The S&P Case-Shiller Indices are considered to be among the leading measures of U.S. home prices. According to their most recent release, which covers data through January, home price increases were accelerating at the start of the year. In fact, their 20-city composite index was up 3.1 percent year-over-year, up from 2.8 percent the month before. Craig J. Lazzara, managing director and global head of index investment strategy at S&P Dow Jones Indices, says the increases were broad based. “Results for the … [Read more...]

Numbers from the first quarter of 2020 show homeownership becoming more affordable for average wage earners. In fact, according to ATTOM Data Solutions' most recent Home Affordability Report, a median-priced home will cost someone earning the national average about 31 percent of their income – the lowest percentage since the fourth quarter of 2017. Todd Teta, chief product officer with ATTOM, says falling interest rates have helped keep homeownership within reach. “It seems bizarre that median home prices have … [Read more...]

Home prices have been rising for several years now. A combination of increasing buyer demand and a lower-than-normal number of homes for sale led to more competition among home shoppers and put upward pressure on prices. That's why most of the discussion about where the housing market was headed this year focused on the number of available homes for sale. If more homes became available, it would help keep prices from climbing too quickly. If inventory stayed low or fell further, price increases might begin to … [Read more...]

Sales of previously owned homes spiked in February, rising 6.5 percent over month-before numbers, according to new data released by the National Association of Realtors. The improvement made for the strongest month since 2007. “February's sales of over 5 million homes were the strongest since February 2007,” Lawrence Yun, NAR's chief economist, said. “I would attribute that to the incredibly low mortgage rates and the steady release of a sizable pent-up housing demand that was built over recent years.” Home prices … [Read more...]

Newly released figures from the U.S. Census Bureau and the Department of Housing and Urban Development show that the number of single-family homes that were started or completed in February rose from the month before. The number of building permits also increased. However, though the gains are welcome news for a housing market suffering from low for-sale inventory, new residential construction is likely to slow in the coming months due to the impact of the coronavirus. Economist Matthew Speakman says, while that … [Read more...]

According to the Mortgage Bankers Association's Weekly Applications Survey, average mortgage rates were up last week across all loan categories, including 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 caused a 10 percent decline in refinance activity, though it remains 402 percent higher than last year at the same time. Demand for home purchase loans is now 10 percent higher than year before levels. … [Read more...]

Naturally, when world events cause economic uncertainty, markets react. However, the housing market has some things going for it that may help offset any upcoming volatility. For example, there have been a lower than normal number of homes for sale in many markets for a while now. Combined with a high level of home buyer demand, that lack of inventory meant more competition, increasing prices, and fewer choices for buyers. But it may also mean the market is well positioned to absorb any changes to the current … [Read more...]

Fannie Mae's quarterly Mortgage Lender Sentiment Survey tracks the views and outlook of senior mortgage executives. And, according to their first quarter survey results, those executives feel good about the mortgage market. Why? Well, mostly because mortgage rates are at, or hovering just above, historic lows. Doug Duncan, Fannie Mae's senior vice president and chief economist, says lenders are expecting strong consumer demand for mortgage loans. “Lenders' expectations of consumer demand for purchase and refinance … [Read more...]

These days, you hear a lot about how there are too few homes for sale and it's driving prices upward. But though that's true in many markets, it doesn't mean hopeful home buyers should give up on buying. In fact, the most recent Housing Opportunity Index from the National Association of Home Builders shows there are still plenty of available homes for buyers earning the U.S. median income. According to the index, 63.2 percent of all new and existing homes sold between the beginning of October and the end of … [Read more...]

According to the Mortgage Bankers Association's Weekly Applications Survey, average mortgage rates fell last week across all loan categories, including 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 drop brought rates to their lowest level since 2012 and matched an all-time survey low. Joel Kan, MBA's associate vice president of economic and industry forecasting, said rates fell due to uncertainty about the … [Read more...]