Typically, prospective home buyers are advised that no more than 28 percent of their income should go toward their mortgage. That’s been the established standard. A house that consumes 28 percent or less of your household income is considered comfortably affordable, meaning you’d likely have no trouble handling its costs and expenses as well as your other financial obligations. These days, though, can a home buyer expect to find a home that meets that standard of affordability? Well, according to ATTOM Data … [Read more...]

When a contract to buy a home is signed that home’s sale is considered pending until it closes weeks later. The National Association of Realtors tracks pending home sales because they are considered an early indicator of where future sales data is headed. In May, the NAR’s Pending Home Sales Index saw a 1.8 percent month-over-month increase, with gains seen in all four regions of the country. Lawrence Yun, NAR’s chief economist, says mortgage rates remain home buyers’ top consideration. “Consistent job gains and … [Read more...]

Home prices continue to increase, according to the latest data from the S&P Case-Shiller Home Price Index. The index – considered among the leading measures of U.S. home prices – found prices climbing again to start the spring season. But while prices continue to increase, the pace has slowed. In fact, Nicholas Godec, head of Fixed Income Tradables & Commodities at S&P Dow Jones Indices, says gains have decelerated to their slowest pace in years. “The housing market continued its gradual deceleration in … [Read more...]

Sales of newly built single-family homes slowed in May, according to new numbers from the U.S. Census Bureau and the Department of Housing and Urban Development. The data shows sales down 13.7 percent from the month before and 6.3 percent lower than last year at the same time. The decline was larger than expected and didn’t meet economists’ expectations for the month. Regionally, results varied. For example, the South saw sales fall 21 percent while in the Northeast they actually increased, soaring 32.1 percent … [Read more...]

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates moved slightly higher last week. Rates were up from one week earlier across most loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 5/1 ARMs. Only 15-year fixed-rate loans saw a week-over-week decline. But while rates increased, they remain within the same narrow range they’ve been in for months. Joel Kan, MBA’s vice … [Read more...]

Homeowners tend to get attached to their homes. That’s natural, especially if you’ve lived somewhere for a while. Feelings of comfort, safety, and familiarity grow over the years and, in time, the house you bought becomes a home. But while you may love it, that doesn’t mean you’ll get top dollar for it when it comes time to sell – especially in a housing market that’s slowed considerably over the past few years. Simply put, today’s home sellers may be overconfident. The results of a recent survey seem to confirm … [Read more...]

Sales of previously owned homes increased in May, according to new numbers from the National Association of Realtors. The group’s latest report found existing-home sales up 0.8 percent from the month before, with gains seen in the Northeast, Midwest, and South. Lawrence Yun, NAR’s chief economist, says the improvement would be greater if not for mortgage rates. “The relatively subdued sales are largely due to persistently high mortgage rates,” Yun said. “Lower interest rates will attract more buyers and sellers to … [Read more...]

Most home buyers have to secure financing before they can purchase a house. But whether or not they’re approved for a loan depends on more than just their financial situation. There are other factors, like lending standards and the number of available loan programs, that play a role. The Mortgage Bankers Association tracks those factors with its Mortgage Credit Availability Index. The index measures how easy it is for borrowers to get a loan on a scale where any decline in the index means credit has tightened and … [Read more...]

You shouldn’t pass on a good house because you don’t like the color of the walls and cabinets. Painting is a relatively easy fix and can even be done yourself, if you’re on a budget or want to save some money. Simply put, there are far more significant issues to watch out for as a home buyer. But just because you shouldn’t walk away from a house over paint colors doesn’t mean they don’t influence home buying decisions. In fact, according to one new analysis, home buyers will pay more for a house that has the right … [Read more...]

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell last week from one week earlier. 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 rates are now at a two-month low. “Mortgage rates decreased last week, driven by financial market … [Read more...]