It is well known that home sales and mortgage loan statistics have reached and surpassed historic performance. With a variety of sources for how these statistics are tracked, it can become confusing to understand.
The Adverse Market Fee is defined as a 0.5% fee added in 2020 to refinanced mortgage loans backed by Fannie Mae and Freddie Mac (about 70% of all home loans). It was charged to lenders and usually passed on to homeowners through closing costs, as an addition to their loan amount or by a raised interest rate.
If you’ve found yourself confused by recent headlines relating to mortgage interest rate, you are not alone! When reliable sources report contradictory information, even the leaders in the industry are left scratching their heads.
Sale of residential properties in California continue to perform at the hottest pace in history, resulting in a 65% increase in number of sales over the same period last year. The number of homes sold above asking price, the price per square foot, and the sales-to-list price records are all at industry highs.
In a recent article on Reuters.com they report that “Fed officials agreed last month to leave interest rates near zero and to keep purchasing $120 billion a month in bonds until the U.S. economy makes substantial further progress toward the Fed’s goals for inflation and maximum employment” They further inform us that “Fed Bank President Robert Kaplan said on Monday that he still thinks it is possible the U.S. central bank could raise interest rates before the end of 2022, reaffirming the projection he made during the March policy-setting meeting.“
After seeing mortgage rates increase in the first quarter of 2021, homeowners and buyers that are in the process of seeking mortgage loans were excited to see mortgage rates drop to the lowest levels seen in the past month.
After a long and challenging year created by the pandemic, many potential home buyers are wondering if the available residential real estate inventory will increase as the pandemic subsides, or will it continue to decrease as it did this past year.
According to reports from the National Association of Realtors (NAR), millennials represent 37 percent of all homebuyers this past year, and have made up the largest share of homebuyers for 8 consecutive years. Another interesting fact from the NAR is that many of the homes being purchased are considered multigenerational homes that will house adult siblings, adult children, parents, or grandparents.
Homeowners took advantage of February’s mortgage refinance interest rates below 3% with a resyktubg 68% of all mortgage loans being refinance loans. Although rates have slowly increased in March, the refinance activity is still very high.