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…
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,…
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…
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%).…
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…
New home sales fell in June as new construction takes heat from rising interest rates, according to data from the U.S. Census Bureau and the Department of Housing and Urban Development.
Sales fell by 2.5% to a seasonally adjusted annual rate of 697,000, compared to May’s revised rate of 715,000. They were up 23.8% from the same time last year, however.
The seasonally‐adjusted estimate of new houses for sale was 432,000, up from last month and representing a supply of 7.4 months at the current sales rate.
Homebuilders are working hard to keep inventory flowing, providing options for homebuyers.
“Builders are also responding to this shift by bringing slightly smaller homes to market in an effort to meet lower price…
Data released today shows national home prices slipped year-over-year in May but continue heating up in the short term, with month-over-month prices rising.
Year-over-year, prices fell by 0.5%, down from -0.1% the prior month, according to the S&P CoreLogic Case-Shiller National Home Price NSA Index.
The 20-City Composite posted a -1.7% year-over-year decline, unchanged from the month prior, as home prices have recently seen a boost.
Craig J. Lazzara, managing director at S&P DJI, noted that regional differences are still “striking,” with the West Coast hubs that saw huge migration during the pandemic having the weakest growth.
The Southeast (+2.1%) continues to see strong growth, though this month its top-performer crown was stolen by the Midwest (+2.7%).
Looking at cities,…
Mortgage applications went up last week, benefitting from VA and FHA activity.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – increased by 0.9%, improving slightly after the week prior’s 4.4% decline. This week’s data includes an adjustment for the July 4th holiday.
Adjusted purchase applications rose by 2%, though the unadjusted index was down 19% from the week before and 26% lower YOY.
The bump in purchase activity is attributed to an increase in FHA and VA loan activity.
Both loan types offer major perks like low down payments and minimum closing costs to those who qualify, making them more attractive than conventional loans in the current…
Competition has returned full force to the housing market as demand for limited inventory sends home prices soaring.
Black Knight’s latest Home Price Index hit a new record in May, with prices up 0.7% month-over-month and 8.9% YOY. This is the fifth consecutive month of gains.
Many markets experienced home price declines in the last few months, but that trend seems to be reversing. Of the 50 largest markets analyzed by Black Knight, 27 hit their prior price peaks or set new records this spring.
“There is no doubt that the housing market has reignited from a home price perspective,” said Andy Walden, Black Knight Vice President of Enterprise Research. “The reheating is widespread, with more than half of the…
Competition for limited inventory has led to surprisingly hot home prices this spring season.
Zillow’s latest market report found that home values grew 1.4% between April and May, the highest since June 2022.
This is cooler growth than the previous two springs, but more than in 2018 or 2019. The typical home is valued at $346,856, up 0.9% YOY and 3.4% from January’s low point.
Buyers are desperate to make this market work for them despite its challenges, with sales up nearly 10% from April to May. At the same time, inventory reached a record low.
“Many homeowners are still opting not to sell and give up historically low mortgage rates. But those who do have been rewarded with bidding…
