When an offer to buy a home is accepted and a contract has been signed, the closing process begins. But until the transaction is officially closed several weeks later, the home’s sale is considered pending. The vast majority of pending sales become final sales, which is why contract signings are considered a good indicator of future home sales numbers. That’s also the reason the National Association of Realtors tracks contract signings each month with its Pending Home Sales Index. According to the most recent … [Read more...]

According to the Mortgage Bankers Association’s Weekly Application Survey, average mortgage rates were mostly flat last week from one week earlier. Rates saw little movement for 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 despite steady rates, demand for loans was down from the week before, with refinance activity 1 percent lower week-over-week and purchase demand down 6 percent. Joel Kan, MBA’s vice … [Read more...]

The housing market has an affordability problem. The cost of buying a house has skyrocketed over the past several years. During the pandemic, a shortage of houses collided with a surge in buyer demand and drove prices higher. Then, mortgage rates began to increase early in 2022. Now, the combination of higher prices and elevated rates has caused the market to slow from its previously frenetic pace. But, according to a new commentary from Fannie Mae’s Economic and Strategic Research Group, that may be good for home … [Read more...]

Sales of newly built single-family homes saw a slight improvement in June from the month before, according to new numbers from the U.S. Census Bureau and the Department of Housing and Urban Development. New home sales were up 0.6 percent month-over-month, though they still trailed last year’s levels by 6.6 percent. A slower new home market this year has contributed to a rising number of available new homes for sale. In fact, the inventory of available new homes is up 8.5 percent from last year at this time. But … [Read more...]

The amount of profit home sellers made from the sale of their home was slightly higher during the second quarter than it was in the first, according to new numbers from ATTOM Data Solutions. Profit margins rose to 50 percent on the average sale, up from 48.9 percent during the first quarter. Rob Barber, ATTOM’s CEO, says homeowners continue to do well. “While profit margins aren’t going up significantly, they’re still sitting at pretty good levels,” Barber said. “The median home sale last quarter netted a 50 … [Read more...]

Sales of previously owned homes fell in June from one month earlier, according to new numbers from the National Association of Realtors. Sales were down 2.7 percent from May and were flat from one year ago. Lawrence Yun, NAR’s chief economist, says elevated mortgage rates continue to be the primary factor influencing buyers. “High mortgage rates are causing home sales to remain stuck at cyclical lows,” Yun said. “If mortgage rates decrease in the second half of this year, expect home sales to increase across the … [Read more...]

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates were a mixed bag last week. Rates for 30-year fixed-rate loans with conforming loan balances rose slightly, while loans with jumbo balances and those backed by the Federal Housing Administration were virtually unchanged. Rates for 15-year fixed-rate loans and 5/1 ARMs both saw week-over-week declines. Rate changes didn’t dampen demand for loans to buy homes, however, as buyers pushed application demand 3 percent … [Read more...]

The housing market favored sellers for years. With the number of available homes for sale lower than normal and the number of interested home buyers high, sellers held all the negotiating power. This dynamic only intensified during the pandemic when mortgage rates fell to historic lows and demand, bidding wars, and home prices spiked. But now, according to a new analysis, there’s evidence that the housing market may have finally reached balance. Over the past couple of years, demand has slowed and the number of … [Read more...]

The Mortgage Bankers Association’s Mortgage Credit Availability Index found access to credit shrank 1.3 percent in June, after six months of growth. The index tracks lending standards and available loan programs on a scale where any increase indicates loosening credit and declines are a sign borrowers will have a tougher time getting a loan. Joel Kan, MBA’s vice president and deputy chief economist, says there were a couple of factors behind June’s decrease. “Credit availability decreased in June after six months … [Read more...]

The inventory of new homes is now at levels last seen in 2007 and that could be good news for prospective home buyers. After all, a surplus of homes means potential deals. And, according to a new report from the National Association of Home Builders, buyers are already seeing some. In fact, 38 percent of builders cut prices in July, with an average price reduction of 5 percent. That’s an almost 10 percent increase from April, when just 29 percent of builders reported reducing prices. Robert Dietz, NAHB’s chief … [Read more...]