Home Mortgage, Interest Rates, Home Price growth

April 14, 2021

Home borrowing costs fell in the latest week and remain at historically low levels. The MBA reports that the 30-year fixed-rate mortgage declined nine basis points to 3.27% with 0.33 in points for the week ended April 9, 2021. The Market Composite Index, a measure of total mortgage loan application volume fell 3.7% while the Purchase Index declined by 1.4. The Refinance Index fell 5% and is down 31% from a year ago. Spokesperson Joel Kan said, “Last week’s Refinance Index level was the lowest in over a year, as mortgage rates continue to trend higher. Many borrowers have either already refinanced at lower rates or are unwilling – or unable – to refinance at current rates.” Freddie Mac released its quarterly forecast report today signaling that as ‘the economy recovers, the housing market remains healthy while mortgage rates move up.’ Freddie Mac went on to say that hurdles for potential homebuyers are low inventories and rising rates. The numbers: 30-year fixed-rate mortgage to average 3.2% in 2021, 3.7% in 2022. Home price growth to rise 6.6% in 2021 and decline to 4.4% in 2022. Total originations are expected to be $3.5% trillion in 2021, $2.4 trillion in 2022. Purchase originations $1.7 trillion in 2021 and $1.6 trillion in 2022. Refinance originations are expected at $1.8 trillion in 2021 and $770 billion in 2022. Homes sales should reach 7.1 million this year and 6.7 million next year.