In a year of housing market horrors for buyers, now may be the best time to buy, according to a new analysis from Redfin.
In the last three weeks, rates have sunk from 8% to 7.4%, giving buyers breathing room after a succession of rate increases. Just last week, the 30-year fixed mortgage rate dropped by 25 bps, the largest single-week decline since July 2022.
At the same time, though inventory remains low it is on the rise. New listings were up 1.5% YOY at the beginning of November, only the second stock increase in more than a year.
Plus, with demand slowing as rates priced more buyers out of the market, the number of sellers cutting prices is on…
U.S. mortgage rates took their biggest one-week drop in more than a year last week.
The Mortgage Bankers Association reported the contract rate on a 30-year fixed mortgage fell 25 basis points to 7.61%. That’s the lowest level since the end of September.
Market watchers point to the Federal Reserve’s decision last week to hold interest rates steady as one reason for the slide in mortgage rates, adding to hopes the housing sector will improve in the coming months.
The MBA also reported mortgage applications for home sales rose 3%. Mortgage brokers say it’s no surprise that with a tight market and plenty of frustrated would-be buyers, there was a surge in demand.
Refinancing activity ticked up as the refinance…
By KIMBERLEY HAAS
Veterans are encouraged to learn more about their home loan benefits after a national survey found that a majority of former service members do not know they are eligible for a zero-down payment plan.
According to information from Realtor.com, just three out of 10 veterans know they can use their VA benefits to buy a home with no money down. That statistic comes from a survey conducted last month.
“VA home loans offer many benefits, especially at times like this when affordability is such a major factor in home purchase decisions. Yet only a small portion of eligible veterans are tapping into the financial benefits they deserve for their service,” Damian Eales, CEO at Realtor.com, said in…
Well-to-do buyers are avoiding high interest rates with cash purchases, pushing luxury home prices up even more than regular houses.
The median luxury home price rose 9% YOY in Q3 2023 to $1.1 million, the highest third quarter on record, according to a new analysis from Redfin. It’s also three times faster than non-luxury prices, which were up 3.3% to $340,000 in the same period.
Luxury sales seem to have followed a similar pattern as regular homes, with sales and listings falling last year before reversing course in 2023.
Now, limited inventory has increased competition and pushed prices higher.
But while mid-tier buyers suffer high rates, high-end buyers bypass them with cash, avoiding mortgages altogether. More than two in five…
Disturbing new research from Zillow shows how Americans without access to credit are blocked out of homeownership, especially in Black neighborhoods.
Lack of access to credit keeps many renters stuck in the same routine and paying more than they would if they purchased a home. Zillow notes that in many parts of the country, monthly mortgage payments are less expensive than rent.
But credit insecure areas tend to have higher populations of color, especially Black households. The lack of access can be directly tied to racist banking practices that permeated the 20th century.
Redlining is an illegal practice where lenders avoid providing credit services to individuals living in communities of color because of the race, color, or national origin of…
The Federal Open Market Committee’s decision to not raise interest rates at its November meeting came as welcome news to the housing industry, leading to a dip in mortgage rates after a streak of increases. But industry analysts are still concerned about a housing recession.
Analysts at Wells Fargo recently warned that a rate cooldown likely won’t lead to a market boost, citing the overall cost of both building and buying a home.
“After generally improving in the first half of 2023, the residential sector now appears to be contracting alongside the recent move higher in mortgage rates,” economists Charlie Dougherty and Patrick Barley wrote in a research note. “Although mortgage rates may gradually descend once the Federal Reserve begins…
Borrowers struggling with rampant unaffordability are seeing some relief as mortgage rates cool, ending an upward swing.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.76%, down from 7.79%. A year ago at this time, the 30-year FRM averaged 6.95%.
The 15-year fixed rate remained unchanged at 7.03%. A year ago, it averaged 6.29%.
“The 30-year fixed-rate mortgage paused its multi-week climb but continues to hover under 8%,” said Sam Khater, Freddie Mac’s Chief Economist.
“The Federal Reserve again decided not to raise interest rates but have not ruled out a hike before year-end. Coupled with geopolitical uncertainty, this ambiguity around monetary policy will likely have an impact on the overall economic landscape and may continue…
Mortgage applications slipped again last week, though ARM applications soared in response to ongoing affordability pressures.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – decreased by 2.1%, slightly up from the week prior’s 1% dip.
Adjusted purchase applications slipped by 1%, while the unadjusted index fell by 2% from the week before and was 22% lower YOY.
Applications decreased despite the 30-year fixed mortgage cooling slightly to 7.86%, breaking a weeks-long streak of increases. Rates remain close to 23-year highs, however, and all rates are approximately 30 bps higher than a month ago.
“The impact of higher rates continued to be felt across both purchase and refinance…
Data released today shows home price gains improved in August both annually and month-over-month.
Year-over-year, prices rose 2.6%, up from 1% in July, according to the S&P CoreLogic Case-Shiller National Home Price NSA Index.
Prices were up 0.4% month-over-month before seasonal adjustment and 0.9% after. This is the seventh consecutive month of increases.
Home prices are now at all-time highs in the two composites and seven stand-alone cities, and prices rose in 19 of 20 cities after seasonal adjustment (13 of them before adjustment, as well). The National Composite surpassed its previous record high with this data.
Craig Lazzara, managing director at S&P DJI, noted that regional differences remain “substantial.”
“On a year-over-year basis, the three best-performing metropolitan areas in…
Scores of workers are being called back to their offices after more than three years of working remotely, influencing homebuyers’ choices as commutes are reintroduced to their lives.
The typical American commute is 26.4 minutes long, according to a new analysis by LendingTree. Based on median hourly earnings of $30.80, commuting costs $27.10 a day in lost time — or $5,724.56 a year.
Losses associated with commuting go beyond working time, according to LendingTree chief credit analyst Matt Schulz. Gas, parking, car maintenance, child care, and the toll on the mind and body add to the overall stresses of a workday involving travel. Price-wise, the typical commute costs nearly 50 cents a mile when total expenses are added together.
“The…
