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According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates moved higher 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. The increase was due to stronger-than-expected economic news, including the September jobs report. Mike Fratantoni, MBA’s senior vice president and chief economist, says buying conditions are still favorable. “As we have highlighted before, the decision to buy a home is impacted by many factors, not just the level of mortgage rates,” Fratantoni said. “The largest constraint for many prospective home buyers over the past year had been the lack of inventory. Now, there are more homes available in many markets across the country, and with mortgage rates still low compared to recent history, at least some potential home buyers are moving ahead.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

Have you thought about moving lately? If so, you’re not alone. In fact, according to one new survey of current homeowners, 72 percent said they’re ready to pack up and find a new place to live. Last year, by comparison, only 35 percent said the same. That’s a sizable increase and a significant amount of pent-up buyer demand in the market, particularly among current homeowners. So what’s behind Americans’ growing desire to move? Mostly, affordability conditions. Many Americans want to buy but have been holding off, waiting for conditions to improve. For example, the same survey found about half of the participants who said they were ready to move also said they’ve had their plans on hold due to high home prices and mortgage rates. That means there are a lot of potential buyers waiting for the right time. Fortunately, buying conditions have begun to show improvement, which may be enough to motivate some of the roughly 20 percent of prospective movers who say they’d like to move but don’t believe they’ll actually do it. (source)

Fannie Mae’s monthly Home Purchase Sentiment Index is based on a survey of Americans that asks for their feelings about buying and selling a home, mortgage rates, prices, their financial situation, and job security. In September, the index rose 1.8 points to its highest level in two years. And while the number of respondents who say it’s a good time to buy a home is still low, optimism about mortgage rates has reached a survey high, with 42 percent of respondents saying they expect rates to fall over the next year. Mark Palim, Fannie Mae’s senior vice president and chief economist, says optimism is rising but it has yet to result in boosted home sales. “Increased positivity that mortgage rates will continue to fall has driven the HPSI to a 30-month high, but we’ve yet to see consumers’ newfound rate optimism translate into a meaningful increase in home sales activity,” Palim said. (source)

Affording a home got easier in August, according to newly released numbers from the Mortgage Bankers Association. The MBA’s monthly Purchase Applications Payment Index measures the national median mortgage payment applied for by home buyers and, in August, the index found payments fell. In fact, the median payment was down nearly 4 percent from the previous month, bringing it to $2,057 from $2,140 the month before. The improvement continues a trend. “Home buyer affordability conditions improved for the fourth consecutive month, with lower mortgage rates, rising incomes, and slower home-price growth giving prospective buyers’ budgets a much-needed boost,” Edward Seiler, MBA’s associate vice president, Housing Economics, and executive director of the Research Institute for Housing America, said. “MBA expects that lower mortgage rates, coupled with increasing housing inventory, will entice additional home buyers to enter the housing market.” For borrowers applying for lower-payment mortgages, the national payment fell to $1,388 from $1,444. (source)

In a fast moving market, home buyers have to make big decisions quickly. Spend too much time deliberating over whether or not to make an offer and you may just lose your chance. That’s been the case in recent years, and certainly during the pandemic. Too few homes for sale combined with a surge of interested buyers meant a good home for sale could be off the market in a matter of days. That’s why it’s good news for buyers that inventory has since improved and, according to one recent analysis, so has the amount of time the typical home spends on the market. In fact, the data shows this September was the slowest since 2019, with homes for sale typically spending 55 days on the market. That’s two days slower than August and a full week slower than last September. It’s also an encouraging sign for buyers hoping for a less stressful – and more successful – home shopping experience. (source)

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates were relatively flat last week, remaining near recent lows despite a slight increase 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 rates moved higher but so has purchase demand. “Mortgage rates were up modestly, with the 30-year mortgage rate increasing slightly … With this move, refinance application volume declined on the week but remains almost three-times as high as last year’s pace” Fratantoni said. “The news for the week was that more home buyers appear to be entering the market. Purchase application activity was up for the week and increased more than 9 percent compared to last year at this time.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

Before closing on a house, it’s important to find out as much about it as you can. That’s why scheduling an inspection is typically among the first things buyers do after having their offer accepted. A buyer has to be sure the house is structurally sound and has no major issues. But while you can know a lot about a home’s structure and mechanical systems before committing to it, you can’t always know what the neighbors are like and how well you’ll get along with them – and sometimes that can be just as important as the structure and mechanical systems. A majority of Americans say good neighbors are a priority. In fact, according to one recent survey, a majority of Americans rate their prospective neighbors as a “high” or “very high” priority when choosing a place to live. The survey found 60 percent said living in a neighborly community with close-knit connections was important to them. Why are neighbors so important? Well, the survey found 65 percent of respondents said they feel they can count on their neighbors for help when needed. (source)

New home sales numbers are known to be volatile on a month-to-month basis. They’re also frequently revised. That’s certainly the case with the latest numbers from the U.S. Census Bureau and the Department of Housing and Urban Development. Their latest New Residential Sales report shows the previous three months’ sales numbers were revised higher after their initial release. That means sales were better than reported. It also means the market for newly built single-family homes is on good footing and should see further gains as mortgage rates continue to improve. And while the month-over-month data shows sales down 4.7 percent in August from July, a look at the numbers from last year shows sales were almost 10 percent higher than August 2023. Additionally, the median price of new homes has fallen 4.6 percent over the past 12 months. (source)

The National Association of Realtors’ Pending Home Sales Index tracks the number of contracts to buy homes signed each month. The index is considered a good future indicator of home sales numbers since signings take place near the beginning of the home buying process and final sales numbers are based on closed transactions, which typically happen weeks later. That means the NAR’s latest release showing contract signings increasing is a good sign sales numbers are about to head higher too. In August, contract signings were up 0.6 percent from the month before. Lawrence Yun, NAR’s chief economist, says the improvement is due to mortgage rates. “A slight upward turn reflects a modest improvement in housing affordability, primarily because mortgage rates descended … in August,” Yun said. “However, contract signings remain near cyclical lows even as home prices keep marching to new record highs.” The Midwest and West saw the biggest improvements in August, while the South was relatively flat and the Northeast declined month-over-month. (source)

For years now, buying a home has been getting more expensive. Higher home prices and climbing mortgage rates have had affordability trending in the wrong direction. But lately, things have started to change. In fact, according to ATTOM Data Solutions’ third-quarter 2024 U.S. Home Affordability Report, buying a home was more affordable during the third quarter. Rob Barber, ATTOM’s CEO, says market challenges remain but conditions are starting to head in the right direction. “Home affordability continues to show signs of easing, which lightens the pressure on house hunters struggling to find a place that fits their budget,” Barber said. “The cost of owning a home across much of the nation remains a tough go for average workers, exceeding levels preferred by banks and other lenders. But it is at least tracking in the right direction. That’s mainly because of declining interest rates.” (source)