Mortgage rates decline for the fourth consecutive week

Happy Friday! Let's get into it. Today’s newsletter is 609 words, a 2.5-minute read.

1. Mortgage rates decline for the fourth consecutive week

The average rate for a 30-year fixed loan dropped to 6.86%, the lowest in about three months, compared to 6.87% the previous week, according to Freddie Mac. A year ago at this time, the 30-year FRM averaged 6.71 percent.

Despite this decrease, rates are still close to 7%, which has slowed new home sales in May to the lowest level since November and decreased transactions of previously owned properties for the third straight month.

• The 15-year FRM averaged 6.16 percent, up from last week when it averaged 6.13 percent. A year ago at this time, the 15-year FRM averaged 6.06 percent.

Freddie Mac’s chief economist, Sam Khater, expects rates to continue decreasing over the summer, potentially bringing more homebuyers back into the market.

2. Compass, eXp, Redfin, Weichert, and United file a joint motion to dismiss Batton 2

The five defendants in Batton 2 filed a joint motion to dismiss the case, arguing the claims are untimely and lack merit.

They assert that plaintiffs lack antitrust standing, the court lacks jurisdiction, and there is no evidence of conspiracy.

The lawsuit is viewed as a rehash of similar allegations from Batton 1, which targeted different defendants. Both cases, involving buyer-side claims similar to other commission lawsuits, continue in court with a discovery process extending until 2026.

A MESSAGE FROM MAXWELL

Podcast: How the NAR Ruling Will Impact Lenders (& the Entire Home-Buying Process)

The groundbreaking NAR settlement, with new rules set to go into effect 8/17, has real estate agents, loan officers, and home buyers scrambling to understand its ramifications.

Luckily, Maxwell’s Clear to Close podcast is here to walk through likely outcomes of the ruling. This episode explores how new policy changes will impact lead generation, methods to earn borrower business, the role of the loan officer, and more.

Click here to learn how to get ahead of the major ways the home-buying process is about to change.

3. More Nuggets

💸 Real estate brokers scramble for workarounds ahead of new rules on commissions. (Axios)

📉 Mortgage application payments decreased 1.6 percent to $2,219 in May. (MBA)

🏘️ The housing market is ‘stuck’ until at least 2026, Bank of America warns. (CNN)

❄️ Home prices begin to cool as active listings jump 35%. (Inventory data, Cooling areas)

🚨 Coach’s Corner

How to Bring Value! (VIDEO)

— Dave Krichmar CEO

4. Charted: How long it takes minimum wage employees to afford a home down payment

5. HUD announces new grant program designed to boost homeownership

The HUD on Wednesday announced $85 million in housing funds to 21 state and local governments through HUD's new Pathways to Removing Obstacles (PRO) Housing program.

This initiative aims to update housing plans, revise land use policies, and streamline permitting processes to develop and preserve affordable housing units. The funding includes significant grants to various cities, with notable amounts for Los Angeles County, Hawaii, Ketchum (Idaho), Milwaukee, and Denver.

The HUD plans to release another $100 million in grants later this summer and has requested further funding for fiscal year 2025.

☀️ You’re all caught up. See you on Monday!

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