Mortgage applications are down for a second week even as rates fell slightly.
The Mortgage Bankers Association’s weekly survey shows that the adjusted Market Composite Index — a measure of mortgage loan application volume — decreased by 0.7%, following the week prior’s 1.6% slip.
Adjusted purchase applications slipped by 0.2%, while the unadjusted index was up 2% and 16% lower YOY.
Rates pulled back slightly, clocking in at 6.93%, but remained high enough to deter borrowers, according to MBA Vice President and Deputy Chief Economist Joel Kan.
“Purchase applications were essentially unchanged, as homebuyers continue to hold out for lower mortgage rates and for more listings to hit the market,” he added.
“Lower rates should help to free up additional…
Annual home price appreciation continued its upward trend in January, though signs of moderation are shining through on a monthly basis.
Prices were up 6% YOY, an increase from December’s 5.6% gain and the fastest annual rate since 2022, according to the S&P CoreLogic Case-Shiller National Home Price NSA Index.
San Diego once again reported the highest annual gains at 11.2%, followed by Los Angeles with an 8.6% increase. Portland showed a 0.9% increase, the smallest YOY growth.
This is the second straight month of price growth in every city analyzed, putting U.S. home prices at a new all-time high, breaking every record set last year.
“While there is a large disparity between leaders such as San Diego versus laggards…
New home sales declined in February as existing sales surged, showing buyers still prefer affordable, older stock over new when it becomes available.
That’s according to data from the U.S. Census Bureau and the Department of Housing and Urban Development, which reported sales down by 0.3% to a seasonally adjusted annual rate of 662,000, slipping from the month priors’ revised rate of 664,000.
Sales were still up by 5.9% from the same time last year, however.
The decline was the first in three months and generally unexpected by analysts, according to Bloomberg. Surveyed economists had predicted a rate of 667,000.
There were 463,000 new homes for sale at the end of the month. This represents an 8.4-month supply at the…
Americans are aware of the risks to coastal communities posed by climate change but keep flocking there anyway, proving lifestyle outweighs the future value of their homes — for now.
In a survey of 2,000 consumers, 51% of homeowners said they are worried about how increasing global temperatures will impact their homes.
Though drought and fire concerned homeowners, the most distressing possibilities were water damage. Severe storms were the most common concern, followed by hurricanes and flooding.
When it comes to coastal properties, a whopping 38% are convinced they will become uninhabitable. An additional 47% think they will be “liveable but less valuable.”
But Americans are still moving to sunny, storm-prone Florida in droves, even though they claim to understand…
By KIMBERLEY HAAS
Foreclosure starts are up nationally and some industry leaders say that better financial literacy could help prevent homeowners from becoming distressed.
Lenders started the foreclosure process on 22,575 properties last month. That’s up 11% from a year ago, according to the February 2024 U.S. Foreclosure Market Report by ATTOM.
There were a total of 32,938 properties with foreclosure filings – default notices, scheduled auctions, or bank repossessions – according to the report, and lenders repossessed 3,397 properties through completed foreclosures last month.
Donna Schmidt, managing director and owner of DLS Servicing in Grand Rapids, Michigan, said in a recent interview with The Mortgage Note that the people most likely to be foreclosed on this year are people…
Rates took a turn for the worse last week, rising back to nearly 7%, as economic data soured analysts’ moods on easing rates.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.87%, up from the week prior’s 6.74%. A year ago at this time, the 30-year FRM averaged 6.42%.
This breaks a two-week streak of declines. Mortgage applications slipped this week as rate-sensitive Americans backed away from the market.
The 15-year fixed rate also rose from 6.16% to 6.21%. A year ago, it averaged 5.68%.
The Central Bank outlined cuts to come in 2024 but held the benchmark rate steady during their March meeting.
Inflation has eased over the past year but committee members do not…
With home prices high and interest rates nearing 7%, mortgage debt is a growing burden on American families. But homeowners in some states are seeing this type of debt grow more than in others.
A new report from WalletHub found that homeowners in Maryland, Hawaii, and Nevada added the most mortgage debt between Q3 and Q4 2023.
The average household is $100,000 away from paying off their home, and the total mortgage balance in the U.S. is more than $12 trillion. But in Maryland, the average balance is $283,092 and rose by 1.23% in Q4 2023.
No other state saw an increase above 1% in the same period, and seventeen states saw decreases, putting Maryland at the top of the…
Mortgage applications are yo-yoing as affordability-minded buyers respond to fluctuating rates.
The Mortgage Bankers Association’s weekly survey shows that the adjusted Market Composite Index — a measure of mortgage loan application volume — decreased by 1.6%, following the week prior’s 7.1% bump.
Adjusted purchase applications slipped by 1%, while the unadjusted index was down 1% and 14% lower YOY.
Rates drove the downturn, as they jumped to 6.97% after three weeks of decreases. Too-hot inflation data is moving rates around, though they have mostly stayed in the mid- to high-6’s.
“Mortgage applications continued to show sensitivity to rate movements, and both purchase and refinance activity decreased over the week. With housing supply low and prices high, the average loan size…
Residential starts made a comeback last month after severe winter weather slowed builders down.
Residential home construction increased by 10.7% in February to a 1.52 million annualized rate, according to data from the U.S. Census Bureau. This is the largest increase since May, and well above Bloomberg estimates of a 1.44 million pace.
Both single-family and multifamily construction increased, with multifamily starts in particular rising 8.3% after a significant dip.
Permit applications also performed well, soaring to 1.52 million, the fastest rate since August. They offer an indication of future construction.
Builders are feeling optimistic as mortgage rates stabilize, enticing buyers off the sidelines.
Existing inventory remains constrained, making new construction a hot commodity for buyers.
“With the Federal Reserve…
The National Association of Realtors has agreed to pay $418 million to settle broker commission claims brought on behalf of home sellers.
Under the terms of the agreement, NAR continues to deny any wrongdoing in connection with the Multiple Listing Service cooperative compensation model rule. They will pay the multi-million sum over the course of approximately four years, according to a press release.
Although cooperative compensation remains a choice for consumers when buying or selling a home, NAR has agreed to put into place a new rule prohibiting offers of broker compensation on the MLS. Instead, sellers will be expected to negotiate with real estate professionals.
MLS participants working with buyers will be required to enter into written agreements with…
