What events could drive the mortgage rate market this week?
Data from multiple areas of the economy will have the potential to drive the market this week. Key dates that could influence where mortgage rates head next are as follows:
Monday, October 17th
Empire State Manufacturing Index
Tuesday, October 18th
NAHB home builders’ index
Atlanta & Minneapolis Fed Presidents will speak
Wednesday, October 19th
Building Permits (SAAR)
Housing Starts (SAAR)
Beige Book released
Minneapolis & Chicago Fed Presidents will speak
Thursday, October 20th
Initial jobless claims
Continuing jobless claims
Existing home sales (SAAR)
Leading economic indicators
Fed Governor speaks
Friday, October 21st
Index of common inflation expectations, 5-10 years & 10 years
Rising mortgage rates have some giving up
Yahoo! Finance reviewed the current mortgage landscape and found that 7% is a psychological barrier for several homebuyers. Most would rather stay on the sidelines than jump into a higher mortgage rate right now. Experts have also seen an increase in homebuyers looking at adjustable-rate mortgages and other options in an effort to get into a new home and avoid rising rates.
How are the ultra-wealthy navigating high rates?
What do the folks buying properties worth several millions do in a rising rate environment? Barron’s dives into that exact question, and the answer isn’t that different from what a ‘normal’ home buyer does. However, high-value property buyers may have a few additional options such as paying cash up front and then financing after, financing with a seller, intrafamily loans (one family member borrows from another) and looking to leverage investment accounts as collateral.
Jumbo loans are also still an option for individuals looking to finance multi-million-dollar properties. A jumbo loan often carries a lower mortgage rate than a traditional 30-year fixed mortgage. Other than the lower rate and higher amount, jumbo loans are similar to a regular mortgage.
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