Monthly Archives: April 2025

Economic uncertainty has home builders concerned but an early-spring mortgage rate retreat helped bump builder confidence higher, according to the latest results of the National Association of Home Builder index. The index, based on a monthly survey, measures how optimistic home builders are on a scale where any number above 50 indicates more builders view conditions as good than poor. In April, the index bumped up one point to 40. Buddy Hughes, NAHB’s chairman, says builder confidence was helped by rates. “The recent dip in mortgage rates may have pushed some buyers off the fence in March, helping builders with sales activity,” Hughes said. “At the same time, builders have expressed growing uncertainty over market conditions as tariffs have increased price volatility for building materials at a time when the industry continues to grapple with labor shortages and a lack of buildable lots.” Despite the challenges, the index component measuring current sales conditions rose two points in April. (source)

According to the Mortgage Bankers Association’s Weekly Application Survey, average mortgage rates spiked 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. Mike Fratantoni, MBA’s senior vice president and chief economist, says the increase slowed mortgage demand. “Mortgage rates moved 20 basis points higher last week, abruptly slowing the pace of mortgage application activity with refinance volume dropping 12 percent and purchase volume falling 5 percent for the week,” Fratantoni said. “Purchase volume remains almost 13 percent above last year’s level, but economic uncertainty and the volatility in rates is likely to make at least some prospective buyers more hesitant to move forward with a purchase.” Overall, the Market Composite Index – which measures both refinance and purchase activity – was down 8.5 percent week-over-week. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

For the most part, home buyers aren’t looking to move too far from home. In fact, 60 percent of us live within 10 miles of our childhood home, according to numbers from Consumer Affairs. That means most us who are thinking about making a move are thinking about moving within our own state. But which state has the most in-state movers? A new study looked at the numbers. It found the state best at keeping its residents was Texas, with 93 percent of Texans looking for a house somewhere in Texas. Next up was Michigan at 92 percent, followed by Wisconsin, Ohio, Minnesota, Oklahoma, and Missouri. Based on the number of midwestern states on the list, affordability could be a big factor in which states keep the most residents. After all, the Midwest is still the country’s most affordable region for home buyers. On the other end of the list, Alaska, Hawaii, and Rhode Island were the places that saw the most movers leaving for another state. (source)

The Mortgage Bankers Association’s Mortgage Credit Availability Index is a monthly measure of whether obtaining a mortgage has become easier or more difficult for borrowers. A decline in the Index indicates lending standards have tightened while an increase means credit has loosened. In March, the Index rose 2.5 percent. That’s good for potential buyers, as it means their ability to secure financing has improved. Joel Kan, MBA’s vice president and deputy chief economist, says credit availability is now at its highest level in years. “Mortgage credit availability increased to its highest level since January 2023, driven by growth in cash-out refinance programs, as recent mortgage rate volatility has opened the door for some borrowers to refinance” Kan said. “The credit supply growth was primarily in conventional programs, with jumbo availability at its highest in five years. Government credit availability was essentially unchanged over the month.” (source)

Every successful home buyer becomes a mover. But when you’re caught up in the home search, moving can seem too far off in the future to think about yet. After all, you’ve got a lot to do first before you can start planning for your new house. That’s true, but it’s still smart to get an idea of what you might spend settling into your new place. Especially since, according to a new analysis from the National Association of Realtors’ consumer website, it can be a significant amount. In fact, the analysis found home buyers spend nearly $17,000 getting their new home set up. That means everything from upgrades and updates to getting internet service set up and buying cleaning products. Laura Eddy, vice president of research and insights at the website, says moving can be stressful but also a relief. “Traditionally, moving is seen as a disruptive life event, but our research found that moving is a mix of joy, excitement, and relief after the stress of the buying process …” Eddy said. “It’s a moment of possibility – one where people are open to trying new things and spending both time and money to settle into their new homes.” (source)

There are a lot of costs associated with owning a home but the monthly mortgage payment is the big one. It’s also the measuring stick prospective home buyers use when determining whether or not they’ll be able to afford a particular home. That’s why the Mortgage Bankers Association keeps a monthly gauge of median payments based on loans applied for by buyers. According to their most recently released data, mortgage payments ended the winter flat. Edward Seiler, MBA’s associate vice president, housing economics, and executive director, Research Institute for Housing America, says February data showed little movement. “Home buyer affordability conditions remained unchanged in February as many home buyers continue to weigh their options on entering the housing market amid economic uncertainty and slowly declining mortgage rates,” Seiler said. “While February’s data reflects little movement, we do expect that rising housing inventory, coupled with lower mortgage rates, will spur additional activity in the housing market.” As it stands, the typical monthly payment was $2,205 in February. For borrowers applying for lower-payment mortgages, payments fell to $1,506. (source)

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell week-over-week to the lowest level since last October. Rates were down last week 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. Favorable rates helped spur a 20 percent surge in mortgage applications. Joel Kan, MBA’s vice president and chief economist, says borrowers took advantage of the dip. “Both home buyers and refinance borrowers were quick to take advantage of this dip in rates, driving the purchase index 24 percent higher than a year ago to the strongest pace since January 2024,” Kan said. Refinance activity rose 35 percent from the week before, while purchase application demand was up 9 percent. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

New home construction is good for the housing market. When more homes are built, it keeps prices in check and offers buyers more options. Over the past few years, new home construction has ramped up and helped reduce some of the housing market’s inventory problem. It’s also helped reduce price spikes. But the rate of new home construction – and the cost of a new home – depends in part on the price of materials. So how will newly announced tariffs affect the housing market and home prices? Well, according to the National Association of Home Builders, it depends. “While the complexity of these reciprocal tariffs makes it hard to estimate the overall impact on housing, they will undoubtedly raise some construction costs,” NAHB chairman, Buddy Hughes, said in a statement. But while Hughes acknowledged potential increases, he also noted that there is currently an exception for materials imported from Canada and Mexico, like lumber, gypsum, and concrete, which will help reduce the effect. (source)

There are roughly 19 million Americans living in homes with more than two people per bedroom, according to the results of a new analysis. That means roughly 6 percent of all Americans who live in homes live in overcrowded homes. That’s a relatively small number when compared to the 38.1 percent of Americans who live in houses with extra bedrooms. Nevertheless, 19 million is a lot of Americans. So, what’s behind the number of overcrowded homes? Well, some of it may be multi-generational households – meaning those with three or more generations living in the same house. But based on the list of states with the most overcrowded homes, the primary driver seems to be affordability. The analysis found states with higher housing costs, like California, Hawaii, and New York were the states with the most overcrowded homes, while overcrowding was less common in rural areas and states like Vermont, West Virginia, New Hampshire, and Maine. (source)

There are a lot of ways to measure how affordable it is to buy a home. Time isn’t usually among them. But one new analysis decided to use it anyway. The analysis, conducted by the National Association of Realtors’ consumer website, looked at how many days of work, at an average wage, it takes to pay the typical monthly mortgage payment in each state. It found quite a spread. On the one end, mortgage payments in states like Hawaii, California, Massachusetts, and Montana all took more than two weeks of work to afford. On the other, midwestern states like Ohio, Kansas, Missouri, Indiana, Illinois, and Michigan all came in around a week. Nationally, the “magic number” was 10. Charlie Lankston, the website’s executive editor, says there are a couple of factors behind the numbers. “The number of workdays required to afford a home today stems from a couple of factors,” Lankston said. “First, home prices have risen faster than incomes, widening the gap between earnings and housing costs. Second, elevated mortgage rates have increased borrowing costs, further stretching monthly budgets.” (source)