Category: News

Breaking, curated news headlines from across the mortgage industry.

Home sellers are realizing it’s no longer their housing market

By | July 4, 2022

A growing number of home sellers have been forced to readjust their home prices in recent weeks. According to Redfin, an estimated 6.1% of homes for sale during the four weeks leading to June 19, asked for a price drop – a record high as far back as the data goes, through the start of 2015. That comes as… Read More »

Should the Fed start selling its mortgage holdings at a loss to fortify its inflation fight?

By | June 25, 2022

“If they really want to sound like they are committed to price stability, selling MBS could be something to explore,” said Priya Misra, head of global rates strategy at TD Securities, by phone, about the Fed’s $2.7 trillion holdings of mortgage-backed securities. “But I don’t think they will,” she added. Instead, Misra expects the Fed to first use higher rates… Read More »

Fed’s Harker: ‘Starting to see some signs of demand softening’

By | June 22, 2022

The U.S. economy is starting to show signs of softening demand, which if continued, could make the case for a slightly less aggressive interest rate hike in July, Philadelphia Federal Reserve President Patrick Harker said Wednesday. “We are, again, starting to see some signs of demand softening, which is exactly what we want,” Harker told Yahoo Finance’s Brian… Read More »

JPMorgan Lays Off Hundreds in Home Lending After Rate Surge

By | June 22, 2022

The total affected will be more than 1,000 US workers, with about half moved to different divisions within the bank, according to people familiar with the matter who asked not to be identified discussing personnel matters. “Our staffing decision this week was a result of cyclical changes in the mortgage market,” a JPMorgan spokesperson said in a statement… Read More »

5 signs the housing market is starting to slow down

By | June 20, 2022

There is a shift happening in the housing market. After more than a year of soaring demand, exploding home prices and increasing real estate sales, the market finally seems to be cooling off. “The housing market isn’t crashing, but it is experiencing a hangover as it comes down from an unsustainable high,” said Taylor Marr, Redfin deputy chief… Read More »

Top economist Mohamed El-Erian says the everything bubble is over. It’s a paradigm shift away from a ‘silly’ artificial economic world

By | June 17, 2022

Wednesday’s decision by the Federal Reserve to hike interest rates by 75 basis points was its biggest hike since 1994, and economists are starting to digest what a paradigm change it is. One of the world’s most prominent Fed watchers, Mohamed El-Erian, chief economic adviser of financial services firm Allianz and president of Queens’ College at Cambridge, says it’s part… Read More »

The Fed plans to ‘reset’ the housing market—raising the likelihood of falling home prices

By | June 16, 2022

As this shift occurred, we heard very little from the Fed. Well, that was until Fed Chair Jerome Powell addressed reporters on Wednesday. Here’s what Powell had to say: “We saw [home] prices moving up very very strongly for the last couple of years. So that changes now. And rates have moved up. We are well aware that mortgage rates have… Read More »

U.S. mortgage interest rates jump to highest level since 2008

By | June 15, 2022

The average interest rate on the most popular U.S. home loan climbed to its highest level since the 2008 financial crisis and purchase applications were down more than 15% from last year, Mortgage Bankers Association (MBA) data showed on Wednesday. Still, more homebuyers sought properties compared to a week earlier, perhaps signalling a flurry of activity before aggressive… Read More »