Mortgage Rates Ease Slightly – According to Freddie Mac reports, the 30-year fixed-rate mortgage fell 1 basis point to an average 4.44 percent recently. “Treasury yields fell from a week ago, helping to drive mortgage rates modestly lower,” explains Len Kiefer, Freddie Mac’s deputy chief economist. “The yield on the 10-year Treasury dipped below 2.8 percent for the first time since early February of this year. The decline in Treasury yields comes as investors move into safer assets amid increased trade tensions. Following Treasury yields, mortgage rates fell slightly.”
Contract Signings Start Spring Season on High Note – Based on the National Association of REALTORS® latest report, pending home sales reversed course in February, increasing in most areas of the country even as a shortage of homes for sale and higher home prices struck many markets. NAR’s Pending Home Sales Index, a forward-looking indicator based on contract signings increased 3.1 percent month over month in February to a reading of 107.5. Despite the uptick, the index remains 4.1 percent below a year ago. “Contract signings rebounded in most areas in February, but the gains were not targeted enough to keep up with last February’s level, which was the second highest in over a decade (at 112.1),” says Lawrence Yun, NAR’s chief economist.
How Much Renting Is Costing Millennials – According to a new study by RentCafe, by the time millennials turn 30, they will have paid $92,600 in rent. It’s more than previous generations paid when they were between the ages of 22 and 30. RentCafe researchers studied how much millennials, Generation X members, and baby boomers spent on rent during that eight-year time period of their life by using U.S. Census Bureau statistics dating back to 1974. Millennials have been hit the hardest by rising rents, and Generation Z, the generation following millennials, may have it worse, according to the analysis. Researchers estimate that by the time Generation Z reaches age 30, its members will have paid more than $102,000 in rent.
Closing Timelines Were Shorter in February – Based on Ellie Mae’s Origination Insight Report, home buyers and sellers are making it to settlement at a faster rate. The average time to close on all loans dropped by two days in February to 42 days. Ellie Mae economists are calling the drop “significant.” For just purchase loans, the time to close dropped from 47 days to 45 days in February, according to the report. The drop in average closing times is mostly due to a decrease in the overall refinancing market. “With interest rates on the rise, we’re seeing the purchase market begin to gain some momentum,” says Jonathan Corr, president and CEO of Ellie Mae. “We know that a shift to a purchase market will drive the shortened time to close, and we will watch to see if the trend continues into the spring and summer months.” Ellie Mae’s report shows that the time to close each loan type dropped from January to February. FHA loan closing times dropped from an average of 47 days to 43; conventional loans fell from 43 days to 41; and VA loans dropped from 50 days to 47.