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Buying a home is a commitment. It’s not something you’re going to do every other year. So, when you’re searching for a home, you have to consider whether or not you can see yourself living there for a while. But how many years does the average homeowner spend in their home? Well, according to new numbers from ATTOM Data Solutions, fewer than before. During the first quarter of this year, homeowners who sold their homes had lived in them for an average of 7.77 years. For comparison, homeownership tenure was found to be anywhere from eight to 13 years between 2018 and 2021. It has also been much lower, falling to about 4.5 years during the early 2000s. In other words, home shoppers should consider whether or not they feel they could live in the homes they see for between five and 10 years, since, most likely, that’s how long they’ll live there. (source)

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates moved higher last week from the week before. 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. As a result, demand for loans to buy homes slowed, dropping 1 percent from the previous week. Joel Kan, MBA’s vice president and deputy chief economist, says interest in adjustable-rate mortgages has increased. “Purchase applications declined, as home buyers delayed their purchase decisions due to strained affordability and low supply,” Kan said. “The ARM share of applications increased to 7.6 percent, consistent with the upward trend in rates, as buyers look to reduce their potential monthly payments.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

New home sales surged almost 9 percent in March, according to new numbers from the U.S. Census Bureau and the Department of Housing and Urban Development. The improvement exceeded economists’ expectations and pushed new home sales 8.3 percent higher than year-before levels. The gains are mostly due to the continuing lack of existing homes available for sale. Inventory levels have been improving recently but remain lower than normal. That’s helped drive home buyers to consider new options, which has kept the new home market buzzing at a time when existing home sales have been slow. Still, mortgage rates have risen recently, which could slow the momentum in upcoming reports. In March, though, every region of the country saw increases, including a 27.8 percent spike in the Northeast. The Midwest, South, and West, saw gains between five and nine percent month-over-month. (source)

The housing market has cooled a bit from its pandemic-era boom, when buyers were on the move and locking in historically low mortgage rates. But while things aren’t as frenzied as they were in 2021, that doesn’t mean buyers should expect falling home prices. In fact, quite the opposite. According to new numbers from Fannie Mae, prices continue to rise and saw a 1.7 percent increase during the first quarter of 2024 – which is about the same rate of increase seen during the final three months of 2023. Doug Duncan, Fannie Mae’s senior vice president and chief economist, says the low supply of homes is the issue. “Home prices continued to rise in the first quarter as the housing market remained seriously supply constrained,” Duncan said. “Mortgage rates have trended upward again of late, but there is support for home prices in strong demographic demand from younger generations.” In other words, buyers are beginning to adjust to higher mortgage rates and are returning to a market low on available options. That means demand should continue to outpace supply, which will continue to put upward pressure on prices. (source)

The number of homes for sale continues to climb, according to new numbers from the National Association of Realtors. In March, total housing inventory was up nearly 5 percent from the month before and 14.4 percent higher than it was last year at the same time. That’s certainly good news for buyers. But though improved, inventory remains lower than normal. In fact, at the current sales pace, there is a 3.2-month supply of homes for sale. A 6-month supply is considered a balanced market. Lawrence Yun, NAR’s chief economist, says improving inventory is positive but the market still favors home sellers. “More inventory is always welcomed in the current environment,” Yun said. “Frankly, it’s a great time to list with ongoing multiple offers on mid-priced properties and, overall, home prices continuing to rise.” According to the NAR, the median existing-home price was up 4.8 percent in March from year-before levels. (source)

According to the Mortgage Bankers Association’s Weekly Applications Survey, demand for loans to buy homes moved 5 percent higher last week, despite rising mortgage rates. Average 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. It was the second consecutive week mortgage rates rose. Joel Kan, MBA’s vice president and deputy chief economist, says rates have moved higher due to the continuing strength of the economy. “Rates increased for the second consecutive week, driven by incoming data indicating that the economy remains strong and inflation is proving tougher to bring down,” Kan said. “Despite these higher rates, application activity picked up, possibly as some borrowers decided to act in case rates continue to rise.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

New home construction numbers can be volatile. That’s certainly been true over the past few months. Take, for example, recent data from the U.S. Census Bureau and the Department of Housing and Urban Development. In February, the numbers showed housing starts up almost 11 percent – a sign builders were feeling optimistic and beginning to ramp up construction as the spring market approached. Then, according to the most recently released numbers, housing starts fell nearly 15 percent in March. That’s a big drop. The biggest, in fact, since the beginning of the COVID-19 pandemic in 2020. But while the numbers are down, the market may just be adjusting. For one, it’s not unusual for new home construction numbers to move erratically. Additionally, single-family groundbreaking is up double-digits from last year and builder confidence has held steady so far this spring. (source)

The number of available homes for sale is currently lower than normal. There are several reasons for this. Among them, elevated mortgage rates get a lot of the attention. After spending years near historic lows, rates have increased and it’s made some homeowners hesitant to sell and lose their rock-bottom rate. This is likely true in some cases and may be contributing to the lack of available homes. But there are, of course, many other factors – one of which was revealed by a recent survey of older Americans. Among survey participants, 78 percent said they plan to stay in their current home as they age. That’s an overwhelming majority and by far the most common answer. It also represents a lot of homeowners who have no plans to sell their homes any time soon. That means demographics may be another key factor keeping the supply of previously owned homes lower than normal, regardless of market conditions. (source)

Mortgage credit availability isn’t fixed. Depending on current lending standards and loan programs, there will be times when it’s easier to get a mortgage and times when it’s more difficult. The Mortgage Bankers Association’s Mortgage Credit Availability Index tracks whether credit is loosening or tightening each month on a scale where any increase indicates access to credit has grown. In March, the index rose 1.1 percent. It was the third consecutive monthly improvement. Joel Kan, MBA’s vice president and deputy chief economist, says the improvement was due to gains in conventional credit. “Credit availability increased in March, driven by growth in conventional credit,” Kan said. “There were increased offerings of cash-out refinance loan programs across fixed rate and ARM loans, as well as for all occupancy types.” That’s good news for potential borrowers. But while credit availability has been improving in recent months, it still remains lower than last year. (source)