With the Income You Need to Buy a Median-Priced Home rising - you may need to Learn About Adjustable Rate Mortgages to preserve affordability.

With the Income You Need to Buy a Median-Priced Home rising - you may need to Learn About Adjustable Rate Mortgages to preserve affordability.

HSH in the news - 2022

August 12, 2022: "How To Get the Best Home Loan", a National Association of Realtors radio program and podcast hosted by Stephen Gasque featured HSH.com vice president Keith Gumbinger sharing how to become the best-qualified borrower.

August 10, 2022: "My Mortgage Was Sold. Now What?", a Time/NextAdvisor look at consumer mortgage-servicing concerns by Sam Becker featured some expertise provided by Keith Gumbinger, HSH.com's vice president:

"It’s very common for a mortgage to be sold," says Keith Gumbinger, vice president at HSH.com, an online home loans consumer resource. The only thing homeowners should do, Gumbinger adds, is to "make sure everything is in order with the new servicer."
"Loans are passed around all the time because people are looking to tune their portfolios," Gunbinger says. "[This process] has been around for decades - the originate-to-sell model has become the dominant model in the industry."
"The Dodd-Frank rules focused on getting mortgage servicing trails better organized," says Gunbinger. "You need to be notified and given contact information within 15 days before your loan changes hands," he says. So, as long as a servicer wants to run afoul federal regulations, homeowners should have a very clear idea of who or what holds their mortgage, and when the transaction occurred.
Gumbinger says that homeowners can also try getting their mortgages from small, community banks or credit unions, which may lower the odds that a mortgage is sold to a new servicer. But, like Rueth, he warns that homeowners can’t prevent it from happening. "The fact of the matter is that there’s really nothing that you, as an individual borrower, can do to retain that servicing forever."
"Most people probably don’t care [if their mortgage is sold], as long as they know where they need to send a check, and that it’s going to the right account."

July 14, 2022: "Mortgage rates jump after two weeks of declines", a Yahoo Money mortgage market update by Gabriella Cruz-Martinez included a quote about conditions from HSH.com VP Keith Gumbinger:

A record-high 81% of consumers think the economy is on the "wrong track," according to the latest homebuyer sentiment survey from Fannie Mae, with a plurality of respondents saying it would be difficult to get a mortgage - the first time in nearly seven years.
"High mortgage rates and record high home prices have informed that sentiment for months now already," Keith Gumbinger, vice president of HSH.com, told Yahoo Money. "It's true that mortgage rates did dip last week, but rates have risen since late last week, and much of that decline has likely already disappeared."

July 14, 2022: "Why Home Mortgage Rates Are All Over the Place - and What They’re Expected To Do Next", a Realtor.com review of highly volatile mortgage market conditions by deputy news editor Clare Trapasso featured some observations from Keith Gumbinger, HSH.com's vice president:

They’re quickly realizing that even incremental increases can inflate their monthly mortgage payments by more than they can afford. Higher rates have also meant that those who qualify for a mortgage one day might not be able to do so a day later.
"The doubling of mortgage rates since the turn of the year has really created a hardship for buyers who were counting on record-low mortgage rates to support the purchases of record high-priced homes," says Keith Gumbinger, vice president at the mortgage information website HSH.com.
And with the U.S. Federal Reserve on a mission to tame inflation by hiking its own interest rates, potentially thrusting the nation into another recession, mortgage rates aren’t expected to settle down anytime soon.
"Over the next few months, volatility is likely to continue to be very high," says Gumbinger. "Markets have not yet decided if the bigger threat is rising inflation or the threat of a recession."
If the nation does succumb to a recession, mortgage rates are likely to fall again. The Fed typically lowers its own rates to stimulate the economy, and mortgage rates typically follow. That’s what happened during the pandemic when mortgage rates bottomed out in the previously unheard-of 2% range.
"Significantly lower mortgage rates would mean that the economy would be cooling significantly as well," says HSH.com’s Gumbinger.

July 10, 2022: "Real Estate Today's 700th Show", a National Association of Realtors radio program and podcast hosted by Stephen Gasque included HSH.com VP Keith Gumbinger looking at how mortgage lending and borrowing conditions have changed since the program started back in 2009.

July 8, 2022: "Buy Now or Wait? Experts Weigh in on the House Hunt Question", a Bloomberg look at fast-changing housing market by Prashant Gopal and Paulina Cachero included a quip from Keith Gumbinger, HSH.com's vice president:

In some markets, the tables are already turning. Buyers can now afford to become pickier, according to Keith Gumbinger, vice president at mortgage-information company HSH.com.
"It’s a market for buyers that are opportunistic," Gumbinger said. "You need to be nimble, whether it’s grabbing a home deal if it comes by or an opportunity for a low mortgage rate."
This article also apperared in Financial Advisor magazine.

July 7, 2022: "Homebuyers Wrestle With Tricky Calculus as Mortgage Rates Post Massive Swings", a Bloomberg review of the value of locking in your mortgage interest rate by Paulina Cachero included some expertise contributed by HSH.com VP Keith Gumbinger:

When homebuyers apply for a mortgage, a lender will typically allow them to lock in a rate for anywhere from 15 to 60 days free of charge, said Keith Gumbinger, vice president at HSH.com, which publishes information about mortgages and other consumer loans.
For those who anticipate it might take longer than 60 days to close on their house, extended rate locks are available for as long as 180 days. But buyer beware: the longer the lock, the higher the fee.
The costs for an extended rate lock are typically anywhere from 0.25% to 1% of your loan amount. When requesting an extended rate lock, Gumbinger advises borrowers to read the fine print. Lenders will either ask for a refundable deposit or a non-refundable fee - a risker option that typically comes with a lower ceiling rate.

June 17, 2022: "Summer Housing Market", a Real Estate Today podcast by the National Association of Realtors hosted by Stephen Gasque included HSH.com VP Keith Gumbinger as a guest discussing fast-changing mortgage and housing market conditions for summer 2022.

June 17, 2022: "This type of second mortgage is becoming popular in the Bay Area amid surging interest rates", a San Francisco Chronicle look at homeowner borrowing conditions by Kathleen Pender included some quotes from Keith Gumbinger, HSH.com's vice president:

Commonly known as HELOCs, they let you borrow up to a certain dollar amount, but rather than taking it all in a lump sum, you can borrow just what you need and make payments only on your outstanding balance.
With mortgage rates nearing 6%, "if you have a fixed- rate mortgage down around 3% or even 3.5%, to do a cash-out refi today means exposing all of your mortgage, plus what you want to borrow on top of that, to a much higher interest rate," said Keith Gumbinger, a vice president with mortgage tracker HSH Associates. That’s why HELOCs are enjoying a resurgence.
In recent years, some lenders have started offering HELOCs that have a fixed-rate component.
One way they do this is by fixing the rate for an "extended introductory period" of one to five years, said Todd Dal Porto, Fremont Bank’s group executive for residential lending.
Another way they do it is by letting you fix the rate on all, a portion or several different portions of your balance during the draw period. "It’s a loan within a line," Gumbinger said.

June 15, 2022: "Mortgage rates and liquidity in secondary markets to determine whether demand for ARMs will stick around, observers say", a HousingWire review of mortgage lending conditions and choices by Connie Kim featured some comments from Keith Gumbinger, vice president of HSH.com:

The share of mortgage applications for ARMs is still below the historical average between 1990 and 2022 of 12.49% and significantly lower than the peak of 36.6% in 2005, the MBA said. Even if more borrowers opted for ARMs in a rising rate environment, stricter underwriting policies for ARMs and laws that keep lenders in check will prevent borrowers from being trapped in loans they could not afford, as occurred in the mid 2000s, said Keith Gumbinger, vice president at HSH Associates.
Leading up to the housing crisis, many subprime lenders provided borrowers with interest-only ARMs, which initially offered low rates. Some buyers who couldn’t qualify for a conventional mortgage turned to an ARM to make lower monthly payments.
"Not only could you get a loan if you had terrible credit (in the mid-2000s), but you could get a loan if you had terrible credit and almost no down payment," said Gumbinger. "You were able to get an ARM by not even providing any documentation for your income or assets."

June 15, 2022: "How will the Fed interest rate hike affect you?", a Los Angeles Times market update by Andrew Khouri included some context from HSH.com VP Keith Gumbinger:

The effect on fixed-rate mortgages - including the popular 30-year fixed loan - is less certain.
Mortgage experts said increases in the federal funds rate don’t directly affect these mortgages, but they can indirectly push fixed mortgage rates higher or lower if Fed actions influence investor thinking about how entrenched inflation is.
That’s because if inflation is expected to be high in the future, investors will demand a higher yield, or interest rate, on mortgages they buy.
Mortgage rates have already surged this year, rising from the 3% range in January to above 5% as of last week. By some measures, they have topped 6%.
The sharp rise in borrowing costs has pushed some home buyers into new price brackets and priced others out altogether, causing home sales to fall in the process.
It’s possible that the larger-than-expected increase in the federal funds rate could convince investors that inflation will be tamed sooner and thus send fixed-rate mortgages down, said mortgage industry consultant David Stevens, the former head of the Mortgage Bankers Assn.
Alternatively, larger increases in the Fed rate could spook investors and send mortgage rates higher, said Keith Gumbinger, vice president of research firm HSH.com.

May 25, 2022: "Cash Home Buyers: New Services Offer Help Making All-Cash Offer", a Kiplinger look at homebuying conditions by Emma Patch included some consumer advice from Keith Gumbinger, HSH.com's VP:

Also, before you apply for a mortgage associated with a company that puts up cash for buyers, comparison shop for the best rate. Before you begin, make sure your credit score is as high as can be; review your credit reports and clean up any potential errors or misinformation. Then decide what type of mortgage will work best for you.
"Long-term fixed rates are of course the most popular, but with rates rising for those appreciably this year, borrowers may need to consider an adjustable-rate mortgage," says Keith Gumbinger, vice president at HSH, a mortgage information website. But ARMs have both benefits and risks that borrowers need to understand "before worrying about what rate is available," he says. And when shopping around for a lender to help make your home purchase, it may be better to work with a local lender who knows the ins and outs of your market.
"Check their websites for offerings, but also be prepared to make at least a few phone calls, too," he says. "Not all lenders publish rates on their sites, or may only publish ‘representative’ rates, and yours will surely be different."

May 18, 2022: " Housing: Adjustable-rate mortgages are coming back", Yahoo Finance look at changing mortgage market conditions by Gabriella Cruz-Martinez featured some important context about ARMs by Keith Gumbinger, HSH.com's VP:

"Borrowers for whom an ARM might be suitable are folks that are looking to stretch themselves into a home at a time when things aren't overly expensive," Keith Gumbinger, vice president of HSH.com, told Yahoo Money. "So this could include first-time homebuyers. These buyers probably aren't going to be in their homes forever. At some point either you'll be moving to a bigger home."
According to Gumbinger, first-time buyers can benefit from the low-interest of an ARM during the fixed-period before they trade up. But before making any moves, borrowers considering an adjustable-rate mortgage should really do their homework and use an amortization calculator to check how their mortgage payments may fluctuate in six years time and whether they’ll be able to afford it.
"Say, in five years you’ll be paying $1,150 a month on your mortgage. If rates go up by two percentage points - ask yourself if you’ll be comfortable paying $300 more," Gumbinger said. "On the other hand, if the interest rate cycle turns favorable [with rates going down], these borrowers can also opt for a refinance. We've certainly had that a number of times over the last 15 years."

May 14, 2022: "One type of home loan has become cheaper than others as rates spike", a San Francisco Chronicle look at jumbo mortgage market conditions by Kathleen Pender included some context on mortgage pricing from Keith Gumbinger, HSH.com's vice president:

One reason they’re higher: Earlier this year, Fannie and Freddie began imposing new fees on second-home mortgages and most high-balance conforming loans. The fees vary, but for most borrowers with loan-to-value ratios of 80% and above, they "would be roughly equivalent" to adding 0.25% to the loan rate, said Keith Gumbinger, a vice president with mortgage tracker HSH.com.
So why are jumbos cheaper than conforming mortgages? Their rates march to two different drummers.
Many banks plan to hold jumbos in their portfolios, and use their own cash to fund them. "This cash comes mostly from (customer) deposits, where rates are still very low, although reportedly creeping up a little," Gumbinger said.
Conforming loans are usually packaged into mortgage-backed securities and sold to investors. Their pricing is based on what’s happening in the bond market, especially the 10-year Treasury yield, which has spiked from 1.5% on Dec. 31 to around 3% in early May. "This has kicked conforming mortgage rates higher very quickly," Gumbinger said.

May 5, 2022: "Can mortgage rate spike stop rising home prices in NJ?" an Asbury Park Press review of housing market conditions by Michael Diamond featured some comments and calculations from HSH.com vice president Keith Gumbinger:

The rates for 30-year fixed mortgages are more closely tied to 10-year Treasury bonds. Those also have been rising as bankers offer investors a higher return to keep up with inflation, said Keith Gumbinger, vice president of HSH.com, a research group.
Buying a home could be more expensive. The last time inflation was at this level in 1981, the average 30-year mortgage rate topped 18%, Gumbinger said.
While far from those rates, the uptick over the past four months is costly. A buyer of a $300,000 home getting a 30-year fixed mortgage at 3% would pay $1,265 a month. The same buyer at 5% would pay $1,610, or $345 a month more, Gumbinger said.
"With this kind of change in such a short period of time, even folks that were in pretty good shape may be rethinking their options right now," he said. "But there's still plenty of demand out there and relatively still very few houses to buy."

April 9, 2022: "Mortgage Rates Break 5% as the Federal Reserve Tightens Monetary Policy", a Yahoo Finance market update by Kathleen Howley included some insight from HSH.com vice president Keith Gumbinger:

Interest rates for home loans are surging as yields for the bonds containing U.S. mortgages increase. The investors who influence mortgage rates are demanding higher returns for bonds amid the worst inflation in four decades, said Keith Gumbinger, vice president of HSH.com, a mortgage research firm.
"The combination of rising inflation and tightening monetary policy is putting tremendous upward pressure on mortgage rates," Gumbinger said. "As an investor in a fixed asset, you want to see some return for your money, something to account for higher inflation."
Part of the problem is the waning efficacy of China's vaccines, which have proven to be not as effective as the mRNA Covid-19 vaccines available in the U.S., especially against the Omicron variant.
"Covid-19 is the wildcard when it comes to inflation," Gumbinger said. "We don’t know what kinds of global disruptions in the supply chain we are going to see this year."

April 6, 2022: "How to Find the Cheapest Mortgage", a Consumer Reports look at mortgage-shopping conditions by Tobie Stanger includes some advice from Keith Gumbinger, HSH.com's vice president:

Ask each lender about a "float down" option on your mortgage, says Keith Gumbinger, vice president of HSH, a mortgage information website based in Riverdale, N.J.. With this option, your mortgage rate drops before closing if interest rates fall - even if you’ve already locked in the rate. Though the feature usually requires a fee "perhaps $500" it can save you big if interest rates retreat. "Float-downs are not uncommon, but folks have to ask about them," Gumbinger says.
Look at Smaller Lenders Gumbinger says these smaller lenders typically have better rates for adjustable-rate mortgages and offer better terms and rates to people with variable income streams, like the self-employed. That’s because they often don’t sell those loans in the secondary market as larger banks do, Gumbinger says: "Because lenders are putting these loans on their books, they can price them any way they wish."
Consider a Mortgage Broker Like smaller lenders, mortgage brokers can be helpful for individuals whose income is variable. "They specialize in situations that fall outside of the mainstream," Gumbinger says.

April 4, 2022: "Down Payments Are So Tricky as a Housing Bubble Brews", a Washington Post discussion of housing financing conditions by Bloomberg's Alexis Leondis included a bit of context from HSH.com's vice president Keith Gumbinger:

In addition to saving interest over the life of a smaller loan, there are other benefits from making a bigger down payment. For example, a borrower who puts 20% down and has a credit score of 700 may face what’s known as a risk-based fee of 1.25% of the loan amount, which could be baked into the interest rate charged, says Keith Gumbinger, vice president of mortgage loan website HSH.com. The fee drops to 0.5% when you put 30% down and disappears for a down payment of 40%.
For those who are skittish about putting a lot less than 20% down, let me provide some perspective. Most people put down less than 20%. The median down payment was 13% in 2021, according to the latest figures from the National Association of Realtors -- in line with where it’s been for the last four years. Even for those who were repeat buyers, the median down payment was just 17%.

March 18, 2022: "6 Strategies To Help Your Child Buy A Home", a Bottom Line financial planning and strategy article prominently featured advice from Keith Gumbinger, HSH.com's Vice President.

March 16, 2022: "What a Federal Reserve Rate Increase Means for You", a New York Times consumer advisory by Tara Siegel Bernard featured some context from HSH.com VP Keith Gumbinger:

Mortgage rates don’t move in lock step with the federal funds rate, but instead track the yield on 10-year Treasury bonds, which is influenced by a variety of factors - including how investors expect the Fed to react to inflation.
Mortgage rates have already been ticking higher as a result of inflation, even though they remain historically low: Rates on 30-year fixed-rate mortgages averaged 3.85 percent with 0.8 points as of March 10, according to Freddie Mac, up from 3.76 last week and 3.05 a year ago. (A point is a one-time fee, equal to 1 percent of the mortgage amount, paid to the lender to buy down the mortgage rate.)
"The pain to the consumer from accumulated hikes probably doesn’t start to bite until several rate increases are in place," said Keith Gumbinger, vice president at HSH.com, which tracks the mortgage market. "But at the same time, rates could rise considerably from present levels and still be considered low by historical standards."
Mr. Gumbinger said he expected the 30-year fixed rate mortgage to "crest over the 4 percent mark this week," pressured upward by inflation, which is pushing long-term Treasury rates higher (and pulling mortgage rates along).

March 4, 2022: "Buying Short-Term Rentals", a Real Estate Today podcast by the National Association of Realtors hosted by Stephen Gasque included HSH.com VP Keith Gumbinger as a guest discussing the financing angles of short-term and vacation rental properties.

February 19, 2022: "Mortgage lock rates surge in January, as borrowers beat rising rates", a , a Yahoo Finance look at how mortgage borrower reactions to rising rates by Gabriella Cruz-Martinez featured commentary from Keith Gumbinger, HSH.com's vice president:

Cash-out locks on the rise
As home values surged last year, Americans capitalized on tapping the record amount of home equity they gained. Cash-out refinancings — the amount homeowners can borrow while retaining at least 20% of their property value — made up 54% of all refinances in the third quarter, according to Black Knight’s latest figures.
"When we talk about cash-out refinancing, interest rate sensitivity still exists but it isn’t quite as strong as it would be for a rate-and-term refinance," Keith Gumbinger, vice president of HSH.com, told Yahoo Money. "A borrower looking to do a cash-out often may be replacing a much higher interest rate debt with a lower interest rate debt."
Cash-out activity is expected to continue - especially as some homeowners use the money to pay off credit card debt because rates on that debt will rise in lockstep with Federal Reserve interest rate hikes.
"Your credit card rates might be at 13% or 14% [so] a 3.5% interest rate is just fine because your cash-out refi is going to help solve your problem," Gumbinger said, "which is to pay off your credit cards. They will be paid off at a lower interest rate."
"There is great interest rate sensitivity when we talk about refinancing. That’s particularly true for borrowers looking for a rate-and-term refinance, generally known as a traditional refinance," Gumbinger said. "When you’re trying to get a lower payment, obviously you won’t get a lower payment if your interest rate isn’t lower."

February 4, 2022: "Mortgages 2022", a Real Estate Today podcast from the National Association of Realtors hosted by Stephen Gasque included HSH.com VP Keith Gumbinger as a featured guest, discussing all aspects of the mortgage borrowing climate as the winter market turns to spring.

February 4, 2022: "Mortgage rates: Homeowners rush to refinance during rate pause", a Yahoo Finance look at mortgage borrowing conditions by Gabriella Cruz-Martinez included some commentary from Keith Gumbinger, HSH.com's vice president:

"The couple of weeks' rise in mortgage rates can be a call to action for some potential borrowers. Headline news about rising mortgage rates and increasing expectations for the Fed to start tightening policy soon are a signal to get a deal in place," Keith Gumbinger, vice president of HSH.com, told Yahoo Money. "Call it a preemptive strike of getting a refinance in place before mortgage rates run any higher."
"While there was a jump in refinance activity per the MBA, it's important to remember that this was a jump from a fairly low level of activity the week before," said Gumbinger. "In the prior week, the MBA's refinance index value was at its lowest value in about two years and the bump only returned refinance activity back to where it was in the first week of 2022."

February 2, 2022: How to Draw on Equity to Expand Your Housing", a UExpress look at ways to improve your home by using your home equity from syndicated columnist Ellen James Martin included some tips and hints from Keith Gumbinger, HSH.com's VP:

"Nobody is cheering for higher rates. But they may be a necessary evil to tame an out-of-control economy," says Keith Gumbinger, a vice president at HSH.com, which tracks mortgage markets throughout the United States.
"Don’t let your fears about how to proceed keep you from moving forward with your refinance plans. Especially now, when rates are forecast to go higher, it’s a mistake to hem and haw in hopes they will drop again before you apply," Gumbinger says.

January 27, 2022: "Mortgage rates settle after four weeks of increases", a Yahoo Finance market update by Ronda Lee featured a couple of quotes from HSH.com vice president Keith Gumbinger:

Mortgage rates were little changed this week after four weeks of marching higher. But the recent increases, which likely will resume, have already dampened refinance activity and pressured homebuyers to make a move.
The rate on the 30-year fixed mortgage - the most common home loan for buyers - edged down to 3.55% from 3.56% the previous week, according to Freddie Mac. The rate is still among the highest since March 2020 and is over a half-point higher than a month ago.
Even with the slight decrease, "mortgage shoppers should not get used to it, as rates are pushing higher again this morning after Fed Chair Powell's press conference yesterday," Keith Gumbinger, vice president of HSH.com, told Yahoo Money. "Interest rates are firming again and until inflation starts to show signs of cooling, odds favor higher than lower mortgage rates."

January 25, 2022: "Conforming Mortgage Loan Limits Rising", a Kiplinger review of changes in mortgage borrowing conditions by Lisa Gerstner featured some context from Keith Gumbinger, HSH.com's vice president:

For 2022, the standard conforming limit for single-unit properties is $647,200, up nearly $100,000 from the 2021 cap.
Conforming loans are the most common type of mortgage, and they often have lower interest rates than other loans. To borrow more than the conforming limit, you must qualify for a jumbo loan, which usually has a higher rate and stricter underwriting requirements. You may be able to get a conforming loan with a credit score as low as 620, and a 740 or higher score can get you the best rates.
Jumbos may not be available to borrowers with credit scores below the mid-to-upper 600s, and you’ll need a credit score of at least 760 for the best rates, says Keith Gumbinger, vice president of mortgage research site HSH.com. A conforming loan may have a loan-to-value ratio (the amount borrowed expressed as a percentage of the property’s value) of up to 95%, while a jumbo loan’s LTV usually can’t surpass 80%, says Gumbinger.

January 20, 2022: "Mortgage rates surge for 4th week before Fed hikes", a Orange County Register/Bloomberg snapshot of mortgage rates by Jo Constantz included a quote from HSH.com VP Keith Gumbinger:

Still, borrowing costs may level off in the coming weeks, according to Keith Gumbinger, vice president at mortgage-information company HSH.com.
"We’re starting to see signs that we might be topping out on rates," Gumbinger said in an interview. "The Federal Reserve has made a bit of a shift, but it’s not clear if the shift has completed yet."
Mortgage rates have been expected to rise this year after the Federal Reserve announced last month that it would begin dialing back its monthly bond purchases - which are intended to lower long-term rates - to slow accelerating inflation. But even with the expected three or four rate increases in 2022, the Fed’s key rate would still be historically low at around 1%.

January 20, 2022: "Rapid rise in mortgage rates startles homebuyers; blame inflation fears", a Detroit Free Press look at changing market conditions by Susan Tompor review of quickly changing mortgage market conditions included a discussion with HSH.com vice president Keith Gumbinger:

All the big unknowns surrounding the rapid jump in inflation - including how high consumer prices will go and how quickly the Fed will raise interest rates - have put the mortgage market on high alert in early 2022.
"Rates have gone up rather quickly and there's still a little upward movement going on," said Keith Gumbinger, vice president at the mortgage lending information site HSH.com.
The speed is somewhat startling, but so, too, was the uptick in inflation last year.
Gumbinger blames the rapid mortgage rate hikes on the lack of clarity, as well as the lack of experience among today's bond market investors.
"Many investors in today's markets really have not lived through a spate of inflation like this," Gumbinger said.
How high could mortgage rates go?
As much as people may be shocked by the recent mortgage rate hikes, rates still aren't anywhere close to historically high levels or even what we've seen just a few years ago.
The average 30-year rate was 4% nearly three years ago back in May 2019, according to Gumbinger at HSH.com.
But the last time borrowers saw 30-year rates routinely in the 5% range was 2011.
If you go back to January 1982, when inflation was hot, the average 30-year fixed rate was more than 18%, he said.
Amazingly, he said, the low point during the pandemic was back in January 2021 when the average 30-year rate hit 2.65%.
"The lowest mortgage rates come in the worst economic climates," Gumbinger said.

January 19, 2022: "Rising Mortgage Rates Are No Reason to Panic Buy", a Washington Post consumer advisory from Bloomberg.com's Alexis Leondis featured a bit of perspective from Keith Gumbinger, HSH.com's VP:

While there was a quick spike at the beginning of this year, economists are still predicting that rates will end 2022 at about 4%. They’re also anticipating that home-price increases will slow, which could help to soften the blow of higher rates. "Mortgage rates have just gone from fantastic to a little less fantastic," says Keith Gumbinger, vice president of mortgage loan website HSH.com.

January 19, 2022: "Mortgage rates: Homeowners face a shrinking window to refinance", a Yahoo Finance consumer update by Gabriella Cruz-Martinez featured seom expertise from HSH.com vice president Keith Gumbinger:

Other factors outside the current rate environment also help determine your refinance rate, including your home’s location, mortgage type, home equity, and credit score.
"In terms of getting the lowest interest rate, you’ll need to have the highest credit score. You’ll also need to have a pretty deep equity position," said Keith Gumbinger, vice president of mortgage-information company HSH.com. "Credit scores that are at a FICO 740 or above will generally bring the lowest interest rate to borrowers, and if you have a lower credit score, that may mean your interest rate or fees for the loan may be higher."

January 13, 2022: "Mortgage rates: Pandemic era ‘deals’ all but gone", a Orange County Register market update included a quote from HSH.com's vice president Keith Gumbinger:

There are some indications that inflation may be easing, with an index measuring prices paid to U.S. producers coming in lower than expected.
"If inflation cools off, interest rates will level," said Keith Gumbinger, vice president at mortgage-information company HSH.com.

January 13, 2022: "Mortgage Rates in U.S. Soar to the Highest Since March 2020", a Bloomberg market conditions update by Jo Constantz included a quip from Keith Gumbinger, HSH.com's VP:

There are some indications that inflation may be easing, with an index measuring prices paid to U.S. producers coming in lower than expected.
"If inflation cools off, interest rates will level," said Keith Gumbinger, vice president at mortgage-information company HSH.com.

January 3, 2022: "What homebuyers today have going for them, according to a mortgage expert", a Grow.Acorns/CNBC analysis of housing and mortgage market conditions by Kiersten Schmidt included a range of observations from HSH.com vp Keith Gumbinger:

In the early 1980s, rates around 15% on a 30-year, fixed-rate mortgage were common. They have been on a downward trend ever since.
"Five percent interest rates used to be something that homebuyers cheered on when they came around, then it was fours and now it’s threes," says Keith Gumbinger, vice president at mortgage research site HSH.com. "We really are living in favorable times. Homebuyers today have not experienced high interest rates in their adult lifetimes." A lower down payment could mean a higher interest rate. Lenders consider these loans to be riskier, and they will often charge higher interest rates to compensate. It’s also important to consider incomes when looking at historical home prices, says Gumbinger. While home prices have doubled since 1981, median household income has risen 27% since 1984, the earliest year data is available. First-time homebuyers today "have really only known a fixed-rate environment," says Gumbinger. "They’ve also only known a very favorable interest rate environment."

Back to HSH.com in the News — 2021

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