Stocks Drop, Rates Rise, Home Sales Strengthen Overview: The stock market dropped sharply over the past week. Normally, this would result in investors shifting assets to bonds, and the added demand would push yields lower. However, that was not the case this week, and mortgage rates ended at the highest levels in four years. Several big-picture factors negatively affected mortgage rates over the past week. Investor expectations for future inflation increased. Investors also raised their outlook for the pace of tightening by the Federal Reserve, meaning that they now view four rate hikes this year as more likely. The supply of
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According to an article published in National Mortgage News, the trend of owning a homeownership being a cheaper option than renting is starting to change. Attom Data Solutions, the company who conducted the study, found homeownership was more affordable than renting in 54% of the top 447 US cities, down from 66% a year ago. The 14 most populated counties, and in 30 of 39 counties with a population at or above 1 million, renting is more affordable than buying a home. “Although buying is still more affordable than renting in the majority of U.S. housing markets, that majority is
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Economic experts have begun weighing in on expected trends in the housing market for next year. Knowing and preparing for changes in the market can help savvy real estate professionals weather any storms that may come. Here are some of the predictions to be on the lookout for: Increase in Home Purchases Every industry expert whose opinions we looked at agreed: Purchase mortgage volume will increase in 2018. In fact, Michael Fratantoni, chief economist and senior vice president of research and technology of the Mortgage Bankers Association (MBA), expects purchase growth through 2020. Freddie Mac’s Economic and Housing Research Group
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