There are many steps along the way to buying a house. But qualifying for a mortgage is where it all begins. Until you've been approved to borrow, you can't really start looking for a house and you certainly can't make an offer on one. That's why the most recent Mortgage Credit Availability Index from the Mortgage Bankers Association is good news for hopeful home buyers. According to the index – which measures whether lending standards are tightening or loosening – credit became more available in June. That means, … [Read more...]

The cost of buying a house gets a lot of attention these days. After all, home prices have been rising for years now and there's plenty of reporting on the lack of available for-sale inventory. So it'd be easy to get the impression that homeownership is now out of reach for most Americans. But, according to one recent study that looked at affordability based on household income and education level, mortgage payments are actually still affordable in the majority of cities. In fact, the typical mortgage payment is … [Read more...]

According to the Mortgage Bankers Association's Weekly Applications Survey, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances fell slightly last week. Rates for jumbo loans increased, while rates for 15-year and FHA loans were steady from the week before. Overall, mortgage rates remain well below where they were at the same time last year. Joel Kan, MBA's associate vice president of economic and industry forecasting, says low rates didn't result in a significant … [Read more...]

Naturally, for home buyers, affordability is a top concern. That's not a surprise. Anyone thinking about buying a home in the near future is likely going to first try to figure out how much house they can afford. That means, keeping an eye on mortgage-rate fluctuations and where home prices are headed. But there are other, less obvious, factors that can affect the cost of housing in your area. Construction, for example. The amount and type of housing that's being built in the neighborhoods you're interested in can … [Read more...]

Fannie Mae's monthly Home Purchase Sentiment Index surveys Americans about the housing market, buying and selling a home, prices, mortgage rates, etc. According to the most recent release, consumers see stable conditions ahead. In fact, an 8 percent increase in the number of respondents who feel mortgage rates will go down over the next 12 months is an indication that prospective home buyers think affordability conditions are beginning to settle. Doug Duncan, Fannie Mae's senior vice president and chief economist, … [Read more...]

First-time home buyers are important to the health of the housing market. After all, historically, they've accounted for around 40 percent of total home sales. But who is the typical first time home buyer and what do they buy? Well, a recent study from Harvard's Joint Center for Housing Studies, took a look at buyers over the past few years and broke down the profile of the average first timer. According to the study, the typical first-time home buyer is under the age of 35, married, and has children. Not … [Read more...]

According to the Mortgage Bankers Association's Weekly Applications Survey, demand for home purchase loans is now 10 percent higher than the same week one year ago. The improvement comes after a 1 percent increase week-over-week. Joel Kan, MBA's associate vice president of economic and industry forecasting, says purchase applications have been gradually increasing since the beginning of the year. “Purchase applications picked up slightly last week, as conventional and government activity were each up around 1 … [Read more...]

For most potential buyers, thinking about purchasing a home means thinking about applying for a loan. After all, most of us don't carry around a suitcase full of cash when we're out shopping houses. So before we start looking at listings, we have to look at things like our finances, credit score, requirements, and minimums to get an idea of whether or not we might be qualified to borrow. But, according to a study from Fannie Mae, though we have more access to information these days, we're still unsure about what's … [Read more...]

Whether to rent or buy is a common debate for Americans looking for a new place to live. The arguments are well known. Renters say it's cheaper, if only because there are no upfront expenses like a down payment or closing costs. Homeowners, on the other hand, will point to the long-term financial benefits of owning a home, including equity and wealth creation. Ultimately, what you choose will be determined by factors specific to your life, goals, and finances. But, according to a new survey from Freddie Mac, on one … [Read more...]

New numbers from the National Association of Realtors show contracts to buy homes were 1.1 percent higher in May than the month before. Improvement was seen in three of the four major regions, with only the West seeing a slight decline. Lawrence Yun, NAR's chief economist, says favorable mortgage rates have motivated home buyers. “Buyers, for good reason, are anxious to purchase and lock in at these rates,” Yun said. “The Federal Reserve may cut interest rates one more time this year, but there is no guarantee … [Read more...]