Entry-Level Home Prices Still Hot As Competition Sizzles

First-time buyers are still living in last year’s housing market thanks to limited affordable inventory, leading to tight competition and soaring prices. A new report from Zillow found that typical home values for the least-expensive one-third of houses rose by 8% YOY, or $13,000. In comparison, mid-level homes saw a 3% YOY increase, and the most expensive one-third of houses lost value, experiencing a 1% drop. This is the first loss of value for the top tier since at least 2012. “Buyers shopping for the least-expensive homes this spring aren’t noticing much difference from the pandemic-era market heat,” said Skylar Olsen, Zillow’s chief economist. “Competition is fierce, but there aren’t many homes for sale, so buyers should be patient but…

Mortgage Rates Declined Again, But Buyers Are Still Hesitant

The average mortgage rate declined for another week, giving buyers planning to finance a home this spring a little more bang for their buck. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.28%, down from 6.32% the week prior. A year ago at this time, the 30-year FRM averaged 4.27%. The 15-year fixed-rate mortgage increased, however, from 5.56% to 5.64%. A year ago, it averaged 3.91%. “Mortgage rates continue to trend down entering the traditional spring homebuying season,” said Sam Khater, Freddie Mac’s chief economist. Retreating rates aren’t enough to bring buyers priced out of the market back. Mortgage application volume, which had ticked up when rates first began declining, is dropping again as buyers contend…

New American Rolls Out First-Time Homebuyer Grants

New American Funding is launching a new initiative for first-time homebuyers. Officials at the company announced the Pathway to Homeownership program on Monday.  Qualified borrowers in select areas can receive up to $8,000 in assistance to help them buy a new home. The money distributed through Pathway to Homeownership is a grant, not a loan. Those who receive it do not need to pay it back, according to the announcement. “One of the pillars of our company is helping members of underserved communities become homeowners,” said Patty Arvielo, Co-Founder and President of New American Funding. “The Pathway to Homeownership initiative helps people from all walks of life who are otherwise qualified clear the initial hurdles that come with buying a…