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Get a mortgage NOW? Redfin says YES; Fannie, NO; Freddie, MAYBE 🤔

By October 8, 2021 No Comments

When is the right time to buy a home? Now is the right time to buy a home!

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Freddie Mac’s mortgage rates are showing that the 30-year fixed-rate mortgage averaged 2.99%, down from 3% from last week. 

“Mortgage rates continue to hover at around three percent again this week due to rising economic and financial market uncertainties,” said Sam Khater, Freddie Mac’s Chief Economist. “Unfortunately, with the expectation that both mortgage rates and home prices will continue to rise, competition remains high and housing affordability is declining.”

However, all of these signs that Khater mentions do not apply to homeowners looking to refi or buy today.

In fact, with low rates coupled with it being the month of October, NOW is a great time to get a mortgage!!! 

According to a recent report from ATTOM Data Solutions, Buyers willing to close in October avoid prices well above market value… Their analysis even narrows in on best days to buy nationwide and best months to buy at the state level.

While the premium is still above market value, homebuyers are only dealing with a 2.9% premium, as opposed to the month of May, when homebuyers are experiencing an 11.5% premium. 

This analysis of more than 33 million single-family home and condo sales over the past eight years is evidence of the continuation of a hot sellers’ market.

Welcome to Rise&Shred, this is just a note saying there will be no email alert on Monday, we’ll see you on Tuesday!!!

Freddie Mac’s mortgage rates are showing that the 30-year fixed-rate mortgage averaged 2.99%, down from 3% from last week. 

“Mortgage rates continue to hover at around three percent again this week due to rising economic and financial market uncertainties,” said Sam Khater, Freddie Mac’s Chief Economist. “Unfortunately, with the expectation that both mortgage rates and home prices will continue to rise, competition remains high and housing affordability is declining.”

However, all of these signs that Khater mentions do not apply to homeowners looking to refi or buy today.

In fact, with low rates coupled with it being the month of October, NOW is a great time to get a mortgage!!!

According to a recent report from ATTOM Data Solutions, Buyers willing to close in October avoid prices well above market value… Their analysis even narrows in on best days to buy nationwide and best months to buy at the state level.

While the premium is still above market value, homebuyers are only dealing with a 2.9% premium, as opposed to the month of May, when homebuyers are experiencing an 11.5% premium. 

This analysis of more than 33 million single-family home and condo sales over the past eight years is evidence of the continuation of a hot sellers’ market.


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Fannie Mae: If only homebuyers felt now was a good time to buy 🙁

Despite the greatest time to get a mortgage being NOW, right NOW, Fannie Mae is going to be the one to ruin the good vibes.

The Fannie Mae Home Purchase Sentiment Index decreased 1.2 po

ints to 74.5 in September, as survey respondents continued to report divergent opinions of homebuying and home-selling conditions. 

Overall, three of the index’s six components decreased month over month. 

Most notably, an even greater share of consumers reported that it’s a bad time to buy a home – with that number now sitting at 66 percent, up from 63 percent last month and significantly higher than the 28% of respondents who believe it’s a good time to buy. 

The home-selling conditions component remained mostly flat, with a strong majority of consumers maintaining that it’s a good time to sell. 

Year over year, the full index is down 6.5 points.

“The HPSI declined slightly this month but remains within the general bounds we’ve seen since the end of last year,” said Doug Duncan, Fannie Mae Senior Vice President and Chief Economist. “The survey’s story is also largely unchanged: Consumers feel it’s a bad time to buy a home but a good time to sell – and they continue to cite high home prices as the primary reason.”

Across all consumer segments, renters and younger consumers were slightly more likely to indicate it’s a bad time to buy, perhaps a reflection of their generally lower incomes and their observation that the availability of affordable homes is lacking, Duncan added.

“We’re also seeing a softening in consumers’ expectations that home prices will continue to increase; however, in our view, other housing market fundamentals remain supportive of further home price appreciation – including low levels of inventory and low-interest rates,” he said.


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Not so fast Fannie, Redfin says “homebuyers aren’t slowing down!”

The average homebuyer's monthly mortgage payment rose $50 over the last six weeks, according to a new report from Redfin, the technology-powered real estate brokerage. 

At the same time, sellers' median asking price increased 12% year over year to a new record-high and mortgage rates surpassed 3%.

HOWEVER!!! 

Despite rapidly declining affordability, many homes are still selling very quickly—nearly half find a buyer within 2 weeks. 

THe led Redfin to say in the above report that even though mortgage rates rose above 3% for the first time since June and asking prices set a record high —> homebuyers aren't slowing down.

Although homes are still selling for about 1% above asking price on average, the share of listings with price drops is increasing, suggesting that price increases may be easing just slightly.

“Mortgage rates and asking prices are both on the rise, which translates to higher housing costs,” said Redfin Chief Economist Daryl Fairweather. “For now, mortgage rates are still hovering near 3% and demand remains strong. However, we are likely to see rates tick up into the winter months, and that could slow demand just like it did in late 2018. As that happens, sellers will have a harder time getting buyers to bite on their sky-high asking prices.”


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