Home Prices Ended 9-Month Upward Streak In November

Home prices slipped in November, breaking a nine-month streak of gains, but were up year-over-year. Prices were down 0.2% month-over-month from the month prior, according to the S&P CoreLogic Case-Shiller National Home Price NSA Index. This was the first monthly dip since January 2023. This was partly the result of mortgage rates spiking to peaks of nearly 8% in October 2023, driving demand down and forcing sellers to adjust their profit expectations. “The house price decline came at a time when mortgage rates peaked, with the average Freddie Mac 30-year fixed rate mortgage nearing 8%, according to Federal Reserve data. The rate has since fallen over 1%, which could support further annual gains in home prices,” Brian D. Luke, Head…

Buyer Demand Elevated Despite Affordability Concerns

Even as buying a home is getting more expensive by the day, stock shortages are spurring serious competition among the few buyers on the market. New listings fell nearly 5% last month, according to Zillow’s latest market report. While inventory is slowly recovering – 5% is actually a smaller decline than seasonally expected – it is still the lowest number of listings in any October recorded by Zillow since 2018. Still, there are good indicators for inventory. Listings were down 1.2% YOY, the smallest since May 2022, and are down 19% compared to pre-pandemic levels, much better than April’s -35%. In fact, total inventory actually rose 2.6% from September to October, though this was due to a downturn in sales,…

Now May Be The Best Time To Buy

In a year of housing market horrors for buyers, now may be the best time to buy, according to a new analysis from Redfin. In the last three weeks, rates have sunk from 8% to 7.4%, giving buyers breathing room after a succession of rate increases. Just last week, the 30-year fixed mortgage rate dropped by 25 bps, the largest single-week decline since July 2022. At the same time, though inventory remains low it is on the rise. New listings were up 1.5% YOY at the beginning of November, only the second stock increase in more than a year. Plus, with demand slowing as rates priced more buyers out of the market, the number of sellers cutting prices is on…

Applications Sink To Lowest Level Since 1995

Mortgage applications tanked last week, hitting their lowest level since 1995 and wiping out a brief surge the week prior. The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – decreased by 6.9%. Adjusted purchase applications slipped by 6%, while the unadjusted index fell by 5% from the week before and was 21% lower YOY. Another week of rate increases drove the decline. The 30-year fixed mortgage rate rose for a sixth straight week to 7.70%, the highest level since 2000. “Both purchase and refinance applications declined, driven by larger drops for conventional applications. Purchase applications were 21% lower than the same week last year, as homebuying activity continues…

Home Prices Surged In Q3

Home prices surged again in the third quarter as home shoppers butted heads because of low inventory. Annual single-family home price growth increased annually and quarterly from Q3 2022 to Q3 2023, according to Fannie Mae’s Home Price Index. Price growth rose 2% quarter-over-quarter and was up 5.3% YOY, showing home price appreciation remains resilient amid stock shortages. The index measures the average quarterly price change for all single-family properties in the United States, excluding condos. “Slightly slowing house price growth may reflect in part the affordability impact of the higher mortgage rate environment – even though prices were still solidly higher this past quarter than a year earlier,” said Doug Duncan, Fannie Mae Senior Vice President and Chief Economist. …

Prices Trend Up, With New England Seeing A Spike

As home prices continue to rise across the country, New England is a hot spot for year-over-year gains. CoreLogic’s national Home Price Index increased for the 139th consecutive month in August, up 3.7% YOY, the biggest gain since February 2023. Prices are now 42% higher than in March of 2020, when the pandemic began. Massachusetts’ top-dollar homes reflect a growing interest in the Northeast. New Hampshire, Maine, Vermont, and Rhode Island sported the largest YOY price gains in August. Strong jobs markets and relative affordability make the Northeast and Mid-Atlantic attractive to cost-sensitive buyers, pulling them away from pricey areas that were hot in the last few years. Not every market saw an appreciation jump. In eight states, prices fell…

Applications Turn Tail Again

Mortgage applications fell last week, stepping back after a spike as rates reached 20-year highs. The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – declined by 1.3%, down from the week prior’s 5.4% increase. Adjusted purchase applications sank by 2%, while the unadjusted index fell by 2% from the week before and was 27% lower YOY. Declines can be attributed to the average interest rate for a 30-year fixed loan increasing 10 bps to 7.41%, the highest rate since December 2000. Meanwhile, the jumbo rate hit its highest point ever in MBA’s jumbo series data at 7.34%, which dates to 2011.  “Based on the FOMC’s most recent projections,…

Rates Stay Above 7%

Mortgage rates stayed above 7% again last week. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.19%, up from 7.18%. A year ago at this time, the 30-year FRM averaged 6.29%. The 15-year fixed-rate rose to 6.54% from 6.51%. A year ago, it averaged 5.44% “Mortgage rates continue to linger above 7% as the Federal Reserve paused their interest rate hikes,” said Sam Khater, Freddie Mac’s Chief Economist.  “Given these high rates, housing demand is cooling off and now homebuilders are feeling the effect. Builder sentiment declined for the first time in several months and construction levels have dipped to a three-year low, which could have an impact on the already low housing supply.” August’s inventory…

Home Prices Heat Up

Data released today shows annual home price gains were stagnant in June but continue heating up in the short term, with month-over-month prices rising. Year-over-year, prices remained unchanged after slipping 0.4% the prior month, according to the S&P CoreLogic Case-Shiller National Home Price NSA Index. Prices were up 0.9% month-over-month before seasonal adjustment and 0.7% after. This is the fifth consecutive month of increases. Home prices are now at all-time highs in half the cities analyzed, and the National Composite sits just 0.2% below its all-time high from last year. Craig J. Lazzara, managing director at S&P DJI, noted that regional differences remain “striking.” The West Coast hubs that saw a huge migration during the pandemic performed the worst (-5.9%).…

Prices Increased In July While Listings Tanked

Listings took a hit in July, but both listed and closed prices saw positive YOY growth, according to new data from HouseCanary. The company’s latest Market Pulse report found that net new listings dwindled in July, down 40.3% YOY. The number of properties that went under contract also fell by 13.4% from the same time last year. “In June, the housing market initially showed signs of resilience, but these reversed as we continued to face the effects of rate hikes initiated in March 2022,” said Jeremy Sicklick, Co-Founder and Chief Executive Officer of HouseCanary. “July has followed suit with stagnant performance as the Federal Reserve implemented another rate increase and potential homebuyers remained cautious amidst market uncertainties.” New listing volume…