According to the Mortgage Bankers Association’s Weekly Application Survey, demand for mortgage loan applications fell more than 20 percent last week from two weeks earlier. The decline, however, was no surprise. The end of the year is always slow. Mike Fratantoni, MBA’s senior vice president and chief economist, says this year’s holiday slowdown was aided by higher mortgage rates. “Mortgage rates moved higher through the last full week of 2024 …” Fratantoni said. “Not surprisingly, this increase in rates – at a … [Read more...]

Home prices have been fairly consistent lately. Though still increasing in most markets, prices have been climbing at an ever-slowing rate as the supply of homes for sale has grown. That continues to be the case, according to the latest results from the S&P Case-Shiller Home Price Indices. Considered to be among the leading measures of U.S. home prices, S&P’s index has been tracking home values for more than 30 years. Their latest release shows prices up 3.6 percent nationally from last year at the same … [Read more...]

The National Association of Realtors’ Pending Home Sales Index measures the number of contracts to buy homes signed each month. The index is considered a good indicator of future home sales, since contract signings typically precede closings by several weeks. According to the most recent release, the index found contract signings up 2.2 percent month-over-month in November, pushing pending sales activity nearly 7 percent higher than it was last year at the same time. The gains were widespread and included all … [Read more...]

The past two years have been hard for home buyers. A combination of volatile mortgage rates, high home prices, competition and bidding wars, made finding an affordable home a challenge. Fortunately, though, the new year looks like it will bring brighter days for buyers. The National Association of Realtors certainly thinks so. Lawrence Yun, NAR’s chief economist, says the worst is over. “Home buyers will have more success next year,” Yun said. “The worst of the affordability challenges are over as more inventory, … [Read more...]

In October, a mix of regional factors, higher mortgage rates, and extreme weather caused sales of newly built single-family homes to tumble. At the time, it was thought to be a temporary setback rather than the start of a downward trend. That now looks to be true. In fact, new numbers from the U.S. Census Bureau and the Department of Housing and Urban Development show new home sales charged back in November, increasing 5.9 percent from October’s level and 8.7 percent from a year ago. The rebound helped reset the … [Read more...]

According to ATTOM Data Solutions’ fourth-quarter 2024 U.S. Home Affordability Report, median homeownership costs in 556 of 566 analyzed counties were less affordable than their historical average. After years of rising prices and elevated mortgage rates, that should come as no surprise. It also shouldn’t be surprising that the number of counties that are more expensive than they’ve been historically was virtually unchanged in the fourth quarter from the previous quarter, or even the previous year. Market … [Read more...]

Sales of previously owned homes rose nearly 5 percent in November, according to new numbers from the National Association of Realtors. The month-over-month improvement pushed home sales 6.1 percent higher than they were last year at the same time and matched the fastest sales pace since March. Lawrence Yun, NAR’s chief economist, says momentum is building. “Home sales momentum is building,” Yun said. “Existing homeowners are capitalizing on the collective $15 trillion rise in housing equity over the past four years … [Read more...]

The National Association of Home Builders’ Housing Market Index is a monthly measure of builder confidence in the market for newly built homes. Based on a survey of home builders, the index is scored on a scale where any number above 50 indicates more builders view conditions as good than poor. In December, the index was unmoved from the month before, holding steady at 46. Carl Harris, NAHB’s chairman, says builders continue to have concerns but are optimistic about the future. “While builders are expressing … [Read more...]

According to the Mortgage Bankers Association’s Weekly Application Survey, average mortgage rates moved higher last week from one week earlier. Increases were seen 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. Joel Kan, MBA’s vice president and deputy chief economist, says the increases slowed demand, though home buyers remained active. “Buyers remained active in the purchase market, helped by … [Read more...]

Home buyers and sellers shouldn’t expect to see too much change in the months ahead, according to a new forecast from Fannie Mae’s Economic and Strategic Research Group. The group’s monthly forecast – which covers their thoughts on where the housing market and economy are headed – says there will be little change in the new year. In fact, the group says, though mortgage rates will decline and prices will decelerate, both will only fall modestly. They also expect sales of previously owned homes to remain relatively … [Read more...]