Latest news with #mortgages
Bloomberg
a day ago
- Business
- Bloomberg
CaixaBank Is Seeking to Sell About €900 Million in Soured Loans
CaixaBank SA is in talks with investors to sell about €900 million ($1.04 billion) in soured loans as the Spanish lender accelerates the clean-up of its balance sheet. The talks are focusing on two portfolios, including one with around €450 million named Project Falkor, said people familiar with the matter. It is made up of around 7,000 re-performing mortgages, according to a sale document seen by Bloomberg News.
Reuters
a day ago
- Business
- Reuters
UK lenders approve more mortgages, consumers borrow more
LONDON, July 29 (Reuters) - British lenders approved more mortgages than expected last month, adding to signs that the housing market has recovered from a dip after the expiry of a tax break for homebuyers, and consumers also upped their borrowing, data showed on Tuesday. The Bank of England said 64,167 mortgages were approved in June, up from 63,288 in May. A Reuters poll of economists had pointed to 63,000 approvals during the month. The expiry in April of a discount on the stamp duty paid by some homebuyers led to a drop in approvals to just over 60,000 that month before a recovery in May and June. Richard Donnell, executive director at real estate website Zoopla, linked the rise in demand for mortgages to stable borrowing costs. "Zoopla data shows unusually high levels of housing market activity for the early summer with sales agreed up 8% on last year and 11% more buyers in the market," Donnell said. "We expect increased housing activity to support demand for mortgages in the rest of the year." The BoE also said unsecured consumer borrowing increased by 1.417 billion pounds ($1.89 billion) in June, stronger than the median forecast for a 1.2 billion-pound rise in the Reuters poll of economists and up from May's rise of 920 million pounds. ($1 = 0.7498 pounds)
CNET
2 days ago
- Business
- CNET
How the Federal Reserve Actually Impacts Mortgage Rates
The Fed's interest rate decisions impact mortgages, but the relationship isn't straightforward. Tharon Green/CNET If you tracked the Federal Reserve's monetary policy decisions last year, you might have been puzzled: The Fed's three interest rate cuts didn't bring about lower mortgage rates. In fact, the average rate for a 30-year fixed home loan has hovered around 6.8% for the past several months. The Fed's interest rate decisions don't have a direct or immediate effect on home loan rates. Often, what the central bank says about its future plans can move the market more than its actual rate changes. On Wednesday, the Fed is expected to hold off on cutting interest rates for the fifth time this year. While mortgage rates might see some ups and downs, many economists think they'll stay pretty much the same -- between 6.5% and 7% -- until the economic outlook is clearer. "Prospective homebuyers should know markets are forward-looking, and changes in mortgage rates can happen well in advance if markets can anticipate it," said Kara Ng, senior economist at Zillow. "While a July cut is unlikely, markets are closely watching for signals about a possible September reduction," Ng said. All eyes will be on Fed Chair Jerome Powell's post-meeting remarks. If Powell signals concerns about lingering inflation or the chance of fewer cuts, bond yields and mortgage rates are likely to climb. If he expresses optimism about inflation being under control and hints at ongoing policy easing, mortgage rates could dip. Here's what you need to know about how the government's interest rate policy influences your home loan. What is the Federal Reserve's relationship to mortgage rates? The Fed sets and oversees US monetary policy under a dual mandate to maintain price stability and maximum employment. It does this largely by adjusting the federal funds rate, the rate at which banks borrow and lend their money. When the economy weakens and unemployment rises, the Fed lowers interest rates to encourage spending and propel growth, as it did during the COVID-19 pandemic. It does the opposite when inflation is high. For example, the Fed raised its benchmark interest rate by more than five percentage points between early 2022 and mid-2023, to slow price growth by curbing consumer borrowing and spending. Changes in the cost of borrowing set off a slow chain reaction that eventually affects mortgage rates and the housing market, as banks pass along the Fed's rate hikes or cuts to consumers through longer-term loans, including home loans. Yet, because mortgage rates respond to several economic factors, it's not uncommon for the federal funds rate and mortgage rates to move in different directions for some time. 6 Ways to Reduce Your Mortgage Interest Rate by 1% or More 6 Ways to Reduce Your Mortgage Interest Rate by 1% or More Click to unmute Video Player is loading. Play Video Play Skip Backward Skip Forward Next playlist item Unmute Current Time 0:00 / Duration 2:31 Loaded : 23.60% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 2:31 Share Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset Done Close Modal Dialog End of dialog window. Close Modal Dialog This is a modal window. This modal can be closed by pressing the Escape key or activating the close button. Close Modal Dialog This is a modal window. This modal can be closed by pressing the Escape key or activating the close button. 6 Ways to Reduce Your Mortgage Interest Rate by 1% or More Why is the Fed postponing interest rate cuts? After making three interest rate cuts in 2024, the Fed has been in a holding pattern throughout 2025. President Trump's unpredictable tariff campaign, immigration policies and federal cutbacks threaten to drive up prices and drag on growth. Despite the president's repeated calls for policymakers to cut borrowing rates immediately, economists say the central bank has good reason to pause. "Cutting rates prematurely — especially in response to political pressure — could undermine its commitment to controlling inflation," said Ng. " Ironically, this could cause mortgage rates to rise, not fall, counteracting the intended stimulus." Lowering interest rates could allow inflation to surge, which is bad for mortgage rates. Keeping rates high, however, increases the risk of a job-loss recession that would cause widespread financial hardship. Recent data show inflation making slow but steady progress toward the Fed's annual target rate of 2%, but price growth is expected to tick back up in the coming months as companies pass on the cost of tariffs onto consumers. What is the forecast for Fed cuts and mortgage rates in 2025? While experts now predict an interest rate cut in the fall, Fed Chair Powell remains noncommittal on any specific timeframe. Inflation could prompt the central bank to forgo one (or both) of its projected rate cuts, which would keep mortgage rates high. On the flip side, if unemployment spikes -- a real possibility given the slowdown in hiring and the uptick in layoffs -- the Fed could be forced to implement interest rate cuts. In that case, mortgage rates should gradually ease, though not dramatically. Most housing market forecasts, which already factor in at least two 0.25% Fed cuts, call for 30-year mortgage rates to stay above 6% throughout 2025. What factors affect mortgage rates? Mortgage rates move around for many of the same reasons home prices do: supply, demand, inflation and even the employment rate. Personal factors, such as a homebuyer's credit score, down payment and home loan amount, also determine one's individual mortgage rate. Different loan types and terms also have varying interest rates. Policy changes: When the Fed adjusts the federal funds rate, it affects many aspects of the economy, including mortgage rates. The federal funds rate affects how much it costs banks to borrow money, which in turn affects what banks charge consumers to make a profit. Inflation: Generally, when inflation is high, mortgage rates tend to be high. Because inflation chips away at purchasing power, lenders set higher interest rates on loans to make up for that loss and ensure a profit. Supply and demand: When demand for mortgages is high, lenders tend to raise interest rates. This is because they have only so much capital to lend in the form of home loans. Conversely, when demand for mortgages is low, lenders tend to slash interest rates to attract borrowers. Bond market activity: Mortgage lenders peg fixed interest rates, like fixed-rate mortgages, to bond rates. Mortgage bonds, also called mortgage-backed securities, are bundles of mortgages sold to investors and are closely tied to the 10-year Treasury. When bond interest rates are high, the bond has less value on the market where investors buy and sell securities, causing mortgage interest rates to go up. Other key indicators: Employment patterns and other aspects of the economy that affect investor confidence and consumer spending and borrowing also influence mortgage rates. For instance, a strong jobs report and a robust economy could indicate greater demand for housing, which can put upward pressure on mortgage rates. When the economy slows and unemployment is high, mortgage rates tend to be lower. Read more: Fact Check: Trump Doesn't Have the Power to Force Lower Interest Rates Is now a good time to get a mortgage? Even though timing is everything in the mortgage market, you can't control what the Fed does. "Forecasting interest rates is nearly impossible in today's market," said Ali Wolf, Zonda and NewHomeSource chief economist. Regardless of the economy, the most important thing when shopping for a mortgage is to make sure you can comfortably afford your monthly payments. More homebuying advice
Yahoo
4 days ago
- Business
- Yahoo
Home equity news: Home prices hit another high, and why home equity isn't equal for everyone
The top stories in home equity, mortgages and real estate Interest rates roundup HELOC and home equity loan rates fall for first time in weeks For the first time since June, HELOCs and home equity loans moved south. The average rate on a $30,000 home equity line of credit (HELOC) dipped one basis point to 8.26 percent, while the $30,000 home equity loan fell three basis points to 8.25 percent, according to Bankrate's national survey of lenders. …and mortgage rates also inch lower The 30-year fixed-rate loan rate declined to 6.76 percent, its lowest level in three weeks, according to Bankrate's latest national lender survey. Soaring prices but sluggish sales Another month, another record for home prices. They just keep rising, with the median price climbing to an all-time high of $435,300 in June. However, sales retreated: Even though listings are slowly increasing, low inventory — along with elevated mortgage rates — are making it hard for buyers. What's next for the housing market? It all depends on where mortgage rates and the economy go from here. Find out more: Existing-home prices smash record, while sales retreat The unequal equity equation Home equity should be a steeping stone to stability, not another symbol of inequality. But unfortunately, Black and Hispanic homeowners still face disproportionate barriers in building an equity stake and being able to tap it when they do. We examine why it's tougher for people of color to cash in and how to narrow the racial home equity gap. Learn more: Locked out of wealth: The racial divide in home equity Think you can tap your entire equity stake? Think again So, you've amassed a major amount of equity in your home and are considering tapping it for cash for a big remodel or to pay off debts. Here's the thing: You typically can't access all of that stake, even if you own your house free and clear. Find out more about when, where and why lenders cap how much you can borrow. Understand: How much equity can I borrow from my home? (And why isn't it more?) Making sense of mortgage rates with Bankrate's new tool Ah, the mysteries of mortgage rates: Their fluctuations can make homebuying or refinancing feel like a guessing game. But Bankrate's Mortgage Rate Variability Index could be a game-changer. Our newly launched barometer looks at how much rates have bounced around recently and puts the moves into historical context. Check it out—it can be an important tool in your arsenal when loan-shopping. Explore: Bankrate's Mortgage Rate Variability Index Is a home equity refi a smart move? Thinking about refinancing your home equity loan? Now might be a good time, since rates are lower than they were at this same time last year. But be aware — while it can help lower your monthly payments or get you a better interest rate, refinancing isn't free, and could even cost you dearly in the long run. Learn more: Refinancing a home equity loan: When and how to do it Too low a rate to lose Homeowners are becoming real stay-at-homes. Bankrate's 2025 Mortgage Rates Sentiment Survey finds over half (51 percent) of them wouldn't buy a new place this year even if mortgage rates dropped — considerably more than in our 2024 survey. Even more (54 percent) declare there's no mortgage rate at which they would be comfortable with selling their home this year, period. The culprit: those ultra-low interest rates from years past. Read why: A growing number of Americans are reluctant to sell their homes — even if mortgage rates drop 35% Borrowers with mortgage rates in the 4-5.99% range who are considering a home equity loan Source: 2025 ICE Borrower Insights Survey In case you missed it Technically, these stories were released in the previous weeks, but they're still worth highlighting. Navigating the waters of negative equity We all expect our homes to grow in value over time, but sometimes the opposite happens, and when your home's worth drops below what you still owe on it. Known as 'negative equity,' the situation sounds scary — but don't worry: While it can make selling or refinancing a bit tricky, there are ways to recover from it. Learn more: What is negative equity? The mortgage offer you didn't ask for When you apply for a mortgage, your info can get handed around like a hot potato, leading to a nonstop flood of calls, texts and emails from lenders trying to snag your business. They're called 'trigger leads.' And while a little competition can help you to a better deal, the overload can become annoying — not to mention, some are a little sketchy. Find out what the government is doing about this pesky practice. Read on: 'Your phone is blowing up': Congress moves to limit mortgage trigger leads Unlock your home's value Achieve your financial goals with predictable payments on a lump-sum home equity loan. Explore offers Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Fox News
4 days ago
- Business
- Fox News
Cornell Law professor discusses Sen. Adam Schiff's mortgage fraud investigation
Cornell Law School Professor William Jacobson spoke to Fox News Digital to provide his legal insight on the investigation into California Sen. Adam Schiff's mortgages stretching back to the early 2000s.
