Home builders know the housing market. Their business depends on it. That's why the National Association of Home Builders keeps a monthly measure of how confident they are in the market for newly built single-family homes. If builders are optimistic, chances are the market is doing well. In February, the index – which scores builders' responses on a scale where any number above 50 indicates more builders view conditions as good than poor – was up one point to 84, just below its all-time high. Robert Dietz, the … [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 both 30-year fixed-rate mortgages with conforming loan balances and 15-year fixed-rate loans. Loans backed by the Federal Housing Administration fell slightly while jumbo loans were unchanged. Despite rising in recent weeks, mortgage rates remain historically low. However, the uptick has caused application demand to fall. In fact, it was down 5.1 percent … [Read more...]

The housing market can be understood as simple supply and demand. When there are fewer homes for sale and buyer demand is high, home prices rise. When the opposite is true, prices fall. But there's a little more to it than that. The balance of supply and demand is affected by numerous factors, including some less obvious ones that may not occur to the average home buyer. For example, in today's market, the inventory of homes for sale is lower than normal. But while new home construction is the fastest way to … [Read more...]

Generally speaking, home prices rise more than they fall. If you look at year-over-year data, you'll see home prices increase a few percentage points almost every year. There are, of course, exceptions, but homeownership got its reputation as a safe investment for good reason. So the real question is by how much and how quickly are prices are rising. One way to tell is to look at asking prices. The asking price of a home is the amount the seller hopes to get for it – not the final sales price. In most years, asking … [Read more...]

There are many ways to measure housing market activity. You can look at it geographically and compare how one region's homes are selling compared to another's. Or you can look at it historically and compare today's numbers to the past. You can also look at it based on price range. Is the high end of the market performing differently than the market for affordable homes? Are first-time buyers more or less active than luxury buyers? Using these different perspectives can help you breakdown what's happening in the … [Read more...]

A property is considered equity rich when its value is more than double the amount of the loans used to purchase it. In other words, if you owe $90,000 on a home worth $200,000, you're equity rich. It's a good position to be in as a homeowner, especially if you're considering selling in the near future. Because of this, ATTOM Data Solutions' quarterly Home Equity & Underwater Report tracks how many of the nation's 59 million mortgaged homes could be considered equity rich. According to their most recent report, … [Read more...]

According to the Mortgage Bankers Association's Weekly Applications Survey, average mortgage rates were up last week from the week before. Increases were seen for 30-year fixed-rate mortgages with conforming loan balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. Rates for jumbo loans fell from one week earlier. Mortgage rates have now increased in four of the first six weeks of 2021. But despite rising, rates are still near record lows and buyers are still active. Joel Kan, … [Read more...]

The coronavirus caused a significant decline in the number of homes available for sale last year. It didn't, however, reduce the number of interested buyers. That combination – high buyer demand and low for-sale inventory – caused prices to rise, competition to intensify, and houses to sell quickly. But, according to the National Association of Home Builders latest Housing Trends Report, market conditions didn't hurt buyers' optimism. In fact, at the end of 2020, prospective home buyers were more optimistic about … [Read more...]

Fannie Mae's Home Purchase Sentiment Index surveys Americans each month to gauge their feelings about the housing market and their personal financial situation. The survey asks participants for their opinion on mortgage rates, home prices, their income, job security, and whether they think now is a good or bad time to buy or sell a home. In January, the index rose 3.7 points from the month before, with much of the improvement due to a 16 percent jump in the number of respondents who said now is a good time to sell … [Read more...]

Spring is typically the season when the housing market heats up. And, while it's still more than a month away, prospective buyers hoping to start their home search in the coming weeks should be prepared. The winter market hasn't ever really cooled down and it's a good sign that it'll be a fast-moving and competitive spring. For example, according to one recent analysis, home buyer demand, at the end of January, was 60 percent higher than it was last year at the same time. Additionally, the number of homes for sale … [Read more...]