Monthly Archives: July 2024

Home buyers got a bit of a break in May, according to new numbers from the Mortgage Bankers Association. The MBA tracks mortgage payments each month with its Purchase Applications Payment Index – which measures mortgage payments relative to income. In May, the index fell 1.6 percent, indicating affordability improved. In fact, the national median mortgage payment fell to $2,219 from $2,256 the month before. For borrowers applying for lower-payment mortgages, the median payment fell to $1,508. Edward Seiler, MBA’s associate vice president, housing economics, and executive director, Research Institute for Housing America, says mortgage rates calmed in May after spiking in April. “Home buyer affordability conditions improved in May as slightly lower mortgage rates and an uptick in housing inventory slightly eased the recent rise in application payment amounts,” Seiler said. The MBA is forecasting further affordability improvement as the year goes on, with lower rates and slowing home-price growth in the months ahead. (source)

The S&P Case-Shiller Home Price Index has been tracking home prices for decades and is among the most closely followed measures of US home values. The index is based on a three-month moving average and covers all nine census divisions. According to the most recent release, home prices continue to rise, though at a slightly slower pace than before. For example, the National Index found prices up 6.3 percent from last year at the same time, which is just short of the 6.5 percent year-over-year gain found in last month’s report. Brian D. Luke, head of commodities, real & digital assets at S&P, says prices look to be on a similar path as last year. “2024 is closely tracking the strong start observed last year, where March and April posted the largest rise seen prior to a slowdown in the summer and fall,” Luke said. “Heading into summer, the market is at an all-time high, once again testing its resilience against the historically more active time of the year.” (source)

The number of contracts to buy homes signed in May fell 2.1 percent from the month before, according to new numbers from the National Association of Realtors. The decline was mostly due to a more than 5 percent drop in the South. The West and Northeast both saw increases, while the Midwest was relatively flat from the month before. The numbers are more evidence that the spring market has been slower than expected. Lawrence Yun, NAR’s chief economist, thinks we may be at a turning point. “The market is at an interest point with rising inventory and lower demand,” Yun said. “Supply and demand movements suggest easing home price appreciation in upcoming months … In the second half of 2024, look for moderately lower mortgage rates, higher home sales, and stabilizing home prices.” If he’s right, it’ll be good news for prospective home buyers, getting ready to start shopping homes for sale. (source)