Tag Archives: business

Mortgage rates soar to their highest level in 21 years

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  • The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) increased to 7.16% from 7.09%.
  • Mortgage demand from homebuyers was 26% lower than the same week one year ago.
  • Applications to refinance a home loan fell 2% for the week and were 35% lower than the same week one year ago.

US mortgage rates surged this week, rising to their highest level in 21 years.

The 30-year fixed-rate mortgage averaged 7.09% in the week ending August 17, up from 6.96% the week before, according to data from Freddie Mac released Thursday. A year ago, the 30-year fixed-rate was 5.13%.

Rates have been above 6.5% since the end of May and climbing higher since mid-July. The last time rates were over 7% was in November of last year when they hit 7.08%. This week’s average rate is the highest the 30-year, fixed-rate mortgage has been since April 2002 when it was 7.13%.

Mortgage rates have spiked during the Federal Reserve’s historic rate-hiking campaign sending home affordability to its lowest level in several decades. Buying a home is more expensive because of the added cost of financing the mortgage, and homeowners who previously locked in lower rates are reluctant to sell. The combination of low inventory and high costs has squeezed would-be homebuyers, sending home sales about 20% lower than a year ago.

“The economy continues to do better than expected and the 10-year Treasury yield has moved up, causing mortgage rates to climb,” said Sam Khater, Freddie Mac’s chief economist. “Demand has been impacted by affordability headwinds, but low inventory remains the root cause of stalling home sales.”

The average mortgage rate is based on mortgage applications that Freddie Mac receives from thousands of lenders across the country. The survey includes only borrowers who put 20% down and have excellent credit.

30-year mortgage rate nearing 7%

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Average long-term U.S. mortgage rates reached their highest level in more than two decades this week and are likely to climb further as the Federal Reserve has all but guaranteed more rate increases in its battle to tamp down persistent inflation.

Mortgage buyer Freddie Mac reported Thursday that the average on the key 30-year rate climbed to 6.92% from 6.66% last week. Last year at this time, the rate was 3.05%.

The average rate on 15-year, fixed-rate mortgages, popular among those looking to refinance their homes, rose to 6.09% from 5.9% last week, the first time it’s breached 6% since the housing market crash of 2008. One year ago, the 15-year rate was 2.3%.

High rates have pushed many prospective homebuyers out of the market

30-year mortgage rate rises to 6.7%

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Average long-term U.S. mortgage rates rose this week for the sixth straight week, marking new highs not seen in 15 years, before a crash in the housing market triggered the Great Recession.

Mortgage buyer Freddie Mac reported Thursday that the average on the key 30-year rate climbed to 6.70% from 6.29% last week. By contrast, the rate was 3.01% a year ago. The average rate on 15-year, fixed-rate mortgages jumped to 5.96% from 5.44% last week.

Freddie Mac noted that for a typical mortgage amount, a borrower who locked in at the higher end of the range of weekly rates over the past year would pay several hundred dollars more than a borrower who locked in at the lower end of the range.

Consequences of NOT being ethical in life

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13,657,378 views Nov 10, 2010 University of Central Florida students study for test and get accused of cheating. Somehow a test bank of 700 questions floats around in the class. Students studied the 700 questions for a 50 question exam. The professor finds out and makes all students retake the exam. He claims he has a forensic analysis team on the case. No one can get out of retaking the exam unless they have a signed note from god.

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Florida’s median home price soars to $410,000

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The median home price in Florida hit $410,000 in April, according to a report from the Florida Realtors trade group, further eroding the options for working-class residents to find housing.

All of Florida’s 22 metropolitan statistical areas experienced an increase in home prices over the past year, most in double digits, with prices continuing to rise. The statewide year-over-year increase was 21.8% percent, the report found.

Only the Tallahassee metro, with a median home price of $299,000, saw a decrease from its price in February, which was $306,950.

The Orlando-Kissimmee-Sanford MSA had the sixth-highest home prices, with a median of $425,000, a 23.9% raise. This is higher than April’s report from the Orlando Regional Realtor Association, which includes a broader coverage area than the MSA.

The report put Orlando above the Tampa region, with a median of $404,900, but below the Sarasota area’s $500,000.

Texas-based tech repair franchise firm NerdsToGo to enter Orlando market

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NerdsToGo, a Texas computer and technology repair services franchise, plans to enter the metro Orlando market as part of a push to grow its Florida footprint by roughly 65 units by 2026.

The company, based in Carrollton, Texas, near Dallas, currently has 29 stores in 16 states, including two in Florida: Tampa and Bonita Springs. The goal is to open about 15 locations in Central Florida, the company told Orlando Business Journal.

“With the rising number of people working from home, managed IT services for both small and medium-sized companies is a definite need,” Mark Jameson, chief support and development officer at NerdsToGo parent company Propelled Brands, said in a prepared statement. “We see great growth potential in Florida and are confident that our proven business model, along with the support and resources we provide, will allow potential franchisees to thrive.”

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