Monthly Archives: January 2025

According to the Mortgage Bankers Association’s Weekly Applications Survey, demand for mortgage applications skyrocketed last week. The MBA’s Market Composite Index – which measures both refinance and purchase demand – was up 33.3 percent from one week earlier. Joel Kan, MBA’s vice president and chief economist, says the spike may be due to seasonal volatility. “This time of the year is a particularly volatile time for application volumes, so it can be more helpful to focus on the level rather than the percentage change,” Kan said. “Purchase applications were 2 percent lower, and refinances were 22 percent higher compared to a year ago.” Also in the report, average mortgage rates continue to climb, as economic concerns over inflation and budget deficits persists. Last week, rates were up for 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 5/1 ARMs. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

The average age of first-time home buyers is rising. Last year, it was 38 years old – up three years from 35 years old in 2023. The reason is simple. Buying a home has become more expensive and younger buyers face financial challenges older, repeat buyers don’t. Having to save a down payment from scratch, for example. That’s caused the average American to wait a little longer before becoming a homeowner. It’s also caused millennial buyers to consider overlooking a home’s issues in order to buy sooner. What are some of the things millennial home buyers say they’re willing to overlook in a home for sale? Well, according to a new survey, quite a lot. Topping the list of issues millennials are willing to overlook was a house that smells like cigarette smoke. Fifty-seven percent said they’d buy a smokey home. Asbestos was next on the list with 41 percent of respondents saying they’d buy a house that contained the toxic material. Other notable items younger buyers are willing to overlook included pests, a leaky roof, foundation issues, termites, crime, and mold. (source)

When you buy a home, you become a property manager. Which means you’re responsible for the home’s maintenance and upkeep. Everything from cutting the lawn and pulling weeds to maintaining the HVAC system is now your responsibility. It can take some work. It also takes some money. In fact, according to one new survey, 46 percent of homeowners said they spent more than $5,000 last year on unexpected repairs. That’s a 10 percent jump from the year before and pretty good evidence that new homeowners should prepare an emergency fund to handle any trouble that may come along. And it will. Among surveyed homeowners, 83 percent said they encountered an unexpected repair last year and almost half said it strained their household budget. Among the most commonly reported issues, roof repairs, door and window problems, and water damage from flooding led the list. (source)

A first-time home buyer’s priorities aren’t much different than any other buyer. After all, what home buyer isn’t looking for a good house in an affordable area that will see a great return on investment? That could describe just about everyone looking for a home to buy. But while we’re all mostly searching for the same things, first-time buyers do face some unique challenges, especially when home prices and mortgage rates are high. That’s why the National Association of Realtors’ consumer website compiled a list of the best markets for young buyers. Not all markets are the same and some offer better deals on houses in locations that are both near needed amenities and job opportunities but also are a fit for growing families. Where are they? Well, according to the analysis, six of the top 10 best markets for first-time buyers are in the South, with half of those in the state of Florida. The Mid-Atlantic also fares well, with Harrisburg, Penn landing the top spot and Rochester and Tonawanda, NY making the top 10. (source)

On TV, renovations are quick, easy, and always end in a job done perfectly. You don’t see the dust or endure weeks without access to your kitchen or bathrooms. You certainly don’t ever see a contractor who cuts corners, doesn’t finish the work, or does a poor job. In other words, renovations can be challenging. Maybe that’s why a recent survey of prospective home buyers found that 56.1 percent of them say the most important factor when searching for a home to buy is finding one that is move-in ready and needs no repairs. An additional nearly 40 percent listed a move-in ready home as somewhat important to them. But while a substantial number of potential buyers say they’re looking to avoid renovations and repairs, 54.8 percent said they’d compromise and buy a fixer-upper if that’s what was available. Are you willing to consider a home that needs work? (source)

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates moved higher last week for 30-year fixed-rate loans with conforming loan balances and 15-year fixed-rate loans. Jumbo loans, loans backed by the Federal Housing Administration, and 5/1 ARMs all saw slight declines. Still, rates remain elevated and that brought demand for mortgage applications down 3.7 percent last week from the week before. Joel Kan, MBA’s vice president and deputy chief economist, says demand for loans to buy homes was at its lowest level since last February. “Applications decreased last week as rising mortgage rates continued to discourage buyers from entering the market and put a damper on purchase activity,” Kan said. “Purchase applications declined for both conventional and government loans and dropped to the slowest weekly pace since February 2024.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

Each month, Fannie Mae surveys Americans and asks for their opinions on the housing market and economy. Participants weigh in on everything from mortgage rates and home prices to whether it’s a good time to buy or sell a home and how they feel about their job and financial situation. The resulting Home Purchase Sentiment Index then distills that information into a single number that reflects how Americans view housing market conditions. In December, the index fell 1.9 points to 73.1, which is lower than the previous month but substantially higher than it was at the same time last year. Mark Palim, Fannie Mae’s senior vice president and chief economist, says the gains are due to optimism about mortgage rates. “Even though the HPSI fell to end the year, consumer sentiment toward the housing market finished 2024 substantially above year-ago levels, attributable in part to respondents’ ongoing expectations that mortgage rates will decline,” Palim said.” According to the results, 42 percent of participants said they believe rates will fall over the next 12 months, while 25 percent said they expect higher rates and 32 percent expect rates to stay the same. (source)

Generally speaking, people want to live close to family, friends, and work, which is why most buyers choose a home relatively close to where they currently live. But there are many reasons somebody might have to move and sometimes they require traveling a greater distance – including to another state altogether. A recent analysis looked at people who left their home state to find out which states are most popular with long-distance movers. It found some established trends. For one, Americans are moving south. The top state for movers who crossed state lines in 2024 was South Carolina, which toppled Texas for the top spot after the lone-star state won in 2023. Other popular destinations that made 2024’s list included North Carolina, Florida, and Tennessee. Southern states are popular for a few reasons but the most important may be affordability. After all, states with a higher cost of living are the ones losing the most residents, including New York, New Jersey, Massachusetts, and California each of which landed near the bottom of the list. (source)

The internet is likely the first place you’ll go when you decide to buy a home. It’s the quickest way to get a feel for your local housing market. It’s also a great way to find out your priorities. After all, the first terms you enter when you search for homes to buy are likely the ones that are most important to you. So, what are some common home shopper search queries? Well, according to a new analysis of search-term trends, last year’s most searched-for attributes were a combination of function and fantasy. Utility items like garages and patios made the list alongside more aspirational searches for beachfront property and luxury homes. The most popular search term of 2024, though, was “ranch,” followed by “lake,” “duplex,” “cabin,” and “farm.”  There were some regional differences as well, with buyers in warm-weather states preferring homes with a pool and shoppers in Mississippi prioritizing backyards. One home buyer in Colorado even searched for a home with a roller coaster, while “spooky” and “haunted” houses were popular with buyers in 22 states. (source)

According to the Mortgage Bankers Association’s Weekly Application Survey, demand for mortgage loan applications fell more than 20 percent last week from two weeks earlier. The decline, however, was no surprise. The end of the year is always slow. Mike Fratantoni, MBA’s senior vice president and chief economist, says this year’s holiday slowdown was aided by higher mortgage rates. “Mortgage rates moved higher through the last full week of 2024 …” Fratantoni said. “Not surprisingly, this increase in rates – at a time when housing activity typically grinds to a halt – resulted in declines in both refinance and purchase applications.” Rates rose across most loan categories, with increases seen for 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. Rates for 5/1 ARMs fell over the final two weeks of 2024. The MBA’s survey has been conducted weekly since 1990 and covers 75 percent of all retail residential mortgage applications. (source)