Evkaz
The average 30-year fixed-rate mortgage fell nearly half a percent this week to 6.61%, marking the biggest decline since 1981 and signaling optimism that inflation has peaked, Freddie Mac said Thursday.
“Home finance it fell this week due to emerging data that suggests inflation has peaked,” said Freddie Mac Chief Economist Sam Khater. “Inflation remains high, the Federal Reserve is expected to keep interest rates high and consumers will continue to feel the effects.”
Freddie Mac also updated its Primary Mortgage Market Survey to increase accuracy and reliability. “The new system will include more detailed information and real-time real estate price analysis,” Khater said.
Additionally, Freddie’s research will no longer publish fees/points or variable rates, the company said.
By type of interest rate: The 30-year FRM averaged 6.61% as of Nov. 17, down from 7.08% the previous week and the 15-year FRM was 5.98% against 6.38% before.
Despite the decline in home prices, homebuilder stocks remain in the red. Over the past month, the trading price of the iShares US Home Construction ETF changed to +2.1%. Name, DR Horton (DHI) stock has fell 2.3%KB Home (KBH) -2.6%Pulte Group (PHI) -2.6%Toll Brothers (TOL) -2.4%and Lennar (LEN) -1.9%.
Real estate/software stores are mixed. Everywhere Real Estate (HOUS), formerly Realogy, down 2.6%Redfin (RDFN) +4.9%Re/Max Holdings (RMAX) +0.9%Z +1.9%Compass (COMP) -2.8%.
On Wednesday, credit demand rose 2.7% in the last week of Nov. 16, while the 30-year FRM rate fell to 6.90% from 7.14% the previous week, according to the Mortgage Bankers Association.
