Monthly Archives: February 2022

Mortgage applications are down 56% | Armonk Real Estate

Mortgage applications decreased 13.1 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending February 18, 2022. 

The Market Composite Index, a measure of mortgage loan application volume, decreased 13.1 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 11 percent compared with the previous week. The Refinance Index decreased 16 percent from the previous week and was 56 percent lower than the same week one year ago. The seasonally adjusted Purchase Index decreased 10 percent from one week earlier. The unadjusted Purchase Index decreased 6 percent compared with the previous week and was 6 percent lower than the same week one year ago.  

“Mortgage applications dropped to their lowest level since December 2019 last week, as mortgage rates continued to inch higher. The 30-year fixed rate was 4.06 percent, almost a full percentage point higher than a year ago. Higher mortgage rates have quickly shut off refinances, with activity down in six of the first seven weeks of 2022. Conventional refinances in particular saw a 17 percent decrease last week,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “Purchase applications, already constrained by elevated sales prices and tight inventory, have also been impacted by these higher rates and declined for the third straight week. While the average loan size did not increase this week, it remained close to the survey’s record high.”  

The refinance share of mortgage activity decreased to 50.1 percent of total applications from 52.8 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 5.1 percent of total applications.  

The FHA share of total applications increased to 8.7 percent from 8.3 percent the week prior. The VA share of total applications increased to 9.9 percent from 9.3 percent the week prior. The USDA share of total applications remained unchanged at 0.4 percent from the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) increased to 4.06 percent from 4.05 percent, with points increasing to 0.48 from 0.45 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $647,200) increased to 3.84 percent from 3.81 percent, with points increasing to 0.45 from 0.39 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.  

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 4.09 percent from 4.01 percent, with points decreasing to 0.56 from 0.59 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.  

The average contract interest rate for 15-year fixed-rate mortgages increased to 3.42 percent from 3.37 percent, with points decreasing to 0.45 from 0.50 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 5/1 ARMs decreased to 3.26 percent from 3.36 percent, with points decreasing to 0.34 from 0.48 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week. 

Home prices grow at record rate | Waccabuc Real Estate

National home prices grew at an unsustainable pace in December, supported by strong demand and record-low inventory. Home price appreciation is expected to slow in the coming quarters as rising mortgage rates price some homebuyers out of the market.

The S&P CoreLogic Case-Shiller U.S. National Home Price Index, reported by S&P Dow Jones Indices, rose at a seasonally adjusted annual growth rate of 16.9% in December, following a 15.1% increase in November. National home prices are now 51.8% higher than their last peak during the housing boom in 2006. On a year-over-year basis, the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index posted an 18.8% annual gain in December, the same increase as in November. Home price appreciation (YOY) has slowed since September 2021.

Meanwhile, the Home Price Index, released by the Federal Housing Finance Agency (FHFA), increased at a seasonally adjusted annual rate of 15.6% in December, following a 15.3% increase in November. On a year-over-year basis, the FHFA Home Price NSA Index rose by 17.7% in December, the same gain as in November.

In addition to tracking national home price changes, S&P CoreLogic reported home price indexes across 20 metro areas in December. All 20 metro areas reported positive home price appreciation and their annual growth rates ranged from 8.6% to 34.4%. Among all 20 metro areas, thirteen metro areas exceeded the national average of 16.9%. San Diego led the way with a 34.4% increase, followed by Seattle with a 27.1% increase and Dallas with a 26.8% increase.

The scatter plot below lists the 20 major U.S. metropolitan areas’ annual growth rates in November and in December. The X-axis presents the annual growth rates in November; the Y-axis presents the annual growth rates in December. Five out of the 20 metro areas had a deceleration in home price growth, including Los Angeles, Miami, Tampa, Las Vegas, and Seattle.

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Mortgage rates average 3.92% | South Salem Real Estate

Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing that the 30-year fixed-rate mortgage (FRM) averaged 3.92 percent.

“Mortgage rates jumped again due to high inflation and stronger than expected consumer spending,” said Sam Khater, Freddie Mac’s Chief Economist. “The 30-year fixed-rate mortgage is nearing four percent, reaching highs we have not seen since May 2019. As rates and house prices rise, affordability has become a substantial hurdle for potential homebuyers, especially as inflation threatens to place a strain on consumer budgets.”

News Facts

  • 30-year fixed-rate mortgage averaged 3.92 percent with an average 0.8 point for the week ending February 17, 2022, up from last week when it averaged 3.69 percent. A year ago at this time, the 30-year FRM averaged 2.81 percent.
  • 15-year fixed-rate mortgage averaged 3.15 percent with an average 0.8 point, up from last week when it averaged 2.93 percent. A year ago at this time, the 15-year FRM averaged 2.21 percent.
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.98 percent with an average 0.3 point, up from last week when it averaged 2.80 percent. A year ago at this time, the 5-year ARM averaged 2.77 percent.

The PMMS® is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20 percent down and have excellent credit. Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following link for the Definitions. Borrowers may still pay closing costs which are not included in the survey.

Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we’ve made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders, investors and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog FreddieMac.com/blog.

Con Ed raises Westchester electric prices 11.2%, gas prices up 18.2% | Cross River Real Estate

Con Edison has asked the state for permission to raise gas and electric prices next year, citing the need to cover costs including system upgrades and renewable energy investments.

The utility company hopes to hike electric and gas bills by 11.2% and 18.2%, respectively, it said in a statement provided to NY1. That increase would amount to around $1.2 billion more in electric revenue and $500 million in gas revenue, the company said. 

The price hikes would “vary by customer class,” the company said in a press release, noting in a separate document that its customer classes include residential units and commercial properties.

Con Edison said the hikes are needed so it can upgrade its gas and electric delivery systems. The company is also planning to invest more in renewable energy, including electric vehicles and clean heat.

In addition, the company would put some of the revenue toward moving “vulnerable overhead electric cables and other equipment” below ground to prevent storm-related outages, with a focus on “disadvantaged communities,” the release said.

“Con Edison is in a unique position to lead the transition to a clean energy future with better public health, a vibrant economy and more equality of opportunity for all,” Con Edison President Matthew Ketschke said in a statement. “That’s why we want to dramatically increase our energy efficiency incentives, make electric vehicle charging more convenient, and encourage heat pumps as an alternative to gas heating.”

The proposal is “designed to fund the investments necessary for a safe and reliable clean energy future… and our operating expenses, like local property taxes,” the company’s statement added. 

In January 2020, the State Public Service Commission voted to allow Con Edison to raise electric prices by 13.5% and gas prices by 25%, in yearly increments, by this year.

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