Will Fed bond-buying drive fixed mortgage rates below 3%?
Deep inside the fortresslike headquarters of the Federal Reserve Bank of New York in lower Manhattan, a group of market specialists on Monday re-started the bond-buying program that during the financial crisis was known as quantitative easing, or QE.
|Mortgage rates fall to an all-time low
The average U.S. rate for a 30-year fixed mortgage fell to 3.29% this week, the lowest ever recorded by Freddie Mac in a series that goes back to 1971.
U.S. housing market is missing 3.3 million homes, Freddie Mac says
America’s housing market is undersupplied by 3.3 million units, and the shortage is getting worse every year, Freddie Mac said in a report on Friday.
|This is where iBuyers dominated the market in 2019
While Phoenix was seen as the petri dish as an experimental iBuyer market, it was Raleigh, North Carolina that had the most iBuyer purchases last year. According to Redfin, the nation’s top iBuyers purchased one out of every 100 homes that sold in 2019 across the more than 200 U.S. metro areas the company tracks.
The average U.S. fixed rate for a 30-year mortgage fell to 3.45% this week, matching the three-year low set three weeks ago.
National Market Update, John Gates, Supreme Lending:
At the National Association of Realtors convention, their chief economist predicted new home sales will hit a 13-year high in 2020, up 11%, to 750,000. Existing home sales, at 5.56 million, will be the highest since 2017.
CoreLogic‘s chief economist reports, “In addition to lower interest rates, personal income grew faster than home prices during the past year,” helping to boost the homeownership rate to its highest level in more than five years.
TransUnion projects a flood of 8.3 million first-time homebuyers will hit the market in the next three years, more than in any three-year period in the last decade. And if economic growth beats expectations, make that 9.2 million.