Fannie Mae's quarterly Mortgage Lender Sentiment Survey asks senior mortgage executives for their perceptions of the market and forecast for the future. According to the most recent release, lenders point to an “insufficient supply of homes available for sale” as the primary reason for slow home sales growth last year. In fact, 48 percent of responding lenders said that too few homes for sale held buyers back, while rising interest rates and higher prices were also commonly cited factors. Similarly, when asked for … [Read more...]

Potential spring home buyers may find that they've regained some negotiating power when they head out to shop for a house to buy. That's because, after a few years where sellers held all the cards, buyers are beginning to see conditions shift in a more favorable direction. For example, new data shows that the number of home buyers who paid above asking price in December saw its biggest month-over-month decline in six years. In fact, just 19 percent of homes sold during the month went for a price above what their … [Read more...]

The National Association of Realtors' Pending Home Sales Index measures the number of contracts signed to buy homes during a given month. Since it measures signings, and not closings, it can be an important indicator of future home sales. In December, the index fell 2.2 percent from the month before. But, Lawrence Yun, NAR's chief economist, sees some encouraging signs amid the end-of-the-year slowdown. “The longer-term growth potential is high,” Yun says. “The Federal Reserve announced a change in its stance on … [Read more...]

According to the Mortgage Bankers Association's Weekly Applications Survey, average mortgage rates increased last week from the week before. Rates were up for 30-year fixed-rate mortgages with both conforming and jumbo balances, as well as 15-year fixed-rate loans. Mortgage rates on loans backed by the Federal Housing Administration declined. Joel Kan, MBA's vice president of industry surveys and forecasts, says the increase caused application demand to dip, though overall interest remains high. “Mortgage … [Read more...]

Buying a home is mostly a personal decision. Generally, the right time for you to buy has more to do with something happening in your life than it does a shift in market conditions. Maybe it's a good time to buy because you've recently gotten married or have taken a new job in a different part of town. Perhaps you've decided to start a family or are approaching retirement. Whatever your reasons, they, most likely, aren't based on a thorough reading of the housing market and its prospects for a healthy future. But, … [Read more...]

When asked, most Americans indicate that they'd rather stay in their current house once they retire. After all, the comforts of home and a community that you know well and have lived in for many years are hard to replace. But not everyone wants to stay where they are once they've retired. And there are no shortage of options for Americans looking for a new living arrangement. For example, they can choose to cash in their equity and downsize into a loft, condo, or apartment. They can also look for a place in a … [Read more...]

When prospective home buyers think about whether or not they can afford to buy a home, the first thing they look at is prices. But, after that, mortgage rates run a close second. That's because they are a significant factor in determining overall affordability and, more specifically, the house you'll ultimately end up purchasing. For that reason, having an idea about where rates might be heading can help you think about your plans and potential budget. Take Fannie Mae's most recent Economic and Housing Outlook, for … [Read more...]

Home buyers hoping for some good news heading into the spring buying season may find it in the Federal Housing Finance Agency's most recent House Price Index. That's because, after increasing for the past few years, it looks like home prices are finally starting to slow. In fact, according to the FHFA's most recent numbers, prices were essentially flat in November from the month before. And, when comparing regional data, some areas may have even seen declines. But while slowing month-over-month increases are a good … [Read more...]

According to the Mortgage Bankers Association's Weekly Applications Survey, demand for loans to buy homes was 13 percent higher last week than it was during the same week one year ago. The improvement follows a period of declining mortgage rates and two straight weeks of surging application demand. But though the year has been off to a strong start, it cooled a bit last week. Joel Kan, MBA's associate vice president of economic and industry forecasting, says activity slowed but is still at healthy levels. “Mortgage … [Read more...]

Searching for a home to buy means making a major financial decision, while at the same time choosing a place to spend the next several years of your life. In other words, it's not the type of thing you want to rush. However, in a competitive market, home buyers sometimes don't have the luxury of thinking through their options. A good house is likely to attract a lot of attention and, if you want it, you have to make your offer fast. That has been the case recently, as there have been fewer homes available to buy … [Read more...]