According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates increased 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. Mike Fratantoni, MBA’s senior vice president and chief economist, says economic uncertainty was behind the bump. “Mortgage rates jumped to their highest level since February last week, with investors concerned about rising inflation and the impact of increasing deficits and debt,†Fratantoni said. “Higher rates … led to a slowdown across the board. However, purchase applications are up 13 percent from one year ago.†The year-over-year improvement comes despite a 5 percent drop in purchase demand last week. Refinance demand also fell 5 percent week-over-week. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of retail residential mortgage applications. (source)

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates increased 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. Mike Fratantoni, MBA’s senior vice president and chief economist, says economic uncertainty was behind the bump. “Mortgage rates jumped to their highest level since February last week, with investors concerned about rising inflation and the impact of increasing deficits and debt,†Fratantoni said. “Higher rates … led to a slowdown across the board. However, purchase applications are up 13 percent from one year ago.†The year-over-year improvement comes despite a 5 percent drop in purchase demand last week. Refinance demand also fell 5 percent week-over-week. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of retail residential mortgage applications. (source)

Americans are increasingly concerned about the economy, according to a new survey from the National Association of Realtors’ consumer website. Survey results show 63.4 percent of home shoppers feel there will be a recession at some point in the next year – the highest level since 2019. But economic uncertainty may not be bad news for buyers. “Confidence in the economy has clearly taken a hit amid ongoing headlines around trade, tariffs, and rate uncertainty,†Danielle Hale, the website’s chief economist, said. “But while concerns are definitely present, some buyers anticipate that a downturn can bring opportunity.†Among survey respondents, 30 percent felt that way, saying a recession could make them more likely to buy a home due to a belief that a downturn could lead to better affordability conditions, including lower rates and softer home prices. Potential buyers were more concerned about the limited inventory of homes for sale, which they cited as their biggest barrier to buying. (source)

The Mortgage Bankers Association’s Mortgage Credit Availability Index is a monthly measure of how easy it is for borrowers to secure financing. When credit is tight, lending standards are higher and borrowers face more challenges. When it loosens, the supply of credit, number of loan programs, and chance of approval all increase. The MBA tracks this on a scale where any decline indicates credit is tightening, while increases indicate improvement. In April, the index was unchanged after seeing significant gains in March. Joel Kan, MBA’s vice president and deputy chief economist, says credit has been improving over the past few years. “Credit availability was unchanged in April following a sizable increase in March,†Kan said. “Overall levels of credit supply remain tight but have generally grown since 2023, as lenders continue to offer cash-out refinance loan programs as well as jumbo and non-QM loans.†The index was benchmarked to 100 in March 2012 and is currently at 102.9. (source)

Competition has cooled in the housing market. In fact, according to one recent analysis, competition among home buyers is back to pre-pandemic levels after many years of bidding wars and spiking prices. That’s put buyers in a better bargaining position. So, what changed? Well, an increasing number of homes for sale. The supply of available homes is now 20 percent higher than last year, with new listings up 7.6 percent from the same time one year ago. And the improvement is widespread. In 44 of the 50 largest metro areas, listings are now higher than year-before levels. That gives buyers more options to choose from and more power to negotiate. It also forces sellers to price their homes correctly. As a result, nearly 25 percent of listings saw a price cut in April – the highest share in more than five years and another indication buyers may be in better position as the summer market approaches. (source)

Builders grew less confident in May, according to a new survey from the National Association of Home Builders. The group’s monthly Housing Market Index – which scores a survey of builders on a scale where any number above 50 indicates more builders view conditions as good than poor – came in at 34 in May, down six points from April. Buddy Hughes, NAHB’s chairman, says builders see better conditions ahead. “The spring home buying season has gotten off to a slow start as persistent elevated interest rates, policy uncertainty, and building material cost factors hurt builder sentiment in May,†Hughes said. “However, the overwhelming majority of survey responses came before the tariff reduction announcement with China. Builders expect future trade negotiations and progress on tax policy will help stabilize the economic outlook and strengthen housing demand.†Of the three index components, the measure of future expectations was the highest scoring at 42, while the gauge of current sales conditions fell eight points to 37. (source)

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates were relatively flat last week, with little movement seen across most loan categories, including 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 remain elevated and economic uncertainty continues to linger, home buyers have quietly pushed purchase demand higher. Mike Fratantoni, MBA’s senior vice president and chief economist, says demand for loans to buy homes is up from last year. “The news for the week was the growth in purchase applications, up 2.3 percent and almost 18 percent higher than last year’s pace,†Fratantoni said. “Despite the economic uncertainty, the increase in home inventory means there are additional properties to buy, unlike the last two years, and this supply is supporting more transactions.†Refinance activity is also up year-over-year, now 44 percent higher than it was the same week one year ago. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

Anything you buy new is going to be more expensive than buying it after it’s been around a while. Over the years, that’s certainly been the case in the housing market. New homes are more expensive than older homes, almost always. But according to a new report from the National Association of Realtors’ consumer website, the median list price for a newly built home has fallen and, at $448,393 during the first quarter of this year, the median new home is now only about $45,000 more expensive than the median existing home. Danielle Hale, the website’s chief economist, says builders are filling the affordability gap. “America is short, approximately, four million homes, and new construction is stepping in to fill the affordability gap left by a tight existing home market,†Hale said. “Builders are delivering smaller homes at lower prices and often offering financial incentives that make monthly payments more manageable.†The price gap between new and existing homes is now at its lowest level in five years. (source)

The housing market is never perfectly balanced but, in recent years, the gap between the number of homes for sale and the number of interested buyers grew historically large. The inventory of homes for sale hit all-time lows as buyer demand spiked and it led to increasing competition, higher prices, and more bidding wars. Fortunately, things have evened out somewhat since then due, in part, to the rising number of new homes being built across the county. In some areas, the rate of new home construction has helped flatten price spikes and given buyers more options when shopping for homes. In other regions, new home construction hasn’t kept up. One of the primary reasons is a lack of available lots. According to one new analysis, the lack of lots has been an issue since 2017 and is especially pronounced in the areas where new homes are needed most. The good news, though, is the same analysis found a 12 percent year-over-year increase in the number of available lots, a sign that lot development efforts over the past several years are starting to pay dividends. (source)

The housing market isn’t as frenetic as it was just a few years ago. But while the market has calmed and skyrocketing prices have finally slowed, that doesn’t mean homeowners aren’t still in great shape. In fact, according to new numbers from ATTOM Data Solutions, homeowners are doing historically well. ATTOM’s latest U.S. Home Equity and Underwater Report found the share of homes that could be considered equity rich – meaning the combined loan balances secured by those properties is less than half their market value – remains high by historical standards. The data shows 46.2 percent of mortgaged homes could be considered equity rich during the first quarter of this year, down from a peak of 49.2 percent during the second quarter of last year. Rob Barber, ATTOM’s CEO, says the dip isn’t cause for concern. “Home equity rates are near their highest points in recent years and the dip we’ve seen early this year in the proportion of equity-rich homes shouldn’t cause too much concern,†Barber said. “In each of the two previous years, the first quarter marked the lowest point of the year before the proportion of equity-rich homes shot back up in the second quarter.†In other words, things are good and may get even better. (source)