The number of homes for sale has been improving for a while now and the gains continued in June. In fact, according to recently released data, inventory was up 4 percent from May. The improvement pushed the number of homes on the market 23 percent higher than last year and shrunk the gap between current levels and pre-pandemic averages – it is now the smallest it’s been since 2020. Inventory improvements have also led to year-over-year increases in all but two of the country’s 50 largest metropolitan areas. What does this mean for summer home buyers? Well, it means homes on the market will last a little longer, though attractive listings will still sell quickly. It also means home prices may begin to moderate. The latest numbers show 24.5 percent of listings received a price cut in June. That’s the highest share for this time of year since 2018. (source)

When the U.S. Census Bureau and the Department of Housing and Urban Development release their monthly New Residential Construction report, it comes with three components. The first tracks building permits, measuring the number of permits to build new homes pulled during the month. The second category is housing starts, which tracks how many new homes started construction. The final component is completions. Completions gauge how many new homes were finished during the past month. In June, they surged. In fact, privately owned housing completions were up 10.1 percent in June from the month before and 15.5 percent higher than last year at the same time. The other two components also saw improvement but the spiking number of completed new homes is a sign that more inventory is coming to the market. That helps buyers, as more supply helps tame price increases while offering shoppers more options. (source)

Home builders know the housing market. They have to, if they hope to be successful. Builders have to know what buyers want, where they want it, and when they’ll be ready to buy. That’s why the National Association of Home Builders takes a monthly survey of home builders, asking for their perception of the current market and their expectations for the months ahead. The survey is scored on a scale where any number above 50 indicates that more builders view conditions as good than poor. In July, it fell to 42, down one point from June. But despite the slide, the component measuring expectations for the next six months rose to 48. NAHB Chairman, Carl Harris, says builders expect better buying conditions later in the year. “While buyers appear to be waiting for lower interest rates, the six-month sales expectation for builders moved higher, indicating that builders expect mortgage rates to edge lower later this year as inflation data are showing signs of easing,†Harris said. (source)

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell last week from one week earlier. Rates were down for 30-year fixed-rate mortgages with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. Joel Kan, MBA’s vice president and deputy chief economist, says rates are now at a four-month low. “Mortgage rates declined last week, as recent signs of cooling inflation and the increased likelihood of Fed rate cuts later this year pulled them lower. The 30-year fixed rate declined to … the lowest rate since March 2024,†Kan said. As a result, demand for mortgage applications was up four percent last week, pushed higher by a 15 percent jump in refinance activity. The seasonally adjusted purchase index fell 3 percent week-over-week. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

Most of us know what it means to be sticker shocked. It’s when you find out the price of something is much higher than you expected. It can be a surprise. It can also be a disappointment if you were actually ready to buy. These days, according to the results of a new survey, sticker shock may be a common occurrence in the housing market. In fact, the survey – from the National Association of Home Builders and the U.S. Census Bureau – found there’s a fairly large gap between what home buyers expect to pay for a house and what homes actually cost. The survey found 38 percent of buyers expect to pay less than $250,000 for their next home. That’s well below the median price of an existing home, which is now above $400,000. It’s also well below the cost of buying a newly built home, which tend to be more expensive than older homes. For example, in 2023, only 5 percent of new homes that began construction were priced under $250,000. (source)

There’s been a lot of talk recently about how market conditions may be keeping current homeowners from making a move. But homeowners may be moving sooner than the experts think. In fact, according to one new survey, there’s no shortage of homeowners thinking about moving in the near future. The survey found 38 percent of homeowners said they’re likely to purchase a home in the next year. That’s a significant number and a good sign that buyer demand remains high – and particularly among homeowners, who have been seen as reluctant to give up the favorable terms of their current mortgage. But it’s not just homeowners. The same survey found large majorities of Gen Z and Millennial respondents who said they believe buying a home is attainable – an indication that interest among buyers is building and more Americans may be getting ready to make a move in the months ahead. (source)

The Mortgage Bankers Association tracks mortgage credit availability to determine how easy or difficult it is for borrowers to get a loan. Each month, its Mortgage Credit Availability Index gauges whether credit has loosened or tightened on a scale where any increase indicates borrowers’ access to credit has improved – whether through less restrictive lending standards or through offered loan programs. In June, the MCAI increased for the sixth consecutive month. Joel Kan, MBA’s vice president and deputy chief economist, says the gains have been encouraging. “Mortgage credit availability increased in June for the sixth consecutive month, as lenders expanded their offerings of cash-out refinance programs,†Kan said. “The recent growth in credit availability is encouraging, but the index is still hovering near 2012 lows.†(source)

Homeownership hasn’t lost its appeal, according to the results of a new survey of young Americans. The survey, which probed Gen Z’s attitudes toward homeownership and buying in the current market, found 92 percent of respondents said owning a home was important to them. That’s the overwhelming majority and good evidence that the dream of owning a home endures. But while most survey participants said they want to own a home, it wasn’t their top priority. In fact, most Gen Z participants had other goals they put ahead of homeownership, including finding stable employment, building a career, saving money, and starting a family. Those are worthy goals and a good indication that young Americans are looking to get established before buying. But they don’t expect to wait long. Ninety percent of respondents said they believe they’ll buy a home before the age of 35, with 33 percent expecting to be homeowners by 25. (source)

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates were mostly unmoved last week from one week earlier. Rates for 30-year fixed-rate loans with conforming balances, loans backed by the Federal Housing Administration, and 5/1 ARMs all saw slight decreases week-over-week, while rates for jumbo loans and 15-year fixed-rate loans both increased. Joel Kan, MBA’s vice president and deputy chief economist, says mortgage demand was also relatively flat. “Purchase activity picked up slightly, driven by increases in FHA and VA applications,†Kan said. “Refinance applications decreased for the fourth consecutive week, in line with higher rates.†Refinance activity was down 2 percent from the previous week, while demand for loans to buy homes saw a 1 percent increase. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

In a competitive market, home buyers have to make big decisions fast. There’s no time to deliberate when other interested buyers are right behind you, ready to make an offer. That’s been the case for the past several years, as the number of buyers outpaced the number of homes available for sale. Homes sold quickly and received multiple offers from competing buyers. These days, though, things are improving. In fact, according to new numbers from the National Association of Realtors’ consumer website, home buyers may finally be getting some relief. That’s because the number of homes actively for sale has now risen for eight consecutive months and is up nearly 37 percent from last year at the same time. Danielle Hale, the website’s chief economist, says this news is good for buyers. “The combination of more for-sale homes and longer time on the market is beneficial for home shoppers as they have more selection and don’t need to feel as rushed in picking a place to call home,†Hale said. (source)