The fastest way out of a shortage of available homes for sale is building more new homes. That’s why new home construction ramped up over the past several years. There were too few homes for sale to satisfy the number of interested buyers and building was the best way out of the problem. Now, though, the tables may have turned. Buyer demand has slowed and the number of available new homes for sale is high. That’s causing residential construction to stall. In fact, according to the latest numbers from the U.S. … [Read more...]

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell again last week. Rates were down from the week before across most loan categories, including 30-year fixed-rate loans with conforming balances, loans backed by the Federal Housing Administration, 15-year fixed-rate loans, and 5/1 ARMs. Rates are now at the lowest level since last October and borrowers are noticing. In fact, the MBA’s measure of purchase and refinance activity was up nearly 30 percent last week. … [Read more...]

The National Association of Home Builders’ Housing Market Index is a monthly measure of how confident builders are in the market for newly built homes. The index is based on a survey of builders and is considered an important indicator for the market since home builders have to know when, where, and what Americans want to buy in order to be successful. If builders are feeling confident and building more homes, chances are conditions are good and buyers are interested. According to the most recent survey, overall … [Read more...]

Insurance is something you don’t think too much about until you need it. But with rising prices pushing the cost of homeownership higher, it’s increasingly on the minds of prospective home buyers. In fact, a new survey from the National Association of Realtors’ consumer website found 88 percent of surveyed buyers say they believe they’ll pay more for insurance in the future and 75 percent say it could ultimately become unaffordable. Danielle Hale, the website’s chief economist, says buyers have begun adjusting … [Read more...]

Access to mortgage credit isn’t fixed. There are times when it’s easier to obtain a loan and times when it’s more difficult. That’s why the Mortgage Bankers Association tracks mortgage credit availability each month with its Mortgage Credit Availability Index. The index tracks whether access to credit is loosening or tightening based on current lending standards and loan programs. Any increase in the index is indicative of loosening credit, while declines indicate lending standards are tightening. According to the … [Read more...]

One way to measure housing market health is to look at months of supply. Months of supply refers to how long it would take to sell all the homes available for sale at the current sales pace. When months of supply is low, it benefits sellers. When it’s high, buyers are in control. A six-month supply is considered a balanced housing market and, according to one new analysis, we’re getting close. The National Association of Realtors’ consumer website’s August housing report found there’s currently a five-month supply … [Read more...]

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell last week from the week before. 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 an almost one-year low. “Mortgage rates declined for the second consecutive week as … [Read more...]

Each month, Fannie Mae conducts a survey of Americans to gauge home buying sentiment. Its Home Purchase Sentiment Index asks participants for their feelings about the housing market and overall economy, including home prices, mortgage rates, and whether they think it’s a good or bad time to buy or sell a home. In August, the index was relatively flat from the month before, with overall sentiment less than a point lower than July. But while the overall index was flat, there were some big swings in sentiment, … [Read more...]

Choosing a home to buy can be difficult enough without trying to assess how likely it is that the property will be hit by a natural disaster. To some extent, it’s impossible to say. But while buyers may tend to focus more on a home’s features and amenities, a new report from the National Association of Realtors’ consumer website says they shouldn’t underestimate potential hazards. In fact, the analysis found 26 percent of U.S. homes can be considered vulnerable to flooding, wildfire, or hurricane winds. That … [Read more...]

Spring is the season when the housing market heats up. Buyer demand rises and so does the number of homes for sale. Homeowners who list in spring expect bigger premiums and the data shows they typically get them, as spring sellers are known to do better than those listing at slower times of the year. But that doesn’t mean potential home sellers can wait until next year to start planning. In fact, according to a new analysis from the National Association of Realtors’ consumer website, if you want to sell next … [Read more...]