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Whether or not a borrower is approved for a loan depends on a number of factors, including current lending standards and the availability of loan programs. Because they aren’t fixed, these factors can affect how easy or difficult it is for a borrower to get a mortgage at any given time. That’s why the Mortgage Bankers Association tracks credit availability each month with its Mortgage Credit Availability Index. When the index increases, it means lending standards have loosened, and when it falls, standards have tightened. Fortunately for borrowers, the latest results show credit availability improved in October, with the index rising 0.7 percent. Joel Kan, MBA’s vice president and deputy chief economist, says access to credit has improved but remains tight overall. “Mortgage credit availability increased to its highest level since April 2023, driven by gains across all loan categories,” Kan said. “However, despite the across-the-board increases, overall credit supply remains tight, with the index still near the very low levels of 2011-2013.” (source)

The National Association of Home Builders keeps a monthly measure of how confident home builders are in the market for newly built single-family homes. Its Housing Market Index is a closely followed market barometer, scored on a scale where any number above 50 means more surveyed builders feel conditions are good than poor. In November, the index hit 46, the third consecutive monthly gain and three points higher than the month before. The improvement was attributed to post-election expectations that regulatory relief may be on the way. Nevertheless, Robert Dietz, NAHB’s chief economist, says challenges remain. “While builder confidence is improving, the industry still faces many headwinds such as an ongoing shortage of labor and buildable lots along with elevated building material prices,” Dietz says. Still, the index component measuring sales expectations for the next six months moved seven points higher to 64, an indication that home builders see brighter days ahead. (source)

Negotiation is an important part of the home buying process. In fact, you can negotiate just about anything when buying a home, from the price of the house to any conditions, contingencies, and concessions you’d like. But while you’ll have an opportunity to negotiate, you won’t necessarily succeed. Market conditions will often be the determiner of whether or not the home’s seller accepts your offer. When homes for sale are scarce and buyers are fighting for available options, a seller is less likely to agree to your terms than at a time when there are more homes than buyers. Fortunately for today’s home shopper, it looks like buyers are finally regaining some negotiating power. According to newly released data, 52 percent of recent home buyers negotiated with the home’s seller and 94 percent succeeded. Additionally, 34 percent of buyers were able to pay below asking price – a significant improvement from a couple of years ago when only 27 percent of buyers successfully negotiated a lower price. (source)

Everybody always wants to get the best deal – on everything. Anytime you make a purchase, you hope to get the best price. This certainly applies to buying a home. It’s a big financial commitment, so it’s natural that buyers hope to find a great home at a great value. Fortunately, this is the time of year when they get the most bang for their buck and, according to ATTOM Data Solutions, the absolute best day to buy is approaching. ATTOM calculates the day buyers get the best deal by comparing the median sales price for homes sold on each calendar day with the median automated valuation model for those same homes. According to this year’s results, 2024’s best day to buy is December 4. On that day, buyers pay the lowest premium above value at 4.8 percent – a great deal compared to the 14.6 percent premium buyers pay on May 27, the year’s most expensive date. (source)

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates increased again last week. Rates were up from the week before for 30-year fixed-rate loans with both conforming and jumbo balances, as well as 5/1 ARMs. The average rate for 15-year fixed-rate loans was unchanged from the previous week and rates for loans backed by the Federal Housing Administration saw a slight decline. Joel Kan, MBA’s vice president and deputy chief economist, says higher rates didn’t slow buyers. “The 30-year fixed rate was at … its highest since July 2024,” Kan said. “However, despite the increase in rates, applications increased for the first time in seven weeks. Purchase applications picked up and remained close to levels from a year ago.” Week over week, demand for loans to buy homes rose 2 percent and was 1 percent higher than last year at the same time. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

Home buyers put a lot of thought into making sure they’ve got the money to cover the upfront costs of buying a home. Coming up with a down payment and the funds necessary to cover closing costs takes budgeting. But there are other expenses that buyers need to consider when running the numbers. In fact, according to one new analysis, there are some fairly common expenses most new homeowners encounter after closing on their house – and they’re ones buyers may not be thinking about yet. According to the breakdown, new homeowners spend about $13,500 on repairs and renovations once they’ve moved in, and an additional $6,500 on furniture, fixtures, and appliances. It makes sense. After all, the chances you’ll find a house in perfect condition, perfectly appointed, and a perfect fit for your existing furniture are pretty slim. So it’d be smart to hold onto some money to make changes to your new place once you’re settled. The good news, though, is you don’t have to do it all at once, or any of it at all. It’s your house now and you’re free to do as much, or as little, as you’d like. (source)

Homeownership is always popular, regardless of housing market conditions. Americans consistently say they want to own their own home. That means demand for homes for sale is relatively consistent. There are always buyers. Home sellers, on the other hand, are another story. In recent years, with the supply of homes for sale lower than historically normal, there has been a lot of focus on why there are fewer homes available to buy. One answer is explored more closely in a new report from the Mortgage Bankers Association’s Research Institute for Housing America. The report finds that, since 2015, the homeownership rate among Americans 70 years and older has seen a sizable increase. There are many reasons for this, including higher mortgage rates since the pandemic, but – combined with the growing population of older Americans – it has led to an ongoing lack of existing homes for sale, homes that would’ve been sold in previous years. That change in the supply cycle has implications for prospective buyers, as low inventory has been the primary driver of higher home prices in recent years. (source)

The Federal Reserve recently lowered the target range for the federal funds rate 25 basis points to 4.5 percent. It was only the second time the Fed cut the benchmark interest rate since March 2020. But while that sounds like it might mean mortgage rates will also fall 25 basis points, that isn’t necessarily the case. In fact, it may not lower rates at all in the short term. Why? For one, the cut was widely expected and, therefore, much of its impact was already absorbed – much the same way declining mortgage rates in August were mostly due to anticipation that the Fed would cut rates in September. After that cut, however, rates starting drifting back upward. In other words, when the Fed cuts rates, it’s good news for home buyers and borrowers in the long run but doesn’t mean you’ll see a dramatic drop in mortgage rates or any immediate impact at all. (source)

Each month, Fannie Mae’s Home Purchase Sentiment Index tracks how Americans feel about the housing market, buying and selling a home, mortgage rates, home prices, their jobs and financial situation. In October, the index found participants more optimistic about the market than they’ve been at any point since February 2022. Mark Palim, Fannie Mae’s senior vice president and chief economist, says the gains are encouraging but home buying sentiment still remains low. “While we have seen significant improvement in overall housing sentiment over the past two years, consumers’ perception of home buying conditions remains strained, with only 20 percent believing it’s a ‘good time’ to buy a home, primarily due to high home prices,” Palim said. On the other hand, a majority of respondents say it’s a good time to sell, with 64 percent feeling now’s the time for current homeowners to list their home. (source)

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates climbed higher again last week. Rates were up from one week earlier for 30-year fixed rate loans with both conforming and jumbo balances, as well as loans backed by the Federal Housing Administration. On the other hand, the average interest rate for 15-year fixed-rate loans and 5/1 ARMs saw declines. Joel Kan, MBA’s vice president and deputy chief economist, says recent upward pressure on rates has subdued demand for mortgage applications. “Applications decreased for the sixth consecutive week, with purchase activity falling to its lowest level since mid-August and refinance activity declining to the lowest level since May,” Kan said. Still, both the refinance and purchase index show activity is up from where it was last year at the same time. The MBA’s weekly application survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)