If you're shopping for a home over a certain price, you may need to get a jumbo loan. Jumbo loans cover larger loan balances and often have stricter standards, including requiring a higher credit score and a bigger down payment. But what is the amount over which you'll need a jumbo loan? Well, it changes. At the end of 2022, it was $647,200. Any loan balance below that was considered conforming and balances above that required a jumbo loan. But the Federal Housing Finance Agency – the agency that sets conforming … [Read more...]

According to the Mortgage Bankers Association's Weekly Applications Survey, average mortgage rates increased during the final two weeks of 2022, with rates up for 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. Higher rates – combined with the holiday season – led to a drop in demand for mortgage applications. Joel Kan, MBA's vice president and deputy chief economist, says home purchase activity has slowed. … [Read more...]

The beginning of a new year always brings with it a sense that change is on the way. After all, this year won't be the same as last year. Things will be different. But how? Well, if you're a prospective home buyer, one recent forecast has some ideas. Released by a popular online real-estate portal, the forecast says 2023 should be an easier year for buyers, after two years of rapidly changing affordability conditions. Put simply, the housing market should begin to stabilize. Home price increases have slowed and … [Read more...]

Home prices have been climbing for a long time. In fact, prices began increasing just a few years after the housing crash in 2008. But according to a new analysis from the American Enterprise Institute's Housing Center, the price boom that began over 10 years ago may have finally ended. The analysis found that home price appreciation was up 6.7 percent year-over-year in November. That's a smaller increase than in October when prices were up 8.6 percent year-over-year. It's also much lower than in March 2022 when … [Read more...]

A mortgage payment is a significant monthly expense. For most of us, it'll rank among our biggest bills. So it's no surprise affordability is always a top concern among prospective home buyers. Nobody wants to buy a home that's going to cause them financial strain, stress, and worry. That's why the most recent Purchase Applications Payment Index from the Mortgage Bankers Association is encouraging news. The index – which tracks the national median monthly payment – found payments down 1.8 percent in November, … [Read more...]

When a home seller accepts an offer to buy, the closing process begins. During the closing process – which typically takes a few weeks – the home's sale is considered pending. Pending home sales are a good indicator of future home sales, as most signed contracts lead to closed sales. Because of this, the National Association of Realtors tracks them each month. According to the most recent release, pending sales fell in November. Lawrence Yun, NAR's chief economist, says higher mortgage rates slowed activity, but a … [Read more...]

ATTOM Data Solutions' quarterly U.S. Home Affordability Report compares current conditions against historical averages in 581 counties across the country. The report determines affordability by calculating the amount of income an average wage earner would need to earn to comfortably afford homeownership expenses on a median-priced, single-family home. In the fourth quarter of 2022, affordability worsened. In fact, the report found typical homeownership expenses would require 32.3 percent of the average wage, that's … [Read more...]

Based on recent housing market headlines, you might assume Americans have put their home buying plans on hold. After all, the past few years have been volatile, with prices and demand skyrocketing before mortgage rates increased and slowed everything down. But while market numbers and trend graphs may have some Americans feeling hesitant, the majority of us remain sold on homeownership. In fact, in one recent survey, nearly 70 percent of respondents said they plan to buy a house or condo sometime in the next few … [Read more...]

The housing market has definitely slowed this year. But while the home buying frenzy of 2021 has passed, that doesn't mean good homes are sitting on the market unsold. In fact, the majority of homes sold in November were on the market less than a month, with the typical property on the market just 24 days – up from 18 days one year earlier. In other words, the still lower-than-normal number of homes for sale means good listings continue to sell relatively quickly, even as home sales overall have slowed. Lawrence … [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, 15-year fixed-rate loans, and 5/1 ARMs. Mike Fratantoni, MBA's senior vice president and chief economist, says rates are now at a three-month low. “The Federal Reserve raised its short-term rate target last week, … [Read more...]