With affordability at its worst level in more than three decades, most Americans are putting off buying a home until rates fall.
Only 6% of Americans interested in buying a home are planning to do so this summer, with the majority waiting for interest rates to drop, according to BMO’s Real Financial Progress Index. Just 4% say they expect to buy in the fall.
High rates, low inventory, and sky-high house prices are keeping potential buyers on the sidelines. Of those who don’t currently own a property, 65% are holding off due to the state of the economy.
In the current high-rate environment, affordability is an insurmountable challenge for many buyers. As of May, each of the 100 largest U.S.…
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…
The average mortgage rate ticked down again this week, but waning banking sector concerns have rates seesawing.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.32%, down from 6.42% the week prior.
A year ago at this time, the 30-year FRM averaged 4.67%.
The 15-year fixed-rate mortgage dipped from 5.68% to 5.56%. A year ago, it averaged 3.83%.
“Economic uncertainty continues to bring mortgage rates down,” said Sam Khater, Freddie Mac’s Chief Economist.
“Over the last several weeks, declining rates have brought borrowers back to the market but, as the spring homebuying season gets underway, low inventory remains a key challenge for prospective buyers.”
Some buyers returned to the market early in order to snag a…
Buying a house became slightly more affordable in Q1 2023 as the housing market remains stalled, but remained out of reach for many Americans.
According to ATTOM Data Solution’s Q1 2023 U.S. Home Affordability Report, median-priced single-family homes and condos were less affordable in the first quarter of 2023 compared to historical averages in 94% of counties. This is a huge leap from the 62% of counties that were less affordable at the same time last year.
The portion of average wages it takes to pay major homeownership costs decreased slightly to 30%. While this is still unaffordable by most lending standards, it’s a minor improvement from the 31% registered at year-end 2022.
ATTOM calls this housing data a “mixed…
The number of million-dollar U.S. homes has dropped dramatically from a record high last year.
They now account for 7% of all U.S. houses, down from 8.6% in June 2022, according to an analysis by Dana Anderson at Redfin.
This could signal a reversal in the housing market, at least on the luxury side. Prices soared so high and so fast that Fannie Mae and Freddie Mac raised their lending limits to $1 million in some metros back in 2021. The 18% hike was the highest single jump since at least 1970, outpacing the 15.9% increase seen in 2006.
The exception to the current trend is Florida, which now has more homes worth $1 million than it did last year…
The 2023 spring homebuying season may be cooler than in previous red-hot years, but competition will still be plentiful.
According to a new Zillow analysis, ongoing stock shortages mean that even as fewer buyers enter the market this year, those who do will be competing for many of the same homes.
Affordable markets like Cincinnati and St. Louis are likely to see the most competition, especially on lower-priced homes.
The number of homes for sale now is equal to the number in 2021, which set a record for scarcity at the time. So while homes may sit on the market a little longer and sellers may have to make concessions, the chances of selling a home are still good, so…
Rate lock volumes increased across the board in January, finally breaking a nine-month downward streak, as buyers began stepping out before the spring season.
Lock volumes rose 32% last month, according to Black Knight’s Originations Market Report.
“Mortgage rates declined in January, continuing a trend that began in early November 2022. Conforming rates dropped 36 basis points from where they were at the start of the year, and we saw that rates associated with those FHA/VA/jumbo locks all came down in kind,” said Kevin McMahon, president of Optimal Blue, a division of Black Knight.
“Triggered by this pullback, rate lock volumes rose for the first time since March 2022, driven by declining interest rates and seasonal tailwinds, snapping a nine-month…
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…
Home price appreciation is now half of what it was in April, its lowest recorded point since early 2021, according to new data from CoreLogic. October’s CoreLogic Home Price Index recorded a 10.1% increase YOY. Though still elevated, it continues to decrease from record highs earlier this year. The coming months are expected to push growth back into single digits. Month-over-month, prices were down 0.1% from September. Low inventory, waning buyer purchase power, and economic uncertainty are at the heart of the issue, CoreLogic leaders say. Price growth is expected to cool through next spring when the housing market may go negative before slowly rebounding in the latter half of 2023. CoreLogic predicts appreciation will be 4.1% next October. “Following…
Rent prices are easing in most American cities thanks to a boost in available units. Sixty-eight of the country’s largest metros saw month-over-month rent declines in October, according to researchers at Florida Atlantic University and two other schools. The average rental rate was $2,040, down 0.9% from September. Springfield, MA, Austin, TX, Seattle, and New York were among the cities where rents posted declines. “It seems that an increase in supply helped relieve the pricing pressure on rental units around the country – and that’s exactly what had to happen,” said Ken H. Johnson, Ph.D., an economist in FAU’s College of Business. He noted that delivery of units under construction, as well as increasing unit density and conversions of short-term…
