Monthly Archives: May 2024

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell again last week. It was the second consecutive week of declines. Rates fell across most loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 5/1 ARMs. Joel Kan, MBA’s vice president and deputy chief economist, says rates are at the lowest level in over a month. “Treasury yields continued to move lower last week and mortgage rates declined for the second week in a row, with the 30-year fixed rate down 10 basis points to … the lowest level since early April,” Kan said. Despite improved rates, however, demand for loans to buy homes declined week-over-week due to a drop in FHA purchase applications. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

The Federal Reserve Bank of New York conducts an annual survey of Americans that asks for their opinion on everything from the housing market to inflation and household finances. According to the most recent results, Americans are feeling pessimistic about housing affordability but are optimistic about homeownership as an investment. Survey respondents say they believe mortgage rates will rise over the next year – though they also say there’s a 61 percent chance they fall over the next 12 months. Home prices, according to participants, should grow 5.1 percent over the next year. That’s up from last year when respondents said prices would rise 2.6 percent. But while respondents are clearly concerned about affordability conditions, they also believe strongly in the financial benefits of owning a home. In fact, 67.1 percent said buying a property in their zip code was a “very good” or “somewhat good” investment, which is well above the level commonly seen during the pre-pandemic period. (source)

A borrower’s ability to get a loan depends on a number of different things. Their financial situation, income, and savings play a big role, of course. Lending standards and the number of available loan programs do too. That means there are times when it’s easier to obtain a mortgage and others when it’s more difficult. The Mortgage Bankers Association’s tracks this each month with their Mortgage Credit Availability Index. When the index increases, it indicates that mortgage credit has become more available. When it falls, credit has gotten tighter. In April, the MBA found credit loosened, though the improvement was slight. Joel Kan, MBA’s vice president and deputy chief economist, says credit has stabilized, but at a low level. “Mortgage credit availability was little changed in April, with credit categories such as conventional, conforming, and jumbo seeing very small monthly gains,” Kan said. “The supply of credit has stabilized, expanding slightly over the past four months but remaining close to 2012 lows.” (source)

Nostalgia can be powerful. It can make you wistful for people, places, and days gone by. According to one new survey, it can even make you wish you could buy your childhood home and move back to the old neighborhood. The survey, which asked participants if they’d buy the home they grew up in, found a lot of us would. In fact, 44 percent of respondents said they’d buy their childhood home if cost weren’t an issue. Among younger Americans, the numbers were even higher. Nearly two-thirds of survey participants born in the 1980s said they’d like to move back home and 55 percent of those born in or after 1990 agreed. But while large percentages of Americans say they’d buy their childhood home if they could, that wish may have more to do with nostalgia for the carefree days of childhood than it does the actual layout and features of the house itself. (source)

A home is considered equity rich when the loan balances secured by the property are no more than half the home’s estimated value. In other words, if your home is worth twice what you owe on it, you’re equity rich. That’s a good situation for a homeowner to be in and, according to ATTOM Data Solutions, a lot of homeowners are currently reaping the benefits. “Homeowner balance sheets continue to benefit in a huge way from the boom times in the form of elevated equity that can be used to help finance all kinds of things, from home renovations to business startups,” Rob Barber, ATTOM’s CEO, says. But just how many homes can be considered equity rich? Well, according to ATTOM’s analysis, 45.8 percent of all mortgaged residential properties were equity rich in the first quarter. That’s down from 46.1 percent at the end of last year and about 1.5 percent lower than the first quarter of 2023. But while the number of equity rich properties has fallen over the past 12 months, it remains high. According to Barber, the spring buying season will help determine whether it continues to trend lower or a new long-term market pattern develops. (source)

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell last week from one week earlier. Rates were down across most 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. Mike Fratantoni, MBA’s senior vice president and chief economist, says the declines were due to a slower job market. “Treasury rates and mortgage rates fell last week on the news of a slowing job market, with wage growth at the slowest pace since 2021, and the Federal Reserve’s announced plans to ease quantitative tightening in June and to maintain its view that another rate hike is unlikely,” Fratantoni said. The news led to a 2 percent increase in demand for loans to buy homes. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

Housing market sentiment has plateaued, according to a new survey from Fannie Mae. Its monthly Home Purchase Sentiment Index asks participants for their feelings about buying/selling a home, mortgage rates, prices, their job, and financial situation. The latest results show consumer sentiment was largely unchanged from one month earlier, as Americans wait to see whether market conditions improve. Doug Duncan, Fannie Mae’s senior vice president and chief economist, says consumers are adjusting. “We think consumers’ generally improved sense of home-selling conditions bodes well for listings and housing activity, particularly for the segment of the population who may need to move for lifestyle reasons and have already begun adjusting their financial expectations to the current mortgage rate and price environment,” Duncan said. “However, for potential home buyers in less of a rush to transact, ongoing affordability challenges may continue to keep many of them on the sidelines.” (source)

Choosing a home to buy is a big decision. It’s also one that you may not have a lot of time to make. Inventory is still low in most markets across the country and that means homes for sale sell quickly – especially good ones. These days, interested buyers have to act fast if they see something they like. But how fast? Well, how long a home spends on the market depends a lot on where it’s located. In some parts of the country, homes are selling faster than others. A recent analysis looked at the top 100 most populated metro areas and ranked them by how quickly homes sold during the first quarter of this year. What it found was homes are selling fastest in the Northeast and Midwest and slowest in the South. Hartford, Connecticut had the fastest market, with a median of seven days spent on the market. The slowest selling markets were Austin and McAllen, Texas. Overall, though, time on market is increasing. In fact, the analysis found that, out of the top 100 metros, 95 saw the median days on market increase during the first quarter. (source)

As a home buyer, you want more homes on the market. Not only will it increase the likelihood that you’ll find one that fits your needs and lifestyle, it’ll also help keep prices in check. Simply put, if the inventory of homes for sale is rising where you’re looking to buy, you’re going to have an easier time. The good news, according to new numbers from the National Association of Realtors’ consumer website, is active inventory is rising. In fact, it was up almost everywhere in April. Active inventory spiked in all four regions of the country compared to year-before levels. The South saw the biggest gains, with inventory up 43 percent year-over-year. Elsewhere, the West experienced a 27.4 percent increase and the Midwest was up 17.6 percent, while the Northeast climbed 4 percent. Rising inventory is a good sign for home buyers and, if the trend continues, will lead to a better balanced – and less volatile – housing market. (source)

Spring is home selling season and the month of May is right in the middle of it. That makes it a great time to list a house for sale. In fact, according to a new analysis from ATTOM Data Solutions, it’s the best month of the year to sell a home. Why? Well, ATTOM looked at 59 million home sales over the past 13 years to determine how much above their estimated market value homes sold for in each month of the year. What it found was that home sellers who listed in May saw the biggest premiums at 13.1 percent above market value. That’s a significant benefit to listing your home now as opposed to later in the year. But while May leads the list, other months aren’t that far behind. According to the results, February, March, April, and June all have premiums above 12 percent, with June sellers seeing a 12.4 percent premium. That means, if you’re not ready to sell just yet, you’ll still have a chance to get your home on the market in time to enjoy a spring premium. (source)