried chicken or shrimp and grits when dining out in Raleigh.

When it’s time to dine in and get that shopping list ready for the grocery store, it’s good to know items are 8.3 percent below the national average. Even though this is a slight increase over the previous year, prices for individual food items should still average out on the more affordable side.

For example, you’ll pay an average of $1.76 for a dozen eggs and $2.04 for a half gallon of milk. A loaf of bread carries an average cost of $3.34, while a frozen meal is about $3.12. Individually, grocery items in Raleigh are less expensive, on average, than in other North Carolina towns. In Winston-Salem, a dozen eggs are $0.78 more, and you’ll see that same price increase in Charlotte when it comes to a loaf of bread.

Utility costs

Pleasant is an appropriate word to describe Raleigh weather on most days. Yes, the summers can get a little hot and humid, and yes, some winter nights are cold, but overall, the weather here is the kind that calls to you to get outside and encourages you to let the fresh air into your home.

That said, the cost of living in Raleigh when it comes to utilities is a little high. This is thanks to those 90-plus-degree days in July and the frosty January nights. Overall, utility costs are 3.2 percent above the national average, a 3.1 percent increase over last year.

While some months may test your budget when it comes to your electric bill, on average, expect to pay $193.76, one of the highest averages across the state.

Transportation costs

Though there are some walkable spots in Raleigh, for the most part, getting around in the city will require a car or proximity to public transportation. Overall, transportation costs are affordable at 10.7 percent below the national average. This, once again, puts Raleigh toward the middle when compared with other cities in North Carolina, sandwiched in by Charlotte (1.6 percent more) and Salisbury (0.7 percent less.)

If you opt for public transportation, you’ll get to hop on a GoRaleigh bus. There are 26 regular and express routes, a free downtown circular and the Wake Forest Loop, which travels in both directions. A single-ride fare is $1.25, but passes are also reasonably priced. You can get a day pass for $2.50, a seven-day pass for $12 and a 31-day pass for $40.

Taking your own car out and about most likely means paying for parking at some point, especially if you’re heading in or near downtown. Raleigh makes it easy to find parking options. Parking garage prices will vary, but most meters will cost no more than $1.50 per hour.

Healthcare costs

The cost of living in Raleigh when it comes to healthcare is 4.2 percent above the national average. This is a 4.1 percent increase over last year, but healthcare across the state is higher than average in most cities.

This can mean higher prices when it comes to doctor’s visits and prescription medications, however, everyone’s specific budget greatly depends on insurance coverage and overall health. Knowing averages can help estimate costs, but everyone will have a different cost of living expense when it comes to maintaining their health.

That said, without insurance, expect to pay $122.50 on average to see your general practitioner, $119 for each trip to the eye doctor and $116.33 at the dentist. Average prescription drug costs, without the help of insurance, are $498.

Goods and services costs

This broad category makes up a huge section of your cost of living in Raleigh. It’s where all the fun things go, and all the regular things you may want, but don’t necessarily need.

In Raleigh, goods and services costs are 3.2 percent below the national average. Winston-Salem has the highest numbers in North Carolina at 5.9 percent above the national average, so Raleigh is a lot more reasonable.

This could make it easier to plan a night out full of fun, starting with a six-pack of beer you buy to enjoy with a few friends before going out. You’ll pay an average of $9.49 for that. Next, you decide to catch a movie. A ticket will cost an average of $12.51. Afterward, you all decide you’re hungry so you go out for burgers. At an average price of $4.49, this will be the least expensive piece of your night.

There are also goods and services that don’t involve happy hour and hanging out with friends. In Raleigh, the average yoga class is $18.40, and most locals spend around $14.92 on dry cleaning.

Taxes

Sales tax across North Carolina varies by location. The state requires a 4.75 percent tax, but Raleigh adds on both a county tax and a special tax. This brings the Raleigh sales tax rate up to 7.25 percent. This is higher than the average tax across the state, and only slightly below cities like Chapel Hill, which at 7.5 percent, has the highest rate.

How does this impact what you pay when you shop? Well, say you’re out buying furniture for your new apartment. You spend $1,000 on a new couch. Of that grand, $72.50 goes straight to taxes.

How much do I need to earn to live in Raleigh?

Making enough to live comfortably in Raleigh is a huge component of happily calling the city home, and this all starts with rent. If you can afford rent, you can technically afford to live in Raleigh. But, if you don’t want your entire budget to go to this expense, make sure you use our rent calculator to figure out exactly what you can afford.

Looking at the average cost of a one-bedroom apartment in the city ($1,517) and assuming you want to follow what most experts suggest and only spend 30 percent of your annual income on rent, you’ll need to make $60,680 to live in Raleigh.

This is entirely plausible given that the median household income in Raleigh is $69,720. That means you may even have a little money left over to upgrade your living situation or splurge in another part of your monthly budget.

Free things to do

Of course, one great way to save money, should you need to make some budget cuts, is to seek out all the free fun Raleigh has to offer. Sometimes considered the “home of the free” by locals, there’s a considerably large number of free attractions throughout the city, from parks and lakes to museums.

For free fun outdoors, check these spots out:

  • With 22 miles of hiking trails and a hanging bridge that’s so much fun to cross, William B. Umstead State Park does not disappoint
  • Perfect for bird-watching and hiking, the Carl Alwin Schenck Memorial Forest contains 245 acres of managed woods
  • Featuring more than 6,000 different types of plants from around the world, the J.C. Raulston Arboretum has one of the largest and most diverse collections of Southeastern greenery
  • For fishing, sailing, canoeing or kayaking, make sure to visit the 650-acre lake at Lake Wheeler Park
  • To stop and smell the roses, check out the 60 different varieties in the Raleigh Rose Garden

For a free cultural experience, visit these great places:

  • Although you can take classes for a price, Downtown Raleigh’s Artspace features access to exhibits from national and community artists
  • Get to know the athletes that called North Carolina home by visiting the North Carolina Sports Hall of Fame
  • Hop in the car and head a little north to the Wake Forest Historical Museum where you can learn all about the town of Wake Forest, as well as the history of Wake Forest College
  • For another community experience, visit the Cary Heritage Museum and see a complete chronicle of the town’s history

What’s even better, the North Carolina Museum of Art (permanent collection only), North Carolina Museum of History and North Carolina Museum of Natural Sciences are all also free to visit.

Living in Raleigh

Raleigh is a friendly and mostly affordable place set in perfect Southeast weather. It has so many positives, from delicious food to a ton of free activities. Are you convinced yet that it’s the perfect place to live? Good. Now, you just need to make sure your budget agrees.

The Cost of Living Index comes from coli.org.

The rent information included in this summary is based on a calculation of multifamily rental property inventory on Rent. as of August 2022.
Rent prices are for illustrative purposes only. This information does not constitute a pricing guarantee or financial advice related to the rental market.

Source: rent.com

Apache is functioning normally

The average 30-year-fixed mortgage rose seven basis points to 3.05% for the week ending Oct. 14, to its highest level since April, according to Freddie Mac’s latest PMMS survey of mortgage rates.

Two weeks ago, rates rose 13 basis points to 3.01%, eclipsing the 3% mark for the first time since June. However, last week, rates fell to 2.99%. Mortgage rates typically move in tandem with the 10-year U.S. Treasury yield, which was 1.56% for Oct. 14.

Sam Khater, Freddie Mac’s chief economist, said in a statement that “as inflationary pressure builds due to the ongoing pandemic and tightening monetary policy, we expect rates to continue a modest upswing.”

Mortgage rates have been kept low in part because of the Federal Reserve’s massive monthly purchases of $120 billion in U.S. Treasury bonds and mortgage-backed securities. The central bank has signaled that will eventually come to an end, however, and it is expected to begin to taper off its purchases when substantial further progress is made in the labor market.

Although rates remain at historic lows for now, market observers do expect rates to climb upward, eventually. Even a modest increase in rates could deter borrowers from seeking to refinance their mortgages.

How fine-tuning MSR valuations can help lenders improve decision-making

As rates change and the market shifts to a more purchase-driven origination environment, lenders need to carefully monitor margins and profitability. If we’ve learned anything in the past year, it’s that operational flexibility and accurate servicing valuation are key to lending profitability.

Presented by: Black Knight

A year ago at this time, the 30-year fixed-rate mortgage averaged 2.81%. The 15-year fixed-rate mortgage averaged 2.30% last week, up from the prior week, when it averaged 2.23%.

“Historically speaking, rates are still low, but many potential homebuyers are staying on the sidelines due to high home price growth. Rising mortgage rates combined with growing home prices make affordability more challenging for potential homebuyers,” Khater said.   

Mortgage application activity has also been largely flat. The latest mortgage application survey from the Mortgage Bankers Association (MBA) showed applications overall increased just 0.2%  for the week ending Oct. 8, compared to the prior week.

Joel Kan, MBA’s associate vice president of economic and industry forecasting, said that an increase in home purchase applications, which was a “welcome news,” offset a slight decline in refinances.  

Source: housingwire.com

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Tuesday continued the same theme of incredibly modest movement inside an incredibly narrow range.  The average lender is still just under 7% for a conventional 30yr fixed loan, but now slightly closer to 7% compared to yesterday.

Earlier this morning, rates were set to improve by just as much but economic data caused bonds to lose value.  As bond prices fall, rates rise, all other things being equal.  

If it’s any consolation, at least some of the data spoke to a stronger housing market.  Home prices rose at 0.7% in April (the most recent month in the index) compared to forecasts calling for less than half as much appreciation.  New Home Sales surged to the highest levels in more than a year, easily outpacing expectations.

Source: mortgagenewsdaily.com

Apache is functioning normally

The slow zombie crawl of housing inventory went lower last week as inventory was negative week to week. In addition, mortgage rates rose to a yearly high as labor data stayed firm and purchase apps had their first negative week after three straight weeks of positive growth.

  • Weekly Active listings fell by 866 homes
  • Mortgage rates rose to a year-to-date high of 7.22%
  • Purchase apps were down 5% week to week

Weekly housing inventory

We had a hat trick in housing last week: weekly active listings were negative week to week, new listings were negative week to week, and active listing + new listing data is negative year over year. This is truly a savagely unhealthy housing market as we have too many people chasing too few homes.

The weekly active listing data had a rare week-to-week decline. Part of this can be attributed to the July 4th holiday, but the trends this year versus last year have been so different that it’s not 100% based on a holiday week.

  • Weekly inventory change (June 30-July 7): Inventory fell from 465,755 to 464,889
  • Same week last year (July 1-July 8): Inventory rose from 472,046 to 487,319
  • The inventory bottom for 2022 was 240,194
  • The inventory peak for 2023 so far is 472,688
  • For context, active listings for this week in 2015 were 1,197,641 


The housing inventory growth is so slow this year that the active listings data today in July isn’t even higher than our January levels, which is typically when we see the seasonal bottom for the year’s first half. As we can see in the chart below, it’s been so slow that year-over-year inventory is now negative versus 2022.


The other big story in housing has been that new listing data has been trending at the lowest levels recorded in history for 12 months. We have had four straight weeks of declines and we are about to run into the seasonal decline in this data line. As we can see below, there is a big difference between 2023 data for this week versus 2022 data.

  • 2023: 58,813
  • 2022: 90,336
  • 2021: 68,328

The 10-year yield and mortgage rates

Mortgage rates started the week at 7.03% and ended at 7.14%. The 10-year yield is close to yearly highs as the U.S. bond market doesn’t see a job-loss recession happening soon. As you can see below, bond yields rose noticeably during jobs week.


In my 2023 forecast, I said: If the economy stays firm, the 10-year yield range should be between 3.21% and 4.25%, equating to mortgage rates between 5.75% and 7.25%. The labor market remains healthy as long as jobless claims trend below 323,000 on the four-week moving average. As we can see below, the 10-year yield has stayed in this channel 100% of the time in 2023, but mortgage rates are on the verge of breaking over 7.25%.

As the spreads between the 10-year yield and mortgage rates have worsened since the banking crisis, this has added more pressure on rates to be higher than I would have anticipated in 2023. The chart below shows the spreads rising after the SVB banking crisis started.

Purchase application data

Purchase application data was down 5% weekly, making the count for the year-to-date data 13 positive and 12 negative prints. If we start from Nov. 9, 2022, it’s been 20 positive prints versus 12 negative prints. Considering mortgage rates have been near 7% and above the last month, having three out of the last four weeks being positive shows that the collapsing market in 2022 did change after Nov. 9.

But remember: The bar is so low with purchase apps that we can trip over it. As long as we know that the data has just stabilized from a waterfall dive, we are all in the same boat with the data this year.

The week ahead: Inflation week!

Inflation week is here again, and we have two inflationary reports to work with. Between the critical CPI data and the PPI data, we should see the same story: the headline inflation data is falling noticeably, but the core inflation data is a bit more sticky. Still, the shelter aspect of inflation will kick in more here, with used car prices falling over the next few months. Below is the year-over-year core CPI data.

Considering where we are with the 10-year yield and mortgage rates, a lighter-than-expected CPI inflation print this week would be just what the housing market needs to bring mortgage rates lower. 

Source: housingwire.com

Apache is functioning normally

The Employment Situation (a.k.a. the monthly jobs report) for February has arrived and is impacting the direction of mortgage rates this morning.

If the present trend holds through the day, we’ll see rates finish out the week higher than where they started. Rates are expected to continue rising in 2018, so the smart decision for most borrowers is to lock in a rate sooner rather than later. Read on for more details.

[embedded content]

Market Recap 3.9.18 from Total Mortgage on Vimeo.

Where are mortgage rates going?                                        

Monthly jobs report pushes rates higher

The monthly jobs report for February is out and it’s showing that 313,000 jobs were added to the U.S. economy during that month. That’s wildly higher than the 205,000 that analysts had expected. Even the high end range was only 230,000.

The report does have one glaring weak point in that average hourly earning came in one tenth of a point below expectations at 0.1%. Investors have been closely watching this metric and after the previous month’s strength, today’s reading is a bit of a disappointment.

However, despite the wage growth weakness, a headline reading as strong as this one is incredibly rare, and it certainly has financial markets abuzz this morning.

All of the major market indexes are trading higher today by a little less than 1.00%. With investors moving more into stocks, there’s less money going into bonds, pushing Treasury yields higher.

The yield on the 10-year Treasury note (which is the best market indicator of where mortgage rates are going), is up about four basis points to 2.90%. That’s just about its highest position of the week.

Mortgage rates typically move in the same direction as the 10-year yield, so rates are moving slightly higher right now as we approach the weekend.

The big news yesterday was the Freddie Mac Primary Mortgage Market Survey which showed rates moving higher for the ninth consecutive week. That’s every single week in 2018. Here are the numbers:

  • The average rate on a 30-year fixed rate mortgage ticked up three basis points to 4.46% (0.5 points)
  • The average rate on a 15-year fixed rate mortgage moved up four basis points to 3.94% (0.5 points)
  • The average rate on a 5-year adjustable-rate mortgage rose one basis point to 3.63% (0.4 points)

Here is what Freddie Mac’s Economic & Housing Research Group had to say about rates this week:

“The 10-year Treasury yield has been bouncing around in a narrow 15 basis point range for the last month. While the yield on the 10-year Treasury is currently below the high of 2.95 percent reached two weeks ago, mortgage rates are up for the ninth consecutive week. The U.S. weekly average 30-year fixed mortgage rate rose 3 basis points to 4.46 percent in this week’s survey, its highest level since January 2014.”

It’s always worth noting that data for the survey is collected early on in the week and therefore does not reflect where mortgage rates currently stand. Obviously, this survey does not take into account today’s monthly jobs report and the subsequent push higher for rates.

Rate/Float Recommendation                   

Lock now to try and get the best rate

Another week has come and gone and mortgage rates continue to move higher. If you’re considering refinancing your current mortgage or buying a new home, we strongly suggest that you lock in a rate now in order to try and get the best deal possible.

Learn what you can do to get the best interest rate possible. 

Many analysts are calling for the 30-year fixed rate to move above 5% at some point this year, so the longer you wait the longer you run the risk of paying more. It only takes a quick phone call or a few minutes online to get started.

Today’s economic data:                                 

Employment Situation for February

  • See above for details

Fedspeak

  • Chicago Fed President Charles Evans will speak a few times today.

Notable events this week:                

Monday: 

  • PMI Services Index
  • ISM Non-Mfg Index
  • Fedspeak

Tuesday:    

  • Fedspeak
  • Factory Orders

Wednesday:      

  • Fedspeak
  • ADP Employment Report
  • International Trade
  • Productivity and Costs
  • EIA Petroleum Status Report
  • Beige Book

Thursday:        

  • Jobless Claims

Friday:       

  • Employment Situation for February
  • Fedspeak

*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.

Source: totalmortgage.com

Apache is functioning normally

There’s so little housing stock that even as mortgage rates climb, homes are selling above their asking price, a report by Redfin says.

New home listings are down 25% since last year, sinking beneath 2020 lows, according to the report. Total home listings are down 12%. 

This supply slump made monthly homeowner payments skyrocket, but Redfin says, “despite the double dilemma of low inventory and high prices, early-stage homebuyer demand is picking up.”

The amount of home shoppers actually increased compared to last summer: the brokerage company’s seasonally adjusted homebuyer demand index, which measures home tours and other homebuying service requests, increased by 11% this year. 

Mortgage applications were also on the rise in June but just dropped again.

The demand index remained below 2020 and 2021 levels, however, as both prices and rates have increased significantly over the past three years. 

The average 30-year fixed mortgage rate hit an all time low of 2.65% in January 2021. Then it sprung back up, peaking at 7.08% last November. It’s remained high ever since — this week, the average rate was 6.81% according to Freddie Mac. 

Home price trends follow a similar pattern: Redfin’s seasonally adjusted data shows a dip in the national median sale price during 2020, when it hit $292,000. Then, it steadily rose until last spring, reaching $415,000. The median price then dipped down slightly. Now, Redfin says, it’s $402,000.

The median asking price is up right now, too, but not by much. It hit $395,725 this month, an increase of only 1.1% from last year.

“Almost every home is getting multiple offers and selling over asking price,” Redfin agent Jeremy Lucas said in the report. “The lack of supply is making it feel almost like 2021 all over again, but higher rates mean bidding wars are happening more in the $500,000 range than the $700,000 range because people can afford less.”

Homebuyer payments, which Redfin calculates using the 4-week rolling average of the median asking price, are shockingly high. Using last week’s average interest rate of 6.71%, Redfin estimates that homebuyers will have to pay $2,622 each month, an increase of 13.6% from the same time last year.

There were only 770,210 homes for sale this month, and listings aren’t rising like they usually do in the summer. Instead, they’ve remained flat all year. 

The average home has an average sale-to-list price ratio of 100.1%, meaning homes are selling for slightly more than their asking price. It’s the first time the ratio breached 100% this year.

The “lack of homes for sale is the main reason” for this, the report says, because homebuyers are battling it out in an unusually sparse market.

Source: nationalmortgagenews.com

Apache is functioning normally

The average 30-year-fixed rate mortgage climbed to 3.09% during the week ending Oct. 21, rising from 3.05% the week prior, according to the latest Freddie Mac PMMS Mortgage Survey. A year ago, the 30-year fixed-rate mortgage averaged 2.80%. Most economists believe they’ll continue to climb.

“Mortgage rates continued to rise this week due to the trajectory of both the economy and the pandemic,” Sam Khater, Freddie Mac’s chief economist, said in a statement.

The rise in mortgage rates moved in concert with the 10-year Treasury yield, which reached 1.65 yesterday, its highest rate since May.

The bond market for months has been preparing for the Federal Reserve to begin tapering its $120 billion in monthly asset purchases, which will send rates further north.

According to the minutes from the central bank’s September meeting, that tapering is expected to come as soon as mid-November. The target date to end the purchases – which includes $80 billion in Treasury securities and $40 billion in mortgage backed securities – would be mid-2022. Observers believe the central bank will also raise short-term interest rates in the coming months.

Lenders – Now is the time to prioritize lead generation

HousingWire Editor-in-Chief Sarah Wheeler and Deluxe Senior Business Development Executive Mark McGuinn discuss the challenges lenders are facing to optimize lead generation as mortgage rates fluctuate. 

Presented by: Deluxe

The refi mortgage market, which is more rate-sensitive than the purchase market, is expected to suffer. Refinances are forecast to fall 14% to $860 billion in 2022, and economists at the Mortgage Bankers Association have predicted that mortgage rates will climb to 4% by the end of next year.

Rising mortgage rates and paltry inventory will make things harder for homebuyers as well.

“Even as the availability of existing homes is improving, prices remain high due to homebuyer demand and limitations on housing starts and permits resulting from the ongoing labor and material shortages,” Khater said. “Despite these countervailing forces, we expect the housing market to remain strong as we head into the end of the year.”

The MBA has forecast purchase mortgage volume to hit a record $1.73 trillion in 2022, up 9% from the projected 2021 total. The expected record is largely due to the rise in home prices, and not necessarily the raw number of home sales. Supply chain issues for homebuilders are still expected to be present in 2022, though a number of housing economists believe they’ll ease up somewhat.

Rising mortgage rates – up about 20 basis points in the past month alone – have already begun to sap demand. Mortgage application activity dropped 6.3% for the week ending Oct. 15, according to the most recent MBA survey.

The 15-year-fixed-rate mortgage averaged 2.33% last week, up from 2.30% the week prior. A year ago at this time, it averaged 2.33%.

Source: housingwire.com

Apache is functioning normally

Mortgage rates fell below 3% in the week ending November 10, according to the latest Freddie Mac PMMS mortgage report.

The 30-year fixed-rate mortgage declined to 2.98% last week, falling 11 basis points from 3.09% the week prior. A year ago at this time, the average 30-year fixed-rate loan averaged 2.84%.

“Despite the re-acceleration of economic growth, the recent bond rally drove mortgage rates down for the second consecutive week,” Sam Khater, Freddie Mac’s chief economist, said in a statement. “These low mortgage rates, combined with the tailwind of first-time homebuyers entering the market, means that purchase demand will remain strong into next year. However, affordability pressures continue to be an ongoing concern for homebuyers.”

The decline in rates has also led to a surge in refinancings. According to the Mortgage Bankers Association, the refi index rose 7% for the week ending Nov. 5. Although overall activity remains close to January 2020 lows, homeowners were spurred to act on the decrease in rates, he said.

Mortgage rates have remained low in large part due to the Federal Reserve’s massive monthly purchases of $120 billion in U.S. Treasury bonds and mortgage-backed securities. The Fed has said that it’s satisfied that substantial economic progress has been made in the labor market and will begin tapering its asset purchases later in November.

Lenders – Now is the time to prioritize lead generation

HousingWire Editor-in-Chief Sarah Wheeler and Deluxe Senior Business Development Executive Mark McGuinn discuss the challenges lenders are facing to optimize lead generation, even as mortgage rates continue to change. 

Presented by: Deluxe

Although rates remain close to historic lows, market observers do expect rates to climb upward, eventually. The MBA projects that by the end of 2022, mortgage rates will approach 4%.

Economists at Freddie Mac said the 15-year fixed-rate mortgage averaged 2.27% last week, down from 2.35% the week prior. It’s actually lower than it was a year ago, at 2.34%. Similarly, the five-year ARM dropped slightly to 2.53%, down one basis point from last week. A year ago, 5-year ARMs averaged 3.11%.

Source: housingwire.com

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Our experts answer readers’ home-buying questions and write unbiased product reviews (here’s how we assess mortgages). In some cases, we receive a commission from our partners; however, our opinions are our own.

After falling moderately in June, mortgage rates have been climbing this month. Average 30-year mortgage rates hit 6.81% this week, the highest they’ve been in eight months, according to Freddie Mac.

“Mortgage rates continued their upward trajectory again this week, rising to the highest rate this year so far,” Sam Khater, Freddie Mac’s chief economist, said in a press release. “This upward trend is being driven by a resilient economy, persistent inflation, and a more hawkish tone from the Federal Reserve. These high rates combined with low inventory continue to price many potential homebuyers out of the market.”

The Federal Reserve has been raising the federal funds rate to get inflation under control. Though the central bank opted not to raise rates at its June meeting, Fed officials have indicated that future hikes are likely, as the economy is still running hot. This has helped keep mortgage rates elevated.

Markets largely expect a 25-basis-point hike at the Fed’s next meeting later this month, according to the CME FedWatch Tool.

Mortgage Rates Today

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Mortgage Refinance Rates Today

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Mortgage Calculator

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

Mortgage Calculator

$1,161
Your estimated monthly payment

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

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

30-Year Fixed Mortgage Rates

The average 30-year fixed mortgage rate is currently 6.81%, according to Freddie Mac. This is a 10-basis-point increase from the week before.

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

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

15-Year Fixed Mortgage Rates

The average 15-year fixed mortgage rate is 6.24% right now, according to Freddie Mac data. This is an 18-basis-point increase from the previous week.

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

Are Mortgage Rates Going Up?

Mortgage rates started ticking up from historic lows in the second half of 2021 and increased significantly in 2022. But mortgage rates are expected to trend down this year.

In the last 12 months, the Consumer Price Index rose by 4%. Inflation remains elevated, but has started to slow, which is a good sign for mortgage rates and the broader economy. 

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

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

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

How Do Fed Rate Hikes Affect Mortgages?

The Fed has been increasing the federal funds rate to try to slow economic growth and get inflation under control.

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

As inflation starts to come down, mortgage rates should, too. But the Fed has indicated that it’s watching for sustained signs of slowing inflation, and it’s not going to lower rates again any time soon — it may even increase rates again in its July meeting.

Molly Grace

Mortgage Reporter

Source: businessinsider.com

Apache is functioning normally

It’s not every day you get a chance to live in the White House—especially without the pressures of leading the free world.

But if you have the funds, the opportunity awaits. A palatial estate known as the “Western White House” has landed on the market for $38.9 million. The 24,350-square-foot home was built in 1915 and while it’s within commuting distance of San Francisco, it occupies a world all its own.

Alex Buljan holds the listing with Pierre Buljan, both with Compass Real Estate. The splendid estate’s price tag puts it on the Realtor.com® list of this week’s most expensive homes. It has certainly captured plenty of attention for its price and history.

“This property is a historic jewel set in the town of Hillsborough,” Alex Buljan says. “This week, when the home landed on the market, the mayor, Christine Krolik, visited the property because she recognized its historic value and had never been before. As soon as she saw it, she asked if she could host a city event at the property. She was that blown away.”

The Western White House

(Brian Kitts)

A bird’s-eye view of the Western White House

(Brian Kitts)

A unique historical gem can be yours.

(Brian Kitts)

Wood-paneled elegance

(Brian Kitts)

Classic interiors

(Brian Kitts)

No detail was overlooked at the Western White House.

(Brian Kitts)

An architectural gem

The home was redesigned by legendary architect, Julia Morgan. Born in 1872, Morgan attended college at the University of California, Berkeley, and earned a degree in civil engineering. After graduating, she enrolled at Ecole des Beaux Arts in Paris to pursue a graduate degree in architecture, becoming the first woman to graduate from the program.

Morgan returned to the Golden State and became California’s first licensed female architect. She opened her own firm to design homes and iconic buildings, taking on some 700 commissions during her career.

She tackled the redesign of the Western White House, when George Hearst hired her to completely revamp the home and property after it sustained major fire damage. Morgan accepted the commission in 1930; the original house dates back to the 1870s.

Hearst was introduced to Morgan by his tycoon father, William Randolph Hearst, who’d previously hired the architect to design his now-iconic Hearst Castle in San Simeon in 1919.

Morgan redesigned the Hillsborough home to mimic the presidential White House in Washington, DC, with an Oval Office and a rose garden.

An outstanding estate

The 11-bedroom, 14-bathroom residence features an 8-car garage and is perched on three acres, much of which is forested, with a meandering creek that winds its way through the trees. The home is private, beyond the view of passersby.

The landscaped grounds include mature trees, terraces, lush green lawns, rose gardens, marble hardcaping, a gorgeous swimming pool with a hot tub, and a pavilion with its own kitchen, bathroom, and sauna.

The Western White House is reported to have last been purchased by long-time neighbor and real estate investor Mehrdad Elie, who heard the home was going up for sale. Elie offered $15 million and, when the offer was accepted, immediately began investing in an overhaul and upgrade that deliberately reflected Morgan’s and Hearst’s vision.

Elie poured millions into the project, updating all 14 (nine full, five half) bathrooms, ripping up carpets to install hardwood floors that would match Morgan’s original flooring, and polishing every architectural detail. When the project was finished, Elie decided the home was too large for his family of four and placed the property on the market.

The lay of the house

When you walk in, you’ll find a formal entry parlor, two powder rooms, a replica “East Room” with a fireplace, a formal dining room, gourmet kitchen, butler’s pantry, breakfast room, family room, and a replica “Oval Office.”

The second level features five bedroom suites, including the primary with its two spacious bathrooms, expansive dressing rooms, private executive office, plus an additional bedroom.

A recreation room, home movie theater, snack bar, powder room, oversized bathroom with changing room, one bedroom suite, and two additional bedrooms make up the top floor.

The lower level offers a fitness room, family room, lounge, wine cellar, two bedrooms, one bathroom, a powder room, and laundry center.

The estate also boasts a rooftop sun deck, extensive solar panels, a dumbwaiter, room-sized bank safe, and a panic room.

Source: realtor.com