Mortgage rates increased in January

by Anna Sobrevinas03 Mar 2017
Mortgage rates increased in the beginning of the year, according to a recent survey by the Federal Housing Finance Agency.

Contract rates on mortgages on newly built homes rose to 4.02%, while Freddie Mac reported an increase to 4.15%.

A Fannie Mae survey also found out that for the first quarter of the year, a small group of lenders anticipate a decrease in demand for GSE-eligible mortgages in part because of higher mortgage rates.

About half of large and mid-sized institutions believed demand would fall because of unfavorable mortgage, while 30% of small institutions share the same sentiment. 

However, new home sales contracts went up by 3.7% in January despite higher mortgage rates. And existing home sales, for both single-family homes and condos, rose by 3.3% in January – the fastest pace since February 2007.

On the contrary, pending home sales dropped by 2.8% in January – the lowest level in a year – according to the National Association of Realtors’ Pending Home Sales Index.

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