Homebuyers have plenty to be scared of this spooky season, with mortgage rates at two-decade highs and home prices breaking new records, sending affordability to bone-chilling lows.
But current homeowners have their own fears to overcome this Halloween.
Homeowners planning to feed Trick-or-Treaters this year are facing a surge in candy costs thanks to bad weather in China, India and Thailand. The price of sugar and sugar substitutes was up 7.7% YOY in September, while candy and chewing gum saw a 7.5% annual surge. This is well above the 0.2% increase for food overall.
With inflation ravaging wallets this year, 40% of Americans say higher costs will affect how much candy they buy.
Even so, Americans are projected to spend…
By KIMBERLEY HAAS
The Mortgage Bankers Association’s chief economist and his team had some good news for those in attendance of their annual convention and expo on Sunday afternoon.
Total mortgage origination volume is expected to be $1.95 trillion in 2024, up from the $1.64 trillion projected for 2023.
At the same time, volume is predicted to increase 19% by loan count, with 5.2 million loans expected next year.
Michael Fratantoni, chief economist and senior vice president of research and industry technology, said members just have to make it through the winter.
“In terms of origination volume, we think 2023 is the low point,” Fratantoni said, adding that many lenders have had five or six quarters of production losses.
In…
Home prices surged again in the third quarter as home shoppers butted heads because of low inventory.
Annual single-family home price growth increased annually and quarterly from Q3 2022 to Q3 2023, according to Fannie Mae’s Home Price Index.
Price growth rose 2% quarter-over-quarter and was up 5.3% YOY, showing home price appreciation remains resilient amid stock shortages. The index measures the average quarterly price change for all single-family properties in the United States, excluding condos.
“Slightly slowing house price growth may reflect in part the affordability impact of the higher mortgage rate environment – even though prices were still solidly higher this past quarter than a year earlier,” said Doug Duncan, Fannie Mae Senior Vice President and Chief Economist. …
Mortgage rates climbed again last week amid the rippling impacts of war in the Gaza Strip.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.57%, jumping from 7.49%. A year ago at this time, the 30-year FRM averaged 6.92%.
The 15-year fixed-rate rose to 6.89% from 6.78%. A year ago, it averaged 6.09%
“For the fifth consecutive week, mortgage rates rose as ongoing market and geopolitical uncertainty continues to increase,” said Sam Khater, Freddie Mac’s Chief Economist.
“The good news is that the economy and incomes continue to grow at a solid pace, but the housing market remains fraught with significant affordability constraints. As a result, purchase demand remains at a three-decade low.”
The Israel-Hamas war…
Mortgage applications rose slightly last week, driven by an increase in adjustable-rate applications.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – increased by 0.6%.
Mortgage rates shot up for all loan types but adjustable-rate mortgages, leading to a rush on these loans, which boosted overall volume.
ARM applications jumped by 15% in just one week, pushing them to a 9.2% share of all applications, their highest level since November 2022.
Adjusted purchase applications inched up 1%, while the unadjusted index rose by 1% from the week before and was 19% lower YOY.
“The yield curve has become less inverted in recent weeks and ARM pricing has certainly…
Consumer sentiment is stuck in the pits thanks to soaring mortgage rates.
Fannie Mae’s Home Purchase Sentiment Index sank further in September, down by 2.4 points to 64.5. The full HPSI is up 3.7 points YOY, a decline from August.
Five of the index’s six components fell month-over-month. The home price expectations component increased, resulting in a net negative outlook.
Only 16% of respondents say it’s a good time to buy a home, down from 18% last month, while 84% say it’s a bad time to buy. This is new survey high.
The share of respondents who say it’s a good time to sell dropped as well, down to 63% from 66%.
Driving this pessimistic streak are mortgage rates, which…
Would-be homebuyers are reassessing the importance of family in the homebuying process, both financially and emotionally.
A new survey from Realtor.com found that half of respondents planning to buy a home in the next twelve months are thinking of asking their parents to help them.
Almost one-third have already moved in with their parents to help save money ahead of homeownership, while 22% say they’d consider doing so.
One-third are already living with family members other than their parents to save money, including siblings, aunts, uncles, and cousins.
“The challenging market conditions this year are changing buyer behavior in significant ways, driving many more people to explore alternative living situations they may not have considered in the past,” said Danielle…
Mortgage rates climbed again last week following treasury yield gains in the wake of political turmoil and an unexpected jobs report spike.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.49%, jumping from 7.31%. A year ago at this time, the 30-year FRM averaged 6.66%.
The 15-year fixed-rate rose to 6.78% from 6.72%. A year ago, it averaged 5.90%
“Mortgage rates maintained their upward trajectory as the 10-year Treasury yield, a key benchmark, climbed,” said Sam Khater, Freddie Mac’s Chief Economist. “Several factors, including shifts in inflation, the job market, and uncertainty around the Federal Reserve’s next move, are contributing to the highest mortgage rates in a generation. Unsurprisingly, this is pulling back homebuyer demand.”
Chaos…
Monthly payments are going up as mortgage rates continue to climb but a boost in new listings could signal a fall price cooldown.
Rates have soared to their highest level in more than two decades, sending monthly housing payments to record highs. A buyer with a $3,000 monthly budget has lost almost $40,000 in purchasing power YOY as rates rose from 6.5% to nearly 8% today, according to a new analysis from Redfin.
This is exacerbated by stagnant home inventory, which continues to trend down as stock shortages are keeping home prices high even as competition peters out. The total number of homes for sale is down 14%, Redfin noted.
The typical home sold for $371,000 during the four weeks…
By SCOTT KIMBLER
Metropolitan Atlanta is the largest housing market in the Southeast and the city is leading the country in the trend of neighborhoods being built solely for the purpose of renting out single-family homes.
This trend appears to be new as corporate investing in real estate has grown exponentially in recent years, but it has roots dating back to the 2008 housing crisis, according to Assistant Professor Rohan Ganduri of Emory University’s Goizueta Business School.
“There were a lot of properties that were foreclosed upon,” Ganduri said. “That is when a large number of institutional investors stepped in and started to buy up a large number of single-family properties at very cheap prices. What they ended up doing…
