US employers added 227,000 jobs last month, exceeding analyst forecasts in a rebound from October – but the unemployment rate also unexpectedly ticked higher. While the jobs market bounced back compared with the prior month, when hurricanes and labor strikes weighed against hiring, the November figures released Friday by the Bureau of Labor Statistics signaled […]

Potential homebuyers are responding to lower mortgage rates and a higher supply of homes for sale. That fueled mortgage demand last week, as consumers looking to refinance pulled back. Total mortgage application volume rose 2.8% compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. An additional adjustment was made for […]

Since the Fed cut rates 50 basis points on September 18th, we’ve seen 30-year fixed mortgage rates rise meaningfully. You may be wondering how this can be. The Fed is reducing the Fed Funds Rate, which is not mortgage rates or even a long-term rate. The Fed Funds Rate is a very short-term rate, literally […]

Annual inflation dropped to 2.4% last month as housing costs continued decelerating, an upbeat sign for prospective homebuyers. The September inflation figure from the consumer price index released on Thursday was down from 2.5% the prior month, giving Federal Reserve policymakers a positive signal for further rate cuts. For homebuyers, the lower inflation figure should […]

After months of anticipation, the Federal Reserve cut interest rates on Wednesday by half a percentage point. That will have an impact on the housing market — but it’s unlikely to make a huge difference for those struggling to afford a home. Mortgage rates might not actually drop much further right now Mortgage rates have been pretty […]

Housing sentiment was largely unchanged in August as consumers remained cautious despite some improvements in mortgage rates and home listings.  Fannie Mae’s Home Purchase Sentiment Index (HPSI) showed a modest rise of 0.6 points to 72.1, but overall homebuying sentiment saw little change. A notable 39% of consumers surveyed said they expect mortgage rates to decline […]

Inflation continues to make progress as the headline Consumer Price Index eased to 2.5% YoY in August from 2.9% in July, reaching its lowest level since February 2021. Core CPI (which removes food and energy prices) held steady at 3.2% YoY due in large part to shelter costs. These crucial readings keep the Fed on […]

Mortgage interest is the fee you pay for borrowing money to buy a home. It’s calculated as a percentage of the loan amount and is paid over the life of the mortgage. This interest rate can be fixed or adjustable and is added to your monthly payments throughout the loan term.  For example, with a […]

The housing market has been tough in 2024, with stubbornly high mortgage rates keeping many homebuyers on the sidelines. But in August, a light appeared at the end of this tunnel when rates dropped to yearlong lows—below 6.5% for a 30-year fixed home loan. And with the Federal Reserve signaling a much awaited interest rate cut in September that […]

While the Federal Reserve doesn’t directly set mortgage rates, it influences them by making changes to the federal funds rate, the interest rate that banks charge each other for short-term loans. The Fed’s decisions alter the price of credit, which has a domino effect on mortgage rates and the broader housing market.  “When the Fed […]