Fannie Mae's Economic and Strategic Research Group releases a forecast each month covering their predictions for the economy and housing market. According to their most recent release, their outlook for full-year economic growth has been revised upward from last month's projection. Their home-sales growth projection was also revised upward based on an expected end-of-year sales surge. But while the year-end forecasts were increasingly positive, the group sees challenges ahead in 2022. For one, they expect fewer … [Read more...]

When thinking about buying a house, most of us look at home prices and mortgage rates. Together, they can provide a rough idea of how much home we can afford. They aren't, however, the only factors that determine whether or not we're ready and able to buy. One metric that isn't as commonly checked but has a significant impact is mortgage credit availability. Put simply, the standards lenders use to determine whether or not a borrower is qualified aren't fixed. That means, there are times when it's easier to qualify … [Read more...]

The National Association of Home Builders' Housing Market Index measures builder confidence in the market for newly built single-family homes. It is an important indicator of housing market health because, when builders are optimistic and building more homes, it helps balance supply and demand, gives buyers more options to choose from, and helps moderate price increases. This is especially true when the inventory of homes available for sale is low, as it has been this year. In December, the NAHB's survey – which is … [Read more...]

According to the Mortgage Bankers Association's Weekly Applications Survey, demand for loans to buy homes rose 1 percent last week from the week before. The improvement included a nearly 2 percent increase in demand for conventional loan applications. Despite the increase, however, overall demand was down 4 percent due to a 6 percent decline in refinance activity. Joel Kan, MBA's associate vice president of economic and industry forecasting, says loan balances remain high. “The strength in conventional purchase … [Read more...]

You can tell a lot about your local housing market by paying attention to where new homes are being built. Home builders don't build in areas people don't want to live. So the locations with the most building activity are likely the most desirable to home buyers. During the early days of the pandemic, there was a shift in buying patterns that led more Americans to search for homes further away from city centers. That suburban shift was well documented and, according to a new analysis from the National Association … [Read more...]

Work has a big impact on how and where we live. It determines what we can afford and where we need to be on a day-to-day basis. So when the pandemic began and more Americans started working remotely, it also led to some significant changes in home buying patterns. Where buyers previously valued proximity to their jobs and a short commute, they now were placing more importance on space, affordability, and proximity to family and friends. In short, more freedom to work from anywhere meant more freedom to live … [Read more...]

Some of homeownership's benefits are constant. Stability and the freedom to customize your living space, for example. Others depend a lot upon the ups and downs of the market. Equity is one of them. And these days, because of the market's continuing strength, homeowners are reaping the benefits in a big way. In fact, according to Black Knight Financial's most recent Mortgage Monitor, surging home values have increased the average mortgage holder's equity stake by $53,000, for an average of more than $175,000 in … [Read more...]

Whether you just bought a house or are thinking about buying a house, home improvement projects may be on your mind. After all, unless you're moving into something newly built, there are bound to be things about your home you'd like to fix or change. It's natural. We all want our homes to fit our needs and have the features that make us feel most comfortable. But what are the most common projects homeowners are undertaking right now? Well, according to one recent survey, bathrooms lead the list. Renovating a … [Read more...]

According to the Mortgage Bankers Association's Weekly Applications Survey, average mortgage rates fell last week for the first time in a month. Rates were down for 30-year fixed-rate mortgages with conforming loan balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. Jumbo loans were up week over week. Joel Kan, MBA's associate vice president of economic and industry forecasting, says government loans saw the biggest decrease. “Mortgage rates declined for the first time in a … [Read more...]

Americans are concerned about the economy, according to Fannie Mae's most recent Home Purchase Sentiment Index. But while concerns about economic conditions have reached a 10-year high, they haven't diminished perceptions of the housing market. In fact, Fannie Mae's index – which measures Americans' feelings about home buying and selling conditions, mortgage rates, home prices, their jobs, and financial situation – was virtually unchanged from the month before. Among respondents, 74 percent said now is a good time … [Read more...]