New home sales increased slightly month-over-month in February but remain down significantly from last year, according to new estimates from the U.S. Census Bureau and the Department of Housing and Urban Development.
Sales rose by 1.1% to a seasonally adjusted annual rate of 640,000, slightly less than economists’ expectations of 650,000. Bloomberg call this an “unexpected” rise after a downward revision in January, saying it may herald some stability after a wild year.
Sales remain down 19% YOY.
The seasonally‐adjusted estimate of new houses for sale was 436,000, representing a supply of 8.2 months at the current sales rate.
Newly built homes are gaining popularity as the supply of existing homes continues to cause trouble. Zillow says homebuyers are growing…
Delinquencies across the nation rose in February to 3.45% as economic pressures squeeze Americans, but remain down from last year, Black Knight reported.
Black Knight’s First Look at February 2023 data found that delinquent loans that are only a single payment behind overwhelmingly accounted for the increase. The 36,000 delinquency rise was driven by a 65,000 increase in first-time missed payments.
Delinquencies of 60 and 90 days both fell, down by 12,000 (-4%) and 17,000 (-3%) respectively.
Nearly all fifty states saw their serious delinquencies improve. On the other end, foreclosure starts also improved, breaking a streak of increases with a 9% dip. Starts remain almost 20% below pre-pandemic levels.
Active foreclosure inventory increased slightly and is up 15% from…
Mortgage applications increased for a third week as buyers take advantage of retreating rates.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – rose by 3%.
Mortgage rates fell for a second week as a wobbly banking sector pushed treasury yields down. The average interest rate for 30-year fixed loans fell from 6.71% to 6.48%. This is its lowest level in a month.
“Both purchase and refinance applications increased for the third week in a row as borrowers took the opportunity to act, even though overall application volume remains at relatively low levels,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist.
Adjusted purchase applications increased by…
Existing-home sales exploded in February, breaking a full-year downward streak thanks to retreating interest rates.
Sales increased by 14.5% to a seasonally adjusted annual rate of 4.48 million from 4.02 million the month prior, according to the latest data from the National Association of Realtors.
It’s the largest monthly percentage increase since July 2020.
All four major regions saw sales increase month-over-month and decrease year-over-year. At the same time, the median price for an existing home slid YOY alongside rates, down 0.2% to $363,000. This is the first YOY decline in 131 consecutive months, the longest streak on record.
“Conscious of changing mortgage rates, homebuyers are taking advantage of any rate declines. Moreover, we’re seeing stronger sales gains in areas…
Home prices have fallen for the first time since 2012 as affordability concerns decimate buyer demand.
The median U.S. home sale price dipped by 1.2% to $386,721, the first annual decline in a decade, Redfin reported.
“Buyers are struggling because higher interest rates have increased the cost of homeownership, and sellers are struggling because they’re still adjusting to the fact that their home won’t sell for what their neighbors’ did a year ago,” said Andrew Vallejo, a Redfin real estate agent.
Prices are cooling, but after soaring to record heights after the pandemic, they’re still historically high. The cities with the biggest declines are pandemic hotspots seeing corrections after their boom moment. Two such cities, San Jose and Austin, saw…
Prospective homebuyers may be benefiting from the luck of the Irish this week as mortgage rates fall.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage rate averaged 6.60%, down from 6.73% the week prior.
A year ago at this time, the 30-year FRM averaged 4.16%.
The 15-year fixed-rate mortgage dipped from 5.95% to 5.90%. A year ago, it averaged 3.39%.
“Mortgage rates are down following an increase of more than half a percent over five consecutive weeks,” said Sam Khater, Freddie Mac’s Chief Economist.
“Turbulence in the financial markets is putting significant downward pressure on rates, which should benefit borrowers in the short term. During times of high mortgage rate volatility, homebuyers would greatly benefit from shopping…
Housing construction rebounded by more than expected in February, led by a surge in multifamily projects.
New U.S. home construction rose for the first time in six months, according to data from the U.S. Census Bureau. Residential starts increased by 9.8% from January to an annualized rate of 1.45 million. This greatly exceeds estimates from economists surveyed by Bloomberg, who expected a pace of 1.31 million.
Permits for new homes also increased, up by 13.8% to a rate of 1.52 million. Permits offer an indication of how many homes will be built in the coming months.
Both multifamily and single-family construction saw gains, though multifamily had the best showing with a 24% increase, the most in almost two years. Rents…
Mortgage applications increased again last week while banking troubles forced rates down.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – rose by 6.5 %.
The average interest rate for 30-year fixed loans fell from 6.79% to 6.71%, giving borrowers brief respite from a month of increases.
Adjusted purchase applications increased by 7%, while the unadjusted index was up 8% from the week before and was 38% lower YOY. This is the second consecutive week of increased purchase demand.
“Treasury yields declined late last week, as market concerns over bank closures and the potential for broader ripple effects triggered a flight to safety in Treasury bonds. This decline…
Mixed economic indicators released this week may stall the Federal Reserve’s plans for another round of aggressive rate hikes.
Retail sales fell 0.4% in February as consumers strained under high inflation, Commerce Department data released Wednesday showed. Spending fell in eight of the thirteen groups analyzed, with furniture and department stores seeing the biggest dips.
Bar and restaurants saw sales fall by 2.2%, the most in more than a year.
But a surprise decline in producer prices provided a glimmer of hope that inflation may be cooling. Wholesale prices were down 0.1%, upending the Dow Jones prediction of a 0.3% increase. The index still increased YOY, but by less than expected.
Both of these reports come just a day after…
Homeownership remains the most significant way single women can build wealth, and more women than ever are taking advantage.
First American Financial reports that the number of single, female-headed households (including windowed, separated, or divorced) has risen by 1.4 million since 2019.
Of that group, one million are homeowners.
Female homeownership has helped the overall homeownership rate rebound since the Great Recession, with women-headed households surpassing 52% in 2022. That’s up from a post-Great Recession low point in 2016 of 50%.
Single women’s homeownership rate has outstripped men’s by about two percentage points, FirstAm says, putting them in a better long-term financial position. Homeowners have 40 times as much household wealth compared to renters, most of which is held in…
