According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates were mostly flat last week from the week before. Rates saw slight increases for 30-year fixed-rate loans with conforming loan balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. Rates for loans with jumbo balances and 5/1 ARMs both saw declines week-over-week. Mike Fratantoni, MBA’s senior vice president and chief economist, says loan application demand also fell. “Mortgage rates moved slightly higher last week, with the 30-year conforming rate reaching … its highest level since early May – despite incoming data indicating somewhat slower economic growth,†Fratantoni said. “After adjusting for the Memorial Day holiday, both purchase and refinance application volumes were down, with purchase activity specifically 13 percent below last year’s level.†The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

Square footage isn’t always the best way to measure a home’s value. The price for two homes with the exact same square footage can be very different based on their features, upkeep, etc. But while it may not be the best way to measure a home’s worth, it is a commonly cited data point and its ups-and-downs can tell us something about the market. In the case of a recent analysis from the National Association of Realtors’ consumer website, what it tells us is buying a home has gotten significantly more expensive over the past few years. In fact, based on price per square foot, the typical home on the market today is worth 52.7 percent more than it was in 2019. Danielle Hale, the website’s chief economist, says that presents an opportunity for home sellers. “The specifics will vary from market to market, but the data suggest ongoing opportunity for many sellers,†Hale said. “Though with mortgage rates still much higher than many existing homeowners enjoy, this opportunity favors sellers who don’t have to replace a mortgage, such as investors or second homeowners looking for an exit, or equity-rich homeowners looking to downsize in their current area or to a lower-cost region, as well as those planning to rent their next home.†(source)

Before you can seriously consider buying a home, you have to calculate whether or not you can afford the monthly mortgage payment. After all, there’s no point in falling in love with a house you can’t afford. But what’s a typical monthly mortgage payment look like these days? Well, the Mortgage Bankers Association tracks mortgage payments each month based on the loan amounts applied for by hopeful home buyers. In April, for example, the data shows the national median payment was $2,256. That’s up $55 from March when it was $2,201. Edward Seiler, MBA’s associate vice president, Housing Economics, and executive director of the Research Institute for Housing America, says affordability was challenging in April. “Home buyer affordability conditions declined further … in April, sidelining many prospective buyers from entering the housing market.†Seiler said. “In addition to lower mortgage rates, more housing inventory is desperately needed in markets throughout the country this summer to alleviate these tough affordability conditions.†Fortunately for buyers, for-sale inventory has been on the rise so far this year and mortgage rates, after spiking in April, have mostly retreated in recent weeks. (source)

How many homes there are available for sale affects both home buyers and sellers. For buyers, climbing inventory is good news and means price increases and competition should begin to slow. For sellers, more homes for sale could mean having to put in some extra effort to attract buyers and make your home stand out from the pack. These days, inventory is on the rise and – after falling to historic lows in recent years – that’s encouraging. It helps balance the market and evens out the highs and lows for both buyers and sellers. That’s why new numbers from the National Association of Realtors’ consumer website are a positive sign. The data shows the inventory of homes for sale has now increased year-over-year for 29 consecutive weeks and is 36.5 percent higher than last year. In fact, there are now more homes available on the market than there have been at any point since July 2020, nearly four years ago. (source)

The number of signed contracts to buy homes can be a good indicator of where home sales are headed. After all, there are several weeks between when a buyer’s offer is accepted and when the deal is closed. That means the number of contracts to buy homes signed in one month is a good indicator of where the next month’s sales numbers will fall. The National Association of Realtors tracks pending home sales for this reason. Its Pending Home Sales Index can provide a more current picture of sales activity. According to the most recent release, activity has slowed. In fact, contract signings in April were down more than 7 percent. Lawrence Yun, NAR’s chief economist, says higher rates in April are behind the decline. “The impact of escalating interest rates throughout April dampened home buying, even with more inventory in the market,†Yun said. “But the Federal Reserve’s anticipated rate cut later this year should lead to better conditions with improved affordability and more supply.†According to the report, pending sales fell across all regions, though the biggest declines were seen in the West and Midwest. (source)

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates moved higher last week from one week earlier. Increases were seen 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. It was the first time rates increased in four weeks. Joel Kan, MBA’s vice president and deputy chief economist, says borrowers have been sensitive to recent fluctuations. “Borrowers remain sensitive to small increases in rates, impacting the refinance market and keeping purchase applications below last year’s levels,†Kan said. “There continues to be limited levels of existing homes for sale and many buyers are struggling to find listings in their price range that meet their needs.†Last week, though, declining application demand was largely due to a drop in refinance activity. Demand from home buyers was down just 1 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)

Each month, Fannie Mae’s Economic and Strategic Research Group releases an outlook detailing its expectations for the housing market and economy. According to its most recent forecast, the group foresees dampened housing activity through the end of the year, though they acknowledge the market’s direction is largely dependent on where mortgage rates head from here. “Our consumer survey suggests that households who are paying attention to the housing market continue to take a wait-and-see approach,†Doug Duncan, Fannie Mae’s senior vice president and chief economist, said. “This is consistent with our latest housing forecast, which does not foresee a dramatic change in activity until affordability improves.†Duncan says the most likely path to improved affordability is for mortgage rates to decrease from their current level. But the group doesn’t expect home sales to decline significantly, even if rates remain elevated, due to the recent improvement in available homes for sale. (source)

According to the U.S. Census Bureau and the Department of Housing and Urban Development, sales of newly built single-family homes fell in April. Sales were down 4.7 percent from the month before and were 7.7 percent lower than last year. The declines were caused, in part, by mortgage rates, which spiked in April after a relatively calm winter. But while affordability concerns slowed sales in most of the country, regional results showed uneven returns. For example, the Northeast saw sales plunge 20.9 percent from the month before, while the Midwest posted a 10 percent increase. The South and West both saw single-digit declines from the previous month. Also in the report, the median price for a newly built single-family home was up 3.9 percent from last year, rising to $433,500 in April. The average sales price was $505,700. (source)

The number of previously owned homes sold in April fell 1.9 percent from the month before, according to new numbers from the National Association of Realtors. The monthly decline put sales about 2 percent lower than where they were last year at the same time. Lawrence Yun, NAR’s chief economist, says sales trends haven’t changed too much, except on the higher end of the market. “Home sales changed little overall, but the upper-end market is experiencing a sizable gain due to more supply coming onto the market,†Yun said. It’s true. Sales have surged for homes priced $1 million or more. In fact, high-end home sales have risen 34 percent from last year due to a 40 percent jump in available inventory. But it isn’t just the upper-end of the market seeing inventory gains. The NAR says total housing inventory rose 9 percent in April and is now 16.3 percent higher than one year ago. That’s good news for buyers, as it should help slow future price increases and lead to a better balanced market. (source)

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell for the third consecutive week last week. Rates were down 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. Joel Kan, MBA’s vice president and deputy chief economist, says falling rates haven’t yet helped demand for home purchase loans, which remain lower than last year. “Purchase activity continues to lag despite this recent decline in rates, down 11 percent from a year ago, as potential buyers still face limited for-sale inventory and high list prices,†Kan said. Overall, though, mortgage demand was up nearly 2 percent week-over-week due to increases in refinance activity. The MBA’s survey has been conducted weekly since 1990 and covers 75 percent of all retail residential mortgage applications. (source)