I’m the COO of a mortgage company that’s funded more than $100 billion in loans. Here are the 3 things you need to know about the housing market now

I'm the COO of a mortgage company that's funded more than $100 billion in loans.  Here are the 3 things you need to know about the housing market now

Steve Reich Mortgage rates climbed above 6% last week, according to Bankrate data, with some pros saying they may go higher. (You can see the lowest mortgage rates you may qualify for here.) On top of that, home prices have risen more than 20% year-over-year, causing affordability challenges for many aspiring homebuyers. And it’s likely … Read more

The ‘best’ and ‘worst’ places in America for first-time home buyers

The 'best' and 'worst' places in America for first-time home buyers

Angelenos, congratulations — you officially live in one of the worst metro areas for first-time home buyers, according to a new study by Bankrate.com. Out of the 50 largest metro areas studied, Los Angeles ranked 49th in affordability, 48th in employment factors, 30th in safety, and 39th in housing-market tightness, as the supply of homes … Read more

Mortgage prepayments have fallen 62% from a year ago. This is what that says about the housing market.

Mortgage prepayments have fallen 62% from a year ago.  This is what that says about the housing market.

Ultimately, as long as buyers are able to keep up with their regular monthly payments, fewer people making extra mortgage payments probably isn’t going to have a massive impact on the broader housing market, explains one expert. PA Mortgage prepayment activity fell 19.1% just from March to April and 61.8% from a year ago, according … Read more

Mortgage prepayments have fallen 62% from a year ago. This is what that says about the housing market.

Mortgage prepayments have fallen 62% from a year ago.  This is what that says about the housing market.

Ultimately, as long as buyers are able to keep up with their regular monthly payments, fewer people making extra mortgage payments probably isn’t going to have a massive impact on the broader housing market, explains one expert. PA Mortgage prepayment activity fell 19.1% just from March to April and 61.8% from a year ago, according … Read more

‘All of this points to a broader weakness in the housing market’: Buyers are officially spooked by rising interest rates — just don’t expect a real-estate crash

'All of this points to a broader weakness in the housing market': Buyers are officially spooked by rising interest rates — just don't expect a real-estate crash

‘All of this points to a broader weakness in the housing market’: Buyers are officially spooked by rising interest rates — just don’t expect a real-estate crash The US housing sector is losing steam amid rising rates, which is spooking some would-be home buyers, according to various reports. The housing sector’s been red-hot for months … Read more

Small-cap growth stocks are at their lowest P/E valuation in at least 24 years.

Small-cap growth stocks are at their lowest P/E valuation in at least 24 years.

Growth stocks typically trade at premium prices. But in this market, rising interest rates have turned small-cap growth stocks into a bargain group. This may be a beautiful setup for long-term investors. The following chart, provided by Alger Director of Market Strategy Bradford Neuman, underscores the opportunity: Algiers, FactSet The chart shows the weighted forward … Read more

I’m the chief economist of Redfin. 5 things to know about the housing market now

I'm the chief economist of Redfin.  5 things to know about the housing market now

Redfin chief economist Daryl Fairweather shares her thoughts and predictions on the housing market. Peak home buying season is in full swing, and many aspiring homebuyers are wondering: What should I know about the housing market if want to buy? After all, interest rates have been rising, with some pros saying that trend will continue … Read more

Mortgage Lenders Are Playing Defense

Mortgage Lenders Are Playing Defense

Mortgage lenders have been squeezed by rising rates and falling volumes. Investors should be paying attention to when they push back. Home-lending rates in mid-May hit their highest level since 2009 on Freddie Mac‘s weekly US average of 30-year fixed-rate mortgages, at 5.25%. That is a climb of about 2 percentage points since the end … Read more