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Part of shopping for a house to buy is calculating whether or not you’ll be able to comfortably afford the monthly mortgage payment. Nobody wants to buy a house that causes them financial stress. So figuring out your approximate payment and how that fits into your monthly budget is key to choosing a house that’s right for you. Of course, having a steady job and a consistent income will help make your mortgage payment easier to manage. Which is why the improved job market is among the reasons credited for new numbers showing mortgage delinquencies at record lows. According to the data, late mortgage payments have fallen to a nearly 20-year low. Just in the past year, they’re down 7.5 percent and, combined with foreclosure starts falling to a more than 18-year low, the improvement represents a major turnaround from where things were following the financial crisis and housing crash. But it isn’t really that surprising. After all, the labor market has been stronger in recent years. And with increased job security and growing wages, more homeowners have been able to avoid financial stress and stay on top of their payments. More here.

Sales of previously owned, single-family homes increased 2.5 percent in May, according to new numbers from the National Association of Realtors. The gains follow two months of declines and are evidence that home buyers are responding to improved affordability conditions. Lawrence Yun, NAR’s chief economist, says, purchase power is up. “The purchasing power to buy a home has been bolstered by falling mortgage rates, and buyers are responding,†he said. But though favorable buying conditions are good for potential house hunters, increasing demand comes with its own set of challenges. For example, the typical property was on the market just 26 days in May. Additionally, 53 percent of homes sold were on the market for less than a month. In other words, good homes are selling fast. That means, home buyers looking for a house this summer need to prepare for competition. Before heading out to look at houses, buyers should make sure their finances are in order, they’re prequalified to borrow, and that they’re ready to make an offer when they find a house that fits their life and budget.

The number of homes for sale is lower than normal in many markets. So, any indication that relief may be on the way is good news for potential home buyers. That’s why the results of a recent survey conducted by the National Association of Realtors are encouraging. The survey found a significant increase in the number of respondents who said they believe now is a good time to sell a home. In fact, 46 percent of participants said they thought so – up from 37 percent in the first quarter. What’s driving the boost in optimism? Well, according to Lawrence Yun, NAR’s chief economist, home price increases have slowed and it might be motivating homeowners. “With home price appreciation slowing, home sellers understand that the days of large price gains from holding an extra year are over,†Yun said. In other words, homeowners who may’ve been waiting to see how much higher home prices would climb may now be ready to sell. If more Americans put their homes up for sale, it will help to relieve inventory shortages and lead to a better balanced housing market. More here.

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates increased last week following six consecutive weeks of declines. And, while the increase was slight, it was enough to cause a drop in overall mortgage application demand. Joel Kan, MBA’s vice president of economic and industry forecasting, said refinance activity was particularly affected. “After seeing a six-week streak, mortgage rates for 30-year loans increased slightly, which led to a pullback in overall refinance activity,†Kan said. But though week-over-week demand was down, it remains up from one year ago. In fact, applications for loans to buy homes are now four percent higher than they were at the same time last year. Kan says younger buyers are driving the improvement, noting that “strong demand from first-time buyers and low unemployment continue to push this year’s purchase activity above a year ago.†Conducted since 1990, the MBA’s weekly survey covers 75 percent of all retail residential mortgage applications. More here.

Obviously, there’s a link between the economy and housing market. When the economy isn’t doing well, it tends to affect people’s money and confidence. And, if people aren’t feeling financially secure, that can lead them to put off making a major purchase like buying a home. After all, no one wants to buy a home right before the economy tanks and prices crash. But, according to the most recent outlook from Fannie Mae’s Economic and Strategic Research Group, there are also times when that link isn’t as direct. For example, the group – who’s monthly forecast covers both the economy and housing market – says softening global economic conditions will lead to slower economic growth this year and in 2020. But though they believe the economy will slow, they are more positive when it comes to the housing market. “We expect housing to add to growth for the foreseeable future, and our projection of a 1.0 percent year-over-year increase in home sales in 2019 remains unchanged,” Doug Duncan, Fannie Mae’s chief economist said. “Moderating home price appreciation and attractive mortgage rates continue to support affordability, particularly as home builders are now paying more attention to the entry-level portion of the housing market.” More here.

The National Association of Home Builders’ Housing Market Index is a monthly measure of interest in the new home market. The survey asks builders for their view of current conditions and is considered an important indicator, since home builders have an unique perspective on things like buyer demand and foot traffic. According to the most recent survey, home builders remain solidly optimistic about demand for new single-family homes, though there are a number of lingering concerns. Robert Dietz, NAHB’s chief economist, says the market’s current challenges are particularly daunting for first-time and entry-level buyers. “Despite lower mortgage rates, home prices remain somewhat high relative to incomes, which is particularly challenging for entry-level buyers†Dietz said. “And while new home sales picked up in March and April, builders continue to grapple with excessive regulations, a shortage of lots and lack of skilled labor that are hurting affordability and depressing supply.†Still, despite these challenges, regional results show, over the past three months, only the South has seen a drop in confidence, while the Northeast, Midwest, and West have all made gains or remained steady. More here.

Naturally, when there are more home buyers than homes for sale, prices and competition increase. That’s why, the fact that there are a lower than normal number of homes for sale ranks high among the main issues affecting today’s home buyer. But what are the factors causing for-sale inventory to lag in markets across the country? Well, one of them is that an increasing number of homeowners have decided that, rather than moving, they’d prefer to renovate or remodel the home they have. In fact, according to Harvard’s Joint Center For Housing Studies, home improvement spending is up. Since 2015, it’s risen 10 percent. And when compared to 2010, it’s up 50 percent. According to the report, older homeowners are driving the trend. “Homeowners age 55 and over have dominated the home remodeling market for nearly a decade, overtaking middle-aged owners as the primary source of home improvement spending,” the report says. “Older homeowners are living longer and are increasingly willing and able to spend for home improvements that allow them to remain safely in their current homes.” More here.

Buying a home involves more than just finding a house you like, making an offer, and moving in. There are many steps along the way and each has an important purpose. Take the inspection, for example. After you’ve had your offer accepted, the home will need to be professionally inspected. This serves a couple of different purposes. First, it provides the home buyer with necessary information about the health of the home and what it’ll take to maintain it. An inspector looks at things like the roof, structural and mechanical issues, plumbing, electrical systems, and the overall condition of the home. Having a professional go through the house can help reveal issues home buyers may’ve missed when walking through the home. And, if there are serious issues with the home’s mechanical systems or structure, it gives the buyer an opportunity to renegotiate their offer to account for the previously undetected problem. For these reasons, it’s a good idea for the home’s buyer to be present during the home inspection. It’s a good opportunity to get to know the home you’re buying and also a chance to ask questions about proper care and maintenance . More here.

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell 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, and 15-year fixed-rate loans. With last week’s drop, rates are now at their lowest level since September 2017. Joel Kan, MBA’s associate vice president of economic and industry forecasting, said the decline led to a surge in demand for loans. “With the 30-year fixed-rate mortgage at its lowest level since September 2017, purchase activity was more than 10 percent higher than a year ago,” Kan said. “Demand is still relatively strong, but there is likely restraint from some prospective buyers, driven by some economic uncertainty. Furthermore, housing supply is still very tight for first-time buyers.” Despite those challenges, however, mortgage application demand was up almost 27 percent from one week earlier. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

Like any market, the housing market has ups-and-downs. There are years when conditions favor buyers and then there are years when sellers have all the negotiating power. Unfortunately, when you need to make a move, you don’t always have the luxury of waiting until market conditions are perfect for you. The good news, though, is that, for today’s home buyer, conditions are trending in the right direction. In fact, according to a new report, nearly three-quarters of the nation’s 100 largest metropolitan areas are now more affordable than they were last year at the same time. What’s driving the improvement? Well, there are a few things helping make conditions more favorable for home buyers. For starters, mortgage rates have recently declined. Combined with higher wages and an increasing number of homes for sale, the drop in mortgage rates has helped counteract the effects of rising home prices. And, though prices are still increasing, the rate at which they are has continued to slow. For example, data from May shows year-over-year price increases were the slowest in three years. In other words, in most markets, home prices are beginning to moderate at the same time other buying conditions have improved. In short, buying a house is becoming more affordable in most markets. More here.