WASHINGTON(Reuters) – U.S. construction spending unexpectedly fell in March likely as a resurgence in mortgage rates weighed on homebuilding, but activity remains supported by an acute housing shortage.
The Commerce Department’s Census Bureau said on Wednesday that construction spending slipped 0.2% after being unchanged in February. Economists polled by Reuters had forecast construction spending gaining 0.3%. Construction spending increased 9.6% year-on-year in March.
Spending on private construction projects decreased 0.5% in March after rising 0.2% in February.
Investment in residential construction dropped 0.7% after increasing 0.7% in the prior month. Outlays on new single-family construction projects fell 0.2%.
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WASHINGTON–The Federal Reserve held its key interest rate steady again Wednesday and gave no signal that it plans to lower it anytime soon following a resurgence of inflation early this year.
In a statement after a two-day meeting, the Fed pointedly said: “In recent months, there has been a lack of further progress toward the (Fed’s) 2 percent inflation objective.”
And it repeated its previous assertion that it “does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation (now running 3% to 4%) is moving sustainably toward” the Fed’s 2% goal.
The concerns about persistent inflation suggest the Fed likely won’t be prepared to cut rates for at least a few months, if not longer.
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According to data from Curinos, mortgage rates for a 30-year fixed-rate loan sit at 7.77%. This means they’ve risen from 7.65% last week. Last month, rates were at 7.37%, putting today’s rates significantly higher and up from 5.95% last year.
The 30-year fixed-rate average today is 1.36 percentage points below the 52-week high of 9.13% and 2.14 percentage points higher than the 52-week low of 5.63%.
At the current 30-year fixed rate, you’ll pay about $716 each month for every $100,000 you borrow — up from around $708 last week.
STRONGSVILLE, Ohio, April 30, 2024 /PRNewswire/ — Union Home Mortgage (UHM), a high-growth independent mortgage banking company with a world-class culture, announced today it has been recognized as one of America’s Greatest Workplaces for Diversity in 2024 by Newsweek and Plant-A Insights Group. The survey garnered over 220,000 respondents and included representation from over 1.5 million companies across the United States.
“I founded this company on the basis that culture was a truly differentiating factor,” said Bill Cosgrove, CEO of Union Home Mortgage. “Without things like mutual respect, inclusive environments, and empathy, it’s hard to be successful. We hire good people and empower every Partner here at UHM with the tools and resources they need to become their very best. I’m proud of that and am appreciative of the recognition that comes with awards like this one.”
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Today’s 30-year fixed mortgage rate is 7.68% which is slightly higher than last week’s 7.65%, according to data from Curinos. This is an increase from last month’s 7.27%. Last year around the same time, 30-year fixed rates were 5.95%, which makes today’s rate much higher than it was a year ago.
At the current 30-year fixed rate, you’ll pay about $710 each month for every $100,000 you borrow — the same as about $710 last week.
Down Payment Resource (DPR), the housing industry’s leading technology for connecting homebuyers with homebuyer assistance programs, today announced that it has joined The Mortgage Collaborative (TMC), the nation’s largest independent cooperative network serving the mortgage industry. As a member of TMC’s Preferred Partner Network, DPR will provide its software, which provides operational support for utilizing its database of more than 2,300 down payment assistance (DPA) programs, at a discounted rate to TMC members.
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According to a recent survey by national property broker Redfin, almost 58% of U.S. homeowners feel they probably couldn’t afford to repurchase their current homes at today’s prices and mortgage rates. This insight comes from a survey carried out in February 2024 by Qualtrics, involving approximately 3,000 U.S. residents.
The survey indicates that a significant majority of respondents, 59%, have owned their homes for over a decade, and an additional 21% for at least five years. During this period, these homeowners have witnessed a dramatic increase in local housing prices, with the median U.S. home-sale price doubling over the past decade and rising nearly 50% in the past five years alone.
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The average mortgage rate for 30-year fixed loans rose today to 7.70% from 7.65% last week, according to data from Curinos. This is up from last month’s 7.30% and up from a year ago when it was 5.95%.
At the current 30-year fixed rate, you’ll pay about $712 each month for every $100,000 you borrow — up from about $710 last week.
Ready to buy? Compare the best mortgage lenders.
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Home sales based on contract signings unexpectedly jumped in March despite elevated mortgage rates that month. And the latest data from Freddie Mac showed that mortgage rates edged higher this week, reaching a fresh five-month high.
Pending home sales — a forward-looking indicator based on contract signings rather than closings —climbed 3.4% in March, the National Association of Realtors reported Thursday, which was “the best performance in a year,” according to a release. That was well above the 0.3% decline forecast by economists, according to a FactSet poll. Contract signings rose across the country in March from the prior month, except in the Midwest.
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The U.S. economy continued to grow early this year, but at a sharply slower rate as strong consumer spending was offset by higher prices and pockets of weakness in other sectors.
Gross domestic product, adjusted for inflation, increased at a 1.6 percent annual rate in the first three months of 2024, down from 3.4 percent at the end of 2023, the Commerce Department said Thursday.
Taken on its own, the downshift in growth is not necessarily worrisome, particularly given that the Federal Reserve has been trying to cool off the economy. And the weaker first quarter numbers were driven in part by big shifts in business inventories and international trade, which often swing wildly from one quarter to the next. Measures of underlying growth were stronger.
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Today’s 30-year fixed mortgage rate is 7.65% which is slightly higher than last week’s 7.63%, according to data from Curinos. This is an increase from last month’s 7.29%. Last year around the same time, 30-year fixed rates were 5.92%, which makes today’s rate much higher than it was a year ago.
At the current 30-year fixed rate, you’ll pay about $708 each month for every $100,000 you borrow — up from about $710 last week.
According to data from Curinos, mortgage rates for a 30-year fixed-rate loan sit at 7.65%. This means they’ve risen slightly from 7.63% last week. Last month, rates were at 7.29%, putting today’s rates significantly higher and up from 5.92% last year.
The 30-year fixed-rate average today is 1.48 percentage points below the 52-week high of 9.13% and 2.02 percentage points higher than the 52-week low of 5.63%.
At the current 30-year fixed rate, you’ll pay about $708 each month for every $100,000 you borrow — up from around $714 last week.
Ready to buy? Compare the best mortgage lenders.
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As of April 19, 2024, the mortgage landscape in the United States has been marked by a period of fluctuation, with rates experiencing a slight increase. Here’s an analysis of current averages and expert predictions for the next two years. The average rate for a conventional 30-year fixed mortgage was reported at 7.22%, while the 15-year fixed mortgage stood at 6.657%. These figures represent a snapshot of the current state of the mortgage market, which is influenced by a myriad of economic factors, including inflation, Federal Reserve policies, and the global financial climate.
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Finding an affordable place to live in the U.S. can feel pretty impossible whether you’re a renter or a buyer.
To begin with, there’s a massive shortage of homes — somewhere between 4 and 7 million. And those who are able to find homes are spending a much bigger chunk of their paycheck than in recent years.
Natalie French was renting an apartment with a roommate in Albuquerque, New Mexico, when they received a notice that their rent was going up by more than 200 dollars a month. With the added pet fees, they were put out of their price range.
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NEW YORK — Sales of newly built single-family homes in the United States soared in March despite mortgage rates remaining elevated that month.
New home sales, which make up about 10% of the market, jumped 8.8% last month to a seasonally adjusted annual rate of 693,000, according to government figures released Tuesday. That trounced the 670,000 rate projected by economists, according to a FactSet poll, and was the strongest monthly increase since December 2022.
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This past week, the average daily mortgage rate climbed to over 7.4%, marking its highest point since last November 2023, influenced by an unexpectedly high inflation report and confirmation from the Federal Reserve that interest rate reductions would be postponed.
Concurrently, home prices have also ascended, with the median sale price of U.S. homes rising by 5% over the past year to $380,250, narrowly missing the record high set in June 2022 by just $3,095. This surge in both mortgage rates and home prices has pushed the median monthly housing payment for homebuyers to an unprecedented $2,775, an 11% increase from the previous year.
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Today’s 30-year fixed mortgage rate is 7.67% which is higher than last week’s 7.63%, according to data from Curinos. This is an increase from last month’s 7.29%. Last year around the same time, 30-year fixed rates were 5.92%, which makes today’s rate much higher than it was a year ago.
At the current 30-year fixed rate, you’ll pay about $710 each month for every $100,000 you borrow — up from about $709 last week.
US regional banks are expected to set aside more money to cover potential commercial real estate (CRE) losses and sell more property loans as the sector remains under pressure a year after the collapse of Silicon Valley Bank and Signature Bank.
Most multifamily loans are made by regional banks, so when New York Community Bank (NYCB.N) posted a surprise fourth-quarter loss it intensified fears about the industry’s exposure to commercial real estate. Multifamily properties with more than five units are a major concern, especially since the bank had booked losses on its real estate portfolio.
Scrutiny of regional banks has increased after Silicon Valley Bank’s collapse prompted by high borrowing costs that exceeded its income from low-rate loans following the Federal Reserve’s aggressive rate hikes since March 2022. Many banks have unrealized losses on securities portfolios, including mortgage-backed paper.
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NEW YORK, April 22 (Reuters) – U.S. borrowers on lower incomes are increasingly struggling to keep up with their loan payments, according to recent data and bank executives, prompting banks to become more cautious about dishing out credit cards and car loans.
A growing number of Americans have seen their savings dwindle as rising prices squeeze budgets while interest rates stay high, bankers and economists said. The deterioration in household finances for those earning less than $45,000 contrasts with financial resilience among those on higher incomes.
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The average mortgage rate for 30-year fixed loans rose today to 7.68% from 7.59% last week, according to data from Curinos. This is up from last month’s 7.40% and up from a year ago when it was 5.92%.
At the current 30-year fixed rate, you’ll pay about $710 each month for every $100,000 you borrow — up from about $704 last week.
U.S. economy: The U.S. economy continued to grow at a seasonally adjusted annual rate (SAAR) of 3.4% in Q4 2023 as per the third and final estimate of the Real Gross Domestic Product (GDP) closing out 2023 at 2.5% SAAR compared to the 2022 annual levels.1 While growth in Q4 2023 softened compared to the 4.9% growth in Q3 2023, it remains above estimates of long-term potential growth. The upward revisions to the third estimate for Q4 2023 predominately reflect an increase in consumption spending, which contributed 2.2 percentage points to overall growth. While government spending increased 4.6% in the third estimate compared to 4.2% in the second estimate for Q4 2023, government spending is moderating compared to the 5.8% increase in Q3 2023.
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