According to the Mortgage Bankers Association’s Weekly Application Survey, average mortgage rates fell 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, and 15-year fixed-rate loans. But while rates were down, the decline wasn’t enough to push mortgage demand higher. Joel Kan, MBA’s vice president and deputy chief economist, says demand was down due to falling refinance activity. “Overall purchase activity has shown year-over-year growth for more than two months as the inventory of existing homes for sale continues to increase, a positive development for the housing market despite the uncertain near-term outlook,†Kan said. “Refinance applications were down almost 6 percent last week and remain very sensitive to rate movements, as most borrowers have mortgages with lower rates.†The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

On the list of expenses prospective home buyers worry about, homeowners insurance ranks low. Buyers are more likely fretting about their down payment, closing costs, and potential monthly payment than they are insurance rates. But while they may not be thinking about insurance, they’re going to need it. First off, it’s typically required if you have a mortgage. Secondly, owning an uninsured home means you’re one weather-based disaster from financial ruin. Put simply, it’s not worth the risk. But some homeowners take it. In fact, a recent study found 13.6 percent of U.S. homes are uninsured – and it may be due to rising costs. Homeowners insurance prices increased 33 percent between 2020 and 2023 and now average $2,530 per year nationally. Of course, where you are determines the price and could push it much higher. That’s why it’s vital that home buyers know what they’re likely going to be paying for insurance well in advance of buying a home. (source)

Each month, Fannie Mae’s Economic and Strategic Research Group releases an outlook detailing what it sees ahead for the housing market and overall economy. According to this month’s commentary, prospective home buyers may have reason for encouragement. That’s because the group says it’s revised its view on mortgage rates, and it now expects they will fall lower by the end of year. Mark Palim, Fannie Mae’s senior vice president and chief economist, says it should help give buyers a boost. “We expect the recent pullback in mortgage rates will provide a small boost to home sales this year,†Palim said. “While our latest forecast calls for a period of modestly slower economic growth, historically, interest rates have been the most important driver of home sales. We think mortgage rates will move even lower within the next quarter and ultimately close the year … low enough to generate some extra sales from any would-be buyers still waiting on the sidelines.†(source)

The latest U.S. Home Affordability Report from ATTOM Data Solutions has good news and bad news for buyers. The report – which measures major homeownership expenses against average wage info – found the cost of a median-priced home currently consumes 32 percent of the average national wage, which is higher than the 28 percent guideline commonly used by lenders. That means affordability is still challenging in most markets across the country. The good news? It seems to have plateaued. “Home affordability is in a holding pattern this quarter – financially stressful for average wage earners but not changing much,†Rob Barber, ATTOM’s CEO, says. “This is not unusual during the winter lull when home prices level out. A recent small decline in mortgage rates surely hasn’t hurt either for fledgling buyers.†The report found affordability levels virtually unchanged during the first quarter of 2025 from the quarter before. Affordability was also flat from where it was one year earlier. (source)

A new analysis from the National Association of Realtors’ consumer website found that the size of the typical down payment has risen $3,000 from where it was last year at the same time. The typical down payment is now $30,250 – which is about 3.5 percent higher than it was pre-pandemic. Danielle Hale, the website’s chief economist, says part of the increase is due to who is buying homes right now. “Today’s home sales are skewed toward higher-end homes, and this means larger down payments from more financially prepared, high-earning buyers as entry-level and lower-earning buyers sit out,†Hale said. “Additionally, higher mortgage rates give home buyers good reason to limit their loan size and interest costs, by putting more down upfront.†Of course, how much you ultimately put down is determined by many things, including the price of the house and the terms of your loan. As a benchmark, though, buyers last year put down about 14.5 percent of purchase price on average in 2024. (source)

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates moved slightly lower last week, with declines seen for 30-year fixed-rate loans with both conforming and jumbo balances. Loans backed by the Federal Housing Administration and 15-year fixed-rate loans were flat week-over-week. But while rates were stable, it wasn’t enough to drive demand, which fell 2 percent due to a drop in refinance activity. Joel Kan, MBA’s vice president and chief economist, says home buyer activity rose despite the flat week. “Purchase applications saw the strongest weekly pace in almost two months and were 7 percent higher than a year ago,†Kan said. “Last week’s purchase activity was driven primarily by a 6 percent increase in FHA applications, as the combination of loosening housing inventory and slowly declining mortgage rates have presented this segment of buyers with more opportunities.†The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of retail residential mortgage applications. (source)

If you’re a first-time home seller, you may’ve wondered why you can’t just put a sign out in front of your house and wait for the best offer. The answer, of course, is you can. But, if you do, you’re not likely to sell it quickly and you’re probably not going to get top dollar for it. In fact, according to one recent analysis, home sellers who chose to sell their house without listing it on the Multiple Listing Service – the database of listings Realtors and online search sites use – lost more than $1 billion over the past two years. That’s a big number but what it breaks down to for the typical seller is about $5,000, or 1.5 percent less than they could’ve gotten had they had their home listed on the MLS. The data isn’t that surprising. After all, home buyers are online these days and, if your home isn’t showing up on popular search sites or in their Realtor’s listings, it isn’t likely to get much traffic or many offers. (source)

A home is more than just a shelter or a place to sleep at night. It’s where you live your life. It’s where you gather with friends and family, make memories, spend holidays and anniversaries, raise your kids, and achieve your dreams. In other words, it may just be a building but it’s an important one. Americans increasingly agree. In fact, according to one new analysis, home is becoming even more important to us. The analysis found that almost half of respondents to a recent survey said their home has become more important to them over the past few years – compared with just 10 percent who said it’s less important. There are several reasons for this, including the pandemic, rising housing costs, and economic uncertainty. Those factors have led Americans to be more appreciative of their homes, which is likely also the reason far more respondents named lifestyle benefits – like security, customization, and outdoor space – than the financial benefits of homeownership as the reason for their home’s growing importance. (source)

Home buyers still face affordability challenges. Home prices and mortgage rates remain elevated. But while buying a home is more expensive than it was a few years ago, market conditions may be lining up to provide spring buyers with the best conditions they’ve seen since before the pandemic. How so? Well, for one, rates have been falling recently. That helps. Competition among buyers is also slower. In fact, homes for sale are spending just four fewer days on the market than they were pre-pandemic. That means more time for home shoppers to deliberate and consider their choices. Also, neither buyers nor sellers have a clear advantage in negotiations, according to one new analysis. That also hasn’t happened since before the pandemic. Add in the slowest price increases since 2012 and an increasing number of homes for sale and the spring market begins to look pretty favorable for interested home buyers. (source)

February is still winter but, according to new numbers from the National Association of Realtors, it may’ve been the start of this year’s spring sales season. That’s because the NAR found sales of previously owned homes up 4.2 percent in February from the month before. Lawrence Yun, NAR’s chief economist, says buyers are starting to enter the market. “Home buyers are slowly entering the market,†Yun said. “Mortgage rates have not changed much, but more inventory and choices are releasing pent-up housing demand.†Regionally, the West saw the biggest improvement, with a 13.3 percent month-over-month gain. The South was next with a 4.4 percent sales increase. In the Northeast and Midwest – where inventory still lags – buyers were not as active. The NAR also found prices up 3.8 percent year-over-year, with the median existing-home price for all housing types now at $398,400. (source)