Equity is the difference between what you owe on your house and what it's worth. So, when home prices are growing, equity is too. And with the recent spike in home prices, equity has surged. In fact, according to Black Knight's most recent Mortgage Monitor Report, tappable equity – the amount available for homeowners to borrow against while still retaining at least 20 percent equity in their homes – grew 37 percent over year-before levels during the second quarter of this year. Ben Graboske, Black Knight's … [Read more...]

According to the Mortgage Bankers Association's Weekly Applications Survey, average mortgage rates were mostly flat last week, hovering just above last year's historic lows. There was little movement seen for 30-year fixed-rate loans with conforming loan balances, loans backed by the FHA, and 15-year fixed-rate loans. Rates for jumbo loans saw a slight increase. Mike Fratantoni, MBA's senior vice president and chief economist, says rates remain low but could see upward pressure by the end of the year. “Economic … [Read more...]

Fannie Mae's Home Purchase Sentiment Index is based on a monthly survey gauging Americans' feelings about the housing market and overall economy. It asks respondents for their opinions about buying and selling a home, mortgage rates, home prices, their jobs and financial situation. In August, the index was largely unchanged from the month before. However, the share of participants who said they felt it was a good time to buy a home was up 7 percent. It was the first increase in buying optimism since March. Mark … [Read more...]

The typical home buyer doesn't spend much time considering the price of gypsum products or ready-mix concrete. But the prices builders pay for building materials has an effect on buyers – even if they aren't shopping for a new home. That's because new home construction is the fastest way to boost inventory. And, when there are more homes for sale, home prices moderate. So, when more new homes are being built, it benefits all buyers because it helps keep prices in check. That's part of the reason prices have been … [Read more...]

There are many gauges of U.S. home prices but the S&P Case-Shiller Indices is among the most closely followed. The index is constructed to accurately track the price path of a typical single-family home in each of the nine U.S. Census divisions. According to the most recent release, home prices are still increasing and the gains can be seen almost everywhere. In fact, Craig J. Lazzara, managing director and global head of index investment strategy at S&P, says prices have hit all-time highs everywhere but … [Read more...]

According to the Mortgage Bankers Association's Weekly Applications Survey, demand for loans to buy homes rose last week to its highest level since early July. Though slight, the 1 percent increase shows home buyers remain active as the summer market winds down. Joel Kan, MBA's associate vice president of economic and industry forecasting, says the high end of the market is still dominate. “Home purchase activity continues to be dominated by higher price tiers of the market, with the purchase average loan size now … [Read more...]

For most of the past year, average mortgage rates have hovered at, or just above, historic lows. Favorable rates helped home buyers at a time when prices and bidding wars were on the rise. But while low rates were good for buyers, they were also good for homeowners who wanted to refinance their loans. The corresponding boom saw refinance activity up nearly 125 percent over year-before levels at the end of 2020. But now, according to new numbers from ATTOM Data Solutions, the market has shifted. In fact, during the … [Read more...]

The number of signed contracts to buy homes fell in July, dropping 1.8 percent from the month before according to new numbers from the National Association of Realtors. The decline comes at a time when the housing market is beginning to cool after a fast-paced spring and early summer. In short, the number of homes for sale has improved and the number of buyers has started to slow. But while the market is calmer, Lawrence Yun, NAR's chief economist, says buyer interest is still outpacing supply and that means … [Read more...]

For a prospective home buyer, the more homes there are for sale the better. After all, more available homes means more choices and a better chance at finding the one that meets your needs. Lately, though, inventory has been an issue. A lower than normal number of homes for sale has led to price spikes, more competition, and bidding wars between buyers. Which means, any news of improved inventory is good news for home buyers. That's why recently released numbers from one online real-estate portal are encouraging. … [Read more...]

Rents recently hit new highs in 40 of the 50 largest U.S. cities, according to a new analysis from the National Association of Realtors' consumer website. The report found that, nationally, rents were up almost 10 percent over where they were last year at the same time. But while the news comes at a time when home prices have also been on the rise, historically low mortgage rates have helped counter the effect of recent home-price increases. So much so, that Danielle Hale, the website's chief economist, says buying … [Read more...]