The number of new homes under construction may not seem relevant to every buyer – especially those who aren’t in the market for a new home. But the rate of new residential construction matters, whether buyers know it or not. How? Well, the simple answer is more new homes means more for-sale inventory. And since a lack of homes for sale drives prices higher, more new home construction is a good way to moderate prices and offer buyers more options. In other words, home building helps bring better balance to the … [Read more...]

The National Association of Realtors tracks how many contracts to buy homes are signed each month with its Pending Home Sales report. The monthly gauge is considered a good future indicator for existing-home sales numbers, as contract signings generally precede closings by several weeks. In August, the NAR found the number of signed contracts to buy homes up 0.3 percent from the month before, though they were still 4.7 percent lower than last year at the same time. Dr. Lawrence Yun, NAR’s chief economist, says … [Read more...]

The National Association of Home Builders’ Housing Market Index measures builder confidence in the market for newly built homes. The index scores home builders’ answers to a monthly survey on a scale where any number above 50 indicates more builders view conditions as good than poor. In September, the index fell three points to 32. NAHB Chairman, Bill Owens, says buyer traffic has slowed. “Buyer traffic has weakened across much of the country, largely because of rising mortgage rates,” Owens said. “Builders also … [Read more...]

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates increased 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. Joel Kan, MBA’s vice president and deputy chief economist, says rates are rising due to multiple concerns. “Ongoing market concerns over spiking energy prices, … [Read more...]

As a home seller, conditions vary depending on where you’re trying to sell. In the Midwest, for example, less inventory means markets are still fairly competitive, if slower than they were a few years ago. That’s different than in the South, where a building boom has inventory outpacing buyers. But no matter where you are, the housing market has slowed over the past few years and sellers need to adjust their expectations. The evidence is in the numbers. For one, the number of listings that underwent a price cut is … [Read more...]

Home buyers are approaching the best time to buy a home, according to the National Association of Realtor’s consumer website. The website’s Best Time to Buy report found that the last week of September will offer buyers the most favorable mix of savings and available homes. Hannah Jones, senior economist at the site, says early fall could be the time to buy. “Home shoppers heading into fall will find an opportunity that has been hard to come by in recent years: more choices and less urgency. With mortgage rates … [Read more...]

The ability to qualify for a loan depends, in part, on current loan programs and lending standards. That means you’re ability to obtain a mortgage can be more difficult at some points and easier at others. That’s why the Mortgage Bankers Association keeps a monthly measure of mortgage credit. Its Mortgage Credit Availability Index gauges whether standards are loosening or tightening on a scale where any decline indicates credit has tightened and increases are a sign it has loosened. In August, the index fell 1 … [Read more...]

Sales of previously owned homes fell 2 percent in August from the month before, according to new numbers from the National Association of Realtors. Sales were mostly unchanged in the West but fell in the Northeast, Midwest, and South. Despite the sales dip, though, Lawrence Yun, NAR’s chief economist, says there’s good news in the numbers. “Home prices are rising, and existing home sales are actually up 1.6 percent year-to-date through the first eight months of the year,” Yun said. “Home buying demand, despite … [Read more...]

According to the Mortgage Bankers Association’s Weekly Application Survey, average mortgage rates moved higher last week across most loan categories, including 30-year fixed-rate loans with conforming balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. The increases caused a 2.7-percent decline in mortgage application demand, largely due to a drop in refinance activity. Demand for purchase loans was essentially flat week-over-week and 4 percent higher than last year at the … [Read more...]

Good schools are a hot commodity among home buyers. That’s nothing new. When shopping for a home, families have always put a premium on living in an area with good schools. But how much that premium costs has gone up. In fact, according to one recent analysis, the typical home in a highly rated school district costs $150,000 more than the typical home. That works out to $580,000 – 35 percent more than the $430,000 a median home currently costs. Of course, the actual price a buyer pays for a house in a good school … [Read more...]