As home prices have increased, so has the share of homeowners who can consider themselves equity rich – meaning the combined amount of loan balances secured by their home is no more than half the home’s value. That’s a good position to be in as a homeowner and its one in which a significant share of homeowners find themselves, according to a new report from ATTOM Data Solutions. ATTOM’s third-quarter U.S. Home Equity & Underwater Report shows 47.4 percent of mortgaged homes in the country were equity rich in the third quarter. That’s down slightly from the second quarter but only by a little. Rob Barber, ATTOM’s CEO, says homeowner equity is still strong. “By all measures, homeowner equity around the country remained strong during the third quarter as millions of households kept benefitting from the nation’s extended runup in home values,†Barber said. Equity levels rose in 21 states during the third quarter, with the biggest improvements seen in the Northeast, including Connecticut, New Jersey, and New Hampshire. (source)

October is the first full of month of fall and a time when more than just the weather cools off. Typically, the housing market does too. Summer shoppers have settled in and the number of active buyers and homes for sale both tend to decline as winter approaches. This year, however, the typical seasonal slowdown in homes for sale has reversed, according to the National Association of Realtors’ consumer website. The site’s October Monthly Housing Trends Report found that, in October, the number of homes for sale actually rose, with inventory up 5.1 percent month-over-month. Still, it’s down from last year at the same time and nearly 42 percent lower than what was normal in the three years before the pandemic. But Danielle Hale, chief economist for the site, says there are signs the market is beginning to adjust. “The current housing market continues to challenge home buyers and sellers alike, but we do see signs of adjustment,†Hale said. “Buyers did see some measure of relief in stable home prices this month and we’ll be watching the rising share of listings with reduced prices to see how that impacts prices in the near future.†(source)

There are a lot of numbers to keep track of when you’re a home buyer trying to figure out how much you can afford. There’s the price of the home, your prospective mortgage rate, your down payment, closing costs, and moving expenses. It can be dizzying. In the end, though, after all the upfront costs are paid for, what you’ll be left with is your monthly mortgage payment. So how much can you expect to pay each month after the dust settles? Well the Mortgage Bankers Association tracks median mortgage payments with their monthly Purchase Applications Payment Index. It’s a good gauge of what today’s buyers are paying each month. According to the most recent results, payments have gotten slightly more affordable. In fact, the median payment in September fell to $2,155 from $2,170 in August. Similarly, borrowers applying for lower-payment mortgages also saw improvement, with payments decreasing to $1,437 from $1,444. Edward Seiler, MBA’s associate vice president of housing economics and executive director of the Research Institute for Housing America, says more improvement may be on the way. “Challenges remain as 2023 comes to an end, but MBA is forecasting for a slight rebound in originations and a moderation in mortgage rates in 2024,†Seiler said. (source)

According to the Mortgage Bankers Association’s Weekly Applications Survey, the average mortgage rate for 30-year fixed-rate loans with conforming loan balances fell last week for the first time in more than a month. The decline is encouraging news for prospective borrowers but Joel Kan, MBA’s vice president and deputy chief economist, warns rates are still high. “Mortgage applications declined for the third straight week as mortgage rates remained elevated, with all rates around 30 basis points higher than they were a month ago,” Kan said. “The impact of higher rates continued to be felt across both purchase and refinance markets.” With rates still high, demand for loans to buy homes fell 1 percent from the previous week while refinance activity was down 4 percent. The survey found rates were also down for 5/1 ARMs, though up slightly for jumbo loans, 15-year fixed-rate loans, and FHA loans. Conducted since 1990, the MBA’s weekly survey covers 75 percent of all retail residential mortgage applications. (source)

The double-digit home price increases seen a couple of years ago have subsided, but that doesn’t mean prices aren’t still increasing. In fact, according to the latest S&P Case-Shiller Home Price Indices – considered among the leading measures of U.S. home values – prices remain strong. Craig J. Lazzara, managing director at S&P, says they’re even hitting all-time highs. “One measure of the strength of the housing market is the relationship of current prices to their historical level,†Lazzara said. “On that dimension, it’s worth noting that the National Composite, the 10-City Composite, and seven individual cities, stand at their all-time highs.†S&P’s index, which covers data through August, shows prices up 2.6 percent year-over-year, with 19 of the 20 included cities showing a positive trend in annual acceleration compared to the previous month. Put simply, home price increases have slowed from their peak but have continued in most regions of the country. (source)

The new home market continued to climb in September, according to new numbers from the U.S. Census Bureau and the Department of Housing and Urban Development. Sales of newly built homes rose 12.3 percent from the previous month and were 33.9 percent higher than last year at the same time. The increases far exceeded economists’ expectations and put sales at the highest level since February 2022. There was also an upward revision to last month’s estimates. So what’s driving the new home market’s surge? Well, mostly the lack of older homes available to buy. The ongoing inventory shortage has led to more new home construction and more buyers turning to the new home market due to a lack of other options. Additionally, the median price of new homes fell, as more builders are offering discounts to help affordability and lure buyers. In fact, most new homes sold in September were between $150,000 and $499,000. (source)

As the end of another year approaches, it’s only natural that we begin to look ahead. After all, there’s no better time to start planning for the future than right now. That’s especially true if you’re considering making a move in 2024. So what should you expect from the housing market in the year ahead? Well, according to the latest forecast from the National Association of Realtors, there’s reason to be hopeful. That’s because the NAR sees a relatively stable market ahead, and even some slight improvement in affordability conditions. In fact, they expect mortgage rate increases to calm and the average rate to be lower than this year’s. They also expect home prices to remain relatively flat, rising less than 1 percent in 2024 from 2023. Also in the forecast, the NAR predicts the national median existing home price to be $389,500 next year and they see sales rising 13.5 percent after this year’s 17.5 percent drop. (source)

The National Association of Realtors’ Pending Home Sales Index measures the number of contracts to buy homes signed each month. Because contract signings precede closings by several weeks, the index is considered a good predictor of where future home sales numbers are headed. In September, the index found pending sales up 1.1 percent from the previous month, with gains in every region but the West. Lawrence Yun, NAR’s chief economist, says home sales are expected to bounce back early in 2024. “Sales are expected to turn positive by early next year, with affordable regions and fast job-creating markets in better positions to recover, led by the Midwest and South,†Yun said. But while the improvement is good news for the housing market, pending sales are still down from last year. In fact, contract signings in September were down 11 percent from September 2022. (source)

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates increased again last week. Rates were up 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 higher rates have increased interest in adjustable-rate mortgages. “These higher mortgage rates are keeping prospective home buyers out of the market and continue to suppress refinance activity,†Kan said. “The ARM share of applications inched up to 9.5 percent, its highest since November 2022.†Still, despite higher rates, demand for mortgage applications was relatively unchanged week-over-week, with a decline of just 1 percent from the week before. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

Coming up with an adequate down payment can be difficult for any home buyer. It’s especially tough, though, for first-time buyers. Without the benefit of a home to sell, first-time buyers have to come up with a down payment from scratch. That means saving money. But saving up isn’t the only way to find funds to fuel your home buying dreams. Another popular options younger buyers often use is gift funds from friends and family. According to one new analysis, 43 percent of first-time home buyers used gift money to fund, at least, part of their down payment. These days, wedding registries in particular are an increasingly popular option for hopeful buyers looking to buy their first home. In fact, the use of wedding registries to fund down payments has increased 55 percent since 2018 and now includes nearly 20 percent of all engaged couples registered on the popular wedding website The Knot. (source)