Affordability is always a top concern for home buyers. That's no surprise. Buying a home is a major financial transaction and you want to feel comfortable knowing you're getting a good deal for your money and that you can afford the monthly mortgage payment. That's why recent spikes in mortgage rates and home prices have potential buyers more hesitant these days. So where does affordability stand right now? Well, according to the most recent release of the Mortgage Bankers Association's Purchase Applications … [Read more...]

The National Association of Realtors' Pending Home Sales Index measures the number of contracts to buy homes signed each month. Because it tracks contracts, not closings, it's considered a good indicator of where home sales are headed. In August, the index registered a 2 percent decrease, marking the third consecutive month of declines. Lawrence Yun, NAR's chief economist, says mortgage rates are the number one factor with buyers. “The direction of mortgage rates – upward or downward – is the prime mover for home … [Read more...]

According to the Mortgage Bankers Association's Weekly Applications Survey, average mortgage rates moved higher last week. Rates increased from the week before across all loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, 5/1 ARMs, and 15-year fixed-rate loans. Joel Kan, MBA's associate vice president of economic and industry forecasting, says while rising rates have made buyers more hesitant, they still have options. … [Read more...]

Fannie Mae's Economic and Strategic Research Group releases a forecast each month detailing the group's view of where the housing market and broader economy are headed. In September, the group's outlook sees economic growth resuming in the second half of the year, but calls for the housing market's slowdown to continue as the Fed fights inflation with higher interest rates. Doug Duncan, Fannie Mae's senior vice president and chief economist, says that fight will likely continue into 2023. “In our view, the recent … [Read more...]

You can tell a lot about the housing market by watching the balance of supply and demand. When there are too few homes for sale, the market's harder on home buyers. Too few homes leads to rising prices and buyer competition. These days, fortunately, the number of homes for sale is improving. That's good news for buyers, as it'll help slow price increases after years of double-digit spikes. But inventory's still low, and a big part of reaching better balance is the pace of new home construction. In short, we need … [Read more...]

Sales of existing homes were relatively flat in August from the month before, according to new numbers from the National Association of Realtors. Home sales were down just 0.4 percent month-over-month. With the sales season coming to a close and the market softening overall, that's not a surprise. But though sales were flat, homes still sold quickly. In fact, 81 percent of homes sold during the month were on the market less than 30 days. The typical property was on the market only 16 days – one day faster than last … [Read more...]

According to the Mortgage Bankers Association's Weekly Applications Survey, mortgage demand was up almost 4 percent last week from the week before. The increase was the first in six weeks and included a 1 percent gain in the number of borrowers applying for loans to buy homes. Joel Kan, MBA's associate vice president of economic and industry forecasting, says the improvement is evidence that the market is still volatile. “As with the swings in rates and other uncertainties around the housing market and broader … [Read more...]

During the frenzied days of last year's housing market, home buyer competition and bidding wars were common. Buyers often had to offer well above a seller's asking price, if they hoped to have a chance at having their offer accepted. But now that the market has softened somewhat, should buyers still expect to pay more than a home's list price? According to one recent analysis, maybe not. The analysis looked at 51 metro areas and found the average close-to-list price ratio in August was 99 percent, meaning homes … [Read more...]

The National Association of Home Builders conducts a monthly survey of builders to gauge their perception of the market for newly built single-family homes. The NAHB's Housing Market Index is a closely followed indicator since builders have a unique perspective on the new-home market. According to the results of their September survey, home builder optimism fell from the month before, as the housing market continues to adjust to higher mortgage rates and home prices. Robert Dietz, NAHB's chief economist, says … [Read more...]

Summer's great for a lot of reasons, but it may not be the best time to buy a home. A hot summer market means competition, higher prices, and faster sales. That can be stressful for home buyers. But things begin to change near the end of September, as the fall market begins. And, according to a new analysis from the National Association of Realtors' consumer website, early fall may be the best time of the year to buy a house. “If you're flexible on your timing and can budget for higher rates, early fall can be a … [Read more...]