Finance
Mortgage rates barely budged this week as more listings flood the market
Mortgage rates for 30-year mortgages rose to 6.78% from 6.77%. (iStock )
Mortgage rates this week have held steady for the most part. Rates for 30-year mortgages average 6.78% as of July 25, Freddie Mac reported. This is up only slightly from last week’s 6.77%. Last year, rates were in a similar place, averaging 6.81%.
“Mortgage rates essentially remained flat from last week but have decreased nearly half a percent from their peak earlier this year,” Freddie Mac Chief Economist Sam Khater said. “Despite these lower rates, buyers continue to pause, as reflected in tumbling new and existing home sales data.”
Rates on 15-year, fixed-rate mortgages also rose slightly. Averaging 6.07%, these rates rose from 6.05%. A year ago, 15-year mortgages were a bit higher at 6.11%.
Homebuyers that want to see what kind of loan term and rates would work for them can take advantage of Credible’s free online tools to find their personalized rate in minutes.
THE AVERAGE DOWN PAYMENT FOR THE TYPICAL US HOME REACHES $127,750: ZILLOW
Listings are outpacing home sales
Sellers are tired of waiting for mortgage rates to drop drastically, causing a rise in listings the market hasn’t seen in a few years. The rate lock effect that was holding sellers in place is slowly releasing, creating more options for buyers.
Compared to last year, there was a 30% increase in home listings, according to Fannie Mae. An uptick in listings hasn’t led to more home sales, however. Sales are down overall compared to this time last year.
High home prices have been sticking around for years now, causing many buyers to be pickier about their options. Experts predict that the market will moderate soon, so many prospective buyers are now holding out until prices drop.
“The housing market continues to wait for affordability to improve, even as the supply of new and existing homes for sale slowly rises,” said Doug Duncan, Fannie Mae senior vice president and chief economist.
“The slight decline in mortgage rates of late, following data pointing to gradually slowing economic growth, has not been enough to overcome the significant affordability constraints imposed on would-be homebuyers,” Duncan said. “As such, despite more homes being listed for sale, actual home sales have not picked up.”
The housing market varies greatly depending on where buyers are located, so markets in certain areas of the country still remain tight, and likely will for a while.
“We continue to expect home price growth on a national level to decelerate – but remain positive – over the near term, but it should be noted that conditions often vary by region, particularly as it relates to supply,” Duncan said. “For instance, many Sunbelt metros are currently seeing significant increases in for-sale inventories, in part due to new construction, while supply in much of the Northeast and Midwest remains extremely tight.”
If you’re looking to purchase a home in today’s market, you can explore your mortgage options by visiting Credible to compare rates and lenders in minutes.
MANY HOMES ARE SITTING STAGNANT ON THE MARKET, CAUSING MORE FREQUENT PRICE DROPS
Buyers looking for a deal should focus on the Midwest
Much of the country remains in a state of unaffordability, but there are select areas where prices haven’t reached all-time highs. The Midwest is one of the more affordable areas, particularly Ohio and Indiana, Realtor.com found.
Ranked number one on Realtor.com’s list for affordability is Fort Wayne, Indiana. The city is located near many major hubs, including Chicago, Cincinatti and Detroit.
“Homes priced under $200,000 are in high demand and sell quickly,” Fort Wayne real estate professional David Brough said. “These homes usually have several offers on them.”
Since it’s so close to larger cities, residents of Fort Wayne get the benefits of a large city but the safety of a smaller community.
“You can purchase a very nice home and live in a safe community with lots of things to do, at a low cost compared to other big cities around the country,” Brough said.
The next two cities on Realtor.com’s list are in Ohio: Canton and Akron. Both cities have median home prices in the $250,000 to $270,000 range, making them relatively affordable compared to other markets.
“As buyers contend with still-high home prices and mortgage rates across much of the country, affordable areas in the Midwest have gained popularity,” said Hannah Jones, Realtor.com senior economic research analyst. “Buyers in these markets can take advantage of lower home prices without compromising on job prospects or lifestyle amenities.”
To see if you qualify for a mortgage based on your current credit score and salary, check out Credible where you can compare multiple mortgage lenders at once.
FIRST-TIME HOMEBUYERS ARE OFTEN OVERWHELMED BY UNEXPECTED HOMEOWNERSHIP COSTS: STUDY
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In this photo illustration, the Robinhood Markets, Inc. logo is displayed on a smartphone screen.
Rafael Henrique | Sopa Images | Lightrocket | Getty Images
Retail brokerage firm Robinhood is launching a new tool for more sophisticated traders as it looks for additional avenues for growth.
On Wednesday, the firm introduced Robinhood Legend, a desktop-based platform for active traders. The offering includes advanced charting tools for users who want to do detailed analysis of stocks.
“In looking at the landscape of trading tools and by talking with active traders, we realized there is frustration with legacy offerings,” Steve Quirk, chief brokerage officer at Robinhood, said in a press release.
“Specifically, moving back and forth between apps or charting platforms can be cumbersome and time consuming. So we set out to reimagine what a modern, intuitively designed active trading platform should look like, and built Robinhood Legend from the ground up so traders can do what they need in one place,” Quirk said.
Beyond the launch of Legend, Robinhood also said it will soon add futures trading and index options to its mobile platform. Customers must be granted approval to trade futures contracts, according to the press release, and futures and index options will eventually be added to Legend as well.
The new additions for Robinhood are another example of the firm looking to expand beyond its roots as a convenient platform for small-dollar traders. The firm’s rise coincided with the “meme stock” phenomenon in early 2021 as retail trading boomed in the aftermath of the Covid-19 pandemic.
Robinhood shares, all-time
Since then, Robinhood has been steadily adding new offerings, including a credit card for Robinhood Gold subscribers and a digital wallet to hold cryptocurrencies.
Robinhood said that it had $139.7 billion in assets under custody at the end of the second quarter, along with 11.8 million monthly active users. For the comparable quarter in 2021, near the height of the GameStop mania, Robinhood reported $102 billion in assets but 21.3 million monthly active users. The firm’s next earnings report is scheduled for Oct. 30.
Shares of Robinhood are up more than 100% so far this year.
The announcements on Thursday were part of HOOD Summit, a conference for Robinhood’s customers.
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