Tag: New York City Real Estate

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell last week and helped boost demand for both refinance and purchase loan applications. The decline, though slight, keeps rates in the same narrow range they’ve been for the past several weeks. Michael Fratantoni, MBA’s chief economist, told CNBC lower-than-normal mortgage rates continue to bring buyers to the market. “With rates trading in a narrow range, the purchase market continues to show strength, with application volume running about 7 percent ahead of last year,†Fratantoni said. Also helping prospective home buyers is the increasing availability of credit. This week, the MBA released their monthly measure of credit availability and found that lending standards continued to loosen in July. Combined with still-low mortgage rates, increasing credit availability helps home buyers and offers some relief from rising home prices. Of course, affordability concerns will persist but low mortgage rates and available credit can help home buyers balance some of the worry over handling higher home prices. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

Every month, Fannie Mae’s Home Purchase Sentiment Index asks Americans how they feel about the housing market and economy. Their survey asks whether participants expect home prices and mortgage rates to rise or fall over the next year, whether it’s a good or bad time to buy or sell a house, and how they feel about the economy and their own personal financial situation. In July, the survey showed an increasing number of Americans feel secure in their jobs but uncertain about the direction of the economy. Because of this, housing numbers took a turn, with the number of Americans who think it’s a good time to buy or sell a house both falling. Doug Duncan, Fannie Mae’s senior vice president and chief economist, said the decline among people who think it’s a good time to sell was surprising. “It’s clear that high home prices are a growing challenge helping to send buying sentiment to a record low,†Duncan said. “However, we find the notable decline in selling sentiment surprising.†With buyer demand high and the number of available homes for sale low in many markets, many consider this an excellent time for homeowners to sell, which explains why the decline comes as a surprise. More here.

If you had any doubt that home buyers are active this summer and looking to buy, some new numbers should help put that notion to rest. New research shows that the number of showings – which refers to a professionally arranged tour of a home for sale – are up 10.3 percent nationally over the same time last year. Regionally speaking, the Northeast saw the largest jump, with a 15.2 percent increase as of June. However, the Midwest and South also saw double-digit improvements. In fact, only the West saw a slight year-over-year decline. The numbers are a good indication of how much interest there is this summer from potential home buyers. That’s good news for homeowners who are looking to sell their house, as it adds to the growing evidence that, in many markets, there are more buyers than homes for sale. Of course, that also means home buyers that are looking to buy this season should be prepared to move quickly, as good homes aren’t going to stay on the market very long. More here.

If you’re someone who is currently debating whether or not it’s a good time to sell your house, there are some new numbers from ATTOM Data Solutions that are worth taking a look at. The results of ATTOM’s Q2 2017 U.S. Home Sales Report shows that homeowners who sold their house during the second quarter of this year saw an average price gain of $51,000 over what they bought it for. That’s a 26 percent average return and the highest return since the third quarter of 2007. Daren Blomquist, ATTOM’s senior vice president, says homeowners are facing a tough choice in today’s market. “Potential home sellers in today’s market are caught in a Catch-22,†Blomquist said. “While it’s the most profitable time to sell in a decade, it’s also extremely difficult to find another home to purchase, which is helping to keep homeowners in their homes longer before selling.†That’s true. The report shows that homeowners who sold during the second quarter had owned their homes an average of 8.05 years, which is the longest homeownership tenure since the first quarter of 2000. More here.

There are a handful of common answers that come up time and time again when Americans are surveyed about their reasons for buying a home. For example, a desire for more space is always at or near the top of any list documenting prospective buyers’ main motivations. After all, if you’ve run out of space where you are – whether it’s because you’ve started a family or because you’ve got a lot of stuff – you’re probably going to be eager to move somewhere bigger. But though survey after survey finds we all share some common wants and needs when it comes to our homes, a new survey of young Americans who have never owned a home found a surprising reason behind their desire to become homeowners. So, what was it? Well, 42 percent of respondents said their dog, or desire to have one, was a key factor in wanting to one day buy a home of their own. And, though that may seem unusual to those of us who don’t have pets, those that do, more often than not, consider them a part of their family. So, for a renter who may have trouble finding a landlord that will allow pets at all or one that won’t charge them extra for having one, buying a home can provide a less stressful environment for both the homeowner and their beloved pet. More here.

There are many parts to a healthy housing market. Whether you’re talking about home prices, mortgage rates, new home construction, or another housing metric, each one of them have an effect on home buyers and sellers – even if some of those effects aren’t as obvious as others. Take new home sales. If you’re not looking to buy a new house, how does it affect you? Well, for one, when new homes are in demand, more new homes get built. And, when more new homes get built, the boosted inventory of homes for sale can help reduce price increases. For example, the current housing market’s main challenge is too few homes for sale. Because inventory has been low in many markets, buyers have seen prices go up and choices decline. So, news that new home sales increased in June for the second straight month is encouraging because increasing sales could help spur more new homes to be built, which would help balance the market and keep prices from becoming unaffordable for the average buyer. So, even if you aren’t in the market for a new home, you could indirectly benefit from more new homes being bought and sold in your neighborhood. More here.