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News & Insights | Mortgage News

![Mortgage News: What The End Of The Foreclosure Ban Means For Homeowners](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2F16fbc9cba35548fd899ee2a091e13f76)

<br>

Here’s a look at the latest developments in the mortgage market this week. 

<ul>
<li><strong>The foreclosure ban just ended. Here’s what it means for homeowners.</strong></li>
<li><strong>Bidding wars are cooling down, but prices are still hot</strong></li>
<li><strong>Mortgage rates linger near historic lows</strong></li>
<li><strong>FHA or Conventional—which loan is best for you?</strong></li>
</ul>

## The foreclosure ban just ended. Here’s what it means for homeowners.

On July 31st, the government ended its [federal moratorium on foreclosures](https://www.inman.com/2021/07/31/eviction-and-foreclosure-bans-end/ "external"), putting more pressure on homeowners in forbearance to catch up on missed payments. That number of owners has dropped by half since the pandemic began, now accounting for 2.1 million households. If you’re currently in a forbearance plan, or behind on payments, there are a few routes you can take to get on your feet and remain in good standing with your lender. 

Mortgage forbearance is a way to put your loan payments on pause with the approval of a lender or bank. When the period ends, homeowners are required to resume their monthly payments and make up the ones they missed, with interest. 

With [an FHA loan](https://better.com/content/what-is-an-fha-loan/) or federally funded mortgage, homeowners can extend forbearance plans for up to 18 months. If your mortgage falls in that category and you haven’t hit the limit, you could apply for a 3-month extension for more time. 

Selling your home could also provide the influx of cash required to start fresh. Over [a million homeowners were rescued](https://www.nationalmortgagenews.com/articles/u-s-housing-boom-rescues-more-than-1-million-underwater-homes "external") from debt in the last year and a half just by selling their home. If you’re ready to make the move, you may be able to list with [Better Real Estate](https://better.com/realestate) and pay less than you would with a traditional brokerage. 

With [today’s 30-year fixed rate near a historic low](http://www.freddiemac.com/pmms/ "external") and [millions in a good position to save](https://time.com/nextadvisor/mortgages/mortgage-news/do-you-qualify-to-save-on-refinance-loan/ "external"), refinancing may be the best option. A new home loan gives you the chance to reset your terms entirely, or lock in a lower interest rate and monthly payment. You could even tap into your home equity with a [cash-out refinance](https://better.com/content/cash-out-refinancing-gives-you-options/). Over the last year, home equity around the country rose by a record [$33,400 per homeowner](https://www.cnbc.com/2021/06/10/homeowners-got-2-trillion-richer-during-first-three-months-of-2021.html "external") on average. See [how to calculate your home equity](https://better.com/content/home-equity-vs-refinance/), and read through [our guide to refinancing](https://better.com/content/is-it-a-good-time-to-refinance) to learn if it’s the right move for you. 

No matter which direction you take, it starts with [seeing your rates](https://better.com/start). That way, you know where you stand as a homeowner—and what you could be saving. 

## Bidding wars are cooling down, but prices are still hot

With [more inventory](https://better.com/content/how-to-get-an-offer-accepted-in-todays-market) hitting the market, [bidding wars are on the decline](https://www.inman.com/2021/08/03/bidding-wars-are-cooling-off-how-to-prepare-for-a-shift-2/ "external") for the second month in a row, this time by [7% from May to June](https://www.redfin.com/news/real-estate-bidding-wars-june-2021/ "external"). That’s good news for shoppers who are dealing with tough competition, but with prices still at record highs, it may not be felt in every corner of the market. 

Existing home prices have jumped 23% over the last year, reaching a record median price of [$363,000](https://www.wsj.com/articles/median-existing-home-price-hit-new-high-in-june-11626963073#:~:text=June%20sales%20rose%2022.9%25%20from,price%20increases%20amid%20limited%20inventory. "external"). Even without a bidding war, making sure your offer stands out to sellers is important.. 

Boost your odds of an accepted offer with the [Better Appraisal Guarantee](https://welcome.better.com/better-appraisal-guarantee/).* It locks in your loan terms regardless of a home’s appraisal, so you don’t take any risk by waiving [the appraisal contingency](https://better.com/content/appraisal-contingency/). Sellers are 50%** more likely to pick a guarantee-backed offer, and all it takes to get started is talking to a Better Real Estate agent. [Find one in your area here](https://better.com/with/find-an-agent?leadSource=betterappraisalguarantee). 

## Mortgage rates linger near historic lows

The market drove mortgage rates down last week, due to a heightened sense of uncertainty around the pandemic and new variants. The [30-year fixed rate hit 2.77%](http://www.freddiemac.com/pmms/ "external") which is a 0.11% drop from where it was at this time last year. 

Rates this low spell good news for homebuyers and homeowners alike. And given how much closing costs can also impact the price of a loan, a no-cost mortgage could be a great way to save even more. This loan type rolls your closing costs into the total loan amount, so you don’t have to pay as much upfront. [Find out if a no-cost mortgage](https://better.com/content/no-cost-mortgage) is the right move for you. 

## FHA or Conventional—which loan is best for you?

Choosing a loan is about more than just what you qualify for. It depends on your priorities as a borrower, the kinds of risks you’re comfortable taking, and what you have planned for your homeownership timeline. FHA and Conventional loans are both popular, but come with different eligibility requirements, insurance costs, and availability. Find out which one is a better fit for you by following our [step-by-step guide to choosing between an FHA or Conventional loan type](https://better.com/content/fha-vs-conventional-loans). 

## Considering a home loan?

Get your custom rates in minutes with [Better Mortgage](https://better.com/). Their team is here to keep you informed and on track from pre-approval to closing. 

<br>

 <div style="text-align: center">  
 <a class="bet-Button bet-Button--xl bet-Button--primary" href="https://better.com/start">See your rates</a>  
 </div>
<br><br>

<p class="legal"><a href="https://welcome.better.com/better-appraisal-guarantee/">*See Better Appraisal Guarantee terms and conditions</a> 
  <br> **Results based on a survey of 104 real estate agents in competitive markets. Of those surveyed, more than ~60% responded that waiving the appraisal contingency could increase the likelihood of having a competitive offer accepted by 50% or more. Results may vary and are not intended to represent or guarantee that anyone will achieve the same or similar results.</p>

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The foreclosure ban has ended. Find out what it means for millions of homeowners, the choices you face now, and how to safeguard your home today.

What The End Of The Foreclosure Ban Means

Blog post image for What the end of the foreclosure ban means for homeowners

What the end of the foreclosure ban means for homeowners

![Mortgage News: How First-Time Buyers Can Compete As Prices Rise](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2Fe914f1f489d64d82bb4bf1ecd4d130a7)

<br>

Here’s a look at the latest developments in the mortgage market this week. 

<ul>
<li><strong>First-time buyer? Here’s how to avoid getting priced out.</strong></li>
<li><strong>More homeowners refinance while rates hover at a six-month low</strong></li>
<li><strong>New construction home sales dip as lumber costs rise</strong></li>
<li><strong>What is an escrow account?</strong></li>
</ul>

Anyone searching for a home today is up against rising prices, bidding wars, and intense competition. But the path to homeownership tends to be extra bumpy for first-time buyers, because they enter the market with smaller budgets and no home equity. In July, [37% of first-time buyers](https://www.inman.com/2021/07/16/first-time-buyers-still-eager-despite-snags-on-path-to-homeownership/ "external") said they had to set back their homebuying timeline after losing income during the pandemic. 

Instead of hitting pause on your search, there are some loan options that could help you compete for a home—without putting more money on the table. 

#### Make a lower down payment

It takes a [year longer to save for a 20% down payment](https://www.wkrn.com/news/local-news/reports-first-time-buyers-need-year-longer-to-save-for-20-percent-down-payment-compared-to-5-years-ago/ "external") than it did 5 years ago, which may be why [35% of buyers](https://www.nar.realtor/sites/default/files/documents/2020-downpayment-expectations-and-hurdles-to-homeownership-report-04-16-2020.pdf "external") cite it as their primary roadblock to owning a home. But 20% down isn’t always required—and last year, [roughly two-thirds of first-time buyers](https://www.zillow.com/research/how-long-to-save-a-down-payment-29735/ "external") put down less than that. 

With an [FHA loan](https://better.com/content/what-is-an-fha-loan/), you could put as little as 3.5% down on a home and still lock in competitive rates. These mortgages carry more lenient qualifying guidelines than conventional loans, especially when it comes to savings and credit scores, so it’s worth finding out [if it’s the right option for you](https://better.com/content/fha-loan-requirements/ "external").

#### Improve your debt-to-income ratio

Saving for a home can be tough to balance alongside student loan debt, which accounts for [20% of the decline](https://www.federalreserve.gov/publications/files/consumer-community-context-201901.pdf "external") in homeownership among young adults. But the reality is, lenders don’t look at how much student debt you have in total. They look at how you’re paying it down each month, typically through your debt-to-income (DTI) ratio. Learn [how to assess your DTI](https://better.com/content/what-is-a-good-debt-to-income-ratio/) to see where you stand, and raise your chances of [getting approved for a mortgage with student loans](https://better.com/content/getting-a-mortgage-with-student-loans/). 

#### Get the Better Appraisal Guarantee

Negotiating with a seller doesn’t always mean putting more cash on the table. [Waiving your appraisal contingency](https://better.com/content/appraisal-contingency/) can boost your odds of an accepted offer by 50%.* Normally, you’d risk losing your lender or having to change your loan terms. But with the [Better Appraisal Guarantee](https://welcome.better.com/better-appraisal-guarantee/), you could get the loan terms you locked no matter what the appraisal says.** 

Even with historically low inventory, first-time buyers still have a place in today’s market. And with mortgage rates as low as they are, it’s worth taking a look at what you can afford. [Crunch the numbers with our affordability calculator](https://better.com/content/a-better-home-affordability-calculator/) to see what a new home could look like with your budget. 

## More homeowners refinance while rates hover at a six-month low

Last week, the [30-year fixed rate average ticked up to 2.80%](http://www.freddiemac.com/pmms/ "external"). Even with the increase, the rate is at a 6-month low and still only 0.15% away from an all-time low of 2.65%. [Millions of homeowners](https://time.com/nextadvisor/mortgages/mortgage-news/do-you-qualify-to-save-on-refinance-loan/ "external") stand to save on a refinance, and many are taking note. Refinance applications have [jumped up 9% week-over-week](https://www.cnbc.com/2021/07/28/mortgage-rates-at-six-month-low-and-refinances-shoot-up.html "external") around the country. 

A refinance can lower your mortgage rate and monthly payments, and provide other benefits too. Whether you want a shorter loan term, an influx of cash, or fewer debt payments, getting a new loan can make it happen. [Find out how a refinance could help](https://better.com/content/6-reasons-to-refinance-your-mortgage/) you reach your financial goals, and [check your rates](https://better.com/start) to see how much lower your payments could be. 

## New construction home sales dip as lumber costs rise

Rising home prices are [tamping down the demand](https://better.com/content/how-to-get-an-offer-accepted-in-todays-market/) for new construction homes, and June saw the [lowest number of new home sales](https://www.cnbc.com/2021/07/26/housing-boom-is-over-as-new-home-sales-fall-to-pandemic-low.html "external") since April 2020. The price spike is thanks to a shortage in softwood lumber, which increased in cost by [over 300% during the pandemic](https://www.cnbc.com/2021/07/19/homebuilder-confidence-slips-in-july-as-construction-costs-rise.html "External"). Now it costs roughly 75% more than it did in 2019, but builders have had to raise their prices to keep up. 

It can be tough to bargain down the price of a newly built home. Instead, it may be easier to negotiate with a builder through upgrades to the home itself. Choose materials from their showroom that would add value to the property, like hardwood floors, or marble countertops. If you want to learn what to look out for, avoid, and prepare for in a new home sale, [read our quick and easy Q&A](https://better.com/content/buying-a-new-construction-home/). 

## What is an escrow account? 

Escrow accounts are specifically designed to hold money meant for home costs, whether it’s during the sale itself or throughout the course of a mortgage. They usually come into play after a loan is finalized, but it helps to know what they are beforehand too. [Get to know the ins and outs of escrow accounts](https://better.com/content/what-is-an-escrow-account/)—from what they are, to how they work, to why opening one could help protect your mortgage. 

## Considering a home loan?

Get your custom rates in minutes [with Better](https://better.com/) Mortgage. Their team is here to keep you informed and on track from pre-approval to closing. 

<br>

 <div style="text-align: center">  
 <a class="bet-Button bet-Button--xl bet-Button--primary" href="https://better.com/start">See your rates</a>  
 </div>
<br><br>

<p class="legal">*Results based on a survey of 104 real estate agents in competitive markets. Of those surveyed, more than ~60% responded that waiving the appraisal contingency could increase the likelihood of having a competitive offer accepted by 50% or more. Results may vary and are not intended to represent or guarantee that anyone will achieve the same or similar results.</p>

<p class="legal"><a href="https://welcome.better.com/better-appraisal-guarantee/">**See Better Appraisal Guarantee terms and conditions</a></p>

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First-time homebuyers are getting left behind as home prices skyrocket. Follow these tips to improve your standing, without putting more money down.

How First-Time Buyers Can Compete As Prices Rise

Blog post image for How first-time homebuyers can compete as prices rise

How first-time homebuyers can compete as prices rise

![Real Estate Trends: As Real Estate Prices Peak, Caution Buyers Against Bidding Too High](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2F4824dd3f58c54169afbe28986326a191)

<br>

Here’s a look at the latest developments in the real estate market.

<ul>
<li><strong>Realtor.com reports that 29% of sellers will ask for more than they think their home is worth.</strong></li>
<li><strong>In May, Redin reported that “over half of homes sold above list price” for the first time ever.</strong></li>
<li><strong>Better is seeing 20% of appraisals on primary residence purchases come in below contract price.</strong></li>
</ul>

As the summer buying season kicks into high gear, homes throughout the country continue to sell for above-asking prices. According to a recent report from [Redfin](https://www.prnewswire.com/news-releases/more-than-4-500-seattle-area-homes-have-sold-for-at-least-100-000-above-asking-price-in-2021--versus-400-during-the-same-period-last-year-301318144.html "external"), “more than 4500 homes in the Seattle area have sold for $100,000 above asking price in 2021, versus 400 during the same period last year.” Redfin also reported in May that “over half of homes sold above list price for the first time on record.” Home prices have risen 26% year-over-year to the median home-sale price of $377,200.

Better Real Estate Agent Joshua Lopez describes recent activity in the Dallas market: “I’ve typically seen between 8% and 12% above list price on average. It fluctuates but it’s around that range,” Lopez says. “Most of my clients are listening to my advice, and after doing comps, are coming in around 7-11% above list price on their offers. Over the past couple of months, I’ve also had more than a dozen buyers decide to hold off because of the market,” Lopez adds. 

<br>

#### Existing Home Sales Median Price, Percent Change Year-Over-Year

![Graph: Existing Home Sales Median Price, Percent Change Year Over Year](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2F4faa6cc4405640919a06d7ca6380336d)

<p class="legal">Source: National Association of Realtors</p>
<br>

Given these trends, many buyers are frustrated and emotionally exhausted from making one unsuccessful bid after another. Advising clients to take a quick “summer vacation” from this process may offer key benefits: buyers can have a chance to recover from buyer fatigue, and agents can show that they’re willing to prioritize a client’s financial interests above their own. 

## Industry Trend

In the [San Francisco Bay Area](https://www.sfchronicle.com/local/article/Bay-Area-homes-real-estate-asking-prices-16263716.php "external"), a majority of homes are selling at above asking prices—but offering more money is not necessarily enough to guarantee a winning bid. According to [CNN Business](https://www.cnn.com/2021/06/16/homes/us-housing-market-offers/index.html "external"), buyers around the country are sweetening their offers with other incentives like all-cash deals, hard-to-get season sports tickets, and non-refundable earnest money. Given this news, it’s not surprising that a recent [Forbes](https://www.forbes.com/sites/petertaylor/2021/05/28/realtors-will-hate-me-for-this-but-here-are-five-reasons-that-you-absolutely-shouldnt-buy-a-home-right-now/?sh=5cc1ad3b3f94 "external") story gives five reasons not to buy a home right now.  

A recent survey by Realtor.com provides insights into real-time market conditions and [seller expectations](https://news.move.com/2021-05-19-Great-Expectations-Realtor-com-R-Survey-Shows-29-Percent-of-Sellers-Will-Ask-for-More-Than-They-Think-Their-Home-is-Worth "external"). Results indicate that 29% of sellers will ask for more than they think their home is worth, while 24% expect to get offers above the asking price.  

[The Wall Street Journal](https://www.wsj.com/articles/u-s-home-price-growth-rose-to-record-in-april-11624972608 "external") reported the S&P CoreLogic Case-Shiller National Home Price Index, which measures average home prices in major metropolitan areas across the nation, rose 14.6% in the year that ended in April, up from 13.3% annual rate the prior month. April marked the highest annual rate of price growth since the index began in 1987. And [51% of homes](https://magazine.realtor/daily-news/2021/06/01/a-record-share-of-homes-are-selling-above-list-price "external") are selling for more than the asking price, a record high, according to new research data from the real estate brokerage Redfin. A year ago, 26% of homes were selling for above the asking price.

<br>

#### Percent Change in Sales From a Year Ago by Price Range

![Graph: Percent Change in Sales From a Year Ago By Price Range](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2Fa92c01390f214fe48b1deb593801a8fd)

<p class="legal">Source: National Association of Realtors</p>
<br>

## What we are seeing at Better Real Estate

“One house I showed had 42 offers,”says Gabrielle Ali, a Better Real Estate Agent in New Jersey, “My client made an offer $100,000 over asking that got rejected.” Ali also reports that many of her clients are renters. “Due to these market conditions, many of them have decided to continue in their current lease and put a hold on their search for now,” she says. “We decided it would be best to start looking again at the end of summer.” 

Both the Philadelphia suburbs and hot city neighborhoods are also enjoying above asking price offers. We’re seeing 10 offers or more on most properties,” says Better Real Estate Agent Jacqueline Talpa.“I prepare buyers for the reality, and they understand it could take a few offers to get accepted. It is a game of strategy and I advise them how to win—I’ve got 10 offers accepted in 40 days.”

## The appraisal gap 

The appraisal gap is commonplace in transactions today. When an appraisal comes in lower than the sales price, lenders expect buyers to make up the difference. Emanuel J Santa-Donato, VP Capital Markets at Better provides an update: “Yes, we are seeing 20% of appraisals on primary residence purchases come in below contract price. This is more than double from Q2 of last year.”

In the last 90 days, Better Mortgage had 26% of total files with an appraisal gap. The average appraisal gap in the last 90 days was $42,275 per loan file. Some buyers may not be able to afford these appraisal gaps, which can vary depending on location. 

“The commonality of appraisal gaps occurring is completely dependent on the specific market conditions for the location the property is in,” says Troy Adams, Agent Experience Partner Manager at Better. “For instance, it is much more common to have appraisal gaps in Austin, Texas or San Diego, California than in rural areas since their markets and pace of listing price increases are very hot and fast. I would say you see this in about 10-30% of files in metropolitan areas right now. The gaps vary as well and I believe those numbers have increased in Q2.”  

## The Fall buying season  

Despite slight gains, [mortgage rates should remain fairly low](https://better.com/content/where-to-find-affordable-homes-as-prices-rise/) through the fall. Freddie Mac analysts expect mortgage rates to rise gradually in the second half of 2021 as the economy recovers and inflation increases. The 30-year fixed rate should reach 3.4% on average.

## What real estate agents can do next 

- View the [resources](https://www.youtube.com/watch?v=iT8nd7DmmOo "external") agents need to keep clients informed.
- Schedule an in-person meeting with buyers and create a worksheet detailing all the unaccepted above-asking price offers they have made. 
- Explain why taking a summer vacation from the market makes sense.
- Research local Fall market forecasts and share with buyers. 

<br>

 <div style="text-align: center">  
 <a class="bet-Button bet-Button--xl bet-Button--primary" href="https://better.com/agents">Schedule a call</a>  
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Buyers bidding this summer will deal with high seller expectations, competitive offers, and appraisal gaps; pausing the search may help avoid burnout for some.


Caution Homebuyers Against Bidding Too High

Blog post image for As real estate prices peak, caution homebuyers against bidding too high

As real estate prices peak, caution homebuyers against bidding too high

![Mortgage News 5/31/2021: More Homes Are Hitting The Market In June](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2Fca22a150169e4bfa9fea5355cf206c15)

<br>

Here’s a look at the latest developments in the mortgage market for the week beginning 5/31/21. 

<ul>
<li><strong>With more listings on the way, buyers should prepare to move quickly</strong></li>
<li><strong>Over 2M homeowners could now lower their mortgage payments</strong></li>
<li><strong>More than half of homes are selling above their asking price</strong></li>
<li><strong>What you should know before buying a home</strong></li>
</ul>

## With more listings on the way, buyers should prepare to move quickly

After over a year of [historically low inventory and growing demand](https://better.com/content/buying-a-house-in-2021/), buyers can expect to see a fresh batch of new listings this month. A survey found that [77% of homeowners say](https://www.nationalmortgagenews.com/news/boost-in-housing-inventory-predicted-to-hit-the-market-by-june "external") they’re expecting to list their home in 2021, and of them, [45% plan to by the end of June](https://www.nationalmortgagenews.com/news/boost-in-housing-inventory-predicted-to-hit-the-market-by-june "external"). 

Homeowners cite rising vaccination rates as a reason for their decision. After the pandemic pushed back their plans to sell in 2020, more owners are getting comfortable with the idea today.

The incoming inventory may provide some new selection, but buyers shouldn’t count on competition dying down. With inventory falling short of demand for months, homes are now selling [34 days faster](https://www.realtor.com/research/weekly-housing-trends-view-data-week-may-22-2021/ "external") than last year. 

Since this new crop of listings probably won’t stay on the market long, it can help to move quickly with an online lender. Instead of scheduling appointments and traveling to a brick-and-mortar office, buyers can move through the stages of financing in a matter of clicks. Working with Better Mortgage also means you could close your loan 10 days faster than with a traditional lender—a huge advantage when half of homes are [under contract in less than two weeks](https://press.redfin.com/news-releases/news-release-details/redfin-reports-homes-sell-fastest-pace-record-59-under-contract "external"). Find out how [buying online can help you get ahead](https://better.com/content/buying-a-house-online/) in today’s market. 

## Over 2M homeowners could now lower their mortgage payments

After a temporary jump, the 30-year fixed rate average [dropped to 2.95%](https://www.marketwatch.com/story/mortgage-rates-drop-back-below-3-heres-how-much-americans-have-saved-by-refinancing-11622124321 "external") last week. With it came the news that over 2 million homeowners are eligible to refinance with [a new Fannie Mae program called RefiNow.](https://better.com/content/you-could-reduce-your-monthly-costs-with-refinow/) 

This loan option helps homeowners who may not meet income requirements for traditional refinances to lower their rate by at least half a percent and save up to $3,000 a year in mortgage payments. To put those gains into perspective, homeowners who refinanced last year saved over $2,800 annually. 

To find out if your mortgage qualifies, [see if it’s backed by Fannie Mae](https://www.knowyouroptions.com/ "external"). If so, you can [sign up for the RefiNow waitlist](https://welcome.better.com/fhfa-refi-program/) before it rolls out this Saturday, June 5th. 

## More than half of homes are selling above their asking price

Competition between buyers has grown higher than ever, and bidding wars have gone from frequent to typical. In May, a record [51% of homes listed through online platform Redfin](https://www.redfin.com/news/housing-market-update-home-prices-surge-24-pct/ "external") sold for more than their asking price, up from a quarter of homes a year ago. 

The trend shows no signs of slowing down with home sales expected to bring in [$2.5 trillion](https://www.redfin.com/news/record-home-sales-forecast-2021/ "external") by the end of the year—their highest total since 2013. 

At this point, buyers can [expect bidding wars](https://better.com/content/be-ready-for-bidding-wars-in-todays-market/). Make sure your offer is competitive by getting pre-approved, and negotiating wherever possible. [Read up on how you can sharpen your offer](https://better.com/content/how-to-make-an-offer-on-a-home/) for a higher chance of a winning bid. 

## What you should know before buying a home

Shopping for a home is exciting, and comes with a lot of decisions to navigate. Set yourself up for a smooth home search by reading up on the key first steps, like formalizing your budget, getting pre-approved, and understanding which homes best fit your financial picture. To help guide your path from renter to owner, we’ve put together a checklist of [everything a first-time homebuyer should know](https://better.com/content/first-time-homebuyer-tips/). 

## Considering a home loan?

Get your custom rates in minutes at [Better.com](https://better.com). Our team is here to walk you through your options and help you make an informed decision about which loan is right for you.

<br>

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 <a class="bet-Button bet-Button--xl bet-Button--primary" href="https://better.com/start">See your rates</a>  
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Mortgage News: More homeowners are planning to sell within the year, but the market is moving faster than ever. Can buying online help you get ahead of the competition?

More Homes Are Hitting The Market In June

Blog post image for More homes are hitting the market in June

More homes are hitting the market in June

![Mortgage News 4/26/2021: More Homeowners Are Refinancing As Rates Dip](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2F6d19d2358c30468cad4c6365451b4e36)

<br>

Here’s a look at the latest developments in the mortgage market for the week beginning 4/26/21. 

<ul>
<li><strong>Refinancing picks up as rates dip for a third week</strong></li>
<li><strong>Home sales are slowing down due to low supply</strong></li>
<li><strong>15 of the most common mortgage questions, answered</strong></li>
<li><strong>Buying a home? Have these answers ready.</strong></li>
</ul>

## Refinancing picks up as rates dip for a third week

Mortgage rates dropped for the third week in a row, with the average 3[0-year fixed rate hitting 2.97%](http://www.freddiemac.com/pmms/ "external") at the end of last week. The decline seems to have led more homeowners to refinance, as [applications rose 10% week-over-week](https://www.nationalmortgagenews.com/news/loan-apps-up-for-first-time-in-7-weeks-as-refis-rebound "external") at the same time. 

Rates have been on a steady upward path since the start of the year, as the economy showed signs of recovery from the pandemic. As they rose, [refinance applications pulled back](https://better.com/content/rates-took-a-dip-is-it-time-to-refinance/). Now, new [coronavirus concerns](https://www.nationalmortgagenews.com/news/mortgage-rates-sink-as-coronavirus-concerns-flare-up "external") have interrupted that trajectory, and brought a sense of caution to the market, which in turn drove today’s lower rates. But the shift is likely temporary, as rates are [expected to continue rising](https://better.com/content/housing-market-predictions-2021/) over the course of the year. 

Since lower rates mean more homeowners are likely to save on a refinance, many are jumping on the opportunity. The number of applicants is still [23% lower than this time last year](https://www.mba.org/2021-press-releases/april/mortgage-applications-increase-in-latest-mba-weekly-survey "external"), when the pandemic brought rates to record lows. But today, interest rates are actually [0.36%](http://www.freddiemac.com/pmms/ "external") lower than they were at that time, so it may be worthwhile to see how much you can save. 

Generally, it’s a good idea to refinance if you can lower your interest rate by at least 0.50%. With the most recent [average 30-year fixed rate](http://www.freddiemac.com/pmms/), that means homeowners who first financed in February 2020 or earlier are likely to save. The best way to find out? Take a look at [today’s rates](https://better.com/refinance-rates) to see how they stack up with your current loan. If you’re not sure whether it’s the right move for you, read more about the [benefits of refinancing](https://better.com/content/refinancing-with-rising-interest-rates/) beyond just a lower interest rate. 

## Home sales are slowing down due to low supply

In March, the number of [homes sold dropped by 3.7%](https://www.cnbc.com/2021/04/22/home-sales-fell-in-march-as-tight-supply-pushed-prices-higher.html "external") from the month before, bringing the seasonally adjusted annual sales rate to [6.01 million](https://www.cnbc.com/2021/04/22/home-sales-fell-in-march-as-tight-supply-pushed-prices-higher.html "external"). That’s the slowest pace of home sales since last August. 

For context, the annual sales rate is a calculation of how many homes are expected to sell for the year based on that month’s performance alone. Last year’s homebuying boom ended with a rate of [6.76 million homes sold](https://www.cnbc.com/2021/01/22/existing-home-sales-in-2020-were-highest-since-in-over-a-decade.html "external")—the highest since 2006. Right now, sales are still [higher than pre-pandemic years](https://cdn.nar.realtor "external") by about half a million homes, but March usually sees a month-over-month increase, rather than a decline. 

The drop is likely driven by a lack of supply. Usually, the market has roughly [300,000 more homes for sale by March](https://www.realtor.com/research/weekly-housing-trends-view-data-week-apr-17-2021/ "external"), and without those listings, buyer competition is tougher. Homes are selling [21 days faster](https://www.realtor.com/research/weekly-housing-trends-view-data-week-apr-17-2021/ "external") than a year ago, and February saw an average of [four offers per home sold](https://www.nar.realtor/blogs/economists-outlook/buyer-competition-intensifies-4-offers-for-every-home-sold-in-february-2021).

Luckily, both existing and new homes should have inventory boosts on the way. An influx of new homes is expected on the market this year as [builders ramp up their speed](https://better.com/content/new-developments-are-going-up-at-a-record-pace/). Plus, as vaccinations continue rolling out, owners are getting more comfortable selling, with [41% of homeowners](https://better.com/content/rates-took-a-dip-is-it-time-to-refinance/) considering selling their home in the next twelve months. 

## 15 of the most common mortgage questions, answered

Now that interest [rates have dropped for three weeks](http://www.freddiemac.com/pmms/ "external") in a row, it may be a good time to consider buying a home or refinancing. No matter how many times you’ve been through the process, questions are bound to come up, like: what do I need to get approved? How do I know which loan is right for me? How do I choose the best rate? 

To help you navigate getting a mortgage, we’ve answered some of the [most common questions people have about them](https://better.com/content/mortgage-advice/). Read up on how the process works, and how to know what’s best for you. Dive even deeper by following the links within each answer. 

## Buying a home? Have these 6 answers ready. 

Homebuying always requires plenty of forethought and research, especially in today’s market. Moving quickly on a home is key, as [prices rise at a record speed](https://better.com/content/how-to-keep-costs-down-as-home-prices-rise/) and [39% of homes listed online](https://www.marketwatch.com/story/beware-home-buyers-a-record-number-of-homes-are-selling-above-their-asking-price-11616775541 "external") sell above their asking price. Asking yourself the right questions at the start of your search, like how much you should save in advance, or what you’ll need to get approved, can help you narrow down a budget and feel prepared for the competition. Here’s a breakdown of [the most important questions buyers can ask themselves](https://better.com/content/questions-to-ask-when-buying-a-house/) before kicking off a home search—and how to find their answers. 

## Considering a home loan?

Get your custom rates in minutes at [Better.com](https://better.com). Our team is here to walk you through your options and help you make an informed decision about which loan is right for you.

<br>

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Mortgage News: Mortgage rates have dropped for the third week in a row, and homeowners are likely jumping on the opportunity to refinance at a lower rate. 

More Homeowners Are Refinancing As Rates Dip

Blog post image for More homeowners are refinancing as rates dip

More homeowners are refinancing as rates dip

![Real Estate Trends 2/18/21: Increased Jumbo Loan Activity and Larger Down Payments Boost Buying Power](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2F816388dad4bd49668e6cf8f47394adc2)

<br>

Here’s a look at the latest news in the real estate market.

<ul>
<li><strong>A lower cost of living means a higher down payment for some homebuyers</strong></li>
<li><strong>Despite new conforming loan limits, jumbo loans are on the rise</strong></li>
<li><strong>Low inventory and rising home prices are keeping the market hot</strong></li>
</ul>

<br>

It's late February, and we're seeing an increase in jumbo loan activity and larger down payments to go with it. When you factor in low inventory and rising home prices, the real estate market is continuing its highly competitive start to 2021.

[According to realtor.com](https://www.realtor.com/research/january-2021-data/ "external"), the year-over-year national median listing price increased by a whopping 15.4% in January 2021—reaching $346,000. Consequently, in high-priced markets, such as California, the need for jumbo loan financing is also on the rise. The Los Angeles-Long Beach-Anaheim Metro saw January’s median listing hit $1,150,000. In the San Jose-Sunnyvale-Santa Clara Metro, it rose to $1,199,000.

What makes the surge in [jumbo loan activity](https://better.com/content/jumbo-vs-conforming-loans/) even more interesting is that it comes off the back of yet another conforming loan limit increase. Homebuyers in most parts of the country can now apply for conventional mortgages of up to $548,250 for single-unit properties.

<h4>Increases in jumbo loan applications and volume between Q3 and Q4 2020- At Better Mortgage. </h4>

- Jumbo loan applications Q3 2020: 4,015 
- Jumbo loan applications Q4 2020: 4,668
- Jumbo loan volume Q3 2020: $3.65 billion 
- Jumbo loan volume Q4 2020: $4.46 billion 
- Total jumbo loan applications increased 130% at Better Mortgage between April 2020 and December 2020

<h4>Jumbo application count</h4>

![Line Graph Showing Jumbo Loan Growth Between April 2020 and January 2021](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2F63bc06069a884e968dea6df02e917a76)

<h4>Average loan amount</h4>

![Line Graph Showing the Average Loan Amount for Purchase, Rate Term Refi, Cash Out Refi Between April 2020 and February 2020](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2Fabc13fab2335477bb3748f72fb0e8080)

<h2>Larger Down payments provide a competitive edge </h2>

It’s been almost a year since stay-at-home orders started rolling out across the country, reducing the cost of living for those who are able to work from home. This increase in savings from paycheck to paycheck may be a contributing factor in the larger down payments we’re observing across the country. In December 2020, the average down payment at Better Mortgage was $93,000—up from $77,000 the previous March.

<h4>Average down payment</h4>

![Line Graph Showing the Average Down Payment Growth Between April 2020 and February](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2F3bfe0cd3aa124a3aa352d0c45cd03a72)

“Most of my clients work in tech, and a large chunk of their down payment is taken from their brokerage account. Once they are vested, they take that opportunity to move forward with putting in an average of 20% or more for their down payment,” explains Better Real Estate Managing Broker Jennilee Bennet of Seattle. Bennet is also seeing “first-time homebuyers also using gifted funds to beef up their down payments.”

“It's super helpful in multiple offer situations especially when you are competing with a cash buyer or another conventional buyer, that 5–10% addition can make a huge difference when considering offers that are similar in terms, outside of financing,” Bennet notes.   

<h2>What real estate agents can do next</h2>

- Reach out to appropriate clients to check on pre-qualifying for a jumbo loan.
- Communicate and educate buyers on jumbo loan underwriting guidelines.
- Create an email blast or blog post on how buying power increases with higher down-payments.
- Post jumbo loan and increased buying power information on social media. 

<br>

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The real estate market continues its hot start to 2021 with larger mortgage down payments and an increase in jumbo loan activity.

Jumbo Loan and Down Payments Boost Buying Power

Blog post image for Increased jumbo loan activity and larger down payments boost buying power

Increased jumbo loan activity and larger down payments boost buying power

![Mortgage News 2/8/2021: Most Homebuyers are Now Buying Virtually](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2F3494330f2bae43bbb32f4d21a444685c)

<br>

Here’s a look at the latest developments in the mortgage market for the week beginning 2/8/21. 

<ul>
<li><strong>Two thirds of homebuyers shopped virtually in 2020</strong></li>
<li><strong>Homeownership has grown in the last year—and it’s likely to keep rising</strong></li>
<li><strong>Refinance applications surged during January rates dip</strong></li>
<li><strong>What to expect from the 2021 housing market</strong></li>
</ul>

<h2>Two thirds of homebuyers shopped virtually in 2020</h2>

Homebuyers became more comfortable with a virtual shopping experience in 2020, as [63% of buyers made offers on homes](https://www.washingtonpost.com/business/2021/02/03/redfin-two-thirds-home-buyers-2020-made-offer-sight-unseen/ "external") that they hadn’t actually visited in person. That’s a jump from 32% in 2019, before pandemic-related lockdowns brought much of the real estate world online. 

The increase is largely driven by the pandemic and the ways in which agents have adapted to the new landscape: setting up virtual tours, virtual open houses, and video calls with clients. 

Now that virtual homebuying has proven to be a viable option, will the trend continue once vaccines are rolled out? With competition as high as it’s been, it likely could. The average time that a home is up for sale is now [10 days shorter than it was last year](https://www.realtor.com/research/weekly-housing-trends-view-data-week-jan-30-2021/ "external"). Being able to make quick decisions is key, especially in more affordable areas [where prices are rising fast](https://better.com/content/rates-drop-but-may-not-stay-down/). Many buyers may not have the time or ability to tour a home in person, and feel comfortable making the offer knowing that it could possibly sell within days.

Shopping competition is expected to heat up as [more people plan to buy a home](https://better.com/content/lagging-economy-slows-rising-mortgage-rates/) this year, and [sales activity is predicted to rise](https://better.com/content/expect-rates-prices-sales-to-rise-in-2021/). Buyers may use virtual tours to be able to act faster, even when in-person home tours are safe again. 

If you’re considering buying a home without an in-person tour, preparation is even more important. Read up on [what to look for when touring a home](https://better.com/content/what-to-look-for-when-touring-a-home/), so that when it comes time to make an offer, you feel confident in your decision. 

<h2>Homeownership has grown in the last year—and it’s likely to keep rising</h2>

The rate of homeownership in America proves to be on the rise now that 2020 numbers are in: [65.8% of the country’s homes are now occupied by owners](https://www.census.gov/housing/hvs/files/currenthvspress.pdf "external"). That’s about 1.8 million more homes than the year before. 

It may seem surprising that homeownership increased during a year marked by economic hardship and nationwide lockdowns, but last year was still a great time to buy a home. Interest rates dropped to record lows over a dozen times, and many were motivated by work-from-home policies that allowed them to relocate outside of major cities or tech hubs. 

Today, there’s still a large amount of unmet homebuyer demand as inventory sits at low levels, driving prices up. But with more people [planning to buy a home in the next 12 months](https://better.com/content/lagging-economy-slows-rising-mortgage-rates/) and [a wave of new construction coming this spring](https://better.com/content/can-new-builds-close-the-supply-gap/), there are a number of opportunities in the market to meet that demand. 

Rates are also expected to rise, but so far, they’re climbing [more slowly than expected](https://better.com/content/lagging-economy-slows-rising-mortgage-rates/) and [haven’t deterred home purchases](https://better.com/content/can-new-builds-close-the-supply-gap/). Given that record low rates may have incentivized homeowners to refinance rather than sell, rising rates could lead to more existing homes being put on the market. And in Congress, [a $15K tax credit for first-time buyers](https://www.housingwire.com/articles/potential-impacts-of-bidens-15000-tax-credit/ "external") is being proposed, which could motivate homebuying regardless of rates and their unpredictability. 

<h2>Refinance applications surged during January rates dip</h2>

Rates dropped in reaction to [slower-than-expected pandemic recovery efforts](https://better.com/content/lagging-economy-slows-rising-mortgage-rates/) in the last week of January and many homeowners took the opportunity to refinance. The number of applications jumped [up 11% from the week before](http://www.mortgagenewsdaily.com/02032021_applications_forbearance.asp "external"), marking 60% more refinance activity than this time last year. 

The dip in rates was likely temporary, and [we predict they could climb as high as 3.25%](https://better.com/content/housing-market-predictions-2021/) by the end of the year. That said, the climb is expected to be gradual and variations like this could keep the refinance wave going until spring. 

Given that rates are always unpredictable, trying to time the market may end up costing more in the long run. Owners wanting to refinance may be better off locking in a rate whenever it makes the most financial sense to them. 

<h2>What to expect from the 2021 housing market</h2>

As the pandemic continues to impact the real estate landscape, the question of what’s next may help inform important homeownership decisions. Here are our [predictions of what to expect from the housing market this year](https://better.com/content/housing-market-predictions-2021/), including when new inventory will be ready to buy, how high interest rates are expected to rise, and why homebuyer demand will likely stay strong through it all. 

<h2>Considering a home loan?</h2>

Get your custom rates in minutes at [Better.com](https://better.com/). Our team is here to walk you through your options and help you make an informed decision about which loan is right for you.

<br>

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Mortgage News: A majority of buyers are making offers on properties they haven’t seen in person, and the trend may continue even after pandemic risks subside.

Most Homebuyers are Now Buying Virtually

Blog post image for Most homebuyers are now buying virtually

Most homebuyers are now buying virtually

![Mortgage News 1/04/2021: Why 2020 Was the Year of the Home](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2Ffbd69199dd804a1783589af2bfde3951)

<br>

Here’s a look at the latest developments in the mortgage market for the week beginning 1/4/21. 

<ul>
<li><strong>How Better Mortgage helped make 2020 the year of the home</strong></li>
<li><strong>More homeowners opt to defer or lower their payments amid financial struggles</strong></li>
<li><strong>Prices rise in middle America as buyers flee coasts</strong></li>
<li><strong>A guide to the underwriting process</strong></li>
</ul>

<h2>How Better Mortgage helped make 2020 the year of the home</h2>

To say that 2020 was a major year for homeownership would be an understatement. In the middle of a global pandemic, homes became more than just living spaces—they were offices, gyms, schools, creative studios, and more. Millions of people chose to buy or refinance in the last year, and Better Mortgage alone took on over 88,000 new clients, funding [over $20B in home loans](https://better.com/content/year-of-the-home-2020-review/). 

It was a historic year for interest rates. Due to intervention by the Federal Reserve, rates fell below previous records over a dozen times. Better Mortgage was able to offer competitive Market Rates, often lower than Freddie Mac PMMS rates, even as those benchmarks continued to drop.

<h4>Better Mortgage Market Rate* vs Freddie Mac Primary Mortgage Market Survey (PMMS) Rate** (July - December 2020)</h4>

![Graph: Better Mortgage 30 Year Fixed Rate vs Freddie PMMS 30 Year Fixed Rate](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2Fa702e93a14a5404d88b719d10913dec5)

<p class="legal">This is not a commitment to lend. Interest rates are for informational purposes only.  Details on rate calculations below.</p>  

Economic hardship has been felt everywhere since COVID-19 first emerged in the U.S. in late winter, putting [40 million people out of work by May](https://www.housingwire.com/articles/heres-what-mortgage-forbearance-looked-like-in-2020/ "external"). With interest rates low, many homeowners [took the opportunity to refinance](https://better.com/content/winter-may-be-the-best-time-to-buy-a-home/). Better Mortgage saved clients who refinanced an annual total of over $300M.*** 

On the flip side, the same year saw the demand for homes rise. Many [millennial first-time buyers entered the market](https://better.com/content/millennials-drive-home-sales/), contributing to a home buying boom. As sales rose, however, so did home prices. Better Mortgage met the need for an affordable, transparent home loan experience, and saved 2020 homebuyers an average of $8,200 over the life of the loan.****  

Looking ahead to 2021, the lasting impacts of the pandemic are expected to [keep interest rates low, with a gradual rise](https://better.com/content/expect-rates-prices-sales-to-rise-in-2021/) throughout the year. There is still plenty of time for loan applicants to take advantage though, especially before prices and sales are [expected to climb as the year goes on](https://better.com/content/housing-sales-likely-to-continue-to-climb/). 

(For more on how Better Mortgage impacted the homeownership landscape, check out our [Year in Review](https://better.com/content/year-of-the-home-2020-review/).)

<h2>More homeowners opt to defer or lower their payments amid financial struggles</h2>

Alongside a nationwide vaccine rollout and second economic stimulus package, [2.8 million homeowners ended the year in forbearance](https://www.housingwire.com/articles/black-knight-2020-ends-with-2-8-million-in-forbearance/ "external"). Due to the high demand, the FHA announced they’ve extended the deadline for single-family borrowers to request forbearance up until February 28, 2021. 

For a growing number of homeowners, refinancing may be a more financially viable alternative to forbearance. While forbearance is a short-term measure used to avoid defaulting or foreclosure, [refinancing is an opportunity to renegotiate](https://better.com/content/refinance-vs-forbearance/) the terms of a home loan.

In late December, refinance applications made up [three quarters of all mortgage applications](https://www.housingwire.com/articles/mortgage-applications-increase-for-second-straight-week/# "external"), driving a 124% increase from the same period last year.

<h2>Prices rise in middle America as buyers flee coasts</h2>

Extended work-from-home policies and a desire for more space and comfort [drove an urban flight trend in 2020](https://better.com/content/opportunities-rise-downtown-condo-prices-drop/), as families moved away from tech hubs towards suburbs and smaller cities. 

Now, prices in those historically affordable cities are rising. Mid-American areas like Pittsburgh, Austin, Cincinnati, Cleveland, are seeing [price gains 10% higher](https://www.cnbc.com/2021/01/04/covid-real-estate-home-prices-rise-faster-in-middle-of-us.html "external") than they were last year. 

The shift could result in better deals for buyers in traditionally high-priced coastal markets. For example, [the Bay Area has seen a slower price incline](https://www.mercurynews.com/2021/01/04/bright-outlook-for-bay-area-home-sales-prices-in-2021/ "external") compared with other cities, despite historically high home values. 

<h2>A guide to the underwriting process</h2>

Underwriting is one of the final steps of the loan process, essentially deciding whether or not a home loan is approved. It involves taking a close look at an applicant’s entire financial picture and paying attention to a series of established risk factors.[ Here’s a handy guide](https://better.com/content/underwriting-process/) to what underwriters look for, the documents needed, and a timeline of the process. 

<h2>Considering a home loan?</h2>

Get your custom rates in minutes at [Better.com](https://better.com/). Our team is here to walk you through your options and help you make an informed decision about which loan is right for you.

<br>

 <div style="text-align: center">  
 <a class="bet-Button bet-Button--xl bet-Button--primary" href="https://better.com/start">See your rates</a>  
 </div>

<br><br>

 <p class="legal">*Better Mortgage Market Rates were calculated from an average of rates using the assumptions below to provide a representative offered interest rate for each month. Assumptions include: $200K, $300K, $400K, $500K loan amount; 30-Year Fixed purchase, 30-Year Fixed rate and term refinance; borrower with above average credit (i.e., FICO score of 760 or higher); loan-to-value ratio of 80%; subject property is a Single Family Residence; subject property is borrower’s primary residence; subject property is located in one of our six highest volume metropolitan statistical areas.</p>

 <p class="legal">**Freddie Mac PMMS Rates are the result of surveys to lenders on the rates and points for their most popular 30-year fixed-rate conventional mortgage products, and an origination-weighted average of lender responses. The survey is based on first-lien prime conventional conforming home purchase mortgages with a loan-to-value of 80 percent. This average is widely regarded as the industry standard tracker of mortgage rates week over week.</p>

  <p class="legal">***Annual savings in loan payments for each loan are calculated as the monthly principal and interest payment of the borrower’s prior mortgage less the monthly principal and interest payment on their new loan from Better Mortgage, multiplied by 12 (savings are incurred each month in a year). Individual savings could vary based on current market rates, property type, loan amount, loan-to-value, credit score, debt-to-income ratio and other variables.</p>

  <p class="legal">****The average lifetime savings estimate is based on a comparison of the average interest rate offered by Better Mortgage to prospective borrowers for a $322,000 30-yr mortgage against the Mortgage Bankers Association index from April 2019 to April 2020. Individual savings could vary based on current market rates, property type, loan amount, loan-to-value, credit score, debt-to-income ratio and other variables.</p>

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Mortgage News: 2020 changed the homeownership game, and its effects are still being felt as we head into the new year. 

Why 2020 Was the Year of the Home

Blog post image for Why 2020 was the year of the home

Why 2020 was the year of the home

![mortgage news 9/22](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2F2b3bb0bf4bd24c0b800cbffa33ba0b22)

<br>

Here’s a look at the latest developments in the mortgage market for the week beginning 9/21/20. 

<ul>
<li><strong>Federal Reserve will keep interest rates near zero until 2023</strong></li>
<li><strong>Surging home demand drives homebuilder confidence to all-time high</strong></li>
<li><strong>Digital mortgage platforms found to reduce discrimination in lending</strong></li>
<li><strong>Remote work could add almost 2 million potential buyers to the market</strong></li>
  <li><strong>What to look for when comparing mortgage rates</strong></li>
  <li><strong>Better.com is Linkedin’s No.1 Startup of 2020</strong></li>
</ul>

<h2>Federal Reserve will keep interest rates near zero until 2023</h2>

Last week members of the Federal Reserve Open Market Committee (FOMC) released a new policy statement indicating their willingness to use the many tools at their disposal to support the nation’s [economic recovery](https://www.cbsnews.com/news/federal-reserve-interest-rate-flat-decision-today-2020-09-16/ "external"). Their focus included maintaining their benchmark rate at 0-.25% for at least three years and continuing to buy U.S. Treasury bonds and Mortgage Backed Securities (MBS) — both of which will support low interest rates and spur lending. While the benchmark rate is headline grabbing, it generally doesn’t affect [mortgage rates](https://better.com/content/why-your-mortgage-rate-isnt-really-affected-by-the-feds-rates/). The buying of MBS, however, has the clear goal of attempting to keep mortgage rates low. 

Though the move indicates a need for ongoing economic support, the Federal Reserve believes that the economy will recover much faster than originally anticipated. The nation’s unemployment rate which is now at 8.4% is now expected to drop to 7.6% by the end of year, before ultimately reaching 4% in 2023. 

According to Federal Reserve Chair Jerome H. Powell, the [path to recovery](https://www.federalreserve.gov/newsevents/testimony/powell20200922a.htm "external") relies heavily on effective COVID-19 containment measures and financial support from all levels of government. In the meantime, the Federal Reserve will continue to use all of its resources to boost the economy for the foreseeable future. 

<h2>Surging home demand drives homebuilder confidence to all-time high</h2>

Despite uncertainty in the nation’s economic recovery, the housing market is rebounding and flourishing. The median home price [increased 13%](http://redfin.com/blog/late-summer-housing-demand-strong/ "external") from 2019 to $319,261, while pending home sales were up 27% compared to the same time last year. These indicators point to a great deal of pent-up demand chasing a small amount of inventory. As a result, the National Association of Home Builders (NAHB) and Wells Fargo Housing Market Index (HMI) [rose by five points to 83](https://nahbnow.com/2020/09/builder-confidence-soars-to-an-all-time-high-lumber-risks-remain/ "external"), beating the previous record of 78 reached last month. The index measures builder confidence in the market for newly built single-family homes and sales expectations for the next six months on scale from zero to 100.

While a delay remains between homebuilding and new inventory, home values may continue to [appreciate](https://better.com/content/high-demand-low-supply-for-suburban-homes/), especially in areas outside major metros where [millennials are moving](https://better.com/content/fhfa-extends-foreclosure-suspension/). 

<h2>Digital mortgage platforms found to reduce discrimination in lending</h2>

The traditional mortgage process has always been fraught with hurdles, and for those who don’t fit the stereotypical homeownership mold—white, married, heterosexual—the obstacles have been proven to be far greater. In 2019 alone, prospective African-American and Hispanic homebuyers were denied mortgages at [16% and 11.6%](https://www.nytimes.com/2020/09/18/business/digital-mortgages.html?referringSource=articleShare "external") respectively, compared to only 7% of white Americans. Within the LGBTQ community, one [study](https://www.pnas.org/content/116/19/9293 "external") found that couples were 73% more likely to be denied a mortgage than heterosexual couples with comparable financial credentials. 

There is a clear need to democratize the mortgage industry, and online mortgage lenders are offering a shift in the right direction. By allowing prospective homebuyers to upload their financial information, get a letter of approval, and search for interest rates without an in-person meeting, these digital platforms can effectively bypass human bias. In fact, algorithms were found to discriminate [40% less](http://faculty.haas.berkeley.edu/morse/research/papers/discrim.pdf?_ga=2.161360829.1884437453.1583517590-1779220203.1578413279 "external") on average than in-person lenders. 

Trends like these are one of the reasons that Better Mortgage remains committed to technological innovation and fair lending practices. We have long believed that such measures are a crucial part of our mission to make homeownership accessible for all.

<h2>Remote work could add almost 2 million potential buyers to the market</h2>

Almost 2 million renters may now be able to [become homeowners](https://www.zillow.com/research/telecommute-2-million-buyers-27866/ "external") as more companies introduce work-from-home policies nationwide according to a Zillow analysis. Renter households that have the ability to work remotely, but can’t afford entry-level homes in their current metro areas, could potentially buy starter homes [in less expensive markets](https://better.com/content/remote-workers-flock-to-zoom-towns/). 

For example, almost a quarter million renters in the San Francisco and San Jose metro areas alone would have the means to own homes in other locales if telecommuting was an option. For prospective buyers interested in making a move, Zillow identified Pittsburgh, El Paso, and Rochester as the three most [affordable places](http://zillow.mediaroom.com/2020-09-08-Remote-Work-Could-Open-Homeownership-to-Nearly-Two-Million-Renter-Households "external") to buy a starter home.

<h2>What to look for when comparing mortgage rates</h2>

Rate tables are one of the most important mortgage comparison tools available to borrowers during their search for home financing. Typically found on a lender or mortgage rate comparison website, a rate table provides key information about a lender’s mortgage products, rates, and estimated monthly payments for a home. Our team of experts put together a guide to demystify rate tables and [what to look for when comparing mortgage rates](https://better.com/content/what-to-look-for-when-comparing-mortgage-rates/).

<h2>Better.com is LinkedIn’s No.1 Startup of 2020</h2>

LinkedIn just released its [annual list of 50 Top Startups](https://www.linkedin.com/pulse/linkedin-top-startups-2020-50-us-companies-rise-jessi-hempel/?published=t "external"), and Better.com took first place. Recipients were judged on employee growth, job seeker interest, member engagement with the company and its employees, and ability to attract top talent.

<h2>Considering a home loan?</h2>

Get your custom rates in minutes at [Better.com](https://better.com/). Our team is here to walk you through your options and help you make an informed decision about which loan is right for you.

<br>

 <div style="text-align: center">  
 <a class="bet-Button bet-Button--xl bet-Button--primary" href="https://better.com/start">See your rates</a>  
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Mortgage News: The Federal Reserve intends to keep interest rates near zero in an effort to speed economic recovery.

Federal Reserve to Keep Rates Near Zero until 2023

Blog post image for Federal Reserve plans to keep rates near zero until 2023

Federal Reserve plans to keep rates near zero until 2023

![mortgage news 9/7/20](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2Ffe09d37a6fbf4512a7fa3e365178ef75)

<br>

Here’s a look at the latest developments in the mortgage market for the week beginning 9/07/20.

<ul>
<li><strong>  Remote work shows no signs of slowing down as “Zoom towns” spring up</strong></li>
<li><strong>Rates return to record lows after FHFA announced fee delay</strong></li>
<li><strong>Median home price hits new record nationwide</strong></li>
<li><strong>How property occupancy can affect your mortgage</strong></li>
<li><strong>Business Insider named Better.com CEO among 100 People Transforming Business</strong></li>
</ul>

<h2>Remote work shows no signs of slowing down as “Zoom towns” spring up</h2> 

Vacation destinations and resort towns throughout the country once reserved for affluent travelers escaping the pandemic are experiencing a steady influx of remote workers. As waves of people move to these “[Zoom towns](https://www.bloomberg.com/opinion/articles/2020-08-05/remote-work-from-resort-towns-eases-housing-costs-in-big-cities "external")” or areas where remote work is booming, home prices in those communities have skyrocketed. 

This trend aligns with the larger housing boom that’s currently playing out in the market. Record low interest rates, millennials reaching homebuying age, and people fleeing cities for more space have all added to the housing demand surge. 

Data from Better Mortgage supports the mass exodus from apartments in major cities to more space and affordability in the suburbs. In New York City, 35% of Better applicants bought homes in counties outside the five boroughs in July, while 27% of applicants from the San Francisco Bay Area bought homes outside the area. 

The tremendous move to resort communities and suburbs could also help offset housing costs for buyers and renters interested in major cities, as prices in those areas [may decline](https://wolfstreet.com/2020/08/03/rents-swoon-in-san-francisco-other-expensive-cities-and-tx-ok-oil-patch-y-y-but-23-cities-with-red-hot-double-digit-rent-increases/ "external"). This potential affordability can help homebuyers who were previously unable to buy in urban areas the opportunity to finally make a move. 

<h2>Rates return to record lows after FHFA announced fee delay</h2> 

Homeowners looking to take advantage of record-low interest rates were met with a surprise when the Federal Housing Finance Agency (FHFA) announced [a 0.5% refinance fee](https://better.com/content/fhfa-pushes-refinance-fee-to-december/) on all mortgages in mid-August. As soon as the announcement was made, interest rates began to increase. After backlash from mortgage industry leaders and the federal government, the FHFA decided to delay the fee until December. This change caused the average 30-year fixed rate to hit its [lowest level](https://www.fool.com/the-ascent/mortgages/articles/mortgage-rates-plunge-after-refinance-fee-delayed-borrowers-may-want-act-fast/ "external") since early August. 

While the fee’s delay granted borrowers time to save on monthly rates, those interested in taking advantage of record-low rates, shouldn’t wait too long to begin the process. Many lenders will adjust their pricing to include the fee before December, so refinancers are encouraged to lock in a rate soon to be on the safe side.

<h2>Median home price hits new record nationwide</h2>

The housing market continues to soar to new heights as the national median listing price hit $350,000 in August—[a new record](https://money.yahoo.com/frenzied-buyer-demand-low-inventory-100000455.html?guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAADwMjlas4H28ZbNNZMCBCMQQ59Y71rFA4EvSygveY2eHPzNj1GdQ3Togu-MSj3-qNx5x3xPLWiZ-_oEwAi8HMl4eULCRQ0dAgIhyPmSQBBwSMK8lbUPMHnvFZbW-Ty-XyPk4ymLngE-e2OPEHDeKRARaK7KE9O4-gvgLL7k4T335&guccounter=2 "external"). This comes as a result of strong homebuyer demand and low inventory nationwide. There were [500,000 fewer homes available in the market](https://www.forbes.com/sites/ellenparis/2020/09/05/heres-the-latest-housing-market-news-from-realtorcom/#3755911a49bf "external") at the end of August, compared to the same time last year. 

As homes in the market sell at their fastest pace in 15 months, it’s important for homebuyers to stand out against the competition bidding in the same pool of homes. Having a [pre-approval letter](https://better.com/content/what-is-a-mortgage-pre-approval/), which provides proof of purchasing power, lets a seller know that a buyer is serious and can make a significant difference in a crowded home marketplace.

<h2>How property occupancy can affect your mortgage</h2> 

When applying for a mortgage, the intended use of the property plays a larger role than many homebuyers might think. A primary residence is viewed differently by lenders than a second home or an investment property because the level of risk involved varies for each. 

We’ve outlined the [differences between each property type](https://better.com/content/primary-residence-second-home-or-investment-property-whats-the-difference/) and how their intended use can impact borrowers.

<h2>Business Insider named Better.com CEO among 100 People Transforming Business</h2>

Business Insider released its annual 100 People Transforming Business list, which recognizes innovators driving change in their companies and industries. This year, Better.com’s CEO, [Vishal Garg](https://www.businessinsider.com/tb/the-list-of-300-people-transforming-business-in-2020-9/transformers/vishal-garg), made the cut. 

He was recognized as one of the top 10 leaders in the finance category, joining CEOs from major institutions such as Bank of America and Goldman Sachs.

<h2>Considering a home loan?</h2>

Get your custom rates in minutes at [Better.com](https://better.com/). Our team is here to walk you through your options and help you make an informed decision about which loan is right for you.

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