Posted in home

Australian Home Prices May Rebound on Low Rates, Easy Credit

(Bloomberg) — Australian home prices may have bottomed out and could be set to rise through the end of the year on the back of lower interest rates and easier credit, according to Bloomberg Intelligence.



a house with trees in the background: Residential properties stand along a street in Brisbane, Australia, on Tuesday, May 7, 2019. Australian central bank chief Philip Lowe dashed expectations of an interest-rate cut, looking through recent weakness in inflation to hitch the policy outlook to a labor market that he says remains strong.


© Bloomberg
Residential properties stand along a street in Brisbane, Australia, on Tuesday, May 7, 2019. Australian central bank chief Philip Lowe dashed expectations of an interest-rate cut, looking through recent weakness in inflation to hitch the policy outlook to a labor market that he says remains strong.

Property prices have fallen just 3% since the Covid-19 crisis began, defying concern of a steeper slide. A plan to ease responsible-lending rules and mounting speculation for further loosening of monetary policy in coming months may unleash a wave of borrowing, Bloomberg Intelligence analyst Mohsen Crofts said in a report Wednesday.

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What Bloomberg Intelligence says:

Home prices may have reached a near-term bottom in most

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Posted in home improvement loans

Will Lower Mortgage Rates Aid NVR to Post Higher Q3 Earnings?

NVR, Inc.’s NVR third-quarter 2020 earnings and revenues are expected to have registered an improvement on a year-over-year basis.

In the last reported quarter, the company’s earnings and revenues missed the Zacks Consensus Estimate by 5.3% and 3.5%, respectively. On a year-over-year basis, earnings and revenues decreased 19.9% and 10%, respectively, as the COVID-19 outbreak had a significant impact on all facets of its busines.

Nonetheless, the company has a strong earnings surprise history, having surpassed analysts’ expectations in 12 of the trailing 14 quarters.

Trend in Estimate Revision

For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has increased 1.3% to $62.01 over the past seven days. The estimated figure indicates an increase of 10.5% from the year-ago quarter. The consensus mark for revenues is pegged at $2 billion, suggesting a 7% increase from the year-ago reported figure of $1.87 billion.

NVR, Inc.

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Posted in home

Mortgage rates dip slightly as Americans rush to refinance their home loans

Mortgage rates are flirting with another record low — and that means the boom in refinancing has not yet finished.



a car parked in front of a house: Americans are rushing to refinance, but homeowners shouldn’t necessarily expect mortgage rates to continue hitting record lows.


© Getty Images
Americans are rushing to refinance, but homeowners shouldn’t necessarily expect mortgage rates to continue hitting record lows.

The 30-year fixed-rate mortgage averaged 2.87% for the week ending Oct. 8, down one basis point from the week prior, Freddie Mac (FMCC)reported Thursday. A few weeks ago, the average rate for the 30-year loan fell to an all-time low of 2.86%.

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The 15-year fixed-rate mortgage rose by a basis point to an average of 2.37%, while the 5-year Treasury-indexed hybrid adjustable-rate mortgage dropped one basis point to 2.89% on average.

Mortgage rates usually roughly follow the direction of the 10-year Treasury note’s yield (BX:TMUBMUSD10Y) which trended upward this week. That’s not what happened this week, though.

“Typically, Treasury yields and mortgage rates have a close relationship, with

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Posted in home improvement loans

Mortgage rates set another record low, sparking refinances

An ‘Open House’ sign is displayed as potential home buyers arrive at a property for sale in Columbus, Ohio.

Ty Wright | Bloomberg | Getty Images

Mortgage rates moved even lower last week after setting multiple record lows in recent months, spurring more borrowers to call their lenders and apply for a refinance, but homebuyers were quite as motivated. 

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of up to $510,400 slipped to 3.01% from 3.05%, while points decreased to 0.37 from 0.52 for loans with a 20% down payment. 

In response, refinance application volume, which is most sensitive to weekly rate moves, rose 8% for the week and was 50% higher than a year ago, according to the Mortgage Bankers Association’s seasonally adjusted index. That is the highest refinance volume since mid-August.

Applications for a mortgage to purchase a home fell 2% for the

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Different mortgage rates and requirements

If you’ve been comparing mortgage rates for the purchase of a second home or an investment property, you’re already on a promising path: You’ll either have a place to go for vacations, or you’ll have a place that’ll generate income and put more money in your pocket.



a view of a picnic table: A view from an outdoor patio


© alexandre zveiger/Shutterstock
A view from an outdoor patio

Either way, the opportunity to own more than one property is an enviable position to be in, but how you classify that property makes a difference in how much you’ll pay to finance and own it.

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Second home vs. investment property

Are you buying a second home, or are you making an investment?

This might be confusing, especially if you’re thinking about occasionally renting out the property – using it regularly for vacation, for example, but also making it available on Airbnb for some of the time you’re not using the property

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Mortgage rate forecast Q4: Will the low rates continue? | Money

However, Ken H. Johnson, a housing economist at Florida Atlantic University, is less optimistic about a quick economic recovery. “Rates will remain low for at least another year,” he says. “I just do not see full or near-full economic recovery until COVID-19 no longer or minimally impacts the economy.”

— Economic recovery could boost rates

Greg McBride, CFA, Bankrate’s chief financial analyst, sees rates holding steady in the coming year. “Mortgage rates will remain at historically low levels and in no way be an impediment to well-qualified borrowers, but they won’t be quite as low as what was seen in the summer of 2020,” he says. “A refinance fee taking effect in Q4 2020 and further economic improvement will push rates a bit higher.”

Audrey Boissonou of Guarantee Mortgage in Walnut Creek, California, says the direction of the economy will prove crucial. “I’m locking people in in the high 2s

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Posted in home

Mortgage rates fall as demand for home loans rises

The 15-year fixed-rate average reached 2.36 percent, down from 2.40 percent, with an average 0.7 point. The five-year adjustable-rate average at 2.90 percent, with an average 0.2 point, was unchanged from the previous week. The 15-year rate was 3.14 percent and the five-year was 3.38 percent a year ago.

“Mortgage rates are in a holding pattern because we have lots of big things looming and investors are waiting to see what happens,” said Danielle Hale, chief economist with Realtor.com. “Obviously, they’re waiting on the election results, but also on the next stimulus plan, which seems to start and stall. I expect mortgage rates to stay stable and not go up or down much until we get some of this big news.”

Freddie Mac’s Primary Mortgage Market Survey, from which the averages are derived, is confined to rates on conventional home loans for borrowers who make a 20 percent down payment

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Home Sales Contracts Hit Record With Low Rates Fueling Rally

(Bloomberg) — U.S. pending home sales rose more than expected in August, reaching the highest level on record as low mortgage rates fuel a housing rally.

The National Association of Realtors’ index of contract signings to buy previously owned homes surged 8.8% from a month earlier, according to data released Wednesday. Analysts had estimated 3.1%. Compared with 2019, pending sales jumped 24%.

“Tremendously low mortgage rates have again helped pending home sales climb,” said Lawrence Yun, NAR’s chief economist.



chart: Pending home sales reach a record in data going back to 2001


© Bloomberg
Pending home sales reach a record in data going back to 2001

It was the fourth straight monthly gain for the index, which is now at the highest level in records dating back to 2001. The index has surged since taking a hit when the pandemic froze the housing market in March.

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Read more: U.S. Existing-Home Sales Increase to Fastest Pace Since 2006

Record-low mortgage rates have

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Will the low rates continue?

If you’re looking to buy a home or refinance your current one, expect mortgage rates to remain low into 2021. However, the possibility of rates falling to 2.5 percent or lower has faded as the U.S. economy has rebounded.



skynesher/Getty Images


© skynesher/Getty Images
skynesher/Getty Images

The average 30-year fixed mortgage rate reached an all-time low of 3.09 percent in September 2020, according to Bankrate’s weekly survey of large lenders. The uncertainty caused by the coronavirus pandemic has also created uncertainty around where rates will go by mid-2021.

Some rate watchers say rates could fall further, setting new record lows. Others expect it to edge back toward 3.5 percent. The wild card, of course, is how the U.S. economy recovers from the COVID-19 pandemic, an economic shock without precedent for at least the past century.



a sign in front of a house: suburban home


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suburban home

Here’s how a range of experts predicts mortgage rates will

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Home equity rates 2020 review and forecast

The year 2020 has been packed full of health and financial challenges for many Americans. Yet for home equity borrowers, there’s been some good news too. Interest rates are low, and the Federal Reserve has indicated that they’re likely to stay that way for the foreseeable future.



a living room filled with furniture and a large window: Home equity rates forecast for 2020


© Tom Merton/Getty Images
Home equity rates forecast for 2020

In many situations, leveraging the equity in your home can be a smart strategy. Home equity loans can help you accomplish big-ticket goals like paying for a child’s education, making major home improvements and consolidating higher-interest debt. Better yet, when you borrow against your home equity, you may be able to reach these goals at a low interest cost and without pulling money out of savings.

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Home equity rates in 2020: Initial predictions vs. reality

At the beginning of 2020, no one could have accurately predicted all of the events that

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