Mortgage Rates Up, Homes Selling Faster – NMP
Industry News

Mortgage Rates Up, Homes Selling Faster

Jun 14, 2018
After two weeks of decline, mortgage rates were on the rise again, according to new data from Freddie Mac

After two weeks of decline, mortgage rates were on the rise again, according to new data from Freddie Mac.
 
Sam Khater, Freddie Mac’s Chief Economist, saw a positive aspect to the increasing mortgage rates and with the yesterday’s decision by the Federal Reserve to raise the federal funds rate by 25 basis points.
 
“The good news is that the impact on consumer budgets will be smaller than past rate hike cycles,” Khater said. “That is because a much smaller segment of mortgage loans in today’s market are pegged to short-term rate movements. The adjustable rate mortgage (ARM) share of outstanding loans is a lot smaller now—eight percent versus 31 percent—than during the Fed’s last round of tightening between 2004 and 2006.”
After two weeks of decline, mortgage rates were on the rise again, according to new data from Freddie Mac
 
While rates continued to rise, homes continued to be sold at greater speed. A new report from Redfin found the typical home that sold in May went under contract in 34 days, breaking April's record of 36 days, which was the fastest month Redfin recorded since it began tracking the market in 2010. Also rising was the national median home sale price: $305,600, a 6.3 percent increase from May 2017 across the 174 markets that Redfin tracks.
 
During May, 27.6 percent sold above their list price, the highest percentage Redfin has recorded. But nearly one-quarter of homes for sale last month had a price drop, the highest percentage of price drops since September 2017.
 
"Prices are still increasing, but not at the same rate we saw earlier in the spring," said Redfin Senior Economist Taylor Marr. "The record percentage of homes sold above list price is at odds with the higher percentage of price drops in May. This tells us that while it's still very much a seller's market, price growth and rising mortgage rates may be pushing buyers to the limit of what they're able to pay."
 
About the author
Phil Hall
Link copied
Published
Jun 14, 2018
Get the NMP Daily
Home Equity
Aven, Forest River Bring HELOC Financing To RV Dealerships

New co-branded home equity product puts HELOC financing at the point of sale as lenders compete for homeowners’ equity

Aven and recreational vehicle manufacturer Forest River have launched a co-branded home equity line of credit that puts HELOC financing directly into participating RV and marine dealerships, giving qualified homeowners another way to finance a major purchase without first ap...

Continue reading
C-Suite Strategies
Eleven Mortgage Exits Wholesale With Loans Still In The Pipeline

Benchmark Mortgage is shifting its resources to retail after closing Eleven’s wholesale and correspondent operation, while brokers face questions over loans already underway

Eleven Mortgage has exited wholesale and correspondent lending effective immediately, ending an eight-year run in the third-party origination market, and leaving mortgage brokers with loans already in its pipeline facing a compressed path to closing.Benchmark Mortgage confir...

Continue reading
Renew your NMLS License — for free.

Enjoy access to a free NMLS renewal class when you attend an in-person event.

Find an event
More from
Industry News
CHLA: More Freddie Mac MBS Buying Could Narrow Mortgage Spreads

Trade group estimates greater Freddie participation could compress spreads another 10 to 12 basis points as Fannie has taken the lead in GSE mortgage-bond buying

Industry News
Sep 23, 2026
Early Loan-Limit Race Splits Into Three Tiers

Lenders are now offering $845,000, $847,440, or $850,000 before FHFA sets the official 2027 limits

Industry News
Sep 23, 2026
Better, Garg Clash Over Claimed 46% Shareholder Support

Better disputes its former CEO’s preliminary consent count as the two sides trade accusations and an Oct. 2 target date approaches

C-Suite Strategies
Sep 23, 2026
Fannie Changes How Rent From A Former Home Counts

Fannie now prohibits leases for departing residences and permits market-analysis tools instead of Form 1007, creating a key documentation difference from Freddie Mac

Regulation and Compliance
Sep 22, 2026
MPF Expands Eligibility For Manufactured And Renovation Loans

The Mortgage Partnership Finance Program has expanded MPF Traditional eligibility for affordable loans, manufactured homes, renovations, and lender-funded assistance

Industry News
Sep 22, 2026