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.
- The 30-year fixed mortgage rate experienced some upward pressure as debt-ceiling debates continued this week. According to the latest Primary Mortgage Market Survey® from Freddie Mac, rates hit 6.57%, climbing 18 basis points from the week prior. The strain on buyers and sellers has created a predicament that Freddie Mac Chief Economist Sam Khater said could “open up an opportunity for builders to help address the country’s housing shortage.”
- Rising mortgage rates continue to take their toll on mortgage applications, which declined for the second consecutive week. According to the Mortgage Bankers Association (MBA), the volume of applications declined 4.6% on a seasonally adjusted basis from one week earlier. Despite seeing an uptick this week, experts at the MBA acknowledged that activity is still nearly 28% below last year’s pace.
- Rocket Mortgage has launched its new 1% down home loan program, according to recent announcements from the company. Dubbed ONE+, the program requires homeowners to make a down payment of only 1% of the purchase price, and the company will cover the remaining 2% needed to reach the required threshold for conventional loans.
- When will it end? That’s the question on many folks’ minds regarding the Federal Reserve’s interest rate hikes. After slowing down the size of the increases, and finally reaching its stated target of over 5%, many are hoping that the Fed will pause increases in its next meeting. According to recently released minutes from the Fed’s last meeting, it appears that members are split on whether they will halt rate hikes or not, with another meeting coming in a couple of weeks.