Rates Back Up To Near 7%

Rates took a turn for the worse last week, rising back to nearly 7%, as economic data soured analysts’ moods on easing rates. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.87%, up from the week prior’s 6.74%. A year ago at this time, the 30-year FRM averaged 6.42%. This breaks a two-week streak of declines. Mortgage applications slipped this week as rate-sensitive Americans backed away from the market.  The 15-year fixed rate also rose from 6.16% to 6.21%. A year ago, it averaged 5.68%. The Central Bank outlined cuts to come in 2024 but held the benchmark rate steady during their March meeting. Inflation has eased over the past year but committee members do not…

The Racial Homeownership Gap Is Worst For Black Millennials

While the racial homeownership gap exists in every generation, Black Millennials have it worse off than any other age group. That’s according to a new analysis from Redfin, which found that just one-third of Black Millennials own their home (33%), compared to 65% of white Millennials, the largest divide of any generation. By comparison, 52% of Black Gen Xers own their home, compared to 80% of white Gen Xers. Six in ten Black Boomers own their home, while 85% of white Boomers do. White and Black adult Gen Zers own their homes at rates around 30% and 16%, respectively – not as bad as the Millennial divide, but still significant. Black Americans face challenges ranging from the impact of racist…

Pending Home Sales Fell Off In January

Pending home sales contracted in January as rate-sensitive buyers skipped out despite increasing inventory. NAR’s Pending Home Sales Index fell by 4.9% month-over-month to a reading of 74.3 in January. An index of 100 is equal to the level of contract activity in 2001. Year-over-year, they were down 8.8%. “The job market is solid, and the country’s total wealth reached a record high due to stock market and home price gains,” said NAR Chief Economist Lawrence Yun. “This combination of economic conditions is favorable for home buying. However, consumers are showing extra sensitivity to changes in mortgage rates in the current cycle, and that’s impacting home sales.” All four U.S. regions saw declines in year-over-year sales, while month-over-month sales actually…

Newrez Launches Home Rewards Program

Newrez announced a new incentive program offering homebuyers and sellers closing cost kickbacks and other white-glove services. Created with the help of Newzip, a tech-enabled real estate platform, Newrez Home Rewards gives homebuyers access to an advisor, moving assistance, and closing cost credits up to 0.5%. Those who are also selling a home can get up to 1% in credits. Buyers benefit both from savings and Newrez’s “unique concierge experience,” the company said. “In delivering a closing cost credit and a home concierge program through the Newzip partnership, we are furthering our commitment to our customers,” said Baron Silverstein, Newrez president. “Our holistic approach brings value to our clients not just when they buy their home but through the lifecycle…

Rates Jump After Dour Inflation Data

Tough inflation data led to mortgage rates increasing for a second straight week. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.77%, up from the week prior’s 6.64%. A year ago at this time, the 30-year FRM averaged 6.32%. The 15-year fixed jumped to 6.12% from 5.90%. A year ago, it averaged 5.51%. “On the heels of consumer prices rising more than expected, mortgage rates increased this week,” said Sam Khater, Freddie Mac’s Chief Economist.  “The economy has been performing well so far this year and rates may stay higher for longer, potentially slowing the spring homebuying season. According to our data, mortgage applications to buy a home so far in 2024 are down in more…

Rocket Homes Search App Now On Apple Vision Pro

Tech-minded buyers can tour homes in virtual reality on the Rocket Homes app, now available on Apple Vision Pro. The app features a home search page and map of nearby listings. The listings fill the user’s entire field of vision and give a realistic sense of the location and layout of the home, including a “Look Around” option that lets them see the neighborhood and exterior. Listings that include 3D tours allow potential buyers to tour inside as well, seeing each room in detail. “At Rocket Homes, we know there are millions of people who are waiting for the right moment to buy a home. We also know that there are many ways to find and fall in love with…

Americans Touring Homes But Not Yet Buying

Potential buyers are coming out of the woodwork and touring homes, but that activity has yet to turn into a sales surge. Redfin’s Homebuyer Demand Index, which measures requests for tours and other buying services from Redfin agents, increased by 6% in the week ending January 28. Buyers are touring homes as rates hover in the mid-6’s, an exciting moment of stability in the wake of a rollercoaster year. Some are worried that rates will swing back up– or that ongoing home price appreciation will push their dream home out of reach regardless.  But the increase in touring has yet to translate into actual home sales. Purchase applications have actually declined, and Redfin says pending sales saw a huge drop.…

Home Seller Profits Fall For The First Time Since 2011

Many Americans still can’t afford to buy a home as prices remain elevated and rates cool slowly, but sellers are already experiencing the unavoidable next step of price declines: falling profits. Profits on home sales fell last year for the first time since 2011 despite price gains, according to new data from ATTOM. Home sellers made a $121,000 profit on the typical sale in 2023, a 56.5% return on investment. This is a historically strong number – more than double what it was five years ago – but both gross profits and profit margins were down from 2022. At the same time, the national median home price increased at the slowest pace in 12 years. ATTOM noted that the data…

Americans Willing To Think Outside The Box To Afford A Home

Nearly 80% of potential buyers are willing to get creative when it comes to purchasing a home. A new survey from RE/MAX found that homebuyers burdened by unaffordable listings and high interest rates are willing to consider atypical options to buy a home in the next 12 months. Those options include purchasing a home two or more hours away from the workplace and signing up for a super commute, buying a multi-family home, and moving into a tiny home. Purchasing a home in need of remodeling, for either cosmetic or structural reasons, is the most popular option with 56% of buyers saying they would buy a fixer-upper. Millennials in particular see buying a house in need of repairs as a…

Existing-Home Sales Now At Lowest Levels Since 1995

Existing-home sales slipped in December to their lowest point since 1995. Sales declined by 1% to a seasonally adjusted annual rate of 3.78 million, according to the latest data from the National Association of Realtors. They were down 6.2% from the same time last year. The South and Midwest experienced declines month-over-month, while the Northeast saw effectively no change. Notably, sales in the West spiked by 7.8%. All regions clocked decreases YOY. This is a turnaround from November, which saw sales increase for the first time in five months, and a break from predictions. Economists surveyed by The Wall Street Journal expected sales of previously owned homes would rise to a seasonally adjusted 0.3%. NAR Chief Economist Lawrence Yun suggested…