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Mortgage rates rise ahead of expected Fed rate hike

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A year ago rates averaged 2.86%

The latest weekly survey data from Freddie Mac shows the 30-year fixed-rate mortgage rose to an average of 6.02% this week ahead of the Federal Reserve’s much-anticipated interest rate hike next week. Daily mortgage rate calculators are showing 30-year fixed rates at 6.30% and above.

A year ago at this time, rates averaged 2.86%.  

“Mortgage rates continued to rise alongside hotter-than-expected inflation numbers this week, exceeding six percent for the first time since late 2008,” said Sam Khater, Freddie Mac’s chief economist. The index compiles only purchase mortgage rates reported by lenders during the past three days.   

Inflation rose more than expected in August as rising shelter and food costs offset a drop in gas prices, adding weight to markets speculating the Fed will enact a 75 bps increase at its Federal Open Market Committee (FOMC) meeting on September 20 and September 21. 

The consumer price index, which tracks a range of goods and services to keep track of inflation, rose 0.1% in August and 8.3% year-over-year, according to the Bureau of Labor Statistics.

Inflation data shows the energy index fell 5.0% from the month prior while increases in the shelter (+0.7%), food (+0.8%), electricity (+1.5%), natural gas (+3.5%) and medical care (+0.7%) indexes were the largest contributors to the higher-than-expected inflation levels. 

Treasury yields leaped higher, as the 2-year note, most closely tied to the Fed’s interest rate moves, surged 33 bps to 3.78% on Wednesday from the prior week. 

On HousingWire’s Mortgage Rates Center, Black Knight’s Optimal Blue OBMMI pricing engine measured the 30-year conforming mortgage rate at 6.124% on Wednesday, up from 5.950% the previous week. Meanwhile, the 30-year fixed-rate jumbo was at 5.821% Wednesday, up from 5.587% the week prior. 

Pressure on rates has reduced demand for mortgage loans, according to the Mortgage Bankers Association (MBA). The market composite index, a measure of mortgage loan application volume, declined 1.2% for the week ending Sep. 9. The refinance index had a 4.2% decline from the previous week, and the purchase index was marginally down 0.15%.

According to Freddie Mac, the 15-year fixed-rate purchase mortgage averaged 5.21% with an average of 0.9 points, up from last week’s 5.16%. The 15-year fixed-rate mortgage averaged 2.12% a year ago. 

The 5-year ARM averaged 4.93% this week, up from 4.64% the previous week. The product averaged 2.51% a year ago.

For prospective buyers, lack of inventory is still an issue although increase in rates will continue to dampen demand and put downward pressure on home prices, according to Khater.

“This indicates that while home price declines will likely continue, they should not be large.” Khater said. 

Learn more on Housing Wire.

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4 Ways To Unclog A Shower Drain

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When you are taking a shower, the last thing you want to notice is water that is ponding up around your feet.

Unfortunately, this means you have a clogged shower drain. Though this is a problem that always seems to occur at the most inopportune time, the good news is that you have multiple solutions to getting the water flowing freely again. The next time you find your shower drain clogged, here are four methods you can use to bust up that stubborn clog.

Remove It by Hand
If you are lucky, you will be able to remove the clog by hand. Should you notice hair or other objects easily visible and near the top of the drain, you can probably don a pair of rubber gloves and remove the debris within a few minutes. In some cases, you may be able to use a wire coat hanger to make sure you get everything causing the clog. However, if you feel something that is putting up quite a fight when you pull, beware that continuing to use the coat hanger could damage your drain.

The Drain Snake
If you ask the pros like those at Express Plumbing & Septic about the best way to unclog a shower drain, they will most likely suggest the drain snake. This is a retractable, coil-like tool you can purchase at any home improvement store. Fitted with a hand crank, you insert the metal wire slowly down your shower drain, where it will either break up the clog or pull out whatever was clogging the drain. If you don’t trust yourself with this tool, or just don’t want to purchase one, consider calling up your local plumber for assistance. 

Natural Drain Cleaner
If you want to pour something down your drain in hopes of getting rid of the clog, many suggest you not use drain cleaners found in stores, since they often don't work very well and contain dangerous chemicals that can do more harm than good to your shower drain. Instead, opt for a homemade natural drain cleaner that consists of one cup of distilled vinegar and one cup of baking soda. Mix this together, pour it down your drain, and let it stay there for 15 minutes. By doing so and then pouring a pot of boiling water down the drain, your problem should be solved.

Call a Plumber
Finally, if your best efforts don't work on your shower drain, call in a plumber to fix the problem. If you don't, you may damage your drain or push the clog further and further down, making things much worse.

By keeping these tips in mind, you'll soon have a shower drain where the water is once again running freely.

Get more tips like this on RISMedia.

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As Featured in West + Main Home Magazine: Sunny Solution

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West + Main agent Steph Christianson's home features 3 stunning arch windows in her living room, giving them loads of natural light and beautiful views, but little-to-no protection from that hot Colorado sun.

“After our first year of living in our home, we realized the only solution was going to be to cover the deck. This would block some of the heat coming into our living room.”
— Steph

To execute the project, Steph contacted West + Main agents Rob and April Schmidt, who also own The Deck Company.

"They wanted the cover to feel as if it had always been there and was built at the same time as the house. So the materials were guided by the existing house." said April.

The roof cover ended up being the perfect solution. "Although the motivation to put a cover on our deck was to lessen the intense sun exposure, we've come to really enjoy the space year round. It's the perfect place to watch a Broncos game, enjoy a Saturday afternoon nap, or start the day with a cup of coffee + a book!" said Steph.


If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

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How Owning a Home Builds Your Net Worth

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Owning a home is a major financial milestone and an achievement to take pride in.

One major reason: the equity you build as a homeowner gives your net worth a big boost. And with high inflation right now, the link between owning your home and building your wealth is especially important.

If you’re looking to increase your financial security, here’s why now could be a good time to start on your journey toward homeownership.

Owning a Home Is a Key Ingredient for Financial Success

A report from the National Association of Realtors (NAR) details several homeownership trends, including a significant gap in net worth between homeowners and renters. It finds:

“. . . the net worth of a homeowner was about $300,000 while that of a renter’s was $8,000 in 2021.”

To put that into perspective, the average homeowner’s net worth is roughly 40 times that of a renter’s. This difference shows owning a home is a key step in achieving financial success.

Equity Gains Can Substantially Boost a Homeowner’s Net Worth

The net worth gap between owners and renters exists in large part because homeowners build equity. When you own a home, your equity grows as your home appreciates in value and you make your mortgage payments each month. As a renter, you don’t have that same opportunity. A recent article from CNET explains:

“Homeownership is still considered one of the most reliable ways to build wealth. When you make monthly mortgage payments, you’re building equity in your home . . . When you rent, you aren’t investing in your financial future the same way you are when you’re paying off a mortgage.”

But on top of that, your home equity grows even more as your home appreciates in value over time. That has a major impact on the wealth you build, as a recent article from Bankrate notes:

“Building home equity can help you increase your wealth over time, . . . A home is one of the only assets that have the potential to appreciate in value as you pay it down.”

In other words, when you own your home, you have the advantage of your mortgage payment acting as a contribution to a forced savings account that grows in value as your home does. And when you sell, any equity you’ve built up comes back to you. As a renter, you’ll never see a return on the money you pay out in rent every month.

Bottom Line

Owning a home is an important part of building your net worth. If you’re ready to start on your journey to homeownership, connect with a trusted real estate advisor today.

Read more on Keeping Current Matters.

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Americans are deeply pessimistic about the housing market

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Price corrections in the housing market may incentivize homebuyers, home-sellers to remain on the sidelines: Fannie Mae.

Home prices have started to drop, but the decline has not been significant enough to slow a growing pessimism about the housing market.

Fannie Mae’s Home Purchase Sentiment Index (HPSI), which tracks the housing market and consumer confidence to sell or buy a home, dropped by 0.8 points in August to 62, marking its sixth consecutive decline. The government-sponsored enterprise attributed high home prices and mortgage rates to the decline, particularly weighing on home-selling sentiment. Year over year, the index is down 13.7 points.

On the seller side, 35% said it was a bad time to sell, rising from 27% in July. About 59% said it’s a good time to sell, dropping from the previous month’s 67%. 

“The share of consumers expecting home prices to go down over the next year increased substantially in August. Accompanying this, HPSI respondents reported a significant decrease in home-selling sentiment,” said Doug Duncan, Fannie Mae’s senior vice president and chief economist. 

Following a slow down in home price appreciation, prices slipped 0.77% in July from June, marking the largest single-month decline in the housing market since January 2011, according to Black Knight. About 85% of major housing markets, mainly in the West Coast, saw prices pull back from their peak levels, and more price corrections are expected across the U.S.

“We also observed a large decline in consumers reporting high home prices as the primary reason for it being a good time to sell a home, suggesting that expectations of slowing or declining home prices have begun to negatively affect selling sentiment,” Duncan said. 

On the other hand, lower home prices would be welcome news for potential first-time homebuyers, who are disproportionately affected by high home prices and high mortgage rates.

Overall, 22% of respondents said it was a good time to buy a home in August, up from 17% a month prior, but 73% said it was a bad time to buy, down from 76% in July.

Consumers were not optimistic about mortgage rates. About 11% of respondents said that mortgage rates will go down in the next 12 months while 61% stated that mortgage rates will go up.

Mortgage rates have been on a rising trend in recent weeks ahead of another potential rate hike by the Federal Reserve later this month. Purchase mortgage rates rose to an average of 5.89% this week. 

“With home prices expected to moderate over the forecast horizon and economic uncertainty heightened, both homebuyers and home-sellers may be incentivized to remain on the sidelines – homebuyers anticipating home price declines and potential home-sellers not keen to give up their lower, fixed mortgage rate – contributing to a further cooling in home sales through the end of the year,” Duncan said.

Goldman Sachs, in a paper titled “The Housing Downturn: Further to Fall,” forecasted that new and existing home sales are going to fall 22% and 17% respectively this year. Next year, the investment predicted new and existing home sales will drop another 8% and 14%.

For more info like this, visit Housing Wire.

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