A home buyer with a $3,000-per-month budget can now afford a home $40,000 more expensive than they could when rates were at their peak, according to a newly released report highlighting home buyers’ increasing purchasing power. Mortgage rates have eased and it’s helping prospective buyers afford more home for their money. In fact, a $3,000 monthly mortgage payment will now buy a $453,000 home – where that same payment would only afford a $416,000 home as recently as October. That’s great news for prospective buyers … [Read more...]

Tracking the number of signed contracts to buy homes is a good way of determining how active home buyers are in the current market. If signings are rising, buyers are active and home sales are likely to see increases soon. That’s why the National Association of Realtors tracks contract signings each month with its Pending Home Sales Index. The index is considered a good indicator of future home sales, since signings precede closings by several weeks. According to the most recent release, the NAR found signings up … [Read more...]

Sales of new single-family homes increased 8 percent in December from the month before, according to new numbers from the U.S. Census Bureau and the Department of Housing and Urban Development. The improvement pushed sales 4.4 percent higher than they were at the same time one year earlier and put total sales for the year 4.2 percent higher than in 2022. Put simply, the new home market has been thriving at a time when the market for older homes has slowed. So what’s behind the increasing interest in new homes? … [Read more...]

Home prices have mostly increased over the past 10 years. Outside of a few dips and small declines, values have been rising fairly consistently. This has been good for homeowners, who have built up significant equity in their homes. In fact, according to ATTOM Data Solutions’ Year-End 2023 U.S. Home Sales Report, homeowners who sold a home last year saw near record-high profits. Rob Barber, ATTOM’s CEO, says home seller profits are more than double what they were even five years ago. “Last year certainly stood out … [Read more...]

According to the Mortgage Bankers Association’s Weekly Applications Survey, demand for loans to buy homes rose 8 percent last week from the week before. The improvement helped push total application demand nearly 4 percent higher week-over-week. Joel Kan, MBA’s vice president and deputy chief economist, says the gains extend a recent trend. “Mortgage rates increased slightly last week but, there continues to be an upward trend in purchase activity,” Kan said. “Conventional and FHA purchase applications drove most … [Read more...]

Despite the ups-and-downs of the housing market over the past few years, some things have remained constant. The lack of available homes for sale, for example. Low inventory has been an issue for most of the past decade and got considerably worse during the pandemic. These days, the number of homes for sale is improving but continues to trail normal levels, leading to ongoing frustration for home buyers and upward pressure on prices. Fortunately, though, 2024 may bring about a change. Many market forecasts see … [Read more...]

Fannie Mae’s first forecast for 2024 should be encouraging for anyone considering buying a home this year. That’s because its Economic and Strategic Research Group – which releases a monthly outlook for the housing market and overall economy – sees affordability conditions easing, with lower mortgage rates and slower home-price increases in the months ahead. In fact, the group says prices will rise just 3.2 percent this year, compared to 7.1 percent in 2023. Doug Duncan, Fannie Mae’s senior vice president and chief … [Read more...]

Sales of previously owned homes fell 1 percent in December, according to newly released numbers from the National Association of Realtors. The decline was driven by slower sales in the Midwest and South, while sales increased in the West and were flat in the Northeast. Lawrence Yun, NAR’s chief economist, says improvement is on the way. “The latest month’s sales look to be the bottom before inevitably turning higher in the new year,” Yun said. “Mortgage rates are meaningfully lower compared to just two months ago, … [Read more...]

The National Association of Home Builders’ Housing Market Index measures how confident builders are in the market for new homes. In January, the index saw its second straight monthly improvement, as home builders expressed growing optimism about current sales conditions and prospects for the first half of the year. Alicia Huey, NAHB’s chairman, says the gains are due to lower interest rates. “Lower interest rates improved housing affordability conditions this past month, bringing some buyers back into the market … [Read more...]

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell across all loan categories last week, 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. The decline brought rates to the lowest level in three weeks. It also led to a spike in demand for mortgage applications, according to Joel Kan, MBA’s vice president and deputy chief economist. “Mortgage rates … [Read more...]