When it comes time to make a move, you first have to decide whether you'll rent or buy your next place. For most of us, this decision is primarily a financial one. Surveys consistently show a majority of Americans say they hope to own their own home one day. Which means, many renters are doing so because they aren't financially ready yet to buy a home. It also means that, among current renters, there are many who are making plans to buy someday soon. And it seems, for an increasing number of them, that day has … [Read more...]

Traditionally, your job had a lot to do with where you lived. After all, if you have to go somewhere almost every day, you probably want to live closer to it than farther away. And so, most of us factored in our commute to work when making home buying decisions. But when the coronavirus hit and many Americans began working remotely, things changed. There was an increase in the number of buyers looking to move to rural and suburban areas. There was also an increase in the number of buyers hoping to find a place in … [Read more...]

Mortgage rates have recently started to increase again, after hovering at or just above record lows for months. And with most economists predicting the economy will boom – as more Americans are vaccinated and COVID-related restrictions are lifted – there is an expectation that they'll climb even higher. But despite those expectations, Fannie Mae's Economic and Strategic Research Group says it shouldn't be a major concern. “At the moment, economists' eyes are on interest rates given the size of the recent increases … [Read more...]

The latest New Residential Sales Report from the U.S. Census Bureau and the Department of Housing and Urban Development shows sales of new homes fell 18.2 percent in February. The decline, which was significant – and more than economists expected, was caused by a few different factors. Harsh winter weather certainly played a role in slowing sales during the month. But sales were also hindered by rising lumber costs and material shortages, which caused construction delays and affected supply. Demand, on the other … [Read more...]

According to the Mortgage Bankers Association's Weekly Applications Survey, demand for loans to buy homes was up 3 percent last week from the week before. The improvement puts the MBA's Purchase Index 26 percent above where it was during the same week one year ago. Joel Kan, MBA's associate vice president of economic and industry forecasting, says demand for purchase loans has been rising. “Purchase applications were strong over the week driven both by households seeking more living space and younger households … [Read more...]

In a today's market, buyers have to compete for available homes. That means, finding ways to make your offer stand out from others. Put simply, you can't expect to win a bidding war, if you aren't prepared to offer more than the next buyer. However, it's not just a matter of offering more money – though that's certainly part of it. There are other strategies as well, like waiving contingencies or promising a faster close. How you approach making your offer can be the difference between disappointment and purchasing … [Read more...]

The typical home for sale was on the market just 20 days in February, according to new data released by the National Association of Realtors. That's a record low and down from 36 days last year at the same time. But while elevated demand from buyers plays a role, too few homes for sale is the chief reason homes are selling so quickly. The NAR's report shows that – while the number of homes for sale did improve month-over-month – nationally, it's down nearly 30 percent from where it was one year ago. According to … [Read more...]

New data released by the U.S. Census Bureau and the Department of Housing and Urban Development shows the number of new homes that began construction in February was 10.3 percent lower than the month before. The decline marked the second consecutive month home building slowed. In a housing market starved for additional inventory, this may seem like discouraging news. After all, if home building slows and the number of homes for sale doesn't pick up, prices will continue to spike, affordability will suffer, and … [Read more...]

The price a home is listed for isn't necessarily the price its buyer will pay. That's especially true when the number of homes for sale is low, as it is now. In short, when there are fewer homes for sale it makes competition among buyers more likely. And when there's competition, there are bidding wars. So how common is it these days that a prospective home buyer will have to offer more than the homeowner is asking in an effort to beat offers from other buyers? Well, according to new numbers from one recent … [Read more...]

According to the Mortgage Bankers Association's Weekly Applications Survey, average mortgage rates were up slightly last week from the week before, with increases seen for 30-year fixed-rate loans with conforming loan balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. Jumbo loans were flat from one week earlier. But though rates are now at their highest point since last June, demand for home purchase loans continues to rise. Last week, it was up 2 percent week-over-week … [Read more...]