Mortgage applications rose last week across the board as rates dipped in the wake of positive news from the Fed.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – increased by 6.3%, changing course after last week’s 1.2% decrease.
Adjusted purchase applications rose by 5%, while the unadjusted index was up 5.3% from the week before and 32% lower YOY.
The average interest rate for 30-year fixed loans dipped from 6.50% to 6.48%.
Refinances also showed movement, up 10% from the week prior. They remain 44% lower than the same time last year, however, comprising only 28% of total applications.
In the past decade, refis averaged 58% of…
Home sale prices went up last quarter due to high competition in budget-friendly markets.
The National Association of Realtors’ latest quarterly report found that single-family existing-home sales prices increased in 152 of 221 metros — about 70% — in Q1 2023.
The monthly mortgage payment on a typical existing single-family home with a 20% down payment was $1,859, up 33% YOY.
The divide in demand between affordable and expensive markets is the main factor in these numbers. High-end markets with the most expensive homes are seeing declines, while cheaper areas are seeing intense competition for the few affordable homes for sale, pushing prices up.
“Generally speaking, home prices are lower in expensive markets and higher in affordable markets, implying greater…
The choice between renting and buying isn’t obvious in some American cities.
While most cities have clear-cut price advantages to either, some are in a sticky in-between where the benefits of renting or buying may come down to personal circumstances, according to a new study from Home Bay.
Home Bay analyzed the 50 most-populous metros based on their price-to-rent ratios. A ratio of 15 or lower means it’s better to buy, while 21 or higher means it’s better to rent. The national average is 18.
Pittsburgh, PA; New Orleans, LA; Chicago, IL; and Cleveland, OH, are the most affordable cities to buy a home in compared to their average rents, all with a ratio of 12.
For example, residents can…
Consumers are becoming more optimistic that the housing market will turn in their favor in the coming year, though affordability concerns continue to weigh them down.
Fannie Mae’s Home Purchase Sentiment Index (HPSI) jumped to its highest level since May 2022 in April, up 5.5 points to 66.8. This is the largest increase in more than two years.
Every component increased month-over-month as consumers start to see the light at the end of the tunnel for their homebuying struggles.
As the market is still seized by affordability concerns, the components remained negative, with the full index down 1.7 points YOY. However, more respondents say they expect the tide to turn in their favor.
The component associated with mortgage rate expectations…
By CHUCK GREEN
Tradition dictates that April and May are the hottest months for the housing market but there are unique opportunities in parts of the country where that isn’t necessarily the case.
Rick Sharga, president & CEO of CJ Patrick Company in Trabuco Canyon, California, says that although there is truth to the idea that home sales increase as the weather improves, there are exceptions to the rule.
“Markets with a late spring – cold weather states in particular like Alaska or North Dakota – might have a later start to the traditional home selling season, while markets with more temperate clients like California and Hawaii may not be quite as dependent on changing seasons to encourage home buyers…
Mortgage rates fell last week on the heels of the FOMC’s May meeting.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.39%, down from 6.43% the week prior.
A year ago at this time, the 30-year FRM averaged 5.27%.
The 15-year fixed-rate mortgage increased as well, to 5.76% from 5.71%. A year ago, it averaged 4.52%.
“This week, mortgage rates inched down slightly amid recent volatility in the banking sector and commentary from the Federal Reserve on its policy outlook,” said Sam Khater, Freddie Mac’s Chief Economist.
“Spring is typically the busiest season for the residential housing market and, despite rates hovering in the mid-six percent range, this year is no different. Interested homebuyers are acclimating…
Home prices appear to have bucked their downward trend, rising almost everywhere in the U.S. in March.
Black Knight’s latest Mortgage Monitor report found that home prices rose last month on both non-adjusted (+1.38%) and seasonally adjusted (+0.45%) bases.
This is the third consecutive month of increases recorded by Black Knight, with 92% of markets seeing prices increase.
“[J]ust five months ago, prices were declining on a seasonally adjusted month-over-month basis in 92% of all major U.S. markets. Fast forward to March, and the situation has done a literal 180,” said Black Knight Vice President of Enterprise Research Andy Walden.
Other than Western and pandemic boomtown markets, 40% have seen prices return to peak levels, with only Austin (-0.7%), Salt…
Mortgage applications fell last week even as rates dipped for the first time in three weeks.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – decreased by 1.2%, changing course after last week’s 3.7% increase.
Adjusted purchase applications fell by 2%, while the unadjusted index was down 1% from the week before and 32% lower YOY.
The average interest rate for 30-year fixed loans dipped from 6.55% to 6.50%, 114 bps higher than the same time last year.
“Elevated rates continue to both impact homebuyer affordability and weaken demand for refinancing. Home purchase activity has been very sensitive to rates and local market trends, including the very low…
Low inventory continues to push home prices up, but the market downturn is taking its toll on that growth.
CoreLogic’s Home Price Index for March found prices nationwide up 3.1% YOY, the 134th straight month of growth but the lowest rate of appreciation since 2012.
Prices fell YOY in ten states, mostly concentrated in the West. Washington (-7.4%), Idaho (-3.6%), Nevada (-3.5%) topped the list of greatest declines.
The West saw explosive growth in the pandemic housing boom, but prices rose too high and too fast while inventory lagged. At the same time, demand for the most expensive tier of homes has dwindled as Americans impacted by the high rate environment and economic pressures prioritize affordability above all.
Competition for…
Net new listings and contract volume have officially declined for twelve straight months, according to new data from HouseCanary.
HouseCanary’s latest Market Pulse report, which covers 22 listing-derived metrics and compares data between April 2022 and April 2023, shows market activity was significantly hindered in the first month of Q2.
“As we enter May 2023, the real estate market continues to experience uncertainty, with the purchasing market slowdown being one of the key trends observed for over a year now,” Jeremy Sicklick, Co-Founder and Chief Executive Officer of HouseCanary, said.
Contract and net new listing volume both fell annually, down 17.8% and 39.8%, respectively.
Listings were hit particularly hard by a nearly 45% YOY increase in removals.
Home sellers who…
