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News & Insights | Mortgage News

![Mortgage News: Here’s How To Save When You Close A Refinance](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2Fadbef4ec90c14a1cbe76ee5f45e63948)
<br>

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

## Closing costs are rising around the country, but you can still save on some of them

As closing costs rise, homeowners may want to consider refinancing sooner rather than later. The national average for closing costs on a single-family home went up [12.3% in the first six months of the year](https://www.housingwire.com/articles/closing-costs-are-up-but-theres-a-catch/ "12.3% in the first six months of the year"), to $6,837 with taxes and $3,836 without. Refinance costs climbed nearly 5%, to $2,398 without taxes. Better Mortgage analysts noted a similar rise for their customers as well. 

Closing costs refer to the fees homeowners have to pay before signing their new loan. They  include points and credits, third-party settlement fees, interest, escrow and taxes. Usually, the costs add up to about 2-5% of the loan amount, but since many are fixed, they don’t always increase alongside it. In fact, even though the national average home price is up nearly [$45,000 year-over-year](https://www.housingwire.com/articles/closing-costs-are-up-but-theres-a-catch/ "$45,000 year-over-year"), the closing costs for that property only increased by $400 without taxes.

Working with Better Mortgage helps you cut back on your closing costs. Thanks to their digital tools and services, they never charge unnecessary lender fees, like an origination fee, application fee, or loan officer commission. That brings down the cost of refinancing and passes more savings on to you. Read our [guide to closing costs](https://better.com/content/what-is-included-in-closing-costs "guide to closing costs") to find out more, and learn [why working with Better Mortgage helps you save](https://better.com/content/cost-and-lender-fees-in-mortgage-process/ "why working with Better Mortgage helps you save"). 

![Line Graph: Better Mortgage Average Total Closing Costs By Month From January 2021 to October 2021](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2F3af2315154f44939a5c99e7ae9c8a507)

<p class="legal">Source: Better Mortgage</p>

## Rates have jumped to their highest level since last April

Rates are going up as the economy strengthens and inflation rises around the country. [The 30-year fixed rate jumped to 3.05%](http://www.freddiemac.com/pmms/ "The 30-year fixed rate jumped to 3.05%") in the week ending October 14. That’s the highest it’s been since April, though it’s still historically low considering pre-pandemic rates [hovered closer to 3.50%](https://time.com/nextadvisor/mortgages/mortgage-rates-history/ "hovered closer to 3.50%") or higher.

Better Mortgage analysts don’t expect mortgage rates to reach past 3.25% between now and the end of the year, but they are expected to keep rising. Just half a percent can make a difference each month, so [get your personalized rates with Better Mortgage](https://better.com/preapproval/purchase "get your personalized rates with Better Mortgage") to see how much refinancing could save you. 

## How Shrikant Murali bought a home with Better’s cash

![Photograph of People Paddle Boarding With Cityscape View of Austin, TX](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2F979d51fd3e2047cdb0ff4ba8b1cdbc9a)

Software engineer Shrikant Murali spent a year shopping for a new home in Austin, Texas. Even with competitive offers and good standing as a buyer, he kept losing to bids that were entirely in cash. “There are a lot of investor buyers, and they’re all paying cash, so it’s a very hot market,” he says. 

To help Shrikant become a cash buyer himself, his real estate agent referred him to [the Better Cash Offer program](ttps://better.com/b/cash-offer "the Better Cash Offer program"). He got pre-approved with Better Mortgage and worked with Better Real Estate to make a cash offer on a $360,000 townhouse. Shrikant won his bid and got to move in right away. By the end of October, Better will sign the home over to him. 

Today’s market is ultra competitive, and bidding on a home in cash can help you stand out and win. The [Better Cash Offer program](https://better.com/b/cash-offer "Better Cash Offer program") lets you make an offer using Better’s cash with no added fees or hidden charges. It’s available in major cities around the country, like Atlanta, Chicago, New York, Dallas, and more. Find out if you qualify to [become a cash buyer at no extra cost](https://better.com/content/better-cash-offer-faq "become a cash buyer at no extra cost"). 

#### Considering a home loan?

Get your custom rates in minutes with [Better Mortgage](https://better.com/ "Better 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="http://better.com/mortgage-rates/refinance">See today's refinance rates</a>  
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Closing costs are going up around the country, but choosing the right lender can help you save more on a new loan.  

Here’s How To Save When You Close A Refinance

Blog post image for Here’s how to save when you close a refinance

Here’s how to save when you close a refinance

![Mortgage News: Why Rising Home Values Could Help You Save](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2F560c388ad2684deba47f7761f6347b92)

<br>

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

## Your home may have gone up in value—and it could help you pay less on your mortgage

![Line Graph Showing U.S. Home Value Growth Year-Over-Year](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2F883beaaa87264b8ead8d3d417592a220)

<p class="legal">Source: <a href="https://www.zillow.com/research/august-2021-market-report-30110/">Zillow Home Value Index</a></p>
<br>

Market values of homes around the country have risen by a record gain of [17.7% in the last year](https://www.zillow.com/research/august-2021-market-report-30110/ "17.7% in the last year"), and the typical U.S. home was worth [over $5000](https://www.zillow.com/research/august-2021-market-report-30110/ "over $5000") more in August than it was in July. That puts today’s homeowners in a good position to drop their private mortgage insurance (PMI) when they refinance. 

Private mortgage insurance (PMI) is added to your monthly mortgage payment as a buffer for some of the financial risk your lender takes on. If you put less than 20% down on your loan, it gets automatically applied. For conventional loans, PMI gets removed once you’ve gained 20% of your home equity. This happens as you pay off your loan, or when your home goes up in value. 

If you’ve been paying for PMI each month, it’s probably a good time to refinance and see how much your home is worth today. Your appraisal gives you an updated loan-to-value ratio (LTV), which can lower the price of the refinance, qualify you for more favorable terms, and drop PMI from your monthly payment. 

Get the ball rolling on a refinance to [see how much you could save today](http://better.com/start "see how much you could save today"). And for more details, read up on [how private mortgage insurance works](https://better.com/content/what-is-pmi-or-private-mortgage-insurance/ "how private mortgage insurance works"). 

## Mortgage rates jumped—and they’re expected to keep climbing.

After weeks of [hovering near 2020 lows](https://better.com/content/rates-remain-low-but-could-rise-from-here "hovering near 2020 lows"), mortgage rates are back on the rise. The 30-year fixed rate average rose 0.13% last week to [3.01%](http://www.freddiemac.com/pmms/)—its highest level [since July](https://www.cnbc.com/2021/09/29/mortgage-demand-falls-as-rates-rise-to-highest-level-since-july.html). Better Mortgage analysts expect rates to continue inching upward, though they’re not likely to rise beyond 3.25%. The market drove rates up in response to The Federal Reserve’s signals that they’ll [soon be tapering the measures](https://www.marketwatch.com/story/mortgage-rates-jump-above-3-creating-pressure-for-home-buyers-11633011496 "soon be tapering the measures") that have helped keep mortgage rates low since the pandemic began. 

Just a fraction of a percent can make a difference in your monthly payments, so it may be a good idea to move quickly on a new loan before rates can jump further. You could qualify for programs like RefiNow and RefiPossible, which guarantee homeowners drop their monthly payments by at least $50, and are estimated to save $3000 a year. [Check out your rates with Better Mortgage](https://better.com/start "Check out your rates with Better Mortgage") to see where you stand, and learn more about [RefiNow](https://better.com/content/you-could-reduce-your-monthly-costs-with-refinow "RefiNow") and [RefiPossible](https://better.com/content/you-could-save-on-monthly-costs-with-refipossible-tm "RefiPossible").  

![Image of Person in Minimal Setting with Laptop Smiling](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2F8d38ea7761f74ebfa5e7ffaffd6d0cb6)

#### Considering a home loan?

Get your custom rates in minutes [with Better Mortgage](https://better.com/ "Better 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>  
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With property values rising, today’s homeowners are in a good position to refinance with new terms that remove private mortgage insurance. 

Why Rising Home Values Could Help You Save

Blog post image for Why rising home values could help you save

Why rising home values could help you save

![Mortgage News: Homeowner Credit Scores Are At A Record High](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2F0e1e42fe40d74e358f556e229b1c8ea4)

<br>

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

## Homeowner credit scores have hit a record—and yours could be higher than you think

![Top Down View of Two Persons Discussing Something They See on a Laptop](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2F4e50ebfba8e84ea8b40776cecc78724f)

<br>

Credit scores, like home prices and property values, have been rising since the start of the pandemic. Mortgage holders across the country now have the highest credit scores in more than 15 years, with [82% holding a FICO score of 700 or higher](https://www.yahoo.com/?err=404&err_url=https%3a%2f%2ffinance.yahoo.com%2fnews%2fmortgage-borrowers-credit-scores-reached-151542751.html "external") in the first few months of 2021. That’s up from 73.8% in spring 2020. 

Many homeowners refinanced their mortgage in the last year, likely leading to the rise. Others may have moved to more affordable homes to work remotely and spend less. 

A [new change from Fannie Mae](https://better.com/content/a-fannie-mae-change-could-help-homeowners-save) has lenders like Better Mortgage assessing credit scores differently. If you add a co-borrower to your application, your scores will now be combined for an average, instead of only the lowest being considered. That means you could qualify for a loan if your credit score wasn’t previously high enough. 

A higher credit score can open up your loan options, and even save you money on your mortgage. [Check out our rate table](https://better.com/start) to see where yours lands you, and for more details, learn [how your credit score affects your mortgage](https://better.com/content/how-your-credit-score-affects-your-mortgage/). 

## How Stacey Foley saved on her home and invested in her family

![Abstract Mustard Yellow Image with Circular Photo of Two Homeowner's Embracing Within](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2Fb5a81c37018240b5af635025d823c479)

<br>

Refinancing can help lower your monthly payment, tap into your home equity, or reset your loan terms altogether. It can also provide extra cash to help support the people who matter most. For 57-year-old homeowner Stacey Foley, that’s her family. 

Last month, after living in her Stony Point, North Carolina home for two years, Stacey found out that her monthly mortgage payment of $890 would be going up to $1,010 a month. As a veteran of the banking and lending industry, she knew that refinancing could reduce the amount—and with today’s low mortgage rates, that now was a good time to make the move. “Coming from the industry, I knew it was the best time for us. We hadn’t put that much into the house to worry about,” she says. 

By refinancing with Better Mortgage, Stacey cut back her monthly payment even further, to just $800. That now saves her $210 each month, and roughly $2500 a year. So far, the extra cash has helped pay off an auto loan for her boyfriend’s vintage corvette, and set up some funds for her three new grandchildren due this winter. “This whole thing was a godsend… to save all this money,” she says. 

Mortgage rates are [close to September 2020 lows](https://better.com/content/rates-remain-low-but-could-rise-from-here), but expected to rise for the rest of the year. Many homeowners could still stand to save on a refinance, so [seeing your rates](https://www.better.com/start) today may be a good idea. For more, read up on how to know [when it’s a good time for a new loan](https://better.com/content/is-it-a-good-time-to-refinance/).  

#### 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>  
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Homeowner credit scores are at their highest in 15 years, and with new Fannie Mae rules, they could go further on a refinance application.

Homeowner Credit Scores Are At A Record High

Blog post image for Homeowner credit scores are at a record high

Homeowner credit scores are at a record high

![Real Estate Trends from Better Week of September 23, 2021](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2F328eaef37d4c4f0eb9270c18507f9b11)

<br>

## Capturing the growing first-time homebuyer market

- First-time homebuyers are leading the market, with Better Mortgage seeing a 132% YoY increase in this category. 
- Better Mortgage is seeing an 87.5% YoY increase in single people seeking sole ownership when applying for mortgages.
- Before the pandemic 8% of Better Mortgage applicants were single, now 15% of borrowers applying to Better are single. 

## Target first-time and single home buyers

First-time and single buyers continue to be consistently active in markets around the country: 

- Previously reluctant to enter the market, Millennial and Gen Z first-time buyers may be motivated by hopes of more inventory and looming interest rate increases. 
- According to [Forbes](https://www.forbes.com/sites/brendarichardson/2021/03/11/single-women-are-propping-up-the-first-time-home-buyer-segment/?sh=2d6f4222526d "external"), “single women are proving to be a powerful force in the housing market, accounting for ownership of about 5.2 million homes, while single men own about 3.6 million homes in America’s 50 largest metros.” Agents who invest in connecting with this single buyer category via social media and networking (virtual and in-person) may have more success in netting new clients than agents solely focusing on move-up buyers. 

## Upcoming market variables

Brendan Phillips, Capital Markets at Better, looks at the variables in the market that could impact that growing number of single homebuyers: "It really depends on the path of rates, which is pretty binary. If a bunch of bad stuff happens (think: new covid variant that can infect vaccinated people very easily) you could see homebuyers receding a bit, and refinancers dominating the market again because rates would stay low.” But if the economic fundamentals are positive, Phillips predicts a different outcome.“If we get a bunch of growth and people are back to work, homebuyers will become a huge part of the market.” And first-time homebuyers, he says, would be significant in this scenario thanks to 2 key market variables. 

Firstly, changes to the federal credit requirements are making it really easy for first-time homebuyers to finance. “There’s the new Fannie Mae rental payment history change, new median credit score calculation change, and potential tax credits that may be approved as part of the infrastructure bill—all these factors are designed to help put first-time homebuyers in homes.” On top of that, industry trends indicate an increase in homebuying—the [Mortgage Bankers Association](https://fortune.com/2021/08/03/us-household-debt-15-trillion/#:~:text=Household%20debt%2C%20which%20includes%20mortgages,Americans'%20balance%20to%20%2414.96%20trillion.&text=Overall%2C%20mortgage%20debt%20now%20stands%20at%20%2410.4%20trillion "Mortgage Bankers Association") forecasts that residential mortgage debt (currently $11.1 trillion) will increase to $12.4 trillion by the end of 2022. 

## What we are seeing at Better Mortgage

-  Better Real Estate Agent Pamela Rich in Seattle points to the increasing trend of co-living:  “I’m seeing lots of single professionals get great deals on two-bedroom condos and taking on a roommate.” 

Sole purchasers are acquiring real estate at historic rates:  Better Mortgage is seeing an 87.5% YoY increase in single people seeking sole ownership when applying for mortgages. In June 2020 only 8% of Better applicants were single applicants. By June 2021, 15% of Better Mortgage customers were single homebuyers. Additionally, 70% of Better Mortgage applicants do not have a co-borrower, a number that rose nearly 10% this year to a new high.

![Stacked bar chart graph of co-borrower and sole purchaser trends from May 2021 to August 2021](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2F19cee7c17bd14b59ae00576055cfd533)

<br>

First-time homebuyers are leading the market. Better Mortgage has seen a 132% YoY increase (August 2020-August 2021) in first-time homebuyers. 

![Trend lines graph of first-time homebuyer mortgage applications from September 2020 to August 2021](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2F65a28f384ecf4340a6a6332746c932b5)

<br>

## What real estate agents can do next

- Create a social media marketing plan targeted exclusively at first-time single buyers
- Contact clients for referrals specifically asking for first-time homebuyers they know entering the market 
- Make single buyers a niche specialty and promote across your social channels, websites, and existing client databases. 

<br>

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 <a class="bet-Button bet-Button--xl bet-Button--primary" href="https://better.com/agents/">Schedule a call</a>  
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Agents who invest in connecting with first-time homebuyers and single borrowers may see increased success in netting clients.  

Capturing The Growing First-Time Homebuyer Market

Blog post image for Capturing the growing first-time homebuyer market

Capturing the growing first-time homebuyer market

![Mortgage News: Rates Remain Low, But Could Rise From Here](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2Fcdeb80b34e1a4aab8d67dc086a8ceb83)
<br> 

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

## Rates are close to September 2020 lows—but they could rise from here

![Double Line Graph: 2020 vs 2021 Freddie Mac PMMS Rates](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2F4c3bebbeacb64a72b8f1e3419eef02ee)
<p class="legal">Source: <a href="http://www.freddiemac.com/pmms/">Freddie Mac PMMS</a></p>

<br>

The market has kept rates steadily low over the last couple of months, with the 30-year fixed rate mortgage moving only 0.01% last week [to 2.88%](http://www.freddiemac.com/pmms/ "external"). A [healthy economy usually means higher rates](https://better.com/content/what-affects-mortgage-rates/), but a new wave of COVID cases and lower-than-expected employment have stalled the country’s growth. 

Mortgage rates are in roughly the same place they were at this time in September 2020, when the 30-year fixed rate was just 0.02% away, at [2.86%](http://www.freddiemac.com/pmms/ "external"). Instead of dropping further, they’re [expected to rise this year](https://finance.yahoo.com/news/housing-market-forecast-rest-2021-210003957.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAANu9mEZdj2nVO6bjn_kojz40vVPQO_M553l3kHJM-nY2J_pskFbiJZQR2K4LAkCWwgHQLqE-nI2FchRUMYcQaY52obLv4XMGjnQNQ3QPC8Um9wNjmPKqZbasrsgcArS24lxtB_bO4Cec2zIsr1Jw8wSWVWcXhM2SzdLoiWVWwWwd "external"). Better Mortgage analysts expect rates to start ticking up by mid-autumn, but remain below 3.25% in 2021. 

If you’re buying a home, it may be a good idea to lock in a rate quickly before they can rise. Get started by seeing [today’s rate table](https://better.com/start) to find out what you’d pay each month. If you’re not sure how to choose the best option for you, read [our guide to comparing mortgage rates](https://better.com/content/what-to-look-for-when-comparing-mortgage-rates/). 

## With the market short over 5 million homes, price gains reach another record high

Prices continue to climb as the home supply gap grows larger. Home price gains hit a record high of [18% year-over-year in July](https://www.corelogic.com/intelligence/u-s-home-price-insights/ "external"), with the national median asking price at [$385,000](https://www.realtor.com/research/weekly-housing-trends-view-data-week-sept-4-2021/ "external"). Low inventory is driving the price hike, since there are now more households in the country than there are homes. The U.S. Census found that [12.3 million American households](https://www.cnbc.com/2021/09/14/america-is-short-more-than-5-million-homes-study-says.html "external") were formed from January 2012 to June 2021, but just 7 million new single-family homes were built during that time.

Higher prices mean higher costs, including real estate commissions. A traditional real estate agent will take 5-6% of the home’s sale price, which can amount to $15,000 on a $250,000 home sale price. Better Real Estate Agents are salaried and don’t take a commission, which saves both the buyer and seller money. Learn more about [agent commissions and why you shouldn’t pay them](https://better.com/content/why-you-shouldnt-pay-real-estate-commission). 

## How Melany Anderson saved on a family home with Better Mortgage

![Photograph of Melany Anderson and 6-year-old Daughter Sourced from New York Times Article Published September 18, 2020](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2Feadf23248359418aa50118a5aa9cf2bf)
<p class="legal">Source: <a href="https://www.nytimes.com/2020/09/18/business/digital-mortgages.html">NYTimes</a></p>

The digital tools and services at Better Mortgage help save customers money by cutting out a number of unnecessary loan fees. That came in handy when Melany Anderson, a pharmaceutical consultant from West Orange, New Jersey, set out to buy a home. 

After going through a rough divorce that put a strain on both her bank account and credit score, Melany was pushed to buy a home when her 6-year-old daughter asked why she didn’t have her own room where they were living. That put her on the path to becoming a homeowner—she slowly rebuilt her credit, saved up her income, and took money from her 401K to use on a down payment. 

Melany worked with Better Mortgage to buy a two-bedroom home with a modern kitchen, deck, and backyard in November 2019. She never had to step foot in a bank, and in the end, only paid $4,000 in fees—roughly [half the national average](https://www.urban.org/sites/default/files/publication/100533/fintech_innovation_in_the_home_purchase_and_financing_market_0.pdf "external"). Now she’s proud to be financially stable for her daughter, and Better Mortgage is proud to have helped her get there. 

There are a number of fees that come with a new home, but choosing the right lender and loan options can reduce them. Read up on which [mortgage costs you should (and shouldn’t) pay](https://better.com/content/cost-and-lender-fees-in-mortgage-process/). 

#### 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. 

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Rates are close to the lows of September 2020, giving today’s homebuyers a chance to save on their mortgage before they’re expected to rise. 

Rates Are Still Low On A New Home

Blog post image for Rates are still low on a new home

Rates are still low on a new home

![Mortgage News: Why Today’s Homeowners Should Have Insurance](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2F8abd9e4666fb4d6c8da196217eed437b)
<br>

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

## Extreme weather is getting more frequent. Do you have the insurance you need? 

As [the impact of climate change](https://www.washingtonpost.com/climate-environment/2021/07/03/climate-change-heat-dome-death/ "external") continues to worsen around the country, storms and major weather events are becoming more frequent. If you want to protect your home and its financial value, it’s important to have insurance that fits your needs. 

[Homeowners insurance](https://better.com/content/why-do-i-need-homeowners-insurance) covers losses and damages that occur to or on your home. Your policy can provide the funds to repair or replace damaged property, and protect you from certain liabilities. While it may seem like an extraneous cost when things are going well, its value is undeniable when they’re not. 

Most homeowners pay around [$90 a month](https://www.lemonade.com/blog/homeowners-insurance-cost/) for homeowners insurance, though it depends where you live and what you need. Many types of damage like wind, hail, and lightning, are covered under a standard homeowners insurance policy. But some events fall under a separate deductible, like flooding. Just an inch of water can bring up to [$25,000 in damage](https://www.cnbc.com/2021/08/31/how-homeowners-can-be-financially-prepared-ahead-of-storms-like-ida.html "external"), so it can help to make sure you’re protected, even if that means getting an additional policy. 

Read up on [all things insurance](https://better.com/content/all-things-insurance) to figure out what you need for your home, and how to get it. If you’re looking for a fast insurance experience that’s entirely online, head to [Better Cover](https://better.com/hoi) to see how they can help. 

## With one less fee and low rates, it’s still a good time to refinance

Thanks to a steady market, mortgage rates remained in place for two weeks in a row. The [30-year fixed rate sat at 2.87%](http://www.freddiemac.com/pmms/ "external"), just 0.22% away from the all-time low it reached [in January](https://www.washingtonpost.com/business/2021/01/07/fixed-mortgage-rates-sink-lowest-levels-history-could-be-headed-higher/ "external"). 

It’s still a good time for many homeowners to refinance, especially now that the [FHA’s adverse market fee has been removed](https://www.fhfa.gov/Media/PublicAffairs/Pages/FHFA-Eliminates-Adverse-Market-Refinance-Fee.aspx "external"). This fee added an extra 0.5% to the loan balance, costing the average homeowner [$1,400](https://www.marketwatch.com/story/regulator-ditches-controversial-mortgage-refinance-fee-ahead-of-schedule-11626446564 "external") over the life of the loan. 

Roughly two thirds of the country’s mortgage applications come from homeowners refinancing, but that amount dropped [4% week-over-week](http://www.mortgagenewsdaily.com/09012021_applications_and_forbearances.asp "external"). Many more could be taking advantage of savings. To find out where you stand, crunch the numbers with the [Better Mortgage refinance calculator](https://better.com/content/refinance-calculator/) to see how much you could save. 

## Why Tess Silwa chose to buy her first home with Better Mortgage

Better Mortgage is proud to be a digital-first mortgage lender, because it helps them communicate quickly and efficiently with everyone they work with. That’s part of what drew Austinite Tess Silwa to the company when she decided it was time to buy her first home. 

Tess began house hunting with her partner in 2019. When browsing for lenders online, she was instantly impressed by Better Mortgage’s competitive rates. Tess says she decided on Better because the team was responsive and helpful, and didn’t make her feel like she had to come in knowing the loan process already, as so many other lenders had. If you’re new to homeownership and not sure what’s next, get a lay of the land with the [8 steps to buying a home.](https://better.com/content/steps-to-buying-a-house) 

## 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>

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With extreme weather happening more often, the integrity of your home may be at risk—and homeowners insurance could be the answer. 

Why Today’s Homeowners Should Have Insurance

Blog post image for Why today’s homeowners should have insurance

Why today’s homeowners should have insurance

![Real Estate Trends from Better Week of August 16, 2021](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2F86a928dd47684566b3223665cb125cbf)

<br>

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

<ul>
<li><strong>According to Realtor.com we can expect to see a market “tilted back towards buyers” beginning this fall.</strong></li>
<li><strong>CNBC reports inventory of new homes for sale jumped from a 5.5-month supply in May to a 6.3-month supply in June. </strong></li>
<li><strong>WFH trends are ending as two-thirds of Manhattan office employees are expected to return to the office.</strong></li>
</ul>

Danielle Hale, Chief Economist at Realtor.com, is somewhat optimistic about the home buying season this fall. “The trends I see happening are a market which is tilted back a bit more evenly towards buyers,” Hale explains. 

Having said that, she also cautions buyers to not get too excited just yet. "Homes are still selling quickly, but not as fast as they have been. I still believe prices will rise, just not at the double-digit increases we've seen for 2021. I also think some buyers may drop out of the market if we see mortgage rates rise as many people are already at the [top of their budget.](https://better.com/content/how-to-help-clients-avoid-buyers-remorse)” 

Hales cautions buyers to “stay prepared by having all your pre-approval financing in place.” She also advises buyers and their agents to keep setting alerts on properties that fit specific search criteria so once those listings hit the market agents can act quickly and help buyers [make competitive offers](https://better.com/content/how-to-get-an-offer-accepted-in-todays-market).

Redfin recently reported good news for buyers. “Like a slow turning ship, the housing market’s supply side is gradually gaining momentum as homes for sale begin to pile up and pending sales continue a steady and seasonal decline. As both of these trends continue in the weeks ahead, prices will stop rising as rapidly as they have been and an increasing number of homes for sale will likely see price drops.”

#### Home Sale Prices Up 20% From 2020 
4-week rolling average of the median sale price of homes sold

![Line Graph of Home Sales Prices January 2019 Through July 2021](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2F79336c9280f74e15a30b08c262f96560)

<p class="legal">Source: Redfin</p>

Better Real Estate Agent Ray Markey reports some good news for buyers in parts of New Jersey. “Inventory is increasing in Southern New Jersey including Camden and Gloucester. I feel a shift in the last four weeks.”

## Industry Trend

According to [The National Association of Realtors](https://fred.stlouisfed.org/series/MEDDAYONMARUS "external"), the US Existing Home Median Sales Price is at a current level of $363,300, up from $350,400 last month and up from $294,400 one year ago. This is a change of 3.68% from last month and 23.40% from one year ago. The speed of homebuying has also changed, with buyers moving more quickly than they did even at the beginning of this year: average days on market for June  2021 hit 37 days, down from 76 days in January.

#### Housing Inventory: Median Days on Market in the United States

![Trend lines graph of average days houses are on market in the US from January 2017 to July 2021](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2F721f529d71b440c8bc5cfa77d1b4bc7a)

<p class="legal">Data source: realtor.com</p>

While home prices are still up and purchase timelines are still urgent, there is some positive news for buyers on the horizon: bidding wars have cooled down since since April. Though [competition among would-be homebuyers is still hot](https://better.com/content/be-ready-for-bidding-wars-in-todays-market), the recent increase in home supply has [reduced the amount of bidding wars by 7% in June](https://www.redfin.com/news/real-estate-bidding-wars-june-2021/ "external") compared to May, according to Redfin.

Better Real Estate Agent Jack Mager reports activity in the Maryland market, saying, “Days on market in central Maryland are slightly increasing, but not due to more inventory which is still very low. It’s due to a steep increase in prices in all price segments.” However, Mager does concede a promising market shift for buyers. “Some pockets are slowing down overall.”

In the primary mortgage markets, rates for a 30-year Fixed rate mortgage were at 2.81% recently according to MND’s Daily Rate Survey. 

#### “Crack in Pandemic Housing Boom.”

Major business media is also reporting a crack in the pandemic housing boom. [According to a CNBC report](https://www.cnbc.com/2021/07/26/housing-boom-is-over-as-new-home-sales-fall-to-pandemic-low.html "external"), the “housing boom is over as new home sales fall to pandemic low.” Reading beyond the headlines, the report points to a key indicator—inventory. “The inventory of new homes for sale jumped from a 5.5-month supply in May to a 6.3-month supply in June.” Most importantly, “last fall it sat at a low of just 3.5 months.”

#### Work From Home Winds Down 

According to the [Real Estate Board of New York](https://www.rebny.com/content/rebny/en/newsroom/press-releases/2021_Press_Releases/As_New_Yorkers_Return_to_the_Office_Real_Estate_Industry_and_Labor_Release_Safety_Guidelines_for_Commercial_and_Residential_Buildings.html "external"), “nearly two-thirds of Manhattan office employees expected to return to the workplace by the end of September.” James Gorman, CEO of Morgan Stanley, recently commented on a [Wall Street Journal Podcast](https://www.wsj.com/podcasts/the-journal/wall-street-ceos-say-working-from-home-isnt-working/e4f0de44-4d2e-4cd9-8e8c-0d569bae291d "external"), saying “At Labor Day, I’ll be very disappointed if people haven’t found their way into the office.” When Jamie Dimon, CEO of JP Morgan, was asked how WFH worked for his company, Dimon replied, “It doesn’t work for our culture.”

#### What real estate agents can do next:

- Prepare a fall marketing plan that includes a list of potential sellers to contact.
- Create a fall market e-news blast or e-newsletter for distribution and website content.
- Reconnect with buyers who took a summer or vacation break from actively looking at property.

You can also schedule a call with an Agent Experience Partner to learn how you can save your next client $2,000*.

<br>

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As bidding wars cool off and home prices begin to level out, buyers who took a break this summer might be ready to dive back in. 

Preparing Homebuyers for a Favorable Fall

Blog post image for Preparing Homebuyers For A Favorable Fall Housing Market 

Preparing Homebuyers For A Favorable Fall Housing Market 

![Mortgage News: A Fannie Mae Change Could Help Homeowners Save](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2F9c37f0d143b74b04b9829e84e13e5eb9)

<br>

## Here’s how your credit score could go further on a refinance

On September 18th, [Fannie Mae is rolling back restrictions](https://guide.freddiemac.com/app/guide/bulletin/2021-28?utm_source=eloqua&utm_medium=email&utm_campaign=2021-08-11_POLICY_Guide-Policy&elqTrackId=747C89626F11F8DD6608D507513F79CC&elq=3c2cd261068e4b0598a1b73e455c6b5b&elqaid=10401&elqat=1&elqCampaignId=9764) that impact how lenders evaluate credit scores. Instead of considering only the lowest of two FICO scores between a primary and co-borrower, lenders will now be able to combine them for an average score. That means you’ll be represented by either the same score or higher when applying to a Fannie Mae-backed lender like Better Mortgage. 

Your credit score is a large part of how lenders evaluate your ability to pay back a loan. The higher your score, the lower the rate you likely qualify for—which means more savings on a refinance. It also affects the price of your mortgage insurance, which is required if you make a down payment less than 20%. Get a sense of [how your credit score affects your mortgage](https://better.com/content/how-your-credit-score-affects-your-mortgage/), and how to improve it before applying.

This change is coming just in time as mortgage rates begin to tick upward. America’s most popular home loan, the 30-year fixed rate mortgage, [reached 2.87% last week](http://www.freddiemac.com/pmms/). That’s not far from its all-time low of [2.65%](https://www.washingtonpost.com/business/2021/01/07/fixed-mortgage-rates-sink-lowest-levels-history-could-be-headed-higher/), but it is a 0.10% jump from the week before. 

The market drove rates up in response to the country’s latest jobs report. Employment and wages are increasing, and a [healthy economy usually means higher mortgage rates](https://better.com/content/what-affects-mortgage-rates/). It may help to move quickly on your refinance before they can rise further, so [see what today’s rates mean for your budget](https://better.com/start). 

## 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>

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Lenders will evaluate credit scores differently starting September 18th, and homeowners may be in a position to save even more on their next refinance.

A Fannie Mae Change Could Help Homeowners Save

Blog post image for A Fannie Mae change could help homeowners save

A Fannie Mae change could help homeowners save

![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.

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