The Federal Reserve called an emergency meeting Sunday to slash its benchmark rate to zero—its second response to the volatile economic reaction to the coronavirus outbreak. The Fed also said it would buy $700 billion in Treasury and mortgage bonds. After the Fed’s last emergency cut on March 3, mortgage rates plunged to all-time lows. Freddie Mac reported the 30-year fixed-rate mortgage averaged 3.29% for the week ending March 5. Could rates
After hitting a record low last week, rates reversed course this week and inched up. Rates still remain at “extraordinary levels,” Freddie Mac said in its weekly rate report.The 30-year fixed-rate mortgage climbed from last week’s 3.29% record low average to 3.36% this week.“As refinance applications continue to surge and lenders work to manage capacity, the 30-year fixed-rate mortgage ticked up from last week’s all-time low,” says Sa
Borrowers came in swarms last week to take advantage of another massive drop in mortgage rates. Mortgage application activity, which includes refinances and home purchases, surged 55.4% last week compared to the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Volume was 192% higher year over year.The bulk of the increase came from homeowners refinancing their mortgages into lower rates. Applications for
Borrowers who are unable to make their monthly mortgage payments due to COVID-19, also known as the coronavirus, have options to postpone payments, according to a new statement released by the Federal Housing Finance Agency. FHFA Director Mark Calabria reminded mortgage servicers this week to offer forbearance options to those who are affected as the virus continues its spread through the U.S.“To meet the needs of borrowers who may be impacted
The ultra-wealthy may be looking to expand their real estate portfolios. The industry is watching closely as the number of high-net-worth individuals grows: About 31,000 more ultra-rich people emerged globally in 2019, which is an annual growth rate of 6%, according to a new report from U.K.-based real estate firm Knight Frank and New York brokerage Douglas Elliman. The growth rate of the ultra-rich, or those with a net worth of at least $30 mill
The 30-year fixed-rate mortgage this week fell to its lowest average on record—3.29%—since Freddie Mac began tracking such data in 1971. And borrowers rushed to lock-in.Mortgage applications rose 10% last week compared to a year ago, says Sam Khater, Freddie Mac’s chief economist. “Given these strong indicators in rates and sales, as well as recent increases in new construction, it’s clear the housing market continues to be a positive f
Homeowners were in a rush to take advantage of lower mortgage rates, as weekly refinance applications surged 26%, the Mortgage Bankers Association reported Wednesday. Refinance volume is now nearly 224% higher than a year ago.Mortgage rates are falling due to fears of an outbreak of the new coronavirus in the U.S. The average 30-year fixed-rate mortgage dropped to 3.57% last week from 3.73% a week earlier, the MBA reports. A year ago, rates avera
Last year, home flipping reached its highest rate since 2006, according to ATTOM Data Solution’s 2019 U.S. Home Flipping Report, released Thursday. Butt despite the increase, profit margins have dropped, the report shows.In 2019, 245,864 single-family homes and condos in the U.S were flipped—that represents 6.2% of all home sales during the year. Those home flips generated a gross profit, on average, of $62,900 nationwide, representing the di
Trailer parks have emerged as one of the top-performing real estate investments in the decade since the housing crash, The Wall Street Journal reports. Shares of stocks for major operators of mobile home parks, such as Sun Communities Inc., have climbed 4,137% since March 2009. “They’ve been rocket ships,” John Pawlowski, an analyst at real estate research firm Green Street Advisors, told the Journal. “It’s baffling how g
Americans’ credit scores are improving, particularly among millennials. The average FICO score in the U.S. surged to a record of 703 in 2019, Experian reported in a new analysis. The share of Americans who had FICO scores above 700 increased to 59%, the highest on record. “Millennials ages 24 to 39 now outnumber baby boomers and are finally hitting their credit stride,” according to the Experian report. “Their economic emergence is r
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