New data from the National Association of Realtors shows sales of previously owned homes fell in May. Existing home sales were down 3.4 percent from the month before and 8.6 percent from one year earlier. The decline is evidence that the market is beginning to level off, after two years of frenetic activity. Lawrence Yun, NAR's chief economist, says sales trends are starting to return to where they were pre-pandemic. “Home sales have essentially returned to the levels seen in 2019 – prior to the pandemic – after … [Read more...]

You can certainly buy a home without thinking about your budget, but it's not advisable. Without a clear understanding of what you'll be spending and where, you're more likely to get yourself into financial trouble. After all, what you can afford is often different than what you can afford comfortably. That's why it's smart for home buyers to think about their monthly expenses before heading out to look at listings. That means considering, not only your prospective monthly mortgage payment, but also how much you'll … [Read more...]

Home builders are a good gauge of where the housing market is headed. After all, their business depends on being able to tell when and where home buyers are looking to buy. So their perspective on the market for new homes is considered a good indicator of housing health. The National Association of Home Builders measures how confident builders are feeling with their monthly Housing Market Index. The index is based on a survey which scores builders' responses on a scale where any number above 50 indicates more of … [Read more...]

According to the Mortgage Bankers Association's Weekly Applications Survey, average mortgage rates increased last week from one week earlier. Rates were up across all loan categories, including 30-year fixed rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. The increases didn't slow mortgage application demand, though. In fact, demand for loans was up 6.6 percent from the week before, with applications for loans to buy homes up 8 … [Read more...]

The standards lenders use to determine whether or not a borrower is approved for a mortgage aren't fixed. There are times when it's easier to qualify and times when it's more difficult. Because of this, the Mortgage Bankers Association tracks whether lending standards are loosening or tightening. Their monthly Mortgage Credit Availability Index measures how easy it is for borrowers to get a mortgage based on several factors, including credit scores, loan types, and loan-to-value ratios. In May, the index fell … [Read more...]

It makes sense that people worry we're in a housing bubble. After all, it wasn't that long ago that the market crashed and sent home values tumbling. But the recent spike in home prices has little in common with what was happening before the crash in 2008. Experts agree. A recent survey of economists found that the vast majority of them say what's happening in today's market is not a bubble. Why? Fundamentals. The home price increases we've experienced over the past few years are the result of an imbalance of … [Read more...]

According to the Mortgage Bankers Association's Weekly Applications Survey, average mortgage rates increased last week from one week earlier. Rates were up 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. The increase was the first in three weeks. Joel Kan, MBA's associate vice president of economic and industry forecasting, says both refinance and purchase activity slowed as a result. “While rates were still … [Read more...]

Fannie Mae's monthly Home Purchase Sentiment Index measures how Americans feel about the housing market and economy. It asks respondents whether they think it's a good time to buy or sell a house, whether they believe home prices and mortgage rates will rise or fall, and how they feel about their job and financial situation. In May, the index was relatively unchanged from the month before but saw an increase in the number of participants who said they think now is a good time to sell a house. In fact, 76 percent of … [Read more...]

The number of homes for sale has been lower than normal for years now. Home shoppers looking for a home to buy have had to compete over limited listings, which has led to bidding wars, rising prices, and frustration. But things may finally be changing. In fact, the number of active listings rose in May for the first time in three years, according to the National Association of Realtors' consumer website. The national inventory of active listings increased 8 percent year over year, with newly listed homes up 6.3 … [Read more...]