Monthly Archives: October 2024

Demand for mortgage applications slowed last week from one week earlier, according to new data from the Mortgage Bankers Association. The MBA’s Weekly Applications Survey found application demand down 17 percent week-over-week as average mortgage rates continued to move higher after several late-summer declines. Joel Kan, MBA’s vice president and deputy chief economist, says rates were up for the third straight week. “Mortgage rates moved higher for the third consecutive week, with the 30-year fixed rate increasing to … its highest level since August,” Kan said. 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. Still, even at a two-month high, rates remain significantly lower than they were earlier this year. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

It’s election season again and America’s pundits and prognosticators are scouring the polls attempting to predict the outcome. But while there’s a lot of talk about the candidates and their positions, there is one potential factor that doesn’t get as much airtime: interstate movers. That’s right. Americans moving from one state to another could affect the results of this and future elections, according to a new analysis from the National Association of Realtors’ consumer website. Danielle Hale, the website’s chief economist, says even small changes can have an impact. “As more people move across state lines, their voting habits could have the potential to sway election outcomes, especially in crucial swing states, where even small changes in the electorate can tip the scales,” Hale said. Alaska, Colorado, Illinois, Minnesota, New York, and Ohio are among the states the report pinpoints as possibly having a changed electorate since 2020. (source)

The typical home buyer calculating the costs of homeownership doesn’t spend as much time thinking about insurance premiums as they do mortgage rates and home prices. After all, the cost of homeowners insurance is relatively small when compared to the big-ticket items buyers have to consider. Still, after recent storms in the Southeast, homeowners insurance is becoming a hot topic. Mostly, Americans are concerned about the availability and cost of insurance in areas affected by severe weather – which, of course, is everywhere at one time or another. According to a recently conducted survey, 23 percent of respondents believe their insurance premiums will rise as a result of recent storms and 13 percent say they believe it will be harder for them to get insurance at all. Of course, due to the hurricanes, those numbers were higher in the South, where 32 percent said they believe they’ll see higher premiums and 20 percent said they worry they’ll be unable to get insurance. Wherever you are, though, it’s worth thinking about, especially if you’re a soon-to-be buyer calculating the potential costs of owning a home. (source)

There are a lot of financial calculations involved in buying a home. Buyers need to figure out their down payment, what their prospective mortgage rate might be, their price range, what the monthly mortgage payment will look like, etc. It’s a long list – and too often, it’s a list that doesn’t take into account future renovations. If you own a home, you’ll have to do a major renovation sooner or later. In fact, according to one recent survey of current homeowners, 94 percent said they’d completed a major project in the past five years. That includes bathroom remodels, interior painting, HVAC upgrades, roofs, plumbing upgrades, kitchens, landscaping, flooring and more. As a homeowner, you can put off some of those jobs. Others, though, will be unavoidable. That’s why it’s important to plan for home improvement in advance. Having some money tucked away for necessary projects and maintenance will help, especially if you, like 78 percent of survey respondents, end up going over budget. (source)

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates moved higher last week from one week earlier. 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. The increase was due to stronger-than-expected economic news, including the September jobs report. Mike Fratantoni, MBA’s senior vice president and chief economist, says buying conditions are still favorable. “As we have highlighted before, the decision to buy a home is impacted by many factors, not just the level of mortgage rates,” Fratantoni said. “The largest constraint for many prospective home buyers over the past year had been the lack of inventory. Now, there are more homes available in many markets across the country, and with mortgage rates still low compared to recent history, at least some potential home buyers are moving ahead.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

Have you thought about moving lately? If so, you’re not alone. In fact, according to one new survey of current homeowners, 72 percent said they’re ready to pack up and find a new place to live. Last year, by comparison, only 35 percent said the same. That’s a sizable increase and a significant amount of pent-up buyer demand in the market, particularly among current homeowners. So what’s behind Americans’ growing desire to move? Mostly, affordability conditions. Many Americans want to buy but have been holding off, waiting for conditions to improve. For example, the same survey found about half of the participants who said they were ready to move also said they’ve had their plans on hold due to high home prices and mortgage rates. That means there are a lot of potential buyers waiting for the right time. Fortunately, buying conditions have begun to show improvement, which may be enough to motivate some of the roughly 20 percent of prospective movers who say they’d like to move but don’t believe they’ll actually do it. (source)

Fannie Mae’s monthly Home Purchase Sentiment Index is based on a survey of Americans that asks for their feelings about buying and selling a home, mortgage rates, prices, their financial situation, and job security. In September, the index rose 1.8 points to its highest level in two years. And while the number of respondents who say it’s a good time to buy a home is still low, optimism about mortgage rates has reached a survey high, with 42 percent of respondents saying they expect rates to fall over the next year. Mark Palim, Fannie Mae’s senior vice president and chief economist, says optimism is rising but it has yet to result in boosted home sales. “Increased positivity that mortgage rates will continue to fall has driven the HPSI to a 30-month high, but we’ve yet to see consumers’ newfound rate optimism translate into a meaningful increase in home sales activity,” Palim said. (source)

Affording a home got easier in August, according to newly released numbers from the Mortgage Bankers Association. The MBA’s monthly Purchase Applications Payment Index measures the national median mortgage payment applied for by home buyers and, in August, the index found payments fell. In fact, the median payment was down nearly 4 percent from the previous month, bringing it to $2,057 from $2,140 the month before. The improvement continues a trend. “Home buyer affordability conditions improved for the fourth consecutive month, with lower mortgage rates, rising incomes, and slower home-price growth giving prospective buyers’ budgets a much-needed boost,” Edward Seiler, MBA’s associate vice president, Housing Economics, and executive director of the Research Institute for Housing America, said. “MBA expects that lower mortgage rates, coupled with increasing housing inventory, will entice additional home buyers to enter the housing market.” For borrowers applying for lower-payment mortgages, the national payment fell to $1,388 from $1,444. (source)

In a fast moving market, home buyers have to make big decisions quickly. Spend too much time deliberating over whether or not to make an offer and you may just lose your chance. That’s been the case in recent years, and certainly during the pandemic. Too few homes for sale combined with a surge of interested buyers meant a good home for sale could be off the market in a matter of days. That’s why it’s good news for buyers that inventory has since improved and, according to one recent analysis, so has the amount of time the typical home spends on the market. In fact, the data shows this September was the slowest since 2019, with homes for sale typically spending 55 days on the market. That’s two days slower than August and a full week slower than last September. It’s also an encouraging sign for buyers hoping for a less stressful – and more successful – home shopping experience. (source)