Monthly Archives: May 2024

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates moved higher last week for 30-year fixed-rate loans with conforming loan balances and those backed by the Federal Housing Administration. Jumbo loans, 15-year fixed-rate loans, and 5/1 ARMs all saw decreases from one week earlier. Mike Fratantoni, MBA’s senior vice president and chief economist, says inflation is keeping rates elevated. “Inflation remains stubbornly high, and this trend is convincing markets that rates, including mortgage rates, are going to stay higher for longer,” Fratantoni said. “No doubt, this is a headwind for the housing and mortgage markets, with the 30-year fixed mortgage rate increasing to … the highest level since November 2023.” Higher rates led to slower mortgage demand last week, with demand for loans to buy homes down 2 percent from one week earlier. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

Homeownership has long been seen as an important part of achieving the “American Dream.” Put simply, most of us hope to be homeowners one day, if we aren’t already. In fact, according to one newly released survey, 67 percent of participants said owning a home is one of their biggest aspirations in life – with 73 percent of both Millennial and Gen Z respondents naming it among their top goals. That’s a significant majority and further proof that the dream of homeownership endures, even during challenging market conditions. These days, with prices high and mortgage rates elevated, homeownership could seem unattainable or less appealing than it has in the past. But though survey respondents expressed frustration with current market challenges, they clearly haven’t given up on owning a home and achieving their “American Dream.” (source)