On the list of expenses prospective home buyers worry about, homeowners insurance ranks low. Buyers are more likely fretting about their down payment, closing costs, and potential monthly payment than they are insurance rates. But while they may not be thinking about insurance, they’re going to need it. First off, it’s typically required if you have a mortgage. Secondly, owning an uninsured home means you’re one weather-based disaster from financial ruin. Put simply, it’s not worth the risk. But some homeowners … [Read more...]

Each month, Fannie Mae’s Economic and Strategic Research Group releases an outlook detailing what it sees ahead for the housing market and overall economy. According to this month’s commentary, prospective home buyers may have reason for encouragement. That’s because the group says it’s revised its view on mortgage rates, and it now expects they will fall lower by the end of year. Mark Palim, Fannie Mae’s senior vice president and chief economist, says it should help give buyers a boost. “We expect the recent … [Read more...]

The latest U.S. Home Affordability Report from ATTOM Data Solutions has good news and bad news for buyers. The report – which measures major homeownership expenses against average wage info – found the cost of a median-priced home currently consumes 32 percent of the average national wage, which is higher than the 28 percent guideline commonly used by lenders. That means affordability is still challenging in most markets across the country. The good news? It seems to have plateaued. “Home affordability is in a … [Read more...]

A new analysis from the National Association of Realtors’ consumer website found that the size of the typical down payment has risen $3,000 from where it was last year at the same time. The typical down payment is now $30,250 – which is about 3.5 percent higher than it was pre-pandemic. Danielle Hale, the website’s chief economist, says part of the increase is due to who is buying homes right now. “Today’s home sales are skewed toward higher-end homes, and this means larger down payments from more financially … [Read more...]

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates moved slightly lower last week, with declines seen for 30-year fixed-rate loans with both conforming and jumbo balances. Loans backed by the Federal Housing Administration and 15-year fixed-rate loans were flat week-over-week. But while rates were stable, it wasn’t enough to drive demand, which fell 2 percent due to a drop in refinance activity. Joel Kan, MBA’s vice president and chief economist, says home buyer … [Read more...]

If you’re a first-time home seller, you may’ve wondered why you can’t just put a sign out in front of your house and wait for the best offer. The answer, of course, is you can. But, if you do, you’re not likely to sell it quickly and you’re probably not going to get top dollar for it. In fact, according to one recent analysis, home sellers who chose to sell their house without listing it on the Multiple Listing Service – the database of listings Realtors and online search sites use – lost more than $1 billion over … [Read more...]

A home is more than just a shelter or a place to sleep at night. It’s where you live your life. It’s where you gather with friends and family, make memories, spend holidays and anniversaries, raise your kids, and achieve your dreams. In other words, it may just be a building but it’s an important one. Americans increasingly agree. In fact, according to one new analysis, home is becoming even more important to us. The analysis found that almost half of respondents to a recent survey said their home has become more … [Read more...]

Home buyers still face affordability challenges. Home prices and mortgage rates remain elevated. But while buying a home is more expensive than it was a few years ago, market conditions may be lining up to provide spring buyers with the best conditions they’ve seen since before the pandemic. How so? Well, for one, rates have been falling recently. That helps. Competition among buyers is also slower. In fact, homes for sale are spending just four fewer days on the market than they were pre-pandemic. That means more … [Read more...]

February is still winter but, according to new numbers from the National Association of Realtors, it may’ve been the start of this year’s spring sales season. That’s because the NAR found sales of previously owned homes up 4.2 percent in February from the month before. Lawrence Yun, NAR’s chief economist, says buyers are starting to enter the market. “Home buyers are slowly entering the market,” Yun said. “Mortgage rates have not changed much, but more inventory and choices are releasing pent-up housing demand.” … [Read more...]

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates increased last week from one week earlier. Rates were up across all loan categories including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, 15-year fixed-rate loans, and 5/1 ARMs. But while the rate bump did slow refinance activity, demand for loans to buy homes actually increased from the week before. In fact, purchase application demand was up 1 … [Read more...]