It's been a long time since home buyers had much negotiating power. Conditions have favored sellers for years now. But a combination of rising inventory and higher mortgage rates began to turn some markets last year. Now, it's 2023, and one new analysis says home buyers may gain some ground by year's end. The analysis – which looked at the 100 largest housing markets in the country to determine which favor buyers, which favor sellers, and which are neutral – found a rising number of markets where buyers are seeing … [Read more...]

Equity is the difference between what your home is worth and what you owe on your mortgage. And these days, homeowners have a lot of it. In fact, according to ATTOM Data Solutions' most recent U.S. Home Equity & Underwater Report, nearly 50 percent of mortgaged properties were considered equity rich at the end of last year. That means the combined amount of loan balances secured by those properties was no more than 50 percent of their value – which is another way of saying the property is worth a lot more than … [Read more...]

According to the Mortgage Bankers Association's Weekly Applications Survey, average mortgage rates fell last week from one week earlier. Rates were down for 30-year fixed-rate loans with conforming balances, loans backed by the Federal Housing Administration, 15-year fixed-rate loans, and 5/1 ARMs. It was the fourth consecutive week mortgage rates improved. Joel Kan, MBA's vice president and deputy chief economist, says home buyers are regaining purchasing power. “Purchase activity is expected to pick up as the … [Read more...]

The S&P Case-Shiller Home Price Index is among the most closely watched measures of U.S. home prices. The index, which tracks both monthly and annual changes in home values, has been collecting data for nearly 30 years. According to the most recent release, home prices continue to slow in metro areas across the country. Craig J. Lazzara, managing director at S&P, says November marked five consecutive month-over-month declines. “November 2022 marked the fifth consecutive month of declining home prices in the … [Read more...]

There's increasing evidence that we may have already past the housing market's low point. Recent data shows mortgage rates falling and buyer activity rising as we approach the spring home-buying season. The latest evidence is the National Association of Realtors' Pending Home Sales Index. The Index – which measures the number of contracts to buy homes signed during the month – showed a 2.5 percent improvement in December over the month before. It was the first increase following six months of declines. Lawrence … [Read more...]

New home construction is an important part of balancing the housing market. When inventory is low and prices are rising, building more new homes can help level the imbalance and provide better affordability conditions for buyers of all types of homes. But builders don't build more homes unless there are interested buyers. That's why keeping an eye on new home sales can help buyers get a feel for what's happening in the overall market. If new home sales are rising, builders are more likely to build more homes, which … [Read more...]

Buying a house isn't a short-term living arrangement. Typically, if you're buying, you're planning to stay a while. But how long should home buyers expect to live in the house they purchase? Well, conventional wisdom says you should expect to live in the house you buy for at least five years. Recently, though, Americans have been staying in their homes longer before selling and moving somewhere new. In fact, between 2019 and 2021, the typical homeownership tenure was cited as being somewhere between eight and 13 … [Read more...]

According to the Mortgage Bankers Association's Weekly Applications Survey, average mortgage rates fell last week from one week earlier. Rates were down for 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. Joel Kan, MBA's vice president and deputy chief economist, says rates have been trending downward lately. “Mortgage rates declined for the third straight week, which is good news for potential home buyers looking … [Read more...]

Saving enough money for a down payment can be a hurdle for some home buyers, especially first-time buyers. After all, unlike move-up buyers who can use the proceeds of their previous home's sale, first-time buyers have to come up with a down payment largely through savings. But saving money's not always easy. In fact, among recently surveyed millennial home buyers, 41 percent said saving for a down payment was the biggest barrier to buying a home – only mortgage rates and home prices ranked higher. The good news, … [Read more...]

Each month, Fannie Mae's Economic and Strategic Research Group releases an outlook detailing what it thinks is ahead for the economy and housing market. The forecast covers the group's expectations for economic growth, home sales, prices, mortgage rates, and other economic factors. According to the most recent release, the group sees a rebound ahead for the housing market but can't say for sure when it'll begin. That's largely due to the fact that where mortgage rates go from here is dependent on the Federal … [Read more...]