Editor’s Note: The Mortgage Mix is RISMedia’s weekly highlight reel of need-to-know mortgage-industry happenings. Watch for it each Friday afternoon.
- According to Mortgage News Daily, the 30-year fixed-rate mortgage currently sits at 6.45%, a decrease of 0.04% from where it sat on May 1, 2023. The 15-year fixed-rate mortgage sits at 5.9%, even with the May 1 rate. Mortgage Daily News called these rates “the lowest in weeks.”
- For the week ending April 28, 2023, mortgage applications decreased by 1.2%, according to the latest Weekly Application Survey from the Mortgage Bankers Association (MBA).
- The Federal Reserve announced a 0.25% interest rate hike on May 3, 2023, pushing rates to a 16-year high. Further ramifications on the mortgage market are uncertain.
- Freddie Mac posted its Q1 2023 financial earnings on May 3, 2023, reporting a net income of roughly $2 billion. This is a 13% increase from Q4 2022. Net revenue remained stable quarter-over-quarter at $438 billion.
- Fannie Mae reported a net income of $3.78 billion, up 165% from the previous quarter.
- Both Freddie Mac and Fannie Mae reported net income decline year-over-year (17% and 14%, respectively).
- The Federal Housing Finance Agency’s (FHFA) new rule, requiring borrowers with 740 or higher FICO scores to pay $40 more per month, went into effect on May 1, 2023. Market ramifications are likely forthcoming.
- Alvaria, carrier service for Carrington Mortgage Services, was subject to a ransomware attack in March 2023. This compromised the personal information of an undisclosed number of Carrington customers.
“This week, mortgage rates inched down slightly amid recent volatility in the banking sector and commentary from the Federal Reserve on its policy outlook,” said Sam Khater, Freddie Mac’s chief economist. “Spring is typically the busiest season for the residential housing market, and despite rates hovering in the mid-6% range, this year is no different. Interested homebuyers are acclimating to the current rate environment, but the lack of inventory remains a primary obstacle to affordability.”
