Mortgage Rates Jump to 7-Year High

Freddie Mac, the quasi-government agency that helps to provide home-byers and refinancers with the cash they need to get new loans, said on Oct. 11 that its weekly poll of lenders shows that mortgage rates have risen to their highest level in seven years.

Sam Khater, Freddie Mac’s chief economist, says, “In this week’s survey, the 30-year fixed-rate mortgage jumped 19 basis points to 4.90 percent. Rates are now at their highest level since the week of April 14, 2011.

“Rising rates, paired with high and escalating home prices, is putting downward pressure on purchase demand. While the monthly payment remains affordable due to the still low-mortgage rate environment [by historical standards], the primary hurdle for many borrowers today is the down payment and that is the reason home sales have decreased in many high-priced markets,” Khater added.

Freddie Mac’s new report found:

• Rates on 30-year fixed-rate mortgage (FRMs) averaged 4.90 percent, with an average 0.5 point for the week ending Oct. 11, up from last week when it averaged 4.71 percent. A year ago at this time, the 30-year FRM averaged 3.91 percent.

• Fifteen-year FRMs this week averaged 4.29 percent with an average 0.5 point, up from last week when it averaged 4.15 percent. A year ago at this time, the 15-year FRM averaged 3.21 percent.

• Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 4.07 percent with an average 0.3 point, up from last week when it averaged 4.01 percent. A year ago at this time, the 5-year ARM averaged 3.16 percent.

Realtors Praise Passage of U.S. Water Act

National Association of Realtors President Elizabeth Mendenhall, a sixth-generation Realtor from Missouri and CEO of RE/MAX Boone Realty, issued the following statement after the Senate voted to pass Senate Bill 3021, “America’s Water Infrastructure Act” of 2018.

"America’s Water Infrastructure Act of 2018 ensures the U.S. Army Corps of Engineers can continue providing vital economic and environmental services to property owners across this country,” Mendenhall said.

“Overall, this legislation supports U.S. economic development and the real estate industry by investing in natural disaster and flood-control protections by providing sustainable drinkable water for everyone in America and by maintaining waterways and ports that help us transport goods across the country.

"The bill is particularly beneficial to Realtors in Florida who are working to address the state’s critical infrastructure needs, specifically by funding research to combat harmful algal blooms that surfaced in the state earlier this year. NAR applauds the Senate and House for moving this legislation swiftly, and we look forward to seeing it signed into law in the coming days."

The National Association of Realtors is America’s largest trade association, representing 1.3 million members involved in all aspects of the residential and commercial real estate industries.

Culver Listings Drop, SM Rise

There were 107 houses, condos and townhomes for sale in Culver City at press time Thursday, down from 113 the previous week.

Listings in Santa Monica rose only slightly, to 222 on Oct. 11 from 220 a week earlier.