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MBA forecast for 2021: Prepare for rising mortgage interest rates

Housing Wire

At its Annual event Wednesday, Mortgage Bankers Association Chief Economist Mike Fratantoni forecast that interest rates could rise in the year to come, but that they will remain near all-time lows. The chart below shows interest rates for the 30-year fixed-rate mortgage will end this year at about 3% and could hit around 3.3%

Mortgage 407
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The risk of zero-down loans while the Fed talks recession

Housing Wire

The housing market is very subsidized for demand to grow and whenever the economy gets weaker, rates fall and that impacts the housing market in a disproportionate way. This can lead to home prices getting out of control , especially when total inventory gets to all-time lows. This is what we do in America.

Inventory 544
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The forbearance crash bros spoke too soon

Housing Wire

Despite what they promised, we sit here today with the United States housing market outperforming all other economic sectors in the world during the pandemic. In order for the housing market to crash due to too many loans going into default when forbearance programs end, the number of loans in these programs needs to grow.

Inventory 545
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[PULSE] The 2020 refi wave: Where activity is strongest, where it’s not, and what’s ahead

Housing Wire

The housing and mortgage markets have been the rare bright spots in an otherwise fragile economy brought forth by the ongoing COVID-19 pandemic. Mortgage origination volume this year is on track to be the highest in more than 15 years, led by a strong wave of refinances. Just how busy have lenders been?

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Higher rates flip the homebuilders’ fortunes (again)

Housing Wire

9 up until the early part of February as mortgage rates fell from 7.37% to 5.99%. To combat higher mortgage rates, builders have been cutting prices and buying down rates to move product. They still have a lot of work to do here, so we shouldn’t expect anything good to come from the housing permits side of the economy in 2023.

Inventory 466
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Home price growth slows but affordability pressures remain: Black Knight

Housing Wire

Home price growth slowed in May, showing signs of a cooling housing market. But housing is the least affordable it has been since the mid-1980s as mortgage rates rise and home values soar, driven by low housing inventory, a new Black Knight report suggests. in May from a revised 20.4%

Inventory 386
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Local Markets: Louisville, Reno and San Diego

Housing Wire

Affordable housing prices combined with a vibrant history and a thriving culinary scene have certainly made Derby City a popular destination for homebuyers. However, even Louisville’s active housing market has slowed down recently. “I Also helping buyers is an increase in housing inventory, Ridenour Lindsey said. “It

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