David Deem 714-997-3486 Dave@DeemTeam.com With the average 30-year fixed mortgage rate from  Freddie Mac  climbing above 3%, rising rates are one of the topics dominating the discussion in the housing market today. And since experts project rates will rise further in the coming months, that conversation isn’t going away any time soon. But as a homebuyer, what do rates above 3%  really  mean? Today’s Average Mortgage Rate Still Presents Buyers with a Great Opportunity Buyers don’t want mortgage rates to rise, as any upward movement increases your monthly mortgage payment. But it’s important to put today’s average mortgage rate into perspective. The graph below shows today’s rate in comparison to average rates over the last five years: As the graph shows, even though today’s rate is above 3%,  it’s still incredibly competitive. But today’s rate isn’t just low when compared to the most recent years. To truly put today into persp...

  David Deem 714-997-3486 Dave@DeemTeam.com Mortgage rates are one of several factors that impact how much you can afford if you’re buying a home. When rates are low, they help you get more house for your money. Within the last year, mortgage rates have hit the lowest point ever recorded, and they’ve hovered in the historic-low territory. But even over the past few weeks, rates have started to rise. This past week, the average 30-year fixed rate was 3.14%. What does this mean if you’re thinking about making a move?  Waiting until next year will cost you more in the long run . Here’s a look at what several experts project for mortgage rates going into 2022. Freddie Mac : “The average 30-year fixed-rate mortgage (FRM) is expected to be  3.0 percent in 2021 and 3.5 percent in 2022 .” Doug Duncan, Senior VP & Chief Economist,  Fannie Mae : “Right now,  we forecast mortgage rates to average 3.3 percent in 2022 , which, though slightly hig...

David Deem 714-997-3486 Dave@DeemTeam.com The 30-year fixed-rate mortgage (FRM) averaged 3.14% for the week ending Oct. 28, according to the latest  Primary Mortgage Market Survey®   (PMMS®) from Freddie Mac. Declining COVID cases and improved consumer confidence, however, are keeping purchase demand strong despite increasing rates. Mortgage details: -   30-year fixed-rate mortgage  averaged 3.14% with an average 0.7 point for the week ending Oct. 28, 2021, up from last week when it averaged 3.09%. Last year, the 30-year FRM averaged 2.81%.   -   15-year fixed-rate mortgage  averaged 2.37% with an average 0.7 point, up from last week when it averaged 2.33%. A year ago at this time, the 15-year FRM averaged 2.32%.   -   5-year Treasury-indexed hybrid adjustable-rate mortgage  (ARM) averaged 2.56% with an average 0.3 point, up from last week when it averaged 2.54%. Last year, the five-year ARM averaged 2.88%. The takeaway: “The yield on th...

David Deem 714-997-3486 Dave@DeemTeam.com Mortgage applications increased 0.2% for the week ending Oct. 8, 2021. According to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey, the Market Composite Index, a measure of mortgage loan application volume, increased 0.2% on a seasonally adjusted basis from the previous week.   Unadjusted, the Index increased 0.4% compared to the previous week. The Refinance Index decreased 1% from the previous week—16% lower YoY. The seasonally adjusted Purchase Index increased 2% from the previous week. The unadjusted Purchase Index increased 2% compared with the previous week—10% lower than the same week one year ago.   Additional details:   - The refi share of mortgage activity decreased to 63.9% of total applications.   - The adjustable-rate mortgage (ARM) share of activity remained unchanged at 3.4% of total applications.   - The FHA share of total applications decreased to 10.2%.   - The VA ...

  David Deem 714-997-3486 Dave@DeemTeam.com Today’s housing market is truly one for the record books. Over the past year, we’ve seen the lowest mortgage rates in history. And while those rates seemed to bottom out in January of this year, the golden window of opportunity for buyers isn’t over just yet. If you’re one of the buyers who worry they’ve missed out, rest assured today’s mortgage rates are still worth taking advantage of. Even today,  our mortgage rates are below what they’ve been in recent decades.  So, while you may not be able to lock in the rate your friend got recently, you’re still in a great position to secure a rate well below what your parents and even grandparents got in years past. The key will be acting sooner rather than later. In late September, mortgage rates ticked above 3% for the first time in months. And according to experts throughout the industry, mortgage rates are projected to continue rising in the months ahead. He...

David Deem 714-997-3486 Dave@DeemTeam.com There are many headlines out there that claim we’re reverting to a more normal real estate market. That would indicate the housing market is returning to the pre-pandemic numbers we saw from 2015-2019. But that’s not happening. The market is still extremely vibrant as demand is still strong even while housing supply is slowly returning. Here’s the  definition of normal  from the  Merriam-Webster Dictionary : “conforming to a type, standard, or regular pattern: characterized by that which is considered  usual, typical, or routine. ” Using this definition, here are five housing industry metrics that prove we’re nowhere near normal. 1. Mortgage Rates If we look at the  30-year mortgage rate  chronicled by  Freddie Mac , we can see the average rates by decade: 1970s: 8.86% 1980s: 12.7% 1990s: 8.12% 2000s: 6.29% 2010s: 4.09% Today, the average mortgage rate stands at 2.87%, which is very close to the historic low. C...

David Deem 714-997-3486 Dave@DeemTeam.com Mortgage rates are hovering near record lows, and that’s good news for today’s homebuyers. The  graph  below shows mortgage rates dating back to 2016 and where today falls by comparison. Generally speaking, when rates are low, you can afford more home for your money. That’s why experts across the industry agree – today’s low rates present buyers with an incredible opportunity. Here’s what they have to say: Sam Khater, Chief Economist at  Freddie Mac ,  points out  the historic nature of today’s rates: “As the economy works to get back to its pre-pandemic self, and the fight against COVID-19 variants unfolds,  owners and buyers continue to benefit from some of the lowest mortgage rates of all-time .” Mark Fleming, Chief Economist at  First American ,  talks about  how rates impact a buyer’s bottom line: “Mortgage rates are generally the same across the country, so a decline in mortgage rates ...

  David Deem 714-997-3486 Dave@DeemTeam.com Some Highlights Mortgage interest rates have dropped considerably over the past year, and compared to what we’ve seen in recent decades, it’s a great time to buy a home. Locking in a low rate today could save you thousands of dollars over the lifetime of your home loan, but these low rates may not last forever. If you’re in a position to buy a home, let’s connect to determine your best move in today’s housing market while interest rates are still in your favor.

David Deem 714-997-3486 Dave@DeemTeam.com In 2020, buyers got a big boost in the housing market as mortgage rates dropped throughout the year. According to  Freddie Mac , rates hit all-time lows  12 times  this year, dipping  below 3%  for the first time ever while making buying a home more and more attractive as the year progressed  (See graph below): When you continually hear how rates are hitting record lows, you may be wondering:  Are they going to keep falling? Should I wait until they get even lower? The Challenge with Waiting The challenge with waiting is that you can easily miss this optimal window of time and then end up paying more in the long run. Last week, mortgage rates ticked up slightly. Sam Khater,  Chief Economist  at  Freddie Mac,   explains : “ Mortgage rates jumped this week  as a result of positive news about a COVID-19 vaccine. Despite this rise, mortgage rates remain about a percentage point below a year...

David Deem 714-997-3486 Dave@DeemTeam.com By Suzanne De Vita For the first time, the average 30-year, fixed mortgage rate sank to 3.29 percent this week, according to the Freddie Mac Primary Mortgage Market Survey® (PMMS®). The figure is the lowest recorded in the survey, which began monitoring rates in 1971. The five-year adjustable and 15-year fixed rates tumbled, as well, to 3.18 percent and 2.79 percent, respectively. In an abrupt decision earlier this week, the Federal Reserve cut interest rates in response to the coronavirus, which is drastically impacting markets worldwide. Despite fixed mortgages moving with Treasury yields, not Fed policy, analysts anticipated a significant slide, as well as broader effects in the housing market, including climbing home prices and refinances, and construction setbacks. "The 30-year fixed rate mortgage dropped to its lowest level in more than seven years last week, amidst increasing concerns regarding the economic impact from the...

David Deem 714-997-3486 Dave@DeemTeam.com The average 30-year, fixed mortgage rate slipped to 3.45 percent this week, following market volatility, according to the Freddie Mac Primary Mortgage Market Survey® (PMMS®). 30-Year Fixed Averaging 3.45 percent, with an average 0.7 point Down from 3.49 percent the prior week and 4.35 percent the prior year 15-Year Fixed Averaging 2.95 percent, with an average 0.8 point Down from 2.99 percent the prior week and 3.77 percent the prior year 5-Year Adjustable Averaging 3.20 percent, with an average 0.2 point Down from 3.25 percent the prior week and 3.84 percent the prior year "Given the recent volatility of the 10-year Treasury yield, it's not surprising that mortgage rates again have dropped," said Sam Khater, chief economist at Freddie Mac, in a statement. "These low rates combined with high consumer confidence continue to drive home sales upward, a trend that is likely to endure as we enter spring....

David Deem 714-997-3486 Dave@DeemTeam.com Because wages continue to grow at a rate higher than inflation, people are gainfully employed, making money and feeling good about it. Good enough to invest it on something like a 30-year mortgage that, according to Freddie Mac, averages 3.69 percent right now (at press time). Let’s not forget that fixed-rate mortgages in the early ’80s inched up to 19 percent and people were still buying homes. Now that’s perspective. Investors and economists alike expect interest rates to stagnate, or even decrease in 2020, which means there’s a lot more positive to come. www.DeemTeam.com DRE #01266522

David Deem 714-997-3486 Dave@DeemTeam.com By Suzanne De Vita In November, Americans' confidence in home-buying ignited, boosted by low mortgage rates, according to Fannie Mae's Home Purchase Sentiment Index®, newly released. As a consumer measure, the Home Purchase Sentiment Index gauges optimism and perceptions, based on questions such as "Is it a good time to buy a home?" Last month, the Index rose to 91.5—nearing a record set this year, and up 5.3 points year-over-year. So, is it a good time to buy a home? Sixty-one percent of Americans—an increase—say yes, but 29 percent believe not, according to Fannie Mae's survey. What about selling? Sixty-six percent of Americans believe it's prime selling time—a minor slip—but 26 percent believe not. Will home prices rise? Forty-four percent of Americans peg prices to rise in the upcoming year, 10 percent believe they'll come down, and 40 percent believe they'll remain unchanged. …and ...