Falling mortgage rates have created a buzz among potential buyers but rates aren’t the only market factor trending in the right direction. According to the latest release from the S&P Case-Shiller Home Price Indices, home price increases are also offering buyers a bit of a break. The numbers show prices – while still climbing – are doing so at an ever-slower pace. In fact, the numbers show the National Home Price Index up 5 percent year-over-year through the end of July, down from a 5.5 percent increase the … [Read more...]

Every month, Fannie Mae’s Economic and Strategic Research Group releases a commentary covering what the group sees ahead for the housing market and economy. Its forecast looks at factors like mortgage rates, home prices and economic growth, then estimates where they’re headed through the end of the year and into the next. In its September release, the group says mortgage rates have improved considerably but have yet to move home buyers, who may be holding out for even better conditions. “Although mortgage rates … [Read more...]

After five consecutive monthly declines, construction of new, single-family homes spiked in August, according to new numbers from the U.S. Census Bureau and the Department of Housing and Urban Development. The spike included a 15.8 percent increase in single-family housing starts – which measure the number of new homes that began construction during the month. It also included a 2.8 percent increase in permits to build new homes. The gains come at a time when other housing indicators are improving and could be a … [Read more...]

Buying a home isn’t something you do in an afternoon. It takes several weeks, maybe months. That could explain why, despite news of improved buying conditions, the latest home sales numbers from the National Association of Realtors show sales dropping 2.5 percent in August. Why would sales be slowing at the same time conditions are getting better for buyers? Well, because August numbers reflect the closed sales of buyers who began shopping for a house many weeks earlier, while buyers motivated by falling rates in … [Read more...]

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell again 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, 15-year fixed-rate loans, and 5/1 ARMs. Joel Kan, MBA’s vice president and deputy chief economist, says rates are now at a two-year low. “Application activity was up significantly last week, as market expectations of a rate cut from the Fed … [Read more...]

The National Association of Home Builders conducts a monthly survey to gauge builder confidence in the market for newly built homes. Its Housing Market Index scores builders’ responses on a scale where any number above 50 indicates more builders view conditions as good than poor. In September, the index rose two points to 41, breaking a streak of four consecutive monthly declines. Carl Harris, NAHB’s chairman, says the reason is simple. “Thanks to lower interest rates, builders now have a positive view for future … [Read more...]

Despite recent affordability challenges, Americans never stopped wanting to buy a home. Even as prices soared and rates climbed higher, the desire for homeownership remained strong. Now, with the housing market beginning to balance, the time may be right for buyers who paused their plans, waiting for a better deal. Why? Several reasons. Mortgage rates, for one. Average rates have now fallen for several consecutive weeks and are about a point lower than they were earlier this year. Inventory has also improved, … [Read more...]

Home prices are a hot topic after years of skyrocketing growth. Double-digit annual increases were common in most markets during the pandemic and, though they’ve slowed considerably, prices are still moving upward in most markets. But what should home buyers – and sellers – expect in the months ahead? Well, Fannie Mae’s Home Price Expectations Survey polls industry experts each quarter and gets their read on where they think prices are headed. According to the most recent release, Fannie Mae’s panel raised their … [Read more...]

Credit availability isn’t typically among home buyers’ top concerns – but it matters. Lending standards and the availability of loan programs affect how easy or difficult it is to get approved for a loan. When credit is tight, for example, prospective borrowers will need to have their finances in order more so than they would if it were looser. That’s why the Mortgage Bankers Association keeps a monthly measure of how tight or loose credit is with their Mortgage Credit Availability Index. Any increase in the index … [Read more...]

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell for the sixth consecutive week last week, bringing rates to the lowest level since February 2023. Rates fell 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. Joel Kan, MBA’s vice president and deputy chief economist, says there are a number of factors behind the recent … [Read more...]