How easy or difficult it is to obtain financing to buy a home depends on the availability of mortgage credit. Simply put, if you want a mortgage, there are times when credit is tight and times when it is looser. The Mortgage Bankers Association tracks mortgage credit each month with its Mortgage Credit Availability Index. When the index increases, credit has loosened and borrowers will have an easier time getting a loan. When it falls, credit is harder to obtain. In February, the index moved 1.1 percent higher. … [Read more...]

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates were up across most loan categories last week from the week before. Rates rose 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. Mike Fratantoni, MBA’s senior vice president and chief economist, says financial markets were responding to turmoil in the Middle East. “Financial markets were volatile last week amid the … [Read more...]

Sales of previously owned homes rose 1.7 percent in February, according to new numbers from the National Association of Realtors. The gains were modest and included all regions but the Northeast, where sales fell 6 percent from the month before. Dr. Lawrence Yun, NAR’s chief economist, says buyer demand has been muted despite recent affordability gains. “Despite the modest gain in home sales, actual housing demand remains muted relative to wage growth and job gains,” Yun said. “Inventory is growing, but sluggishly. … [Read more...]

Most conversations about housing affordability start with home prices. It’s the easiest part of the equation to understand and compare to years gone by. After all, anyone who bought a house even a few years ago can see that prices are higher today than they were then. Mortgage rates are usually next up. Higher rates aren’t quite as easy to quantify but everyone knows when rates go up so does their prospective mortgage payment. That’s why home prices and mortgage rates are always the top two topics in any talk about … [Read more...]

The inventory of homes for sale has been recovering for a while now. In fact, according to one analysis from the National Association of Realtors’ consumer website, it’s grown from year-before levels for 28-consecutive months as of February. But while there are certainly more homes for sale than there were, the pace of the recovery has started to cool. Danielle Hale, the website’s chief economist, says it also varies from one region to the next. “Inventory has improved for more than two years, but the momentum has … [Read more...]

Buying a home is primarily a financial transaction. And a big one. So, it makes sense that home buyers would approach the process with a clear head and a logical plan. After all, no one wants to buy a house they can’t afford or one they can’t stand. But while we’d likely all agree that home buyers should “use their head” when choosing a house to buy, nearly half of recent buyers say they followed their heart. In fact, 44 percent of surveyed buyers said so, with 41 percent saying they wish they’d been more rational … [Read more...]

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates were mostly flat last week from the week before, with rates for 30-year fixed-rate loans with conforming balances and loans backed by the Federal Housing Administration unchanged from one week earlier. Rates for jumbo loans moved lower week-over-week, while 15-year fixed-rate loans and 5/1 ARMs saw increases. With rates near four-year lows, demand spiked. In fact, demand for mortgage loan applications was up 11 … [Read more...]

The housing market is a balance of supply and demand. When there is more supply than demand, the inventory of homes for sale is plentiful, buyers have choices and negotiating power, and home-price increases are modest. When demand outpaces supply, the opposite is true. Home prices spike and buyers have to compete for available homes. That’s the primary reason for the current market’s affordability problem. There’s been a lack of supply for years and, according to one new analysis, it hasn’t improved. The National … [Read more...]

Most people don’t follow the housing market that closely. Until we’re ready to buy a house, we probably aren’t digging into the data. But not following the market can lead to misconceptions. It can also lead to worry. So, what’s the top worry among Americans thinking about buying? Well, the number one worry among Americans, according to a newly released survey, is high home prices. Forty-five percent of respondents listed the high price of buying as their top concern. Fifty-five percent of them said they think … [Read more...]

When Americans look at listings online, more of them are looking at houses far from home. In fact, according to a new analysis from the National Association of Realtors’ consumer website, 61.9 percent of online views for homes in the largest 100 metropolitan areas are from out-of-market shoppers. That’s up from 48.6 percent in 2019, pre-pandemic. Danielle Hale, the website’s chief economist, says Americans’ home-shopping habits have changed. “We have seen a fundamental change in where Americans who are shopping for … [Read more...]