The number of homes for sale continues to climb, according to new numbers from the National Association of Realtors. In March, total housing inventory was up nearly 5 percent from the month before and 14.4 percent higher than it was last year at the same time. That’s certainly good news for buyers. But though improved, inventory remains lower than normal. In fact, at the current sales pace, there is a 3.2-month supply of homes for sale. A 6-month supply is considered a balanced market. Lawrence Yun, NAR’s chief economist, says improving inventory is positive but the market still favors home sellers. “More inventory is always welcomed in the current environment,” Yun said. “Frankly, it’s a great time to list with ongoing multiple offers on mid-priced properties and, overall, home prices continuing to rise.” According to the NAR, the median existing-home price was up 4.8 percent in March from year-before levels. (source)

According to the Mortgage Bankers Association’s Weekly Applications Survey, demand for loans to buy homes moved 5 percent higher last week, despite rising mortgage rates. Average rates were up 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. It was the second consecutive week mortgage rates rose. Joel Kan, MBA’s vice president and deputy chief economist, says rates have moved higher due to the continuing strength of the economy. “Rates increased for the second consecutive week, driven by incoming data indicating that the economy remains strong and inflation is proving tougher to bring down,” Kan said. “Despite these higher rates, application activity picked up, possibly as some borrowers decided to act in case rates continue to rise.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

New home construction numbers can be volatile. That’s certainly been true over the past few months. Take, for example, recent data from the U.S. Census Bureau and the Department of Housing and Urban Development. In February, the numbers showed housing starts up almost 11 percent – a sign builders were feeling optimistic and beginning to ramp up construction as the spring market approached. Then, according to the most recently released numbers, housing starts fell nearly 15 percent in March. That’s a big drop. The biggest, in fact, since the beginning of the COVID-19 pandemic in 2020. But while the numbers are down, the market may just be adjusting. For one, it’s not unusual for new home construction numbers to move erratically. Additionally, single-family groundbreaking is up double-digits from last year and builder confidence has held steady so far this spring. (source)

The number of available homes for sale is currently lower than normal. There are several reasons for this. Among them, elevated mortgage rates get a lot of the attention. After spending years near historic lows, rates have increased and it’s made some homeowners hesitant to sell and lose their rock-bottom rate. This is likely true in some cases and may be contributing to the lack of available homes. But there are, of course, many other factors – one of which was revealed by a recent survey of older Americans. Among survey participants, 78 percent said they plan to stay in their current home as they age. That’s an overwhelming majority and by far the most common answer. It also represents a lot of homeowners who have no plans to sell their homes any time soon. That means demographics may be another key factor keeping the supply of previously owned homes lower than normal, regardless of market conditions. (source)

Mortgage credit availability isn’t fixed. Depending on current lending standards and loan programs, there will be times when it’s easier to get a mortgage and times when it’s more difficult. The Mortgage Bankers Association’s Mortgage Credit Availability Index tracks whether credit is loosening or tightening each month on a scale where any increase indicates access to credit has grown. In March, the index rose 1.1 percent. It was the third consecutive monthly improvement. Joel Kan, MBA’s vice president and deputy chief economist, says the improvement was due to gains in conventional credit. “Credit availability increased in March, driven by growth in conventional credit,” Kan said. “There were increased offerings of cash-out refinance loan programs across fixed rate and ARM loans, as well as for all occupancy types.” That’s good news for potential borrowers. But while credit availability has been improving in recent months, it still remains lower than last year. (source)

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates increased last week from the week before. Rates moved higher 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 chief economist, says the economy is resilient and it’s keeping rates higher. “Mortgage rates moved higher last week as several Federal Reserve officials reiterated a patient posture on rate cuts,” Kan said. “Inflation remains stubbornly above the Fed’s target, and the broader economy continues to show resiliency. Unexpectedly strong employment data released last week further added to the upward pressure on rates.” Despite higher rates, overall mortgage loan demand was virtually unchanged from the previous week due to a spike in refinance activity. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

A “million dollar” city is one where the typical home is worth $1 million or more. These days, there are more of them than you might think. In fact, according to one new analysis, there are 550, up from 491 last year at the same time. The growing number of million dollar cities is largely due to the low inventory of homes for sale. Too few available homes has been driving prices higher for years and has continued to even after mortgage rates rose from historic lows. But while price increases have helped create more million dollar cities, they mostly remain in familiar locations. For example, 210 of them are located in California alone, with New York and New Jersey accounting for another 115. States like Georgia, Kansas, Michigan, and Maine, on the other hand, only have one each. (source)

Fannie Mae’s monthly Home Purchase Sentiment Index is based on a survey of Americans which asks for their opinion on buying/selling a home, mortgage rates, prices, their job and financial security. The index hopes to capture Americans’ general feeling about the housing market. In March, it found respondents slightly more optimistic than the month before. In fact, the share who say it’s a good time to buy was up 4 percent and the share who say it’s a good time to sell rose 2 percent. Doug Duncan, Fannie Mae’s senior vice president and chief economist, says it’s a sign consumers have adjusted their expectations. “The HPSI remained relatively flat in March, but we’re seeing signs that consumers may be adjusting their expectations for the housing market to better accommodate the higher mortgage rate and home price environment,” Duncan said. But while Americans are feeling better about buying or selling a home, they also believe prices and mortgage rates will continue to increase over the next 12 months – an indication that affordability concerns persist. (source)

When you buy a home, you’re buying into a community. That means paying property tax to help better that community. Property taxes help cover the bill for things like schools, police and fire departments, road repairs, and libraries. Necessary stuff, for sure. But though they pay for things we need, taxes are never popular. And now, according to ATTOM Data Solutions, they’ve risen. In fact, according to ATTOM’s analysis of taxes on 89.4 million single-family homes across the country, the average tax increased 4.1 percent last year, after going up 3 percent the previous year. Rob Barber, ATTOM’s CEO, says the increase was likely connected to inflation. “The tax increases were likely connected, at least in part, to inflationary pressures on the cost of operating local governments and schools, along with rising public employee wages and other major expenses,” Barber said. But while property tax is up nationally, it varies from location to location. For example, Illinois has an effective rate of 1.88 percent, the highest in the nation, while Hawaii’s effective property tax rate is just 0.31 percent. (source)