Each month, the National Association of Home Builders surveys builders to gauge their confidence in the market for newly built, single-family homes. The resulting Housing Market Index is based on builders’ responses and scored on a scale where any number above 50 indicates more builders view conditions as good than poor. In February, the index fell one point to 36. Robert Dietz, NAHB’s chief economist, says affordability challenges are behind the drop. “Housing affordability remains an ongoing challenge at the … [Read more...]

Sales of previously owned homes fell significantly in January from one month earlier, according to new numbers from the National Association of Realtors. Sales declined in all regions and ended the month 8.4 percent lower than December’s levels. Dr. Lawrence Yun, NAR’s chief economist, says winter weather may be behind the drop. “The decrease in sales is disappointing,” Yun said. “The below-normal temperatures and above-normal precipitation this January make it harder than usual to assess the underlying driver of … [Read more...]

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates were relatively unchanged last week from one week earlier. Slight declines were seen for 30-year fixed-rate mortgages with jumbo balances, loans backed by the Federal Housing Administration, and 5/1 ARMs. Rates for 30-year fixed-rate loans with conforming balances were flat and rates for 15-year fixed-rate loans increased. With rates mostly unchanged, so was demand. The MBA’s Market Composite Index – which measures … [Read more...]

The U.S. House of Representatives has overwhelmingly passed a bipartisan housing package that includes provisions related to land use, zoning, regulatory reform, financing and relief for community banks. The legislation, named the Housing for the 21st Century Act and supported by the National Association of Home Builders, is an effort to address affordability issues hampering the housing market and making it challenging for Americans to buy a house. Specifically, it hopes to cut red tape, allowing home builders to … [Read more...]

How long you live in the house you buy depends mostly on how much you like it. If you like living somewhere, chances are you’ll stay longer. Pretty simple. But there are other factors. These days, mortgage rates are a big one. For example, homeowners who secured a historically low rate during the pandemic-era housing market may now be more reluctant to move and lose it. Another, apparently, is location. According to a new analysis from ATTOM Data Solutions, there’s a pretty big swing in homeownership tenure from … [Read more...]

There isn’t just one factor that determines whether a home’s affordable or not. The buyer’s down payment, the home’s price, current mortgage rates, insurance, and property taxes all play a role. And that’s not even a complete list. Nevertheless, a new survey of potential home buyers found that they’re laser focused on mortgage rates above all other affordability factors. In fact, the survey found 59 percent say rates matter more than home prices and 67 percent say rates are stressing them out. The good news? The … [Read more...]

When there are a lot of homes for sale, that’s good for buyers. Not only does it provide more opportunities to find a place that fits their needs, but it also helps keep home prices in check. That’s because prices rise when there are more buyers than available homes and fall when there a lot of homes for sale but fewer interested home buyers. These days, the inventory of homes for sale is growing. In fact, according to new numbers from the National Association of Realtors’ consumer website, January marked the … [Read more...]

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell across all loan categories last week. Rates were down from one week earlier for 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. But while rates were more favorable week-over-week, demand for mortgage applications fell. Joel Kan, MBA’s vice president and deputy chief economist, says winter weather was … [Read more...]

If you’re waiting for a dramatic change in the homeownership rate, you’ll be waiting a while. That’s because the rate generally doesn’t change that much. In fact, it basically stays the same, give or take a percentage or two. But while it doesn’t move dramatically, the homeownership rate’s ebb and flow can tell you something about the housing market. For example, when the rate is increasing, it’s generally taken to mean the market is healthier. When it falls, it’s typically a sign that economic or affordability … [Read more...]

The National Association of Realtors’ Realtors Confidence Index is based on a survey which asked respondents for their opinions, views, and observations about the current and future real-estate market. According to the most recent release, the NAR found Realtors in a more optimistic mood than the previous month. In fact, the shift was significant. For example, the share of participants who said they believe there will be a year-over-year increase in buyer traffic in the next three months rose from 22 percent to 31 … [Read more...]