Category: Uncategorized

Insurance is something you don’t think too much about until you need it. But with rising prices pushing the cost of homeownership higher, it’s increasingly on the minds of prospective home buyers. In fact, a new survey from the National Association of Realtors’ consumer website found 88 percent of surveyed buyers say they believe they’ll pay more for insurance in the future and 75 percent say it could ultimately become unaffordable. Danielle Hale, the website’s chief economist, says buyers have begun adjusting their shopping strategies. “Homeowners insurance offers financial protection for consumers that may help cover damage to homes and personal property from an extreme weather event or fire, while also providing personal property and liability coverage,” Hale said. “But these benefits come with an upfront cost that has risen as weather events have become more frequent and impactful and rebuilding costs climb. Homeowners are looking for strategies to lower costs including adjusting their home searches and potentially short-changing or forgoing coverage altogether.” (source)

Access to mortgage credit isn’t fixed. There are times when it’s easier to obtain a loan and times when it’s more difficult. That’s why the Mortgage Bankers Association tracks mortgage credit availability each month with its Mortgage Credit Availability Index. The index tracks whether access to credit is loosening or tightening based on current lending standards and loan programs. Any increase in the index is indicative of loosening credit, while declines indicate lending standards are tightening. According to the latest release, the index saw a slight 0.1 percent increase in August. Joel Kan, MBA’s vice president and deputy chief economist, says credit has stabilized. “Mortgage credit availability increased slightly in August, driven by a small increase in ARM product offerings …” Kan said. “Overall industry capacity seems to have stabilized somewhat after some significant declines over the past few years as companies adjusted to a lower volume environment.” (source)

One way to measure housing market health is to look at months of supply. Months of supply refers to how long it would take to sell all the homes available for sale at the current sales pace. When months of supply is low, it benefits sellers. When it’s high, buyers are in control. A six-month supply is considered a balanced housing market and, according to one new analysis, we’re getting close. The National Association of Realtors’ consumer website’s August housing report found there’s currently a five-month supply of homes available for sale. That’s pretty close to balanced and a level not seen during summer since the website began tracking the metric in 2016. Danielle Hale, the website’s chief economist, says buyers still need to watch their local market. “The national housing market is now more balanced between home buyers and sellers at five months of supply, but that balance conceals a wide range of local realities,’ Hale said. “In Miami, Austin, and Orlando, buyers are clearly in control, while in metros like Milwaukee and Boston, sellers remain firmly in the driver’s seat.” (source)

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell last week from the week before. Rates were down 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. Joel Kan, MBA’s vice president and deputy chief economist, says rates are now at an almost one-year low. “Mortgage rates declined for the second consecutive week as Treasury yields moved lower on data indicating that the labor market is weakening,” Kan said. “The 30-year fixed rate decreased … over the past two weeks to the lowest since October 2024.” As a result, demand for mortgage applications spiked, with a 7 percent increase in purchase activity and a 12 percent bump in the refinance index. 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 conducts a survey of Americans to gauge home buying sentiment. Its Home Purchase Sentiment Index asks participants for their feelings about the housing market and overall economy, including home prices, mortgage rates, and whether they think it’s a good or bad time to buy or sell a home. In August, the index was relatively flat from the month before, with overall sentiment less than a point lower than July. But while the overall index was flat, there were some big swings in sentiment, particularly when it comes to buying a home and mortgage rates. According to the results, there are a growing number of Americans who think now’s a good time to buy. In fact, the share of survey respondents who said so spiked 9 percent in August and is now 21 percent higher year-over-year. Home buying sentiment is still lower than normal but it may be growing due to optimism about mortgage rates. The survey found consumers expect better rates in the months ahead, with an 11 percent increase in respondents who say rates will fall over the next year. (source)

Choosing a home to buy can be difficult enough without trying to assess how likely it is that the property will be hit by a natural disaster. To some extent, it’s impossible to say. But while buyers may tend to focus more on a home’s features and amenities, a new report from the National Association of Realtors’ consumer website says they shouldn’t underestimate potential hazards. In fact, the analysis found 26 percent of U.S. homes can be considered vulnerable to flooding, wildfire, or hurricane winds. That represents $12.7 trillion in real-estate value. Danielle Hale, the website’s chief economist, says buyers tend to downplay the risks. “In many markets, the gap between perceived risk and actual risk is sizable, particularly for flooding,” Hale said. “This has significant consequences for homeowners, buyers, and insurers, and it underscores the need for readily available data to help households make informed decisions.” (source)

Spring is the season when the housing market heats up. Buyer demand rises and so does the number of homes for sale. Homeowners who list in spring expect bigger premiums and the data shows they typically get them, as spring sellers are known to do better than those listing at slower times of the year. But that doesn’t mean potential home sellers can wait until next year to start planning. In fact, according to a new analysis from the National Association of Realtors’ consumer website, if you want to sell next spring, it may already be time to get started. The analysis found it now takes about 10 months to sell a home – from deciding to list through closing – which means those who prep early will be better prepared to get their home on the market at the perfect time. Danielle Hale, the website’s chief economist, says the market has changed and prep is now key. “Unlike in recent years, when sellers could list quickly and attract multiple offers, today’s environment rewards preparation,” Hale said. “By starting early … homeowners can better take advantage of spring demand while navigating a market that is increasingly buyer sensitive.” (source)

As home buyers, it’s easy to focus only on what you need to get to the closing table. But while you obviously need to have your finances in order if you want to successfully close a transaction, you also need to have them in order if you want to successfully transition from home buyer to homeowner. Why? Well, according to one recent analysis, the costs of homeownership are significant and extend well beyond your monthly mortgage payment. The analysis found non-mortgage expenses like home and flood insurance, repairs, maintenance, taxes, and utilities cost homeowners $21,084 per year on average. That’s a lot. Of course, a lot depends on the condition of the house you buy and where it’s located. But whatever the particulars of your situation, be ready. Many buyers overlook these costs while focusing only on the financial obligations right in front of them then find themselves overwhelmed when they’re finally moved in and the bills come due. (source)

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell across all loan categories last week from one week earlier. Rates were down for 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. Joel Kan, MBA’s vice president and deputy chief economist, says rates are now at the lowest level since spring. “Mortgage rates declined last week, with the 30-year fixed rate decreasing to its lowest level since April …,” Kan said. “However, that was not enough to spark more application activity.” The MBA’s Market Composite Index – which measures both refinance and purchase activity – was down 1.2 percent, with a 3 percent drop in demand for loans to buy homes. Purchase activity had risen the previous four weeks. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of retail residential mortgage applications. (source)

Mortgage payments were more affordable in July, according to new data from the Mortgage Bankers Association. The group’s monthly Purchase Applications Payment Index, which measures payments relative to income, found the national median mortgage payment applied for by prospective home buyers fell to $2,127 in July from $2,172 in June. Edward Seiler, MBA’s associate vice president, housing economics, and executive director, Research Institute for Housing America, says mortgage rates are still elevated but purchase power is rebounding. “Affordability conditions have now improved for two consecutive months, the result of lower mortgage rates and continued strong income growth,” Seiler said. “While still elevated, [mortgage rates], continued income growth, and softening home-price gains should boost prospective buyers’ purchasing power in the months ahead.” For borrowers applying for lower-payment mortgages, the national mortgage payment fell to $1,468 from $1,500 one month earlier. (source)