Back

Market Update - January 19, 2024

This Market Update is written by our Capital Market specialists each week to bring you insight into what's happening in the market and how it may affect mortgage rates and real estate trends.

Rates are provided by Housing Wire in conjunction with Optimal Blue. Rates are updated in real-time. Optimal Blue data is calculated using actual locked rates with consumers across 42% of all mortgage transactions nationwide. Rates are inclusive of locks that occur below par, at par and therefore consider discounts and rebates.

Market Commentary:

For the week of Jan 12th – Jan 18th, 30-year and 15-year interest rates increased slightly.

While rates remain elevated this week, the Fed recently signaled that it would begin to cut rates in 2024, indicating a further downward shift in mortgage rates may be on the way.

Mortgage rates fell sharply in mid-December as the Federal Reserve wrapped up its final meeting of 2023 with no rate hike. The Fed did signal several rate cuts in 2024, and mortgage rates responded by free-falling from 7.21 percent to 6.88 percent in a single week.

A growing number of housing economists say mortgage rates could stay below 7 percent in the coming months. This is an encouraging development for the housing market and in particular first-time homebuyers who are sensitive to changes in housing affordability.

 

Fed Watch: Looking ahead, all eyes are now on the upcoming January 31st, Federal Open Market Committee (FOMC) meeting. According to the CME Group, 0.00% of forecasters predict an increase in interest rates, while 97.4% predict rates will remain the same. 2.6% of forecasters expect rates to decrease.

Market Review:

Per Black Knight's Production Metrics, the breakdown of mortgage production volume is as follows: 84.16% for purchase transactions, 11.08% for cash-out refinances, and 4.77% for rate and term refinances.

Key Housing-Market Data:

Homebuyers and sellers are gradually becoming more active as the calendar flips further into 2024. Mortgage-purchase applications are up 8% from a month ago, lower mortgage rates are piquing buyers' interest. On the sell side, new listings increased 8% year over year during the four weeks ending January 14.

Buyers and sellers are making moves largely because mortgage rates are holding steady in the mid-6% range, down from 8% in October. The typical U.S. homebuyer's monthly housing payment is $2,456 with this week's average rate; while that's up 10% year over year, it's down from October's record high of over $2,700.

News You Can Use

See all articles

Other news

Financing a Greener Future: Home Equity Solutions for Eco-Upgrades
View full article
Navigating Home Equity Options for Renovation Projects: Beyond the Basics
View full article
Market Update - January 26, 2024
View full article
Prosperity Home Mortgage Recognized for Overall Customer Satisfaction by J.D. Power
View full article
Market Update - January 19, 2024
View full article
Celebrating a Decade of Prosperity
Celebrating a Decade of Prosperity: A Journey of Innovation, Resilience, and Customer-Centric Excellence
View full article
Seize the Moment: Why Now May Be the Perfect Time to Buy Your Dream Home
View full article
Why Real Estate Still Reigns Supreme as the Best Long-Term Investment
View full article
How Our Homebuyers Are Beating Rising Interest Rates: Discover Benefits of a Buydown
View full article
Capitalize on Multi-Unit Living: Your Home, Your Investment, With as Little as 5% Down
View full article
Unlocking the Potential: 4 Ways to Use Your Home Equity
View full article
Introducing: Pathway to Prosperity
View full article
National Mortgage Professional Month: Celebrating Our Teams!
View full article
Navigating the Modern Mortgage Landscape: A Closer Look at Debt Service Coverage Ratio (DSCR) Loans
View full article
Prosperity Home Mortgage Earns Top Spot for Customer Satisfaction in 2022 Mortgage Industry Rankings
View full article
Prosperity Home Mortgage's Remarkable Ranking and a Bright Future Ahead
View full article
Building Homes and Building Communities: Our Tucson Team Joins Habitat for Humanity
View full article
Coming together to give back.
View full article
Market Update - April 28, 2023
View full article
Introducing BorrowSmart Access
Freddie Mac BorrowSmart Access: Helping First-Time Homebuyers in Under-Served Communities
View full article
FHFA Loan Level Price Adjuster Clarification
Setting the record straight.
View full article
Market Update - 4.20.23
View full article
Market Update - 4.13.23
View full article
Market Update
View full article
Habitat for Humanity: Dallas 2023
View full article
Celebrating the legacy of P. Wesley "Wes" Foster, co-founder of Long & Foster Companies
View full article
Prosperity Home Mortgage Announces $5,000 HomeBuyer Boost Grants
Prosperity Home Mortgage announced the launch of its HomeBuyer Boost Grant Program to benefit first-time homebuyers
View full article
Buyer's Bridge Loans: What They Are and How They Work
Buy now and sell later with our Buyer's Bridge loan. Don't let a dream home slip away while waiting on a pending sale!
View full article
Prosperity Opens a New Community Lending Office in Downtown Atlanta, GA
Our focus is on increasing minority homeownership.
View full article
Rate Rollback Guarantee
Obtain lower initial mortgage payments and long-term security
View full article
Prosperity Revamps Leadership Team for Future Growth
New Vice President positions have been created, giving local leaders the authority to make decisions based on their market knowledge and relationships with real estate partners.
View full article
Prosperity names Brian Haug Chief Retail Production Officer
Brian Haug has been promoted to the role of Executive Vice President and Chief Retail Production Officer
View full article
Prosperity Home Mortgage Names Justin Messer President and CEO
View full article
Prosperity Celebrates Continued Success with a New Look
View full article
Expert Update - 12.02.22
View full article
FHFA Announces Higher Loan Limits for 2023
View full article
November Journal 2022
View full article
Prosperity Home Mortgage Reaches $5.7 Billion in VA Loan Fundings
View full article
Government Home Loan Programs
View full article
The VA Home Loan Advantage
View full article
FHA Home Loans
View full article
USDA Guaranteed Rural Housing Program
View full article
Philly Home Buying Seminar
View full article
Habitat for Humanity: Los Angeles 2022
View full article
Habitat for Humanity: Philadelphia 2022
View full article
Habitat For Humanity: Tucson 2022
Our Prosperity Home Mortgage team is working hard to bring the phrase “home for the holidays” to life,..
View full article
Philly / NJ / Delaware Night of Giving
View full article
BHHS National Sales Convention
View full article
Donating Meals for Healthcare Professionals
View full article
Prosperity Home Mortgage Partners with DC Habitat to Complete 14 Affordable Homes
View full article
Introducing RAPID CLOSE
View full article
Prosperity Home Mortgage Consultants Recognized as Top in the U.S. by Mortgage Executive Magazine
View full article
Prosperity Community Update
View full article
Berkshire Hathaway HomeServices Fox & Roach, REALTORS® Selects Prosperity Home Mortgage, LLC as Their Mortgage Affiliate
View full article
Prosperity Home Mortgage Reaches $3.2 Billion in VA Loan Fundings
View full article
Introducing Home Advantage, a Nationwide Zero Down FHA Mortgage
View full article
Prosperity EXPRESS Offers Faster Loan Closings
View full article
Juneteenth 2021
View full article
Brian Haug Appointed to Senior Leadership Position at Prosperity Home Mortgage, LLC
View full article
New Name, Same Great Team!
View full article
Prosperity Home Mortgage Named One of 50 Best Companies to Work For
View full article
XLR8: The Future of Mortgage
View full article
Prosperity Home Mortgage Company Ranks 20th in Top 100 Mortgage Companies in America
View full article
COO, Justin Messer Named Among 40 Under 40 Influential Mortgage Professionals
View full article
Meet Jelaire Grillo, The Journey Wiz
View full article
Prosperity Reaches Over $15.5 Billion in Loan Volume in 2021
View full article
Texas Team Gets Veteran into Dream Home
View full article
Prosperity Home Mortgage Now Operating in the Greater Palm Springs Temecula Valley Areas
View full article
Chairman and President’s Club Winners Announced for 2021
View full article
18 MCs Recognized by Philadelphia Magazine for Top Mortgage Professionals Award
View full article
Lock, Shop & Home!
View full article
Prosperity Home Mortgage Now Operating in St. Louis
View full article
Mike Miller Joins Prosperity Home Mortgage as Indiana Regional Manager
View full article
Prosperity Home Mortgage Consultants Recognized as Top 1% for Customer Satisfaction by Experience.com
View full article
Prosperity Home Mortgage Now Operating in South Dakota
View full article
Prosperity Home Mortgage Ranked Among Nation Top Mortgage Lenders
View full article
Prosperity Home Mortgage Is Built Strong
View full article
Freddie Mac BorrowSmart Program
View full article
Kyle Albornoz
Cell Phone: 443-449-0696
#NMLS:
2155322
Return To My Homepage