It's not surprising that the coronavirus had many economists, analysts, and experts expecting the housing market to suffer in 2020. Social distancing, stay-at-home orders, and fear were all expected to slow sales and put the brakes on what was originally forecast to be a hot spring/summer market. But since buyers bounced back faster than predicted, the housing market's outlook has gotten much brighter. For example, Fannie Mae's Economic and Strategic Research Group's most recent outlook calls for annual home sales, … [Read more...]

If you made a chart comparing the number of home sales to the number of new homes being built they'd follow a similar path. After all, when homes are selling, builders build more. So when buyer demand rises, so does new home construction. However, there are times when the two become disconnected. For example, during the housing boom of the early 2000s, home construction outpaced sales and caused an inventory overage that became a factor during the housing crisis. These days, however, we have the opposite problem. … [Read more...]

According to the Mortgage Bankers Association's Weekly Applications Survey, average mortgage rates set another record low last week. Rates were down for 30-year fixed-rate loans with both conforming and jumbo balances, though 15-year fixed-rate loans and those backed by the Federal Housing Administration remained unchanged from the week before. Joel Kan, MBA's associate vice president of economic and industry forecasting, says record low rates have kept mortgage demand running high. “Refinance and purchase activity … [Read more...]

Lending standards aren't fixed. There are times when it's easier to get a mortgage and times when getting approved to borrow requires you to be in better financial standing. For prospective home buyers, that means having a higher credit score, more money in the bank, a bigger down payment, etc. The Mortgage Bankers Association tracks how available mortgage credit is with their monthly Mortgage Credit Availability index. The index measures whether standards are becoming tighter or loosening. In short, it gauges how … [Read more...]

Typically, there are fewer home buyers in the fall. Because of this, homeowners who sell after summer have to work a little harder to attract attention. This year, however, things are different. According to a new analysis from the National Association of Realtors' consumer website, the housing market hasn't cooled and there's been little drop off in the number of interested buyers. Which means, anyone with a home to sell should be eager to take advantage, since the summer sales season seems to have extended into … [Read more...]

Americans' confidence in the housing market has bounced back, according to the results of the most recent Housing Market Index from Fannie Mae. The index – which asks Americans how they feel about buying and selling a home, mortgage rates, prices, their jobs, and financial security – showed consumer sentiment improved in September and has now recovered more than half of the losses suffered in the early days of the pandemic. In particular, the components gauging perceptions of selling a house, job security, and home … [Read more...]

According to the Mortgage Bankers Association's Weekly Applications Survey, average mortgage rates fell last week from the week before. Rates were down across all loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. The decline helped push overall demand upward, with refinance activity seeing an 8 percent improvement week-over-week. Joel Kan, MBA's associate vice president of economic and … [Read more...]

You don't need to be able to define exactly what makes a home green to know you'd like a home with energy-efficient features. All you really need to know is that an eco-friendly home can help lower your bills and improve your quality of life. That's why green features consistently rank high on home buyer wish lists. So if you're shopping for a house and aren't sure what to look for, here are a few easy things to check. Start with insulation. A house with good insulation holds heat and conserves energy. Try to learn … [Read more...]

Buying a house is a commitment. After all, it's a major financial transaction, so it's not something you do on a whim. It's also not something you do every six months. Which means, when you're shopping for a house to buy, you should probably think about how the house will fit your lifestyle over the long term. But how long should you expect to stay? Well, that depends. There are an almost limitless number of factors that could cause you to want to make a move somewhere down the road – everything from starting a … [Read more...]

The housing market has a pattern to it. Typically, it starts to get busier in early spring and continues to build through the summer. But, then in fall, when the school year starts and the weather cools, the housing market slows down a bit. That's why September is said to be the best month to buy a house. It has the higher inventory levels of the summer market but with fewer interested buyers and less competition. This year, though, that's changed. Like everything else, the coronavirus has thrown off the market's … [Read more...]