We’re rounding up some of the housing market’s top trends and our top blogs. Follow this series throughout the homebuying season to keep up with “the latest.”
Home prices fell and home sales surged in February
The median sales price for an existing home fell year-over-year in February, coming in at $363,000, according to the National Association of REALTORS®. That was 0.2% below the same time last year and marked the first year-over-year decline in more than 10 years. More homebuyers also came into the market—home sales were up 14.5% in February compared to January. It was the biggest jump in sales since July 2020.
Federal Reserve raises rates, but lower rates may be on their way
The Federal Reserve announced a .25% increase to its influential benchmark rate on Mar. 22. Looking further out, rates as low as 4.3% were projected for 2024, CNBC reported. What does this mean for homeowners? While mortgage rates generally don’t rely on the Federal Reserve’s, they often follow a similar trend. Home loans that can be directly affected include home equity lines of credit (HELOCs) and adjustable-rate mortgages, as Investopedia explains. Tightening the focus to mortgage rates, the Mortgage Bankers Association (MBA) reported its latest weekly survey averages on Mar. 29:
- 30-year fixed: 6.45%
- 30-year fixed jumbo loans: 6.27%
- 15-year fixed: 5.84%
For full details on the MBA averages, see the MBA’s announcement.
Hey homebuyers! Check out Mr. Cooper’s 1% Mortgage Markdown & RateSwap. We’ll knock 1% off your rate for a full year.* Plus, we’ll give you up to $1,500 in credit when you refinance later.** Learn more!
Healthy supply of homes under $200,000 still available in these metro areas
If you’re looking for the country’s most affordable homes, Money spotlighted 10 housing markets with plenty of houses under $200,000. Here’s who made the list in order of most sub-$200k listings: Detroit, MI; Pittsburgh, PA; Cleveland, OH; St. Louis, MO; Baltimore, MD; Birmingham, AL; Chicago, IL; Memphis, TN; Indianapolis, IN; Rochester, NY.
Word of the day: Discount points
If you’re in the market for a mortgage and want to get your rate down, discount points may be the solution. Discount points,* or mortgage points, are a type of prepaid interest or fee borrowers pay mortgage lenders in return for a lower interest rate. This also lowers the borrower’s resulting mortgage payments, so by spending more up front you pay less later. One point typically costs 1% of a loan, meaning one point on a $100,000 loan would equal $1,000. Note: Some lenders use the term “points” to refer to things that don’t relate to discounting interest rates. It may apply to other fees that are based on a percentage of your loan.
- Today’s rates at Mr. Cooper
- Why Do Mortgage Rates Change?
- What Is a Jumbo Loan? 5 Things To Know
- How Much Cash Do You Need To Buy a House?
Ready to get started on a loan? Talk with a Mr. Cooper Mortgage Professional at 833-702-2511 or apply online!
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* Mr. Cooper’s Mortgage Markdown is a lender-paid temporary buydown program that allows borrowers to reduce their effective interest rate and effective monthly payment for a specified period of time by establishing a custodial escrow account will be funded by the lender-paid credit and funds will be dispersed from the escrow account to the investor to account for the difference in interest during the 1 year buydown period which subsidizes the monthly payment amount. Mortgage Markdown is available for purchase loans that are locked by 03/31/2023. Mortgage Markdown is only available on conventional, conforming purchase loans for primary residences. Not available on FHA, VA, jumbo loans, or refinance transactions. Offer may not be redeemed for cash or credit and is nontransferable. Offer cannot be retroactively applied to any loans and may not be used with any other discounts or promotions. This offer is subject to changes or cancellation at any time at the sole discretion of Mr. Cooper. Additional restrictions/conditions may apply. Offer is contingent on qualification per full underwriting guidelines.
** To be eligible for RateSwap, you must lock a new purchase loan with Mr. Cooper by 3/31/2023. Mr. Cooper will waive the origination (application fee in New Jersey) up to $1500 on a refinance within 39 months of the purchase loan’s lock date. All other fees apply. Refinance subject to borrower and property qualifications and credit approval. Not all applicants will qualify. Refinanced loan must meet agency and investor guidelines. Limited to the initial refinance of the qualifying loan. You will be required to have made a certain number of timely monthly payments before you can refinance. Applicable on new purchase applications only. Not available for purchase loans currently in process or refinances. Other conditions and restrictions apply. Offer subject to change at any time.
This is not a commitment to lend. All loans are subject to credit and property approval. This offer is non-transferable and may not be combined with any other mortgage offer. Advertised offer is subject to change. If a personal code is present on the advertised offer, you must provide such code to claim the offer. We may gather information about you including, but not limited to, credit bureau information, information for verification of income, information for appraisal and verification of property being used for collateral. We also verify your identity. Income, assets, and debt must meet eligibility requirements as established by Government and/or Lender guidelines.