Found 2 blog entries tagged as Rates.

Could This “Magic Rate” Unlock the Market?

Highest Acceptable Mortgage Rate

According to a recent analysis by John Burns Research and Consulting (JBREC), there may be a "magic" mortgage rate that could spark renewed activity in the housing market. For 12 consecutive years, mortgage rates remained below 5%, enabling many homeowners to lock in favorable terms. Currently, 86% of mortgage holders have rates under 6%. JBREC's survey suggests that the 5.5% mortgage rate represents the tipping point that could release the “ lock in effect ”. Additional findings:

  • 72% of buyers would not accept a rate above 5.5%

  • 22% of buyers would accept a rate higher than 6%

  • 66% of consumers believe a “normal” rate is below 5.5%

  • 88% of consumers believe…

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86% of Mortgages Have a Rate Below 6%

According to a report by the FHFA National Mortgage Database Aggregate Statistics, 85.6% of mortgaged homes have a rate below 6%, down from the peak of 92.8% in the 2nd quarter or 2022.

Key Points:

  • Strong Borrowers: The average credit score among borrowers with an active loan is an impressive 743.

  • Low Foreclosure Risk: Only 0.3% of borrowers have negative equity.

  • Improved Loan-to-Value Ratios: National LTV ratio improved to 48.3% from 70% a decade ago.

  • Outstanding Mortgages: At the end of Q1 2024, there were 50.8 million outstanding mortgages with unpaid balances totaling $11.7 trillion.

Ralph’s Take

Despite concerns that…

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