Mortgage rates

Doma leadership said it has the technology and underwriting capabilities to allow the government-sponsored enterprises to handle the risk refi loans eligible for title waivers under a pilot announced by President Biden last week.

At current levels, monthly payments could surge by 39% between 2023 and 2025 for an approximately $250,000 loan, according to new research.

Fannie Mae's home price sentiment index grew to 72.8 in February, up 2.1 points from the month prior.

But those rates are still relatively high, and that is a barrier to entry for potential homebuyers, Freddie Mac said.

February was the second consecutive month where lenders eased underwriting, although overall availability remains near record low levels, the Mortgage Bankers Association.

The latest inflation news has created concern that the Federal Reserve's pivot on short-term rates could be delayed.

The company originated more loans to buy homes than Detroit-area rival No. 2 Rocket did in total during the fourth quarter.

While mortgage volume should rise this year, the government-sponsored enterprise expects slightly less activity than it did back in January.

The 30-year average rate got closer to 7% as central bank officials dashed near-term hopes of a cut, according to Freddie Mac.

For the first time since mid-December, the Freddie Mac survey reports mortgage rates over 6.7%.

January volume increased 36% compared to the month before and the annual decline in activity was the lowest in almost two years, Optimal Blue said.

In the derivatives markets, they've started pricing in that the Fed will carry out just four — or five at the most — quarter-point rate cuts in 2024, only slightly more than the three penciled in by policymakers.

While the Freddie Mac survey reported just a 1 basis point increase from last week, Zillow's tracker found a 30 basis point rise in the 30-year fixed, more reflective of what happened in the bond market.

Views on mortgage rates and job security outweigh the pessimism about affordability and the economy, Fannie Mae found.

This legislation, which would be the first of its kind if passed, would apply to sellers who finance the rate buydowns made through the end of 2025.

As a result, a robust housing market is now on the horizon, Freddie Mac chief economist Sam Khater declared.

A key Senator had urged Fed Chairman Jerome Powell to lower rates early this year, but although there's more consensus on making such a move, it now looks unlikely to happen until after the next meeting.

A potential buyer with a budget of $3,000 per month for their payments is now able to afford an approximately $453,000 home.

Senator Elizabeth Warren and three Democratic colleagues urged Federal Reserve Chair Jerome Powell to lower interest rates to help bring down housing costs ahead of the central bank's policy meeting this week.

Even with the 9 basis point rise this week, they have remained at the same level since mid-December, and that should bring people into the market, Freddie Mac said.