Americans may idolize a white Christmas, but owning a home in the nation’s snowiest states costs a premium, according to a LendingTree analysis. Median-priced homes in the states that got the most snow in December 2021 cost $56,814 more on average than those in the states with the least snow. Alaska, Idaho, and Utah saw the most snowfall last December. Their median home values – $304,900, $369,300, and $421,700 – are 4.93 times higher than their median household incomes. Warmer states are typically less expensive than frigid Northern states, as evidenced by the flood of affordability-minded homebuyers to the Sun Belt. But this isn’t always the case. LendingTree noted that the median home value in Hawaii ($722,500) is at least…
Homebuyers are finally starting to see some moderation in prices as the market corrects. The cost of a new mortgage fell 4.8% in November as mortgage rates plunged, according to Zillow’s latest Market Report. This is only the second time mortgage costs have declined in the past 19 months. Falling home values and shrinking mortgage rates forced prices to cool. Rates dropped 57 basis points in November alone. The typical U.S. home saw its value shrink 0.2% from October to November, and is down 0.5% from a peak in June. Renters also reaped the benefits of declining values, with rents seeing their largest single-month drop in the seven-year history of Zillow’s data. Affordability remains a challenge. Monthly mortgage costs are…
Mortgage interest rates dipped modestly again last week, the fifth consecutive week of decline, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey found that the 30-year fixed-rate mortgage averaged 6.31%, down from 6.33% the week prior. A year ago at this time, the 30-year FRM averaged 3.12 percent. The 15-year fixed-rate mortgage fell from 5.67% to 5.54%. A year ago, it averaged 2.34%. “Mortgage rates continued their downward trajectory this week, as softer inflation data and a modest shift in the Federal Reserve’s monetary policy reverberated through the economy,” said Sam Khater, Freddie Mac’s Chief Economist. “The good news for the housing market is that recent declines in rates have led to a stabilization in purchase demand. The bad…
Home flippers are feeling the sting of the housing market correction, seeing flips fall for a second consecutive quarter as typical profit margins on resold homes hit a 13-year low. ATTOM’s Q3 U.S. Home Flipping Report found that 7.5% of all home sales last quarter were flipped homes, down from 8.2% in Q2. Flipping remains at its third-highest level in ten years, up from last year when flips accounted for only 5.9% of sales. Its highest was in Q1 2022, at 9.7%. As turnarounds dropped, so did investors’ profits. Typical gross profits fell to their lowest point in nearly three years – $62,000 – and at the fastest pace since 2009. Profit margins also dropped to their lowest point in…
Mortgage loan application volume rebounded last week, breaking a weeks-long streak of declines, according to the Mortgage Bankers Association’s weekly survey. The adjusted Market Composite Index, a measure of mortgage loan application volume, increased by 3.2%. The adjusted purchase index rose by 4%, though the unadjusted purchase index decreased by 1% and was 38% lower YOY. “Mortgage rates increased slightly after a month of declines, as financial markets reacted to mixed signals regarding inflation and the Federal Reserve’s next policy moves. The 30-year fixed rate inched to 6.42%, which is still close to the lowest rate in a month,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. The Federal Reserve is expected to raise interest rates by half…
Most pet owners are willing to forgo their dream home if it doesn’t suit their furry friends, according to a new survey from Realtor and HarrisX. Of more than 3,000 American adults surveyed, 82% who owned pets and planned to buy a home in the next year reported that their pets’ needs are just as important as their own or their family’s needs. About three-quarters of homeowners own a pet, and 79% say they consider their animals when choosing a home or apartment. More than 60% of prospective buyers say they have passed on an otherwise perfect home because it didn’t accommodate their pets. Neighborhoods matter, too, as 87% of those with pets looking to buy a house within the next…
Rate-lock volumes fell 21.5% in November despite 30-year rates dropping 48 bps over the course of the month, according to Optimal Blue’s Mortgage Market Indices from Black Knight. Rates are 3.3% higher YOY but have declined in recent weeks. But affordability struggle and continuing stock shortages have diminished buyer demand, pushing rate-locks down 39% in three months and 68% from the same time last year. Purchase locks fell 22%, while rate/term refis and cash-outs dropped 17% and 18%, respectively. Total refi locks accounted for only 15% of November’s activity. The Thanksgiving holiday and normal seasonal slowing also contributed to low lock volume, but Optimal Blue President Scott Happ noted that these cannot account for dwindling activity by themselves. “While we…
Inventory saw a record uptick in the four weeks ending December 4th as buyer demand dwindled and homes lingered on the market, according to new data from Redfin. The total number of homes for sale rose 15% YOY in that period, the largest increase recorded in Redfin’s Homebuyer Demand Index. New listings fell by 20%, however, suggesting the stock shortage will be ongoing. Demand has dwindled as many homebuyers were priced out of the market by sky-high prices and rates. Buyers who could afford a home when interest rates were at historical lows found that in 2022, they couldn’t afford anything. But homebuyer demand did rebound from an all-time low, up 5% from a week prior as rates continue to…
Mortgage interest rates slipped again last week, marking the fourth consecutive week of decline, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey found that the 30-year fixed-rate mortgage averaged 6.33%, down from 6.49% the week prior. A year ago at this time, the 30-year FRM averaged 3.10 percent. The 15-year fixed-rate mortgage fell from 5.76% to 5.67%. A year ago, it averaged 2.38%. “Over the last four weeks, mortgage rates have declined three-quarters of a point, the largest decline since 2008,” said Sam Khater, Freddie Mac’s Chief Economist. “While the decline in rates has been large, homebuyer sentiment remains low with no major positive reaction in purchase demand to these lower rates.” Fannie Mae’s Home Purchase Sentiment Index broke…
Foreclosure activity fell 5% in November from the month prior, remaining lower than pre-pandemic levels, according to a new report from ATTOM Data. Foreclosure filings were up 57% YOY due to last year’s moratoriums pushing activity to near zero and pushing data to artificially scary highs. But activity remains below what ATTOM considers normal levels. Starts and completions are both up annually as well, by 98% and 64%, respectively, but they too fell month-over-month. Though starts almost doubled YOY, they are just barely above 80% of pre-pandemic activity. “We may be at or near a peak level of foreclosure activity for 2022,” said Rick Sharga, executive vice president of market intelligence at ATTOM. “We may continue to see below-normal foreclosure…
