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...]

Calculating how much house you can afford can be difficult. Not only do you have to take your budget and lifestyle into account, you also have to keep up on changes in the housing market. That's particularly tricky these days. Quickly changing affordability conditions mean potential buyers have to regularly recalculate costs when considering which available homes are a good financial fit. Fortunately for home shoppers wondering about their potential costs, the Mortgage Bankers Association keeps a monthly measure of … [Read more...]

Every homeowner with a home to sell wants to attract qualified buyers. After all, the more interest there is in your home, the more likely it is that you'll get a good offer. One way to measure interest is to pay attention to how many buyers are scheduling showings to tour your house. But how many showings does a listing typically see? Well, according to one recent analysis, the nationwide average number of showings per listing was 8.49 in April. In the top 25 markets, though, the average was closer to 15. Of … [Read more...]

According to the Mortgage Bankers Association's most recent Weekly Applications Survey, average mortgage rates fell for the fourth time in five weeks last week. Rates were down from the week before 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. Joel Kan, MBA's associate vice president of economic and industry forecasting, says there are a few factors behind the decline. “Mortgage rates fell for the fourth time … [Read more...]

These days, it seems like most housing market forecasts are predicting home price increases will begin to slow at some point this year. Whether it's due to improving inventory levels as the number of homes for sale rises or from slower demand due to higher mortgage rates, most industry outlooks say the price spikes of the past couple of years will soon fade. But when exactly? “Those of us who have been anticipating a deceleration in the growth rate of U.S. home prices will have to wait at least a month longer,” … [Read more...]

Home insurance isn't required by law but, most likely, your lender's going to require it to get a mortgage. Even if they didn't, it'd probably be in your best interest to have some coverage. After all, the most common home insurance claims are damage from wind, hail, water, fire, and lightning. In other words, wherever there's weather, there's a need for insurance. But while it's necessary, it isn't the first thing most buyers think of when considering the cost of owning a home. So what do home insurance rates look … [Read more...]