U.S. household debt nears $16 trln, but mortgage, auto loan demand wanes – NY Fed

By | May 10, 2022

U.S. household debt rose to a record $15.84 trillion in the first quarter driven almost entirely by a $250 billion increase in home loan balances, but the rise was the smallest in a year and new mortgage and auto loan originations declined for a third straight quarter. The Federal Reserve Bank of New York’s quarterly household debt report… Read More »

Jeremy Grantham rings the alarm on housing as mortgage rates rise, saying the US won’t be able to ‘skate through’ a property crisis

By | May 7, 2022

“2000 showed you can just about skate through a stock market event,” Grantham said in an interview with Bloomberg columnist John Authers on Wednesday, published Friday. “But Japan and 2008 showed you can’t skate through a housing crisis.” Grantham predicted in January that one of the few great market “superbubbles” in modern history is about to pop. On top of worrying… Read More »

The Fed wants to cool the U.S. housing market. Here’s what that feels like

By | May 3, 2022

In mid-April, months into an increasingly frustrating house hunt, Harsh Grewal and his wife settled on a place in a San Francisco suburb and were prepping a bid, above the listed price so they’d have a chance of besting other offers in one of the nation’s hottest housing markets. Then he checked his phone and saw several alerts,… Read More »

Housing: Mortgage rates exceed 5%, home sales drop

By | April 21, 2022

“Mortgage rates increased for the seventh consecutive week, as Treasury yields continued to rise,” Sam Khater, Freddie Mac’s chief economist, told Yahoo Money. “While springtime is typically the busiest homebuying season, the upswing has caused some volatility in demand. It continues to be a seller’s market, but buyers who remain interested in purchasing a home may find that… Read More »

Existing home sales dip for a second consecutive month

By | April 20, 2022

Housing activity slowed for a second straight month in March. Existing home sales fell 2.7% to a seasonally adjusted 5.77 million units in March from a month earlier, according to the National Association of Realtors (NAR). Home sales fell across all regions in the U.S. from February. The NAR also revised February existing home sales downward to 5.93 million from 6.02 million.… Read More »

Soaring interest rates weigh on big bank mortgage loan growth

By | April 18, 2022

“The increase in rates negatively impacted our mortgage banking business,” Wells Fargo CEO Charlie Scharf told analysts on Thursday. “The mortgage origination market experienced one of the largest quarterly declines that I can remember.” Wells Fargo home loans fell 33% from a year ago on lower mortgage originations and lower gains when selling those loans in the secondary… Read More »

UPDATE 1-U.S. mortgage interest rates top 5%, buyers look to lock in rates

By | April 13, 2022

April 13 (Reuters) – The average interest rate on the most popular U.S. home loan rose to more than 5% last week, the highest level since November 2018, and homebuyers hurried to make purchases before costs rise further, the latest weekly survey from the Mortgage Bankers Association (MBA) showed on Wednesday. The average contract rate on a 30-year… Read More »

Surging interest rates push mortgage demand down more than 40% from a year ago

By | April 6, 2022

“Mortgage application volume continues to decline due to rapidly rising mortgage rates, as financial markets expect significantly tighter monetary policy in the coming months,” said Joel Kan, an MBA economist. “As higher rates reduce the incentive to refinance, application volume dropped to its lowest level since the spring of 2019.” The refinance share of all applications fell to… Read More »

U.S. mortgage rates jump by the most in 11 years -MBA

By | March 30, 2022

(Reuters) – The interest rate on the most popular U.S. home loan jumped last week by the most in 11 years as bond market investors rapidly repositioned for the Federal Reserve to take more aggressive action to contain inflation, a survey showed on Wednesday. The Mortgage Bankers Association (MBA) said the contract rate on a 30-year fixed-rate mortgage… Read More »