As of May 2025, the St. Louis real estate market is experiencing shifts in mortgage rates that are essential for both potential home buyers and current homeowners considering selling. The 30-Year Fixed Rate has seen a slight increase to 6.99%, a change of +0.07% from previous figures. Similarly, the 15-Year Fixed Rate has risen to 6.34%, marking an increase of +0.08%. These adjustments might influence buyer affordability and seller market timing in the region.
For those looking into larger, more expensive properties, the 30-Year Jumbo Rate stands at 7.10%, while the more accessible FHA loans are available at a rate of 6.44%. Additionally, the Adjustable Rate (7/6 SOFR ARM) is currently at 6.63%, offering an alternative for those seeking potentially lower rates initially compared to fixed-rate mortgages. Each of these rates plays a crucial role in shaping the buying and selling strategies in the St. Louis market.
For a detailed understanding of how these rates compare historically, please click the chart button below. This information, provided by MORE, REALTORS®, offers a comprehensive view of current and past mortgage rates, helping you make informed decisions in the St. Louis real estate market. Whether you are looking to buy a new home or considering selling your property, staying updated on these rates is crucial in navigating the real estate landscape effectively.
Current Mortgage Rates*
Loan Type
Current Rate
Change From Prior Day
30 Yr. Fixed
6.99%
+0.07%
15 Yr. Fixed
6.34%
+0.08%
30 Yr. FHA
6.44%
+0.11%
30 Yr. Jumbo
7.10%
+0.06%
7/6 SOFR ARM
6.63%
+0.06%
30 Yr. VA
6.45%
+0.10%
*Rates shown are national averages from Mortgage News Daily’s Rate Index and are updated as of May 15, 2025. Individual rates may vary based on factors including loan amount, down payment, credit score, property type, occupancy status, and market conditions. Contact a licensed mortgage professional for personalized rate quotes.
As we navigate the complexities of the St. Louis real estate market in May 2025, understanding the current mortgage rates is crucial for both potential home buyers and sellers. The latest data provided by MORE, REALTORS® indicates a slight decrease in interest rates, which could influence decision-making processes in the housing market. The 30-Year Fixed Rate now stands at 6.86%, showing a minor reduction of 0.02%. Similarly, the 15-Year Fixed Rate has also decreased by 0.02%, currently at 6.19%. These small changes suggest a relatively stable interest rate environment.
For those considering more substantial home purchases, the 30-Year Jumbo Rate remains constant at 7.00%. Meanwhile, the FHA option, often favored by first-time homebuyers, offers a lower rate of 6.25% for a 30-Year term. Additionally, the Adjustable Rate (7/6 SOFR ARM) is currently set at 6.45%, providing an alternative for those looking for potentially lower payments initially.
These figures are essential for understanding the broader implications on the St. Louis housing market. Lower interest rates can increase buying power, potentially leading to more competitive housing markets. Conversely, higher rates might slow down the market, as borrowing becomes more expensive. For a visual representation of these trends, please refer to the chart button below, which includes both current and historic interest rates. This information, provided by MORE, REALTORS®, aims to assist you in making informed decisions in the St. Louis real estate landscape.
Current Mortgage Rates*
Loan Type
Current Rate
Change From Prior Day
30 Yr. Fixed
6.86%
-0.02%
15 Yr. Fixed
6.19%
-0.02%
30 Yr. FHA
6.25%
-0.03%
30 Yr. Jumbo
7.00%
-0.01%
7/6 SOFR ARM
6.45%
+0.01%
30 Yr. VA
6.27%
-0.03%
*Rates shown are national averages from Mortgage News Daily’s Rate Index and are updated as of May 8, 2025. Individual rates may vary based on factors including loan amount, down payment, credit score, property type, occupancy status, and market conditions. Contact a licensed mortgage professional for personalized rate quotes.
As of May 2025, the St. Louis real estate market is experiencing a variety of mortgage rate options that cater to different types of buyers and refinancing needs. The 30-Year Fixed Rate remains steady at 6.81%, indicating a stable lending environment. On the other hand, the 15-Year Fixed Rate has seen a slight decrease to 6.15%, down by 0.02%, which might appeal to homeowners looking to refinance and pay off their loans faster.
For those considering larger, more expensive properties, the 30-Year Jumbo Rate is currently at 6.95%. This rate is slightly higher than the standard fixed rates, reflecting the increased risk associated with larger loan amounts. Additionally, the 30-Year FHA Rate, often chosen by first-time homebuyers for its lower down payment requirements, is attractively set at 6.18%. Those looking for more flexibility might find the Adjustable Rate (7/6 SOFR ARM) appealing, which is currently at 6.35%.
Understanding these rates is crucial for making informed decisions in the housing market. For a visual representation of how these rates have changed over time, click the chart button below. This information, provided by MORE, REALTORS®, helps potential buyers and sellers in the St. Louis metropolitan area navigate their real estate transactions with up-to-date and relevant data. Whether you’re buying your first home, upgrading to a larger property, or refinancing, keeping an eye on these rates can provide valuable guidance.
Current Mortgage Rates*
Loan Type
Current Rate
Change From Prior Day
30 Yr. Fixed
6.81%
+0.00%
15 Yr. Fixed
6.15%
-0.02%
30 Yr. FHA
6.18%
-0.01%
30 Yr. Jumbo
6.95%
+0.00%
7/6 SOFR ARM
6.35%
-0.02%
30 Yr. VA
6.19%
-0.01%
*Rates shown are national averages from Mortgage News Daily’s Rate Index and are updated as of May 1, 2025. Individual rates may vary based on factors including loan amount, down payment, credit score, property type, occupancy status, and market conditions. Contact a licensed mortgage professional for personalized rate quotes.
As of April 2025, the St. Louis real estate market is experiencing a shift in mortgage rates that potential home buyers and sellers should consider. The 30-Year Fixed Rate has climbed slightly to 6.95%, marking an increase of 0.10% from previous figures. Similarly, the 15-Year Fixed Rate has risen to 6.37%, up by 0.13%. These changes indicate a trend towards rising mortgage costs in the region, which could influence buying decisions and market dynamics.
For those considering more substantial home purchases, the 30-Year Jumbo Rate stands at 7.05%, while the 30-Year FHA Rate is notably lower at 6.42%. Additionally, the Adjustable Rate (7/6 SOFR ARM) is currently at 6.43%, offering a potentially attractive option for buyers looking for lower initial rates. Understanding these figures is crucial for making informed decisions in today’s market.
For a detailed view of how these rates compare historically, please click the chart button below. This information is provided by MORE, REALTORS®, and is essential for anyone looking to navigate the complexities of the St. Louis real estate market this April 2025. Whether you’re buying your first home or investing in property, staying updated on these trends can significantly impact your strategies and outcomes.
Current Mortgage Rates*
Loan Type
Current Rate
Change From Prior Day
30 Yr. Fixed
6.95%
+0.10%
15 Yr. Fixed
6.37%
+0.13%
30 Yr. FHA
6.42%
+0.19%
30 Yr. Jumbo
7.05%
+0.15%
7/6 SOFR ARM
6.43%
+0.10%
30 Yr. VA
6.45%
+0.20%
*Rates shown are national averages from Mortgage News Daily’s Rate Index and are updated as of April 24, 2025. Individual rates may vary based on factors including loan amount, down payment, credit score, property type, occupancy status, and market conditions. Contact a licensed mortgage professional for personalized rate quotes.
As of April 2025, the St. Louis real estate market is experiencing a dynamic shift in mortgage rates, crucial for both potential homebuyers and current homeowners considering refinancing. The 30-year fixed mortgage rate has seen a slight increase to 6.95%, up by 0.10% from the previous month. Similarly, the 15-year fixed rate has risen to 6.37%, marking a 0.13% increase. These changes reflect broader economic trends impacting borrowing costs.
For those looking at more substantial properties, the 30-year jumbo loan rate stands at 7.05%, slightly higher than conventional loan rates, indicating a premium for higher loan amounts. Conversely, more affordable options like the 30-Year FHA rate are currently at 6.42%, offering a relatively lower entry point for first-time homebuyers. Additionally, the Adjustable Rate Mortgage (ARM), specifically the 7/6 SOFR ARM, is now at 6.43%, providing an alternative for those expecting to move or refinance within a shorter time frame.
Understanding these rates is crucial for making informed decisions in the housing market. For a detailed view of how these rates have changed over time, click the chart button below. This data, provided by MORE, REALTORS®, offers a comprehensive look at current and historic interest rates, aiding buyers and sellers in navigating the complexities of the real estate market in St. Louis. As the market continues to evolve, staying updated on these trends will be key to making strategic real estate decisions.
Current Mortgage Rates*
Loan Type
Current Rate
Change From Prior Day
30 Yr. Fixed
6.95%
+0.10%
15 Yr. Fixed
6.37%
+0.13%
30 Yr. FHA
6.42%
+0.19%
30 Yr. Jumbo
7.05%
+0.15%
7/6 SOFR ARM
6.43%
+0.10%
30 Yr. VA
6.45%
+0.20%
*Rates shown are national averages from Mortgage News Daily’s Rate Index and are updated as of April 17, 2025. Individual rates may vary based on factors including loan amount, down payment, credit score, property type, occupancy status, and market conditions. Contact a licensed mortgage professional for personalized rate quotes.
Mortgage interest rates have bounced back after briefly dipping earlier this month, but there’s more to the story—especially for St. Louis home buyers. One key factor keeping rates from climbing even higher? The recent postponement of tariffs, which has helped ease economic pressure and may be keeping mortgage rates from surging faster.
As of today, the average rate for a 30-year fixed-rate conventional loan is around 6.95%, with FHA loans at 6.42% and VA loans at 6.45%. These numbers reflect an uptick from the recent low of about 6.40% on April 4th, but still sit below the 7.16% average we saw at the start of the year and 7.24% one year ago. Of course, we’re still a long way from the 3.33% rates buyers enjoyed just four years ago.
Why does this matter to local buyers and homeowners? Because mortgage rates directly affect buying power. When rates rise, monthly payments go up, which can price some buyers out of the market or force them to scale back their home search. Conversely, falling or stable rates tend to support home prices by allowing buyers to afford more house.
While rates are still elevated compared to historic lows, the tariff delay may be helping avoid even sharper increases. That’s good news for St. Louis buyers hoping to catch a break.
Looking at the St. Louis market specifically, there’s a clear relationship between interest rates and home prices. Our local data shows selling prices rose from $202,000 in April 2020 to $222,000 by August 2020, driven in part by the ultra-low-rate environment at the time. As rates climbed in 2023 and 2024, price growth slowed, and affordability concerns crept in.
We’ve included live, interactive interest rate charts below so you can see how today’s rates compare to previous years and track trends in real time. These tools are especially helpful if you’re trying to time your move—or just want to better understand the broader economic forces at play.
Bottom line: mortgage rates have nudged back up, but without the tariff postponement, it could’ve been worse. Stay tuned—any future policy changes could further impact the direction of rates and the St. Louis housing market.
If you’re thinking about buying or selling in this shifting environment, MORE, REALTORS® is here to help. We specialize in clear, data-driven insights and local expertise to guide your next move.
As of April 2025, the St. Louis real estate market is witnessing subtle shifts in mortgage rates, critical for both potential home buyers and current homeowners considering refinancing. The 30-year fixed mortgage rate has seen a slight increase to 6.85%, a change of +0.03% from the previous figure. Similarly, the 15-year fixed rate has adjusted upward by +0.04%, now standing at 6.24%. These changes indicate a modest tightening in borrowing costs, which could influence buyer affordability and market dynamics in the St. Louis area.
For those looking at more substantial home purchases, the 30-year jumbo loan rate remains steady at 6.90%, reflecting the market’s stability for higher-priced properties. Alternatively, the 30-year FHA rate, often favored by first-time homebuyers for its lower down payment requirements, is notably lower at 6.23%. Additionally, the adjustable rate mortgage (ARM), specifically the 7/6 SOFR ARM, is currently at 6.33%, offering a potentially lower rate option for buyers expecting to move or refinance within a shorter period.
For a detailed view of how these rates compare to historical trends, click the chart button below. This information, provided by MORE, REALTORS®, is essential for making informed decisions in the St. Louis real estate market. Whether you are buying, selling, or refinancing, staying updated on the latest mortgage rate trends is crucial in navigating the complexities of the housing market effectively.
Current Mortgage Rates*
Loan Type
Current Rate
Change From Prior Day
30 Yr. Fixed
6.85%
+0.03%
15 Yr. Fixed
6.24%
+0.04%
30 Yr. FHA
6.23%
+0.03%
30 Yr. Jumbo
6.90%
+0.02%
7/6 SOFR ARM
6.33%
+0.02%
30 Yr. VA
6.25%
+0.03%
*Rates shown are national averages from Mortgage News Daily’s Rate Index and are updated as of April 9, 2025. Individual rates may vary based on factors including loan amount, down payment, credit score, property type, occupancy status, and market conditions. Contact a licensed mortgage professional for personalized rate quotes.
The latest interest rates as of February 21, 2025, bring good news for homebuyers in St. Louis. The 30-year fixed rate has dipped to 6.89 making it more affordable for potential buyers to secure a mortgage. The 15-year fixed rate is now 6.37%, offering even more savings. Jumbo loans have seen a significant drop, with the 30-year jumbo rate7.7.227.22 by 0.08%. Adjustable-rate mortgages like the 5/1 and 5/6 SOFR ARM are relatively s5.52 with minor decreases. FHA and VA loans have also seen reductions, making them attractive options for For the St. Louis real estate market, these changes present opportunities for both buyers and sellers. Lower interest rates can entice more buyers to enter the market, potentially increasing demand for homes. Sellers might find this an opportune time to list their properties, as more buyers could mean quicker sales and potentially higher prices. It’s crucial for both buyers and sellers to stay informed and act swiftly to capitalize on favorable market conditions. As always, keep an eye on these rates, as they can fluctuate and impact affordability and market dynamics.fluctuate and impact affordability and market dynamics.
Stay tuned for more updates and insights into how these rates continue to shape the St. Louis real estate market.
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Based on the chart provided, the Purchase Index, which tracks mortgage applications for home purchases, has shown slight fluctuations over the past year. Notably, the trend reflects a stabilization in demand despite the persistent upward trajectory of mortgage rates, which now hover near 7%. This indicates resilience among homebuyers, who continue to pursue purchases despite rising costs.
Higher interest rates typically discourage borrowing, but this data suggests that the housing market is finding ways to adapt. If you’re navigating today’s market, working with an experienced brokerage like MORE, REALTORS® can help you identify opportunities that fit your goals.
The full chart is available below for further insights. Let me know if you’d like further assistance or adjustments!
Purchase and Refinance Index vs 30 Year Fixed Mortgage Interest Rates
Click the image below for chart with current, live data
The Risks of HELOC Wire Fraud: A Case Study for St. Louis Homeowners
A recent lawsuit, Skertich vs. Shellpoint Mortgage Servicing and Alliant Credit Union, highlights alarming vulnerabilities in Home Equity Lines of Credit (HELOCs) when it comes to wire fraud. According to the complaint, a fraudulent wire transfer amounting to $425,650 was authorized using counterfeit documents and improper verification processes. Despite clear red flags, such as mismatched signatures and suspicious IP addresses, the financial institutions involved processed the transaction. This serves as a stark reminder for homeowners in St. Louis and beyond to exercise caution with HELOC accounts.
The case emphasizes the importance of robust security protocols. The plaintiffs allege that the defendants failed to have commercially reasonable systems in place to detect and prevent fraudulent activity. This situation escalated further when the victims were held liable for the unauthorized transaction, leading to increased balances and potential foreclosure actions. Homeowners utilizing HELOCs must regularly monitor account activity and promptly report any discrepancies.
For St. Louis area homeowners, this case is a reminder to protect your equity by using secure communication channels with your lender, reviewing monthly statements thoroughly, and inquiring about the security measures your provider has in place. The full complaint, detailing the allegations and implications, can be reviewed below.
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If you’re navigating the complexities of homeownership in St. Louis, MORE, REALTORS® is here to guide you with expert advice tailored to your needs. Contact us today to stay informed and secure in your real estate journey.
On October 15, 2024, the Department of Justice (DOJ) and the Consumer Financial Protection Bureau (CFPB) announced a settlement with Fairway Independent Mortgage Corporation following allegations of discriminatory lending practices, or redlining, in predominantly Black neighborhoods in Birmingham, Alabama. As part of the resolution, Fairway agreed to pay $8 million in relief and a $1.9 million civil penalty to address claims that it avoided providing credit services in these communities due to residents’ race and national origin.
The settlement contributes to the DOJ’s broader efforts through the Combating Redlining Initiative, which has secured over $150 million in relief since its inception. According to the DOJ’s findings, Fairway concentrated its retail loan offices in majority-white areas and allocated less than 3% of its direct mail advertising to Black neighborhoods. Fairway’s lending rates in these areas were significantly lower than peer lenders, prompting the DOJ and CFPB to act.
In addition to financial penalties, the settlement requires Fairway to establish a $7 million loan subsidy program aimed at providing affordable loans for home purchases, refinances, and improvements in Black communities. Fairway will also invest $1 million in programs to support consumer education, outreach, and partnerships with local organizations. The enforcement action underscores the government’s commitment to rooting out lending discrimination nationwide.
The initial complaint filed by the CFPB against Fairway Mortgage, is below.
The Federal Reserve made an important announcement today that could have a ripple effect on the real estate market in St. Louis and beyond. In their latest meeting, the Federal Open Market Committee (FOMC) decided to lower the federal funds rate by half a percentage point, bringing the target range down to 4.75% to 5%. This move comes as the Fed notes continued solid economic activity but acknowledges that job gains have slowed, and inflation, while improving, still remains above their 2% target.
For homebuyers and real estate investors, this rate cut could lead to a slight reduction in borrowing costs, making mortgages a bit more affordable. However, the broader economic outlook remains uncertain, as the Fed continues to carefully monitor inflation and employment levels. As always, real estate professionals and buyers alike should keep a close eye on these developments, as any future shifts in rates could further impact the housing market.
During times of economic uncertainty, working with a trusted local real estate professional is more important than ever. At MORE, REALTORS®, we pride ourselves on staying ahead of market trends and providing expert guidance to our clients. Whether you’re a first-time buyer or a seasoned investor, our team is here to help you navigate these shifting conditions and make smart, informed decisions.
Stay tuned for more updates, as this decision could have further implications for our local St. Louis market in the coming months.
The interest rate on a 30-year fixed-rate conventional mortgage fell to 6.22% yesterday, according to the MND rate index as shown in the chart below. This marks the lowest rate in nearly a year and a half! The last time rates were this low was back on April 6, 2023 when they dropped to 6.18% for the day. This drop in rates comes in advance of the anticipated rate reduction when the Federal Open Market Committee (FOMC) meetings next week.
Mortgage Interest Rates – 30-Year Fixed Rate Loan
(click below for live, interactive chart with tons more data!)
The Consumer Financial Protection Bureau (CFPB) has released a comprehensive report highlighting the risks and challenges associated with “contracts for deed,” a form of seller financing often used as an alternative to traditional mortgages. While these contracts can provide a pathway to homeownership for some, the report underscores the significant dangers they pose, particularly to vulnerable populations, including low-income, Black, Hispanic, and immigrant communities.
Contracts for deed are often characterized by substandard housing, inflated prices, and a lack of consumer protections. Buyers assume all responsibilities of homeownership, yet they do not gain legal title until all payments are completed, which can span decades. The CFPB’s findings reveal that many of these contracts are structured to fail, with sellers retaining all equity and payments in the event of a buyer’s default. This practice perpetuates a cycle of exploitation, where homes are repeatedly sold without necessary repairs, trapping buyers in a never-ending loop of financial insecurity.
Because of these risks, it’s more important than ever to work with a trusted real estate professional who understands the local market and is committed to protecting your interests. At MORE, REALTORS®, we pride ourselves on guiding our clients through every step of the home-buying process, ensuring they avoid predatory practices like those associated with some contracts for deed. Our agents are dedicated to providing transparent, fair, and informed advice to help you achieve your homeownership goals safely and successfully.
According to a recent study by LendingTree, Missouri ranks 9th in the nation for the lowest monthly mortgage payment. The report reveals that while the average monthly payment on a new mortgage in the U.S. is $2,317, Missouri’s average monthly payment is $1,792. This makes Missouri’s payments approximately 23% less than the national average, positioning it favorably among states with more affordable housing costs. This is particularly notable considering the current economic climate, where mortgage rates remain relatively high, and home prices continue to be steep.
The LendingTree analysis, which examined mortgages offered across the nation from January 1 through March 31, 2023, highlights that borrowers in Missouri benefit from more manageable mortgage payments compared to many other states. Interestingly, the Midwest shows a strong presence in the top 10 list of states with the lowest mortgage payments, with states like Kentucky, Ohio, and Indiana also making the cut. This regional trend underscores the Midwest’s overall affordability, making it an attractive option for homebuyers looking to invest in property without the burden of excessively high monthly payments. The full report by LendingTree provides further insights and comparisons across all 50 states, underscoring the variability in mortgage costs.
UPDATE: Friday, August 2, 2024…Today, after the jobs report and other economic data was released, mortgage interest rates fell to 6.40% on a 30-year fixed rate mortgage, the lowest level in nearly 16 months…the last time rates were this low was in early April 2023.
The interest rate on a 30-year fixed-rate conventional mortgage fell to 6.80% today, according to the MND rate index as shown in the chart below. This marks the lowest rate in over six months, since January 9th of this year when rates were at 6.80% as well. This drop in rates comes as the Federal Open Market Committee (FOMC) is meeting today and tomorrow.
The expectation for the Federal Reserve’s meeting is that they will likely keep interest rates unchanged at their current level of 5.25% to 5.50%, which is a 23-year high. This expectation is supported by the CME Group’s FedWatch Tool, which assigns a 97% probability to rates remaining steady during this meeting.
Mortgage interest rates for a 30-year fixed-rate mortgage dipped to 6.81% this week, the lowest level since February 1 when the rate fell to 6.63%. The rate for a 30-year fixed-rate FHA loan fell to 6.26%. This has a significant impact on the cost of a home. For example, a change of just 0.5% in the interest rate can alter the house payment on a typical median-priced home in St. Louis by nearly $100.
The Department of Veterans Affairs (VA) has introduced a temporary variance allowing veterans to pay certain buyer-broker charges when using their VA-guaranteed home loan benefits. This change comes in response to the recent National Association of Realtors (NAR) settlement, which now prohibits the publication of buyer-agent compensation in Multiple Listing Services (MLS). The concern is that many sellers may no longer offer a commission to buyer agents, potentially making it challenging for veterans to secure representation. By allowing veterans to pay these charges directly, the VA aims to ensure they remain competitive in the current real estate market.
At MORE, REALTORS®, we are committed to staying ahead of industry changes to provide our clients with the best possible guidance. This new variance is a significant development for veterans, and we are here to help you navigate these changes effectively. Whether you are a veteran or a civilian, our team at MORE is ready to assist you with all your real estate needs. Contact us today to learn how we can support you in achieving your real estate goals.
The Consumer Financial Protection Bureau (CFPB) has issued a Request for Information (RFI) regarding fees imposed in residential mortgage transactions. This initiative aims to gather insights and comments from the public about the escalating costs associated with obtaining a mortgage. As homeowners and prospective buyers, this is an opportunity for you to voice your experiences and concerns regarding these fees.
From 2021 to 2023, the median total loan costs for home purchase loans surged by over 36%, with the median dollar amount paid by borrowers in 2022 nearing $6,000. These rising costs, coupled with increased home prices and interest rates, have significantly strained household budgets. The CFPB’s focus is on understanding the impact of these fees on home affordability and access to credit, particularly for first-time and lower-income buyers who are disproportionately affected.
The CFPB has launched a public inquiry into what they term “junk fees” in mortgage closing costs. According to CFPB Director Rohit Chopra, these excessive fees can drain down payments and push up monthly mortgage costs, making homeownership less accessible. The Bureau is seeking to uncover why these costs are rising, who benefits from them, and how they might be reduced to alleviate the financial burden on both borrowers and lenders.
Mortgage lenders are also affected by these rising costs. Increased expenses for services like credit reports and title insurance can limit lenders’ ability to offer competitive mortgages, as they either pass these costs onto borrowers or absorb them, affecting their bottom line. The CFPB is particularly interested in understanding the competitive pressures and market barriers affecting these fees, as well as gathering data on the broader impacts on housing affordability and home equity.
The CFPB is calling on homeowners, homebuyers, and industry participants to share their stories, data, and insights on mortgage closing costs. Comments can be submitted electronically via the Federal eRulemaking Portal or by email. Your feedback will help shape future regulations and policies aimed at ensuring fair and transparent mortgage practices. For more details, including submission instructions, refer to the full notice from the CFPB below.
Interest rates for a 30-year fixed-rate conventional mortgage declined to 7.28% today, down from their five-month high of 7.52%, reached just over a week ago. Today’s rate marks the lowest since April 9, when the interest rate on a 30-year fixed-rate mortgage stood at 7.06%.
Although the accompanying chart traces the trajectory of interest rates over the past 40 years, extending back to 1980, it does not predict their future movements. The direction of mortgage rates is influenced by a myriad of factors including, but not limited to, Federal Reserve policies, inflation expectations, and global economic conditions. Currently, experts are closely monitoring the Fed’s monetary policy adjustments in response to inflation rates. Historical data suggests that significant shifts in policy can lead to rapid changes in mortgage rates. Therefore, potential homebuyers and investors should stay informed through reliable financial news sources and consult with seasoned real estate professionals, such as those at my company, MORE, REALTORS®, to navigate the complexities of the mortgage market effectively.
Mortgage Interest Rates – 1980 – Present
(click on chart for entire live, interactive chart)
Interest rates for a 30-year fixed rate conventional mortgage hit 7.52% yesterday, the highest rate in five months, since November 13, 2023 when they were 7.58%. Today, however, they eased and the 30 year fixed rate mortgage interest rate dropped slightly to 7.45% and the interest rate for a 30-year FHA loan slipped below 7% to 6.95%.
The chart below shows interest rates for over 40 years, back to 1980 and shows about as much change as we’ve seen in fashion and technology during the period — from an astronomical high of 18.29% in October 1981 to an unbelievable low of 2.80% in November 2020. Don’t you wish you had a Time Machine and could travel back 4 years and snag a loan?
Mortgage Interest Rates – 1980 – Present
(click on chart for entire live, interactive chart)
According to the latest report from Intercontinental Exchange, the U.S. mortgage market showed promising signs of stability in March 2024. The national delinquency rate decreased to 3.20%, marking a modest drop from February but remaining slightly higher than the record low observed in March 2023. Notably, serious delinquencies, which track loans 90+ days past due but not in active foreclosure, decreased significantly. These serious delinquencies fell by 24,000 cases—a 5.2% reduction from February, reaching their lowest level since mid-2006. This improvement is particularly significant as it occurred during a month that historically sees fluctuations due to its conclusion on a Sunday, a pattern observed only thrice in the last two decades.
In addition to a decrease in serious delinquencies, March saw a downturn in the number of loans in active foreclosure, dropping to 205,000—the fewest since January 2022 and 28% below pre-pandemic levels. Moreover, prepayment activity, often a sign of a healthy housing market, reached its highest point in seven months, encouraged by lower interest rates and the onset of the spring homebuying season. The attached chart below this article provides a visual depiction of these positive trends in delinquency and foreclosure data.
The Consumer Financial Protection Bureau’s (CFPB) Spring 2024 report on mortgage servicing reveals critical issues that prospective and current homeowners should be aware of. The report highlights a troubling trend of unauthorized charges and deceptive practices in mortgage servicing, which could impact a homeowner’s financial stability and property rights. For instance, some services were found to be charging illegal property inspection fees, particularly on Fannie Mae loans, despite guidelines clearly prohibiting such fees when certain conditions are met. These unjust fees, ranging from $10 to $50, were imposed even when borrowers were actively engaging with their servicers, highlighting a significant breach of trust and a potential drain on homeowner resources .
Moreover, the report exposes servicers for levying unauthorized late fees, violating both consumer trust and regulatory requirements. These overcharges, which occurred due to flawed administrative processes or oversight, are especially egregious as they can unfairly increase the financial burden on homeowners. The CFPB’s commitment to scrutinizing such practices is a reminder of the need for vigilance among consumers. The report’s findings underscore the importance of homeowners staying informed and proactive in managing their mortgage accounts to avoid falling victim to these predatory practices. For a deeper understanding and additional details, consider reviewing the complete report below .
CFPB Supervisory Highlights – Mortgage Servicing Edition – Spring 2024
Last week, the interest rates for 30-year fixed-rate mortgages climbed past the 7 percent mark. Despite this increase, as the chart below illustrates, there was a significant 10 percent increase in refinancing applications. This is in sharp contrast to a 5 percent decline in purchase applications. The growth in the refinancing segment is notable, representing 33.3 percent of the total application volume, up from 30.3 percent the previous week. This surge in refinancing interest is particularly intriguing, given the highest reported 30-year mortgage rates in over a month, at 7.01 percent.
Joel Kan, MBA’s Vice President and Deputy Chief Economist, attributed the rising rates to the Federal Reserve’s cautious stance on adjusting policy amidst persistent inflation and resilient economic indicators, including strong employment data. Despite the unfavorable rate environment, the demand for refinancing, especially VA refinancing, remained robust.
Other notable trends include a decrease in average loan sizes, with purchase loan sizes—often viewed as a proxy for home prices—dropping to $449,400 from $453,000. Additionally, there was a shift in the composition of mortgage applications, with increases in FHA and VA loan shares.
So, what explains the rising number of homeowners refinancing their mortgages even with rising mortgage interest rates? There are numerous reports indicating that many homeowners across the country are becoming cash-strapped and having a difficult time paying bills, thus resorting to pulling out equity from their homes, even if it means accepting a higher interest rate. I’ve also observed reports indicating that consumer credit card debt is at historically high levels, with interest rates on this debt being astronomical. This situation is prompting people to refinance their home loans again, even at higher rates, because even though their mortgage may be at a higher rate, it still appears to be a bargain compared to the 27 or 28% on a credit card. I haven’t seen enough verifiable data to confirm if either of these situations is true, but both are plausible.
The ebb and flow of St. Louis’s real estate market are linked to the broader economic currents, and recent weeks have witnessed a significant uptick in mortgage interest rates. In the video below, Traci Everman, Senior Mortgage Banker with Flat Branch Home Loans, does a fantastic job of explaining what is happening and why. Below the video are some highlights and a recap.
Here are are few highlights of what Traci’s covers in the video:
Recent Economic Impacts on Mortgage Rates:
Economic reports released over the past day have precipitated a downturn in the bond market and a subsequent rise in interest rates. This movement stems from inflationary pressures, which erode the value of long-term investments like mortgage-backed securities.
Analyzing PCE Inflation and Jobs Reports:
Key economic indicators such as the PCE report, which reflects inflation sans food and energy costs, revealed a 0.3% increase, signaling a direction contrary to the market’s desires. Furthermore, the employment data, despite being a bearer of good tidings on job creations, did not spell out positive news for the bond market.
Current State of Mortgage-Backed Securities:
Currently, the mortgage-backed securities market is taking a hit, down 88 basis points, leading to a predicted quarter percent increase in interest rates between yesterday and today. This fluctuation reminds us of the volatility that peaked in October 2023.
How Recent Trends May Affect Future Rates:
The Federal Reserve’s stance and upcoming meetings are pivotal. While rate cuts were anticipated, the outcome was status quo, leaving predictions for future rate cuts in 2024 uncertain. Inflation, driven by rising oil prices and other factors such as soaring auto insurance premiums, continues to play a crucial role.
Conclusion: Staying Informed on Market Changes:
As Traci Everman sums up the market update, it’s clear that keeping a close eye on inflation and Fed decisions is crucial for anyone involved in real estate. With potential rate cuts on the horizon, the coming quarters could be crucial for buyers and sellers in St. Louis.
For a more detailed dive into what this means for your home buying or selling decisions, stay connected with St. Louis Real Estate News. Stay informed.
One of the issues receiving significant attention following the announcement of the REALTOR® commission suit settlement is the topic of buyer commissions, specifically regarding whether a buyer has to pay them and how lenders will treat the commissions.
In a recent letter to the Federal Housing Finance Agency (FHFA), Federal Housing Administration (FHA), Fannie Mae, and Freddie Mac, NAR and MBA sought confirmation on the treatment of buyer agent commissions following a proposed settlement agreement in the Burnett et al and Moehrl et al cases.
What does this mean for homebuyers? Under the settlement, cooperative commissions will no longer be displayed on Multiple Listing Services (MLS), but listing brokers and sellers will still be able to offer compensation for buyer broker services through other means. Additionally, the settlement does not prohibit home sellers from paying buyer agent commissions directly.
NAR and MBA believe that FHA and Government-Sponsored Enterprise (GSE) policies should continue to exclude seller or listing agent payments of buyer agents’ commissions from Interested Party Contributions (IPCs). IPCs are concessions from the seller to the buyer for items traditionally paid by the buyer, such as loan closing costs or rate buy-downs. Maintaining this practice is essential to ensure that the flow of mortgage capital to homebuyers remains uninterrupted.
As a homeowner or potential buyer, it’s important to stay informed about these developments and how they may impact your buying or selling process. NAR and MBA have requested confirmation from the FHFA, FHA, Fannie Mae, and Freddie Mac as soon as possible to prevent any confusion and potential disruptions that may cost you money or even jeopardize your home purchase.
Whether you’re looking to buy or rent a home, your credit score is more than just a number—it’s a gateway to your future residence. A recent survey by LendingTree has shed light on the significant role credit scores play in Americans’ access to financial products, including those crucial for securing a home. Here’s a recap of the findings and their implications for the St. Louis real estate market.
Key Findings:
High Denial Rates: 42% of Americans reported their credit scores prevented them from obtaining a financial product in the past year, with this figure soaring to 74% among those with poor credit. For St. Louis residents, this could mean increased challenges in securing mortgages or rental agreements.
Credit Cards and Personal Loans: The top products consumers were denied due to their credit scores were credit cards (25%) and personal loans (12%). While not directly related to real estate, these denials can impact one’s ability to consolidate debt or cover moving expenses, indirectly affecting home buying or renting capabilities.
Perception of Financial Responsibility: 40% of Americans believe their credit scores do not accurately reflect their financial responsibility. This sentiment is even higher among those with poor credit (60%), millennials (47%), and women (44%). For potential homebuyers or renters in St. Louis, this discrepancy could lead to frustration and barriers in the housing market.
Payment History’s Importance: Despite being the most crucial factor in credit score calculations, 50% of Americans are unaware that payment history holds the most weight. This lack of knowledge can lead to missed opportunities for improving credit scores and, by extension, securing better terms for mortgages or leases.
Improving Credit Scores: The survey revealed that paying off debt was the primary method for improving credit scores over the past year. For St. Louis residents, understanding and applying this knowledge can be a strategic move towards enhancing eligibility for home buying or renting.
Implications for St. Louis Real Estate:
The survey’s insights highlight a critical barrier to homeownership and renting: the impact of credit scores on financial product accessibility. For St. Louis real estate professionals and potential homebuyers or renters, this underscores the importance of credit education and management as foundational steps towards achieving housing goals.
Educational Opportunities: Real estate professionals, such as the Masters of Real Estate at MORE, REALTORS®, can provide valuable guidance to clients on improving credit scores, emphasizing the role of payment history and debt management.
Strategic Planning: Understanding the weight of credit scores in financial decisions can help potential buyers or renters in St. Louis develop strategies to improve their scores before applying for mortgages or leases.
Market Accessibility: For those with poor credit, exploring alternative financing options or seeking professional credit counseling could open doors to the real estate market that might otherwise remain closed.
In St. Louis, as in the rest of the country, a strong credit score is more than just a number—it’s a key that unlocks the door to future housing opportunities. The recent LendingTree survey provides a basis for understanding the challenges and strategies related to credit scores in the real estate market. By focusing on credit education and management, St. Louis residents can navigate these challenges more effectively, making the dream of buying or renting a home more attainable.
The latest release from Fannie Mae on the Home Purchase Sentiment Index® (HPSI) is particularly illuminating, showing a notable uptick in consumer optimism towards mortgage rates. For the first time since March 2022, the HPSI has climbed to 70.7, a 3.5-point increase driven largely by heightened confidence in job security and an unprecedented share of consumers expecting mortgage rates to dip in the coming year. This optimism isn’t just numbers on a page; it’s a palpable shift in the air, with 82% of respondents now feeling secure in their employment prospects, and an all-time survey high of 36% predicting lower mortgage rates ahead. Yet, despite this optimism, the stark reality remains that only 17% believe it’s a good time to buy a home, underscoring a persistent pessimism around purchasing conditions.
Fannie Mae Home Purchase Sentiment Index Chart
(click on chart for current, live-interactive chart)
In a recent interview with CNBC, Traci Casper, the President of the National Association of Realtors (NAR), shared her views on the current state of the housing market and the implications of recent commission lawsuits. Her remarks provide an insight into the challenges and changes shaping the real estate industry, particularly relevant for the St. Louis market.
Casper highlighted the impact of fluctuating mortgage rates on the housing market, mentioning, “We do have still such a pent-up buyer pool that’s just been waiting on the sidelines… we are starting to feel them come back in.” This observation reflects the interconnectedness of mortgage rates and buyer activity, a significant factor in real estate market dynamics.
Regarding the commission lawsuits, Casper spoke about the potential effects on buyers and sellers. She explained, “Our buyers are already struggling to come up with a down payment… We don’t want to see is the marginalization of those buyers.” This statement is in line with the NAR’s consistent message suggesting that lower-income buyers might be negatively impacted if sellers stop paying buyer agent commissions. I counter Casper’s position, highlighting the disagreement within the industry. Many argue that buyers are indirectly paying the commission since it is generally factored into the home’s selling price. If the payment structure shifts to where buyers directly pay the commission, this could lead to a decrease in the seller’s price, as they would no longer bear this cost. This change might not increase the overall cost to the buyer, but it could affect sellers’ pricing strategies. Additionally, I believe that lenders will adapt to these changes. Institutions like Fannie Mae, Freddie Mac, FHA, and VA are likely to revise their policies to allow commissions paid by buyers to be included in closing costs, counted as part of the down payment, or financed.
As we observed yesterday, there’s been a significant shift in the mortgage landscape. The interest rate for a 30-year fixed-rate conventional mortgage fell to 6.62%, the lowest since May 12, 2023, when it stood at 6.55%. This decrease might signal a turning point in the housing market, especially considering the erratic rate movements we’ve seen over the past several months.
More encouraging news comes from the FHA sector, where the 30-year fixed-rate dropped to 6.13%, marking its lowest since May 11, 2023, when it was 6.12%. These recent figures hint at a trend that could reignite buyer interest and energize market activity, a positive shift from the higher rates experienced recently.
This change in mortgage rates is particularly significant! For prospective buyers, this dip in rates opens a more favorable door, potentially making homeownership more attainable than in the recent past. Sellers have reasons to be optimistic too, as lower rates could lead to increased market interest and activity.
Below is a chart illustrating the history of mortgage interest rates. This visual representation provides a clearer perspective on the recent changes and what they mean for our market.
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