Everyone knows that high mortgage rates have been a big drag lately, especially for potential homebuyers facing sky-high asking prices. But what if I told you that nearly half of those who recently bought a home are still getting an interest rate of less than 5%? It seems highly unlikely, given the fact that the … Read more
If you recall, Chase acquired struggling First Republic Bank in May 2023. Before First Republic’s collapse, it was the leading jumbo home loan lender in the United States. They catered to wealthy homeowners and businessmen. Ironically, it was their extremely low-interest mortgages that ultimately led to their decline. Today, Chase is the nation’s largest jumbo … Read more
It seems clear now that it does not matter what economic data comes out between now and next week. Mortgage rates will not improve by any significant margin this week or even after the election. Unfortunate for those who need to stabilize and/or close their price this week. And last month for that matter. Lenders … Read more
Shape Lending unveiled the new loan at a time when housing affordability has rarely been worse. Call it a sign of the times, and perhaps an eerie reminder of the housing market of the early 2000s. But maybe with some extra guarantees this time, like actual underwriting of the loan! The new product, a home … Read more
I often try to find positive aspects in bad situations. The latest problem facing potential homebuyers is the return to 7% mortgage rates, up from about 6% just a month ago. Although there is no clear negative relationship between mortgage rates and home prices, as one rises and the other falls, you can still make … Read more
We’re currently facing a strange kind of housing crisis where current homeowners are in a great place, but potential buyers are often priced out. The problem is one of affordability and the problem of lack of available stock. It’s the type of inventory that first-time home buyers look for. So, you have a market of … Read more
With mortgage rates rising again, somewhat unexpectedly, a thought crossed my mind if you are currently home shopping. Two years ago, I brought up the idea of ​​adjusting the maximum purchase price to a lower level when searching for a property. This post was prompted by several home sales that were exceeding demand at the … Read more
When the housing market collapsed in the early 2000s, new mortgage rules emerged to prevent a similar crisis in the future. The Dodd-Frank Act gave us both the ability-to-repay rule and the qualified mortgage rule (ATR/QM rule). The ATR requires creditors to “make a reasonable, good faith determination about a consumer’s ability to repay a … Read more
If you’ve been paying attention, you’ve probably noticed that mortgage rates have quietly returned to closer to 7%. While 7% mortgage rates seemed to be a thing of the past, they returned just as quickly as they disappeared. For reference, the 30-year fixed rate averaged about 8% a year ago, before it began its decline … Read more
Mortgage Questions and Answers: “Are your mortgage payments increasing?” While this seems like a no-brainer question, it’s actually more complicated than it seems. Do you see, There are a number of different reasons why mortgage payments may increaseregardless of the obvious change in interest rates. But let’s start with this and go from there. And … Read more