When prospective home buyers think about whether or not they can afford to buy a home, the first thing they look at is prices. But, after that, mortgage rates run a close second. That's because they are a significant factor in determining overall affordability and, more specifically, the house you'll ultimately end up purchasing. For that reason, having an idea about where rates might be heading can help you think about your plans and potential budget. Take Fannie Mae's most recent Economic and Housing Outlook, for … [Read more...]

Home buyers hoping for some good news heading into the spring buying season may find it in the Federal Housing Finance Agency's most recent House Price Index. That's because, after increasing for the past few years, it looks like home prices are finally starting to slow. In fact, according to the FHFA's most recent numbers, prices were essentially flat in November from the month before. And, when comparing regional data, some areas may have even seen declines. But while slowing month-over-month increases are a good … [Read more...]

According to the Mortgage Bankers Association's Weekly Applications Survey, demand for loans to buy homes was 13 percent higher last week than it was during the same week one year ago. The improvement follows a period of declining mortgage rates and two straight weeks of surging application demand. But though the year has been off to a strong start, it cooled a bit last week. Joel Kan, MBA's associate vice president of economic and industry forecasting, says activity slowed but is still at healthy levels. “Mortgage … [Read more...]

Searching for a home to buy means making a major financial decision, while at the same time choosing a place to spend the next several years of your life. In other words, it's not the type of thing you want to rush. However, in a competitive market, home buyers sometimes don't have the luxury of thinking through their options. A good house is likely to attract a lot of attention and, if you want it, you have to make your offer fast. That has been the case recently, as there have been fewer homes available to buy … [Read more...]

Millennial home buyers face some well-documented challenges. Higher home prices, too few starter homes for sale, and student loan debt are near the top of the list. Add to that having to save for a down payment while paying rent and it can seem like an uphill battle. But younger Americans want to buy and are showing a willingness to get creative in order to make it happen. For example, a new survey finds nearly 70 percent of millennials, who say they'd like to become homeowners soon, would consider buying a home … [Read more...]

Builders build the homes we buy and live in but they also serve another important purpose. They are a good barometer for where the real estate market is heading. After all, it's their business to determine whether or not people are buying homes. So when builders are confident, there's likely a good reason. According to the National Association of Home Builders' most recent Housing Market Index, the reason this month is mortgage rates. The NAHB's index measures builder confidence on a scale where any number above 50 … [Read more...]

Spring is the busiest season for home buyers. So, naturally, there's a lot of analysis of buying conditions as it approaches. Things like mortgage rates, the economy, prices, for-sale inventory, and buyer demand can all be used to get a feel for how busy or slow the season will be. One early sign came with this week's Applications Survey from the Mortgage Bankers Association. The survey measures mortgage rate movement and also demand for refinance and home purchase loans. The most recent results show a significant … [Read more...]

When surveyed, Americans who currently don't own a home consistently say they'd like to buy one someday. For example, the National Association of Realtors' Housing Opportunities and Market Experience survey asked non-homeowners whether homeownership is part of their American Dream and 75 percent of respondents said it was. Which means, there are a lot of people who'd like to buy a home. So what are the main factors that influence their decision to buy now or wait? Well, it may come as no surprise that money leads … [Read more...]

Affordability conditions over the past few years have been largely held in check by low mortgage rates. Potential home buyers could absorb higher home prices, since job market improvement had them feeling confident in their income and rates were still hovering near historic lows. But though the most recent data shows rates have fallen over the past few weeks, last year brought the first significant increase since the housing crash. This has caused new concern about affordability. So how concerned should buyers be? … [Read more...]

A recent survey asked 100 real estate economists and experts for their housing market predictions. And though they had varied views on topics like mortgage rates, home values, and who will be most active in the market in years to come, they almost unanimously agreed on just one thing. A full 88 percent of responding panelists said they expect that the homeownership rate would be higher in five years than it is now and an almost equal amount said it will be improved in just two years. Why is this important? Well, … [Read more...]