Mortgage rates climb higher as House passes home affordability bill
View original at finance.yahoo.comMortgage rates climb higher as House passes home affordability bill Mortgage rates continue to rise from spring levels, driven by the economic shocks from inflation, oil prices (CL=F, BZ=F), and the latest surge in Treasury yields (^TYX, ^TNX, ^FVX)…
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The mortgage lock-in effect is keeping homeowners with low-rate (e.g., 3%) mortgages from moving, suppressing housing supply.
60% confidenceMortgage rates briefly fell below 6% earlier, and when rates get below 6% buyers come out and purchase homes.
60% confidenceMortgage rates are rising because of an absolute bond market rout, with the 10-year Treasury yield rising rapidly on investor inflation fears. The 10-year Treasury yield and mortgage rates are closely linked.
60% confidenceThe House version of the housing bill removed the Senate's 7-year mandatory disposal requirement for build-to-rent developers, creating a significant mismatch between the two bills.
60% confidenceLowe's has delivered four consecutive quarters of positive comparable sales with the DIY customer segment.
60% confidenceCurrent mortgage rates are the highest levels of the year, occurring during the peak spring home buying season.
60% confidenceToday, mortgage rates are 6.67%, which is actually better than yesterday when they were 6.75%.
60% confidenceHome equity loan rates have also risen alongside mortgage rates, and construction costs are higher, making any home improvement activity difficult.
60% confidenceThe Senate version of the housing bill requires build-to-rent developers to sell their properties within seven years, which developers say would wreck their margins and business model.
60% confidenceThe House and Senate versions of the housing affordability bill differ significantly on the build-to-rent issue, making it unclear whether they can reconcile and send a final bill to President Trump.
60% confidenceDIY customers make up approximately 60 to 65% of Lowe's revenue.
60% confidenceBuild-to-rent is a growing part of the real estate market because people cannot afford to buy homes but may want to rent a single-family home.
60% confidenceHousing affordability advocates support build-to-rent because it contributes to housing supply and helps bring rents down.
60% confidenceHome equity investments are a new, lightly regulated financial product where Wall Street gives homeowners upfront cash in exchange for a future cut of their home equity appreciation, without requiring regular payments. Homeowners whose property appreciates significantly can end up owing large sums.
60% confidenceThis is arguably the most difficult do-it-yourself housing environment since the financial crisis.
60% confidence
