The number of contracts to buy homes signed in May fell 2.1 percent from the month before, according to new numbers from the National Association of Realtors. The decline was mostly due to a more than 5 percent drop in the South. The West and Northeast both saw increases, while the Midwest was relatively flat from the month before. The numbers are more evidence that the spring market has been slower than expected. Lawrence Yun, NAR’s chief economist, thinks we may be at a turning point. “The market is at an … [Read more...]

The U.S. Census Bureau and the Department of Housing and Urban Development released their monthly New Residential Sales report for May. The report, which tracks the number of new homes sold during the month, found sales down significantly from April. In fact, new home sales fell 11.3 percent month-over-month. The decline was likely due to mortgage rates, which spiked at the end of April and may’ve caused buyers to hesitate. But though the latest numbers were disappointing, the report came with a revision to April’s … [Read more...]

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates were mostly down last week. Rates declined from the previous week for 30-year fixed-rate loans with both conforming and jumbo balances. They also fell for 15-year fixed-rate loans, though FHA loans and 5/1 ARMs saw increases from the week before. Joel Kan, MBA’s vice president and deputy chief economist, says rates are now at a three month low. “Mortgage rates were mostly lower last week, with the 30-year fixed rate … [Read more...]

Coming up with a down payment can be an obstacle for some buyers, especially in the aftermath of pandemic-era price increases. Buying a home has gotten more expensive over the past few years and affording the upfront costs requires a plan. Fortunately, home buyers have options. For one, they don’t have to have a full 20 percent down payment in order to purchase a home. In fact, according to one recent survey, 48 percent of recent buyers put down less than 20 percent when buying their home. Additionally, home buyers … [Read more...]

Each month, Fannie Mae’s Economic and Strategic Research Group releases an outlook covering its expectations for the economy and housing market. In June, the group adjusted its forecast for total home sales this year, lowering expected annual gains to 1.3 percent from a previous projection of 2.8 percent. But while the group sees weaker than expected home sales ahead, it also says the economy is showing signs of slowing – which could help lower mortgage rates and improve overall affordability. “The economy appears … [Read more...]

New numbers from the National Association of Realtors show the inventory of homes for sale was up another 6.7 percent in April, pushing available supply 18.5 percent higher than it was last year at the same time. Lawrence Yun, NAR’s chief economist, says that’s good news for buyers. “Eventually, more inventory will help boost home sales and tame home price gains in the upcoming months,” Yun said. “Increased housing supply spells good news for consumers who want to see more properties before making purchasing … [Read more...]

The National Association of Home Builders’ Housing Market Index is a monthly survey measuring builder confidence in the market for newly built homes. The survey asks builders for their perception of current sales conditions, expectations for the next six months, and home buyer traffic. Responses are scored on a scale where any number above 50 indicates more builders view conditions as good than poor. In June, the index fell two points to 43. Carl Harris, NAHB’s chairman, says interest rates are keeping conditions … [Read more...]

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell last week from one week earlier. Rates declined 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. The improvement helped push demand for mortgage applications higher, rising 0.9 percent from the week before. Mike Fratantoni, MBA’s senior vice president and chief … [Read more...]

Demand for mortgage applications can be a good indicator of future home sales numbers. After all, most buyers require a mortgage to finance their home purchase. So it makes sense that increasing demand for loan applications would coincide with an eventual increase in closed sales. That’s why a new report from the Mortgage Bankers Association is an indication that new home sales are about to heat up. The report found application demand for new home purchases rose nearly 14 percent in May from year-before levels. … [Read more...]

When inventory’s tight and the market’s competitive, you don’t see many price cuts on listed homes. Only in cases where a home has issues or was priced too high will you see its price slashed in hopes of attracting buyers. That’s a seller’s market – one where good homes receive multiple offers and commonly sell for above their asking price. These days, most markets still favor home sellers, even as the inventory of homes for sale has improved from recent lows. But while sellers still hold most of the negotiating … [Read more...]