Home construction falls again
U.S. home construction dropped for the second month in a row. The change was largely due to the decline in new home construction, which fell 1.5% in July. Again, homebuyers are backing off because of high interest rates, low inventories and near-record home prices.
We’re likely to see the slowdown in home construction continue until early next year. Builders are already having to offer discounts to move the new homes they have built. They’re not about to keep building if the demand isn’t there. This, in turn, could pull down home prices overall. If you’re a home buyer, this looks like a positive sign.
Mortgage rates jump above 6%
Just when we thought rates were starting to moderate, they jump again. This time the 30-year fixed increased to 6.23%*, one of the biggest moves over the past month. This might be a short-lived volatile response to the economic uncertainty currently swirling around Wall Street. Or the move up is in anticipation of the Federal Reserve’s meeting later this month when they’re expected to raise rates another 75-basis points.
If rates do drop back into the 5% range in the near future, definitely lock in. While mortgage rates seem high, they’re still historically low compared to 1981 when they topped out at 18.39%.
First-time homebuyers guide: part 11
Today, we’re all used to banking, bill paying and even ordering groceries online. It’s hard to image what isn’t online, right? Add to that list the digital mortgage. If you’re a homebuyer, it’s the way to go. And it sure beats the old way of dealing with physical forms, paystubs, bank statements and tax returns. Not to mention the time you save and the headaches you avoid. From application to closing, today’s modern lenders help borrowers manage almost the entire process online.
Pre-Approval
in 10 minutes?
in under 10 minutes. Grab a few important documents to get started.
- Tax Returns
- Copies of W-2s (or 1099s for independent contractors,
freelancers and the self-employed) - A payroll stub
- A bank statement
- Loan obligation info (student loans,
auto loans and credit cards)
* National average rates as of 9/1 are not advertised rates from Guaranteed Rate and are used for informational purposes only.
Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Restrictions may apply.
All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. Guaranteed Rate does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error-free. Some information in the publication may have been provided by third parties and has not necessarily been verified by Guaranteed Rate. Guaranteed Rate its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action.
John Kistner is Guaranteed Rate’s Market Analyst. Market Updates are designed to provide readers with a high-level yet insightful view of how economic news, events and trends affect mortgage rates and the homebuying process.