Higher mortgage rates have home buyers feeling more hesitant. But if you're a buyer who's concerned about declining affordability conditions, there may be some encouraging news in a recent release from the National Association of Realtors' consumer website. The data shows a rising number of homes for sale have had a price reduction. In fact, the share of homes with price reductions was up 10.3 percent to 20.9 percent in October. For comparison, price reductions were at 17 percent in 2019 and 21.2 percent in 2018. … [Read more...]

According to the Mortgage Bankers Association's Weekly Applications Survey, average mortgage rates were mostly down last week. Rates for 30-year fixed-rate loans with conforming loan balances, loans backed by the Federal Housing Administration, 15-year fixed-rate loans, and 5/1 ARMs all fell from the week before. It was the first time mortgage rates decreased in more than two months. Joel Kan, MBA's vice president and deputy chief economist, says higher rates have been holding back demand. “These elevated rates … [Read more...]

The past few years have favored home sellers. Fewer homes available for sale pushed competition between buyers and drove home prices higher. It was clearly a sellers' market. It still is. In fact, according to one recent analysis, the majority of markets continue to favor sellers, with 51 of the country's largest 100 housing markets remaining sellers' markets. Among them, smaller metros were more likely to favor sellers than areas with populations more than 1 million people. But with affordability conditions in … [Read more...]

Homes that sell are still selling quickly. The typical home that went pending in September found a buyer in just 19 days. But when you look at the inventory of homes for sale – including those that haven't yet found a buyer – the number of days on market is a bit higher. In fact, it's currently closer to 54 days, which is a 45 percent increase from last year at this time. Why does this matter? Well, because it indicates that homes for sale are beginning to linger on the market a little longer. That's good for … [Read more...]

The Mortgage Bankers Association's Purchase Applications Payment Index measures the national median payment applied for by prospective home buyers. In September, the median payment increased from August, rising to $1,941 from $1,839. The increase follows four straight months of declines from the index's peak in May. Edward Seiler, MBA's associate vice president of housing economics, says challenging affordability conditions have led borrowers to seek smaller loans. “With mortgage rates continuing to rise, the … [Read more...]

Home showings are a good indicator to watch, if you want to get a feel for what's happening in the housing market. After all, what better way is there to gauge how much interest home sellers can expect when they list their home or how much competition buyers will face from other buyers? Knowing the number of home showings the average home for sale garners can tell you a lot about the current market. So how many showings does the typical listed home host? Well, according to one recent analysis, a majority of … [Read more...]

According to the Mortgage Bankers Association's Weekly Applications Survey, average mortgage rates rose again last week, with increases 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. The increases contributed to slower demand week-over-week. In fact, overall demand for mortgage applications fell 1.7 percent from the week before, with demand for home purchase loans 2 percent lower than one week earlier. … [Read more...]

The past few years have been good to homeowners. Rising home prices and a hot housing market meant homeowners who were looking to make a move could be assured their home would sell quickly and for a great price. But now that the market has slowed down, can potential home sellers expect to be as successful as they would have been had they sold last year or even earlier this year? Well, yes and no. According to ATTOM Data Solutions' third-quarter U.S. Home Sales Report, the typical profit margin on median-priced … [Read more...]

In a perfectly balanced market, the number of available homes for sale would be equal to the number of interested home buyers. There'd be no price spikes or bidding wars and buyers would have no trouble finding a home that checks off every item on their wish list. Unfortunately, that's not how things work, especially in the current housing market. These days, the market is imbalanced, with the number of homes for sale still trailing far behind pre-pandemic levels. In fact, according to one recent analysis, overall … [Read more...]

The housing market has shifted. Higher rates, slower demand, and economic uncertainty have cooled the pace of the once hot market. But while a lot has changed, a lot has also stayed the same. For example, according to the National Association of Realtors, homes are still selling quickly and prices continue to rise – even if they have improved from last year. The NAR found the typical home was on the market just 19 days in September. That's an improvement from 17 days last year at this time, but still a fast pace. … [Read more...]