Interest rates 101
This article dives into how interest rates are structured, how lenders set the interest rate on a mortgage, and how rates affect property values.
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Tag: mortgage interest rates
Despite Q4 2023 FRM rate slippage, Buyer Purchasing Power remains negative
Today’s homebuyer is limited to borrowing 9.7% less mortgage money than a year earlier due to higher interest rates alone.
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Press Release: Negative Buyer Purchasing Power Index (BPPI) casts a shadow over home prices
Planning for the next several years in real estate transactions will require patience and a very different approach to the past decade of recovery economics driven by rate decreases.
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Today’s homeowners are stuck on yesterday’s rates
Sticky homeowners are unwilling to relieve the inventory shortage in 2023.
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The news media has the wrong take on mortgage rates
Media pundits in their coverage of today’s high mortgage interest rates ignore the 60-year cycle of rising and falling mortgage rates and the seller’s pricing response to rising and falling rates.
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Press Release: Despite steady gains, Q2 2023 Buyer Purchasing Power Index still negative
The typical mortgaged homebuyer is able to borrow 11% less purchase-assist mortgage money than a year ago due to higher interest rates alone.
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The “right” interest rate is the market rate — higher than homebuyers think
Waiting for mortgage rates to drop to the “right” level is mental joy riding.
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The Federal Reserve’s impact on mortgage rates
Learn how the Fed is using their benchmark rate as a monetary policy tool to restrain levels of borrowing in 2022.
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Press Release: Q1 2023 Buyer Purchasing Power Index down 23% from a year earlier
A homebuyer with the same income is able to borrow 23% less purchase-assist mortgage money than a year ago due to interest rate hikes alone.
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ARM-FRM crossover removes last support for home prices
The interest rate inversion has completely eliminated the appeal of ARMs — and the price support ARMs provided before the inversion.
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California home sales volume in 2022 began the purge of pandemic distortions
The number of homes sold in December 2022 was a devastating 44% below a year earlier.
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Buyer purchasing power determines home prices — always
Little interest rate changes make a big difference in how much a homebuyer can pay.
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Press Release: Buyer Purchasing Power Index ends 2022 31% below a year earlier
California homebuyers are able to borrow 31% less than a year earlier due to higher interest rates alone.
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California real estate: 2022 in review and a forecast for 2023
Read about the legislative changes and economic shifts which impacted real estate professionals during 2022 – and our forecast for 2023.
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As mortgage interest rates rise, concessions return
Buyers looking to recoup lost purchasing power are dusting off old strategies to secure a more comfortable monthly mortgage payment.
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Offering mortgage points? There are better ways to catch a buyer
The insides and outs of mortgage points – and better ways to entice buyers in today’s rising interest rate market.
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ARM use ticks higher as buyers overreach
With falling home prices and rates continuing to rise, today’s ARM buyers are purchasing a ticking time bomb.
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Press Release: Buyer Purchasing Power Index plummets in Q3 2022
Buyer purchasing power is 31% lower than a year earlier due to interest rate hikes alone.
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Still sinking, California home sales volume comes up for air in August 2022
After four consecutive months of decreasing sales, California home sales volume rebounded slightly in August 2022.
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