How easy or difficult it is for a prospective home buyer to get approved for a loan depends on credit availability. Current lending standards and access to loan programs play a part in determining whether or not a borrower can secure financing. That’s why the Mortgage Bankers Association tracks mortgage credit availability each month. Any increase in its Mortgage Credit Availability Index indicates that credit has become more available, while decreases signal that credit has tightened. In July, the index rose 3.3 percent. Joel Kan, MBA’s vice president and deputy chief economist, says access to credit is rebounding. “Overall credit availability grew to its highest level since October 2023 …,†Kan said. “Industry capacity has been low for some time, but we have now seen more than six months of credit expansion, which should be supportive for home buyers and refinance borrowers, as rates have declined in recent weeks.†July’s improvement was driven by increased conventional loan offerings such as ARMs and cash-out refinance loans. (source)

Fannie Mae’s monthly Home Purchase Sentiment Index is based on a survey which asks Americans for their opinions on the housing market and economy. The survey covers everything from home prices and mortgage rates to job security and household income in an effort to determine how consumers feel about buying a home. According to the most recent results, Americans are feeling cautious. In fact, the number of respondents who say it’s a good time to buy a home was down 1 percent month-over-month, while the share who say it’s a good time to sell fell 2 percent. Doug Duncan, Fannie Mae’s chief economist and senior vice president, says Americans are pessimistic about affordability. “More consumers than not see home prices rising further; and slightly more consumers think mortgage rates will increase, rather than decrease, over the next 12 months,†Duncan says. But are they wrong? Well, according to Fannie Mae’s forecast, they might be. Its most recent outlook calls for decelerating home price growth and falling mortgage rates over the next year. (source)

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell last week 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 declines were significant and dropped rates to the lowest level since May 2023. Joel Kan, MBA’s vice president and deputy chief economist, says demand spiked as a result. “Mortgage rates decreased across the board last week and mortgage application volume reached its highest level since January of this year,†Kan said. “As a result of lower rates, refinance applications increased across all loan types, particularly for VA loans, and were almost 60 percent higher than it was at this time last year and were at its highest level in two years.†Demand for purchase applications saw a more modest 1 percent bump week-over-week. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

Homes for sale have hit a post-pandemic high and it’s helping make the housing market more buyer friendly, according to new data from the National Association of Realtors’ consumer website. The data shows the total number of homes on the market has been increasing for nine straight months, pushing the number of homes actively for sale 36.6 percent higher year-over-year in July and driving price cuts to the highest rate since October. Altogether, it’s starting to look like good news for buyers. “As sellers continue to list homes and buyers become choosier, the time a home spends on the market is extending, thereby helping the housing market move in a more buyer-friendly direction,†Danielle Hale, the website’s chief economist, says. “In response, sellers are curbing expectations and reducing listing price more often which could set the stage for more sales this fall, especially if mortgage rates continue to decline.†(source)

Housing market conditions can vary depending on a lot of factors. Location is an obvious one. What’s true in one market isn’t necessarily going to be true in others. It isn’t the only factor, though. Markets can also vary depending on price range. For example, over the past several years, the market for luxury homes has behaved differently than the market for typical homes. In fact, according to one recent analysis, luxury home values – defined as the most valuable 5 percent of homes in any given area – have trailed typical home values in annual appreciation. That is, until this year. Since January, luxury homes have been outpacing typical homes, with the typical home price up 3.2 percent year-over-year and luxury homes seeing a 3.9 percent gain. The reason? Well, luxury home inventory has been slower to recover than inventory in the rest of the market. Currently, total inventory is up 22.7 percent over last year, while the number of available luxury homes has increased 15.7 percent. (source)

Rising home prices during the spring sales season pushed the share of equity rich homes higher, according to new data from ATTOM Data Solutions. ATTOM’s most recent U.S. Home Equity & Underwater Report found 49.2 percent of mortgaged residential properties were considered equity rich, meaning the combined amount of loan balances on those properties was less than half their estimated market value. In short, spring was good for homeowners. Rob Barber, ATTOM’s CEO, says homeowner wealth turned for the better. “Homeowner wealth took a notable turn for the better during the second quarter as equity levels piggybacked on some of the biggest home-price spikes we’ve seen in recent years,” Barber said. “After a period where equity seemed stagnant or even declining, this brought another boost of good news for homeowners from the enduring housing market boom.” (source)

When a contract to buy a house is signed, that home’s sale is considered pending until the deal is closed weeks later. That makes contract signings a fairly reliable indicator of future home sales, since most signed offers lead to closed sales. The National Association of Realtors tracks pending home sales for this reason. Its Pending Home Sales Index is released monthly and is considered a good predictor of existing-home sales numbers. In June, the index moved 4.8 percent higher, with improvement seen in each of the country’s four regions. Lawrence Yun, NAR’s chief economist, says the growing supply of available homes is behind the increase. “The rise in housing inventory is beginning to lead to more contract signings,†Yun said. “Multiple offers are less intense, and buyers are in a more favorable position.†(source)

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates were relatively unchanged last week after hitting the lowest level since February the week before. Rates were flat week-over-week, with little movement 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. Mike Fratantoni, MBA’s senior vice president and chief economist, says flat rates weren’t enough to push demand higher. “Last week, VA refi application volume dropped sharply, which drove the aggregate result,†Fratantoni said. “Borrowers may be waiting for signs that mortgage rates will drift lower as the Federal Reserve begins to cut short-term rates.†Demand for loans to buy homes was down 2 percent from one week earlier and is now 14 percent lower than last year at the same time. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

The S&P Case-Shiller Home Price Indices is considered among the leading measures of U.S. home prices. It covers all nine census divisions and has data going back nearly 30 years. According to the most recent results, the indices show home prices strong through the first half of the year – though the rate of increase has begun to slow. For example, prices were up 5.9 percent year-over-year in May, down from 6.4 percent the previous month. Still, Brian D. Luke, head of commodities, real & digital assets at S&P, says the first half of the year has been better than previous years. “While annual gains have decelerated recently, this may have more to do with 2023 than 2024, as recent performance remains encouraging,†Luke said. “Our home price index has appreciated 4.1 percent year-to-date, the fastest start in two years.†(source)

Fannie Mae’s Economic and Strategic Research Group releases a monthly outlook detailing what they believe is ahead for the housing market and economy. The group forecasts everything from economic growth to home sales, mortgage rates, and home prices. According to the most recent release, affordability conditions are still holding home buyers back but the group sees improvement on the way. For one, better inflation numbers and a slowing labor market should lead the Federal Reserve to cut interest rates this fall, which will help tame mortgage rates. Doug Duncan, Fannie Mae’s senior vice president and chief economist, says prices should also slow. “We continue to expect home price growth on a national level to decelerate – but remain positive – over the near term, but it should be noted that conditions often vary by region, particularly as it relates to supply,†Duncan says. For example, inventory remains tight in the Northeast and Midwest, while Sunbelt metros are now at, or above, pre-pandemic inventory levels. (source)