![]() In fact, several cities now have median rents of $1,300 or less, making renting in those places a much more affordable option than buying a home. Helping to encourage that trend is a slowing in the cost of renting a roof over your head. Many families may, of course, opt to postpone their homebuying plans until the market becomes more affordable. And those buyers are precisely the people who might be squeezed out of the housing market due to higher rates and monthly payments. Those most likely to get a FHA-backed loan - and so most likely to benefit from the reduced premiums - are first-time homebuyers and low to middle-income borrowers. The lower premium is expected to save new FHA borrowers an average of $800 per year on mortgage payments. Starting on March 20, the Federal Housing Administration will implement a 0.30 percentage point reduction in mortgage insurance premiums on FHA-backed loans. Potential homebuyers who rely on home loans to afford a home purchase will soon be getting an additional helping hand from the federal government. One piece of good news is on the near horizon, though. "For real estate markets, the rise in rates means higher mortgage payments, deepening the affordability challenge just as we move into the crucial spring homebuying season," said George Ratiu, senior economist at, in a statement. Until there is more certainty on how the fight against high inflation is progressing, say analysts, rates may remain elevated. There are signs that the economy is not slowing as fast as the Federal Reserve would like, in order to curb inflation. How much higher mortgage rates will rise over the next few weeks is uncertain. The average rate on a 15-year fixed-rate mortgage moved up to 5.89%, an increase of 0.13 percentage points since last week. The 30-year rate isn't the only upward mover this week. After reaching a low of 6.09% during the first week of February, rates have been on the rise - a trend that's reminiscent of last year's rapid run of hikes. This week's average rate on a 30-year fixed-rate mortgage increased by 0.15 percentage points to 6.65%, according to Freddie Mac. This is the fourth consecutive week that rates have increased. Mortgage rates moved higher once again, threatening to put the brakes on the recent acceleration in home buying. Possible rewards include discounts toward personal loans, free premium Rocket Money subscriptions or money off the installation of solar panels, Steeves-Kiss said.The spring buying season could be a little more muted than usual this year. expects to add new point-earning and redemption opportunities over the coming months that would involve the other brands in its network. The same percentage said discount opportunities were among the benefits of these programs they valued the most. In a 2022 report looking at loyalty trends published by customer-experience management firm Merkle, 79% of consumers said they would be more likely to conduct business with a brand because of affinity programs they offered. Rocket's entry into the loyalty-program space also comes as Bilt Rewards, a startup that helps renters build credit history and earn points that can eventually be applied toward down payments or closing costs, has steadily made a name for itself within the housing finance space this year. In attempts to cross promote products, the company also opened up access to Rocket Money to its mortgage-servicing customers over the summer. Just a few months prior to that, it rolled out a new home equity loan product. In September, Rocket Mortgage introduced Inflation Buster, a direct-to-consumer program that lowers borrower payments for the first year of a new mortgage. In addition to Rocket Mortgage, the parent company counts personal finance app Rocket Money, real estate platform Rocket Homes, Rocket Auto, and Rocket Loans in its line of businesses. will announce its third-quarter numbers on Nov. Mortgage operations make up the vast majority of net revenue for the company, accounting for almost $1.3 billion, compared to just over $109 million for other Rocket brands. Between the first and second quarters this year, loan production volume at Rocket Mortgage fell from $62.2 billion to $33.1 billion. ![]()
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