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Category: Housing Market News

  • US mortgage rates edge down to 6.51%, MBA says

    US mortgage rates edge down to 6.51%, MBA says

    The most popular mortgage rate in the U.S. fell last week for the first time since the start of the Iran war, but it was not enough to revive the housing market, which has been sidelined by a combination of high borrowing costs and expensive homes.

    The Mortgage Bankers Association announced on Wednesday that the contract interest rate for a 30-year fixed-rate mortgage decreased by 6 basis points to 6.51% for the week ending April 3, retreating from the seven-month high reached the previous week.

    However, refinance applications fell by 2.8%, and purchase applications, which rose by about 1% from the previous week, remained 7% lower than a year ago, the Mortgage Bankers Association added.

    Since the U.S. and Israel launched the war on February 28, mortgage rates have risen by 42 basis points, which has increased the yields on Treasury bonds that lenders use to set mortgage rates.

    The Iran war, in addition to increasing credit costs, has also affected consumers’ daily budgets with the rise in fuel prices.

    Affordability has become a key political issue for the Trump Administration, which said it would make a “major housing announcement” on Wednesday.

    Earlier this year, President Donald Trump proposed banning corporate investors from buying single-family homes and instructed Fannie Mae and Freddie Mac, government-controlled entities that back most U.S. home loans, to purchase 00 billion in mortgage-backed securities to lower borrowing rates.

  • Cryptocurrency for a house? Token-backed down payments are introduced to the property market by Coinbase.

    Cryptocurrency for a house? Token-backed down payments are introduced to the property market by Coinbase.

    Coinbase, in collaboration with Better Home & Finance, is allowing home buyers to use their crypto assets as collateral for down payments; this stands out as one of the most ambitious attempts to adapt digital assets to mainstream needs.

    According to the companies’ announcement on Thursday, a potential homeowner could provide a loan collateral against Bitcoin or USDC in their Coinbase account to cover the down payment. The loan will be separate from the Fannie Mae-backed home mortgage.

    This move will spare homebuyers from having to sell their crypto assets to finance their down payments; this transaction is typically done with cash and cash-equivalents.

    Customers can hold onto their assets for a longer period, potentially benefit from more price increases, and defer their tax liabilities.

    Additionally, it can also alleviate the long-standing criticism that the practical use of crypto assets is limited.

    Kara Calvert, head of U.S. policy at Coinbase, told Reuters, “This product is designed to operate within the safeguards of the existing mortgage system, including how risks such as asset volatility are managed.”

    However, this approach adds complexity and leverage to an already expensive purchase. In fact, buyers will be taking a gamble that maintaining exposure to cryptocurrencies justifies taking on a second loan, in addition to one of the largest financial commitments of their lives.

    According to the National Association of Realtors, access to homeownership has narrowed in recent years, as the average age of first-time homebuyers has risen from 32 in 2000 to 40, due to high borrowing costs, elevated prices, and limited supply.

    Mortgages will be provided and serviced by Better.

    FROM FRINGE TO MAINSTREAM

    The crypto-friendly Trump administration took various steps to ease regulatory barriers that have long restricted the spread of traditional financial products.

    Last year, the White House instructed regulators to expand access to alternative investments, including cryptocurrencies, for retirement savers in 401(k) plans.

    During the campaign process for the 2024 presidential election, Trump had promised to make the U.S. the “crypto capital” of the world.

    Coinbase’s manager Calvert said, “We are actively engaging in a bipartisan dialog with Washington on cryptocurrency regulation,” and added that the company’s product would expand access to homeownership for Americans whose wealth is not in traditional accounts.

    Coinbase said its crypto-backed mortgages function like traditional home loans with the same legal protections.

    The company spokesperson said that once the loan is activated, the mortgage terms and interest rates will not be affected by Bitcoin’s price fluctuations.

    The spokesperson also added that even if the value of the cryptocurrency shown as collateral decreases, a margin call will not be made as long as the owner does not miss their payments.

  • Trump directs agencies to reduce red tape related to mortgages and homebuilding.

    Trump directs agencies to reduce red tape related to mortgages and homebuilding.

    U.S. President Donald Trump signed two presidential orders on Friday aimed at improving housing affordability, a key concern for voters ahead of the November midterm elections.

    According to information released by the White House, Trump signed an executive order aimed at eliminating unnecessary regulatory burdens that delay housing construction and increase housing costs, and another executive order aimed at easing regulations related to mortgage costs and housing loans.

    While housing prices are hovering near record levels and mortgage interest rates remain high, housing affordability has become an increasingly pressing political issue, making homeownership unattainable for many first-time buyers.

    The White House tried to emphasize this issue as part of its economic agenda as Trump heads into midterm elections where his Republican Party will defend a narrow majority in both chambers of Congress.

    A decree directs federal agencies to identify and eliminate regulations that delay housing construction and increase costs for developers. The directive calls for the review of permits and environmental conditions that can slow down projects or increase construction costs, with the aim of accelerating the supply of new housing.

    A second order, focusing on mortgage loans, instructs regulators to review rules that the administration says prevent small lenders from issuing home loans and restrict access to credit.

    The White House said this effort aims to lower borrowing costs and make it easier for creditworthy Americans to buy homes.

    These orders build on other steps Trump has taken to address housing costs since taking office.

    Earlier this year, the administration was exploring ways to limit single-family home purchases by large institutional investors, which critics said were constraining supply for potential buyers, while pushing government-backed mortgage companies Fannie Mae and Freddie Mac to expand their purchases of mortgage-backed securities in an effort to lower borrowing costs.

  • Amidst market turbulence over Iran, UK banks remove the most mortgage products in three years.

    Amidst market turbulence over Iran, UK banks remove the most mortgage products in three years.

    According to data from financial services provider Moneyfacts, as the Iran crisis raises energy prices and borrowing costs in the UK, British banks withdrew the most mortgage products from the market on Monday since the mini-budget crisis of 2022.

    Lenders pulled 308 home loan products from the market on March 9; this figure is quite low compared to the 935 products on September 27, 2022, when the then-Prime Minister Liz Truss’s new government announced major tax cuts funded by borrowing.

    The recent turmoil in the UK mortgage market, where prices have fallen in recent weeks, shows the far-reaching consequences of the conflict in Iran; as this situation raises yields in the UK government bond and swap markets on which mortgage prices are based.

    According to Moneyfacts’ statement, the single-day drop in the market on Monday was the largest since the record day in 2022; the only exception was the simplification of products by a single specialist credit institution on July 23, 2024.

    Adam French, head of consumer finance at Moneyfacts, said the turmoil in the mortgage market this week was “a sharp and sudden adjustment by many lenders in response to rapidly rising swap rates.”

    French noted that some of these products could return as credit institutions adjust to higher interest rate expectations, but this development would still harshly impact borrowers, and interest rate increases would now depend on how global markets and inflation react to the Iran crisis.

    Nicholas Mendes, a mortgage technical manager at John Charcol, said: “We are likely to see another wave of lenders withdrawing or repricing their deals in the coming days, including those who increased rates last week.”

  • Halifax reports UK home values fell in March as the Iran War affected prospects.

    Halifax reports UK home values fell in March as the Iran War affected prospects.

    According to a statement by mortgage lender Halifax on Wednesday, housing prices in the UK unexpectedly fell last month due to economic uncertainty stemming from the Iran war negatively affecting buyer demand.

    Halifax stated that housing prices fell by 0.5% on a monthly basis in March, following a 0.3% increase in February.

    In a survey conducted by Reuters with economists, a 0.1% increase was forecasted.

    The survey contrasted with findings from rival ​mortgage lender Nationwide, which recorded a sharp increase in house prices in March.

    Halifax announced that the housing price index increased by 0.8% compared to March 2025, falling short of the annual expectation of a 1.5% increase.

    Halifax’s mortgage division head Amanda Bryden said, “The recent slowdown in the housing market reflects the broader uncertainty regarding the conflict in the Middle East.”

    Concerns about high energy prices have raised inflation expectations; this has led to an increase in mortgage interest rates, reducing confidence that interest rates will be lowered this year and slowing the market momentum seen at the beginning of the year. “Concerns about high energy prices have raised inflation expectations, leading to an increase in mortgage interest rates, which has reduced confidence that interest rates will be cut this year and slowed the market momentum seen earlier in the year.”

  • Following Cenbank’s increase, major Australian banks also raise home loan rates.

    Following Cenbank’s increase, major Australian banks also raise home loan rates.

    Australia’s four largest banks raised their variable home loan interest rates on Tuesday after the central bank increased cash rates for the first time in two years.

    Private banks raised interest rates by 25 basis points, reflecting the move made by the Reserve Bank of Australia earlier in the day.

    The new variable interest rates for home loans will be implemented on February 13 and 17, respectively, according to Commonwealth Bank of Australia and Westpac. The increase in the standard variable home loan interest rate by National Australia Bank and the increase in ANZ Group’s Australian home loans will also come into effect from February 13.

    Completing its February policy meeting, the Reserve Bank of Australia unanimously decided to raise interest rates to 3.85%.

    Additionally, he stated that the economy is growing faster than expected and that inflation is likely to remain above the target level for some time.

    CBA also announced separately that it increased the annual interest rates on eligible variable rate business loan products by 0.25%; ANZ added in its statement that it continues to review other interest rates.