Mortgage Industry Highlights – March 2017
March was another busy month in the mortgage industry. Here are some recent news articles and highlights:
Federal Reserve Raises Interest Rates for Second Time in Three Months
The Federal Reserve raised its benchmark interest rate for the second time in three months and signaled that any further hikes this year will be gradual.
Key takeaway: The Fed believes the economy no longer needs the support of ultra-low borrowing rates. Keep an eye on interest rates if you’re considering buying a home in 2017.
Confident Buyers Stoke The Red-Hot New Home Market
Sales of newly constructed homes are at their second-highest level this decade, thanks to confident home buyers and still low mortgage rates.
Key takeaway: An improving economy combined with predictions of mortgage rate increases has created an increasingly hot new home market.
Rate Hike to Have Mixed Effect on Reverse Mortgages
Reverse mortgage experts believe the Federal Reserve’s rate hikes will have a mixed effect on the reverse mortgage market in the coming months.
Key takeaway: Reverse mortgage borrowers wanting a fixed rate, one-time draw are likely see the most immediate effects as rising interest rates mean a lower principal limit.
Freddie Mac: Mortgage rates see greatest drop in months
Mortgage rates dropped significantly only a week after the Federal Reserve raised interest rates
Key takeaway: The drop in mortgage rates shows continued volatility in the market, as many housing analysts and buyers have expected mortgage rates to rise.
Large-Scale Solar Power Is Spreading Across the U.S.
Helped by plunging costs and improving technologies, utility-scale solar power plants are being built across the United States.
Key takeaway: Homeowners can benefit from the rapid growth of solar power, with many utility providers now offering “green pricing programs” that let you purchase all or part of your electricity from solar energy.