Mortgage rates increased last week, and despite a two-week streak of declines, will likely remain above 7%.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.18%, up from 7.12%. A year ago at this time, the 30-year FRM averaged 6.02%.
The 15-year fixed-rate mortgage slipped, however, down to 6.51% from 6.52%. A year ago, it averaged 5.21%.
“Mortgage rates inched back up this week and remain anchored north of seven percent. The reacceleration of inflation and strength in the economy is keeping mortgage rates elevated,” said Sam Khater, Freddie Mac’s Chief Economist.
The consumer price index saw its biggest monthly gain this year in August, coming in hotter than expected at +0.3% month-over-month.
This heightens the…
Pending home sales were up in July, marking a second month of increases, but there is still lots of room for improvement.
NAR’s Pending Home Sales Index rose by 0.9% to a reading of 77.6 in July. An index of 100 is equal to the level of contract activity in 2001.
“The small gain in contract signings shows the potential for further increases in light of the fact that many people have lost out on multiple homebuying offers,” said NAR Chief Economist Lawrence Yun.
“Jobs are being added and, thereby, enlarging the pool of prospective home buyers. However, rising mortgage rates and limited inventory have temporarily hindered the possibility of buying for many.”
Only seven of the nation’s 200 largest…
Powerbuyer Ribbon, now owned by sale-leaseback platform EasyKnock, is reintroducing its all-cash offer product to Atlanta and Charlotte.
RibbonCash offers temporary financing for cash offers, a powerful model during the housing boom that allowed it to expand to multiple states. But last year brought two rounds of serious staff cuts, with the company retaining only 30 employees by November 2022.
It suspended new RibbonCash financing at that time as well.
EasyKnock purchased Ribbon in May 2023, saying it would speed up the development of its buyer-seller marketplace, slated to launch later this year. The marketplace will connect sellers to both institutional and individual buyers, giving EasyKnock access to another sector of the housing market. It currently caters to existing homeowners.…
As inflation slowly cools, consumers are feeling a lot more secure in their personal finances. But when it comes to homebuying, they’re still in the dumps.
Leaders at Fannie Mae said the Home Purchase Sentiment Index increased by 4 points YOY in July as consumers responded positively to the job security and mortgage rate components.
When asked to describe their feeling about the housing market, consumers became much more pessimistic, however, with 82% reporting that it’s a “bad time to buy” a home. This is a record high, up from 78% in June and above the last all-time high in October 2022.
“While consumers are reporting confidence in the components related to their personal financial situations, it’s unlikely we’ll see…
Mortgage applications slipped again last week as rates neared 7%, with purchase apps falling to their lowest level since the beginning of June.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – decreased by 3%, adding to last week’s 1.18% decline.
Adjusted purchase applications fell by 3%, while the unadjusted index dipped 3% from the week before and 26% lower YOY.
The average interest rate for 30-year fixed loans rose from 6.87% to 6.93%, pushing homeownership farther out of reach for many Americans.
“The decline in purchase activity was driven mainly by weaker conventional purchase application volume, as limited housing inventory and rates still close to 7% are…
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…
Existing-home sales increased slightly in May, just enough to put a positive spin on the otherwise difficult market.
Sales rose by 0.2%, barely moving, to a seasonally adjusted annual rate of 4.30 million from 4.28 million the month prior, according to the latest data from the National Association of Realtors.
Year-over-year, sales are down 20.4%.
The South and West saw improvement month-over-month, but the Northeast and Midwest fared poorly.
“Mortgage rates heavily influence the direction of home sales. Relatively steady rates have led to several consecutive months of consistent home sales,” said NAR Chief Economist Lawrence Yun.
The median price for an existing dropped, down 3.1% to $396,100, NAR found. This is just the fourth YOY decline in years. February’s…
Mortgage applications just barely stayed positive last week, ticking up slightly.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – increased by 0.5%.
Adjusted purchase applications rose by 2%, while the unadjusted index was down 0.1% from the week before and 32% lower YOY.
The average interest rate for 30-year fixed loans fell for a third week from 6.77% to 6.73%.
Though it’s not a huge drop, any dip will pull some rate-sensitive buyers off the sidelines. This is especially true for new construction, which is having a boom moment thanks to the crippling shortage of existing homes for sale.
“Purchase applications increased, driven by a 2% gain…
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.…
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…
