Competition has returned full force to the housing market as demand for limited inventory sends home prices soaring.
Black Knight’s latest Home Price Index hit a new record in May, with prices up 0.7% month-over-month and 8.9% YOY. This is the fifth consecutive month of gains.
Many markets experienced home price declines in the last few months, but that trend seems to be reversing. Of the 50 largest markets analyzed by Black Knight, 27 hit their prior price peaks or set new records this spring.
“There is no doubt that the housing market has reignited from a home price perspective,” said Andy Walden, Black Knight Vice President of Enterprise Research. “The reheating is widespread, with more than half of the…
As the affordability crisis worsens, many Americans stand to experience homelessness.
Homeless populations have been on the rise in major cities in the last year as pandemic aid ended and housing costs rose. Around 421,000 people were homeless in the U.S. last year, with 127,750 of them classified as homeless for a year or more.
Housing affordability is a consistent trigger for homelessness. Zillow-sponsored research shows that the homeless population climbs faster when rent affordability – the share of income people spend on rent – crosses certain thresholds.
The first threshold is 22%. Upticks in a community’s rent affordability beyond 22% leads to more people experiencing homelessness. The second threshold is 32% and increases in rent affordability beyond 32% leads…
Mortgage rates reversed course last week, jumping 10 bps in one week to their highest point of the year so far.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.81%, up from 6.71% the week prior.
A year ago at this time, the 30-year FRM averaged 5.30%.
The 15-year fixed-rate mortgage shot up as well, from 6.06% to 6.24%. A year ago, it averaged 4.45%.
“This upward trend is being driven by a resilient economy, persistent inflation, and a more hawkish tone from the Federal Reserve. These high rates combined with low inventory continue to price many potential homebuyers out of the market,” said Sam Khater, Freddie Mac’s Chief Economist.
Minutes from the most recent FOMC…
After an uptick last week, mortgage applications sank again, falling to their lowest level in a month as rates surged.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – decreased by 4.4%, wiping out last week’s 3% gains.
Adjusted purchase applications fell by 5%, though the unadjusted index rose 6% from the week before and 22% lower YOY.
Refinances dropped, down 4% from the week prior. They remain 30% lower than the same time last year, comprising only 27.4% of total applications. In the past decade, refis averaged 58% of total activity.
The average interest rate for 30-year fixed loans rose from 6.75% to 6.85%. This is the…
By KIMBERLEY HAAS
A lack of inventory continues to put pressure on the housing market but there are some potential sources out there.
During a mid-year outlook webinar held on Thursday afternoon, Todd Teta, chief product and technology officer for ATTOM, and Mike Simonsen, founder and president of Altos Research, spoke about the low supply of homes for sale. Simonsen said 2023 is projected to end with fewer homes available than at the start of the year.
“Each week this year there are more buyers than sellers and inventory has been falling until very recently,” he said.
Teta and Simonsen talked about four potential sources for inventory moving forward.
Newer Owners
People are staying in their homes for less time,…
Veterans are taking the difficult housing market in stride, according to a recent survey by Veterans United Home Loans.
About 75% of veterans and service members considering homeownership in the next three years plan to buy a home in the next 12 months, despite having fears that home prices in their desired area will be higher (60%) and interest rates will rise (68%).
On top of that, more than half feel that buying a house is within reach for them. Though most believe that both home prices and interest rates will rise before they enter the market, they are confident about their financial futures. Nearly 70% expect to be better off financially a year from now, and more than half…
Mortgage applications increased last week, with purchase applications reaching their highest level of activity since May.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – increased by 3%.
Adjusted purchase applications rose by 3%, though the unadjusted index was down 8% from the week before and 21% lower YOY.
Refinances rose, up 3% from the week prior. They remain 32% lower than the same time last year, comprising only 27.2% of total applications. In the past decade, refis averaged 58% of total activity.
The average interest rate for 30-year fixed loans rose from 6.73% to 6.75%, breaking a three-week streak of declines.
MBA VP and Deputy Chief Economist…
New home sales jumped in May as homebuilders continue to experience a boom, according to new data from the U.S. Census Bureau and the Department of Housing and Urban Development.
Sales rose by 12.2% to a seasonally adjusted annual rate of 763,000, compared to April’s 680,000. They were up 20% from the same time last year, which saw an annualized rate of just 636,000.
The seasonally‐adjusted estimate of new houses for sale was 428,000, down from last month and representing a supply of 6.7 months at the current sales rate.
The median sales price for a new home was $416,300, while the average sales price was $487,300.
Homebuilders are working overtime to accommodate surging demand. Americans still want to buy…
Recession is still on the horizon, but housing may support the economy moving through it, according to Fannie Mae’s Economic and Strategic Research Group.
In recent commentary, the group noted that mixed economic data has muddied the waters on the economy’s strength. But recession “remains the most likely outcome” of tightening monetary policy and late-stage business cycle dynamics.
Inflation has improved thanks to slowing domestic and global economic growth, but core inflation is still sticky.
“Lessons learned from the inflationary era of the 1970-80s … lead the ESR Group to expect that the Fed will maintain its restrictive monetary policy stance until it is abundantly clear that inflation pressures from the labor market have eased,” the group stated.
But that…
Only about half of American non-homeowners are confident they’ll be able to own one someday, a sign that the affordability crisis is taking its toll on potential buyers.
A new survey conducted by OnePoll on behalf of Divvy Homes found that, of 2,000 respondents, just 53% are confident they can own a home one day.
Another 40% believe a lottery win is the only way they can afford a home, while others said they’d need to inherit money (26%) or marry rich (19%).
“A majority of aspiring homebuyers feel that homeownership is always just beyond their reach, that the ‘American Dream’ of homeownership is slipping away, and that it would take luck, extraordinary circumstances, or a serious change in the…
