Fed Begins Exiting Mortgage Market, Ending 'Punch Bowl' Days
The Federal Reserve's nearly $4 trillion of bond purchases doubled its balance sheet and caused mortgage rates to hit new lows 15 times last year.
November 3, 2021 3 MIN
The Federal Reserve's nearly $4 trillion of bond purchases doubled its balance sheet and caused mortgage rates to hit new lows 15 times last year.
The average mortgage size for new homes rose to a record high of $408,522, a gain of 15% from a year ago, according to MBA’s Builder Application Survey.
It’s half the size of President Joe Biden’s original bill, but it still includes homebuyer assistance and a rescue of the nation’s flood insurance program.
U.S. pending home sales dipped in September as supply-chain bottlenecks kept new houses from coming on the market.
The average U.S. rate for a 30-year fixed home loan climbed for the third consecutive week as bond investors demanded higher yields, Freddie Mac said.
U.S. home prices gained 18.5% in August from a year earlier, slowing from July’s record pace of 19.2%, as rising mortgage rates crimped the ability of buyers to engage in bidding wars.
New-home sales surges in September and the median U.S. price rose to a record as house-shoppers rushed to take advantage of low mortgage rates.
The share of mortgages late by 30 days or more fell to 3.91% in September, almost half the level of a year ago, Black Knight said in a report.
Some of the housing provisions of the Build Back Better bill that seemed destined for the chopping block are now back in play, including some form of down payment assistance.
About 1.24 million mortgage holders remain in Covid-19-related forbearance plans, the lowest since the beginning of the pandemic, Black Knight said in a report on Friday.
