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…
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…
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.…
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…
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 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…
The mortgage rate cooldown is giving Americans a somewhat rosier view of 2024’s housing market, sparking some optimism despite overall dour views about the state of buying and selling.
That’s according to Fannie Mae’s Home Purchase Sentiment Index, which increased 2.9 points in December to a reading of 67.2.
Though Americans generally see homebuying in a negative light, cooling rates pushed the “good time to buy” component of Fannie’s index up slightly month-over-month to 17%. That’s up from 14% in November, a survey low.
The boost was the result of a record-high number of consumers saying they expect mortgage rates to fall in the next 12 months (31%).
“This significant shift in consumer expectations comes on the heels of the…
Mortgage applications slipped as the initial shock of falling rates wore off and buyers once again approached the market carefully.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – fell 1.5%, coming down from the week prior’s 7.4% boost.
Adjusted purchase applications dropped by 1%, while the unadjusted index fell 4% from the week before and was 18% lower YOY.
Americans appear to be losing interest in falling rates, which initially sparked some activity in the market. The 30-year fixed fell to its lowest level since June last week and hit 6.83%.
“At least as of last week, borrowers’ response to this rate move was rather tepid. VA…
This year was one of the worst on record for affordability. But with the market at an all-time low, the only move now is up, according to a new analysis by Redfin.
A homebuyer with the median U.S. income needed to spend 41% of their earnings on monthly home costs in 2023, a record high in Redfin’s data (dating to 2012) and fully 10% more than just two years ago.
In some hot markets, like California’s Anaheim and San Francisco, that number jumps to more than 80%.
But Redfin expects mortgage rates and home prices to both cool in 2024, paving the way for more Americans to buy their dream home.
“A perfect storm of inflation, high prices, soaring mortgage…
Mortgage applications jumped last week as rates retreated, sending buyers running to complete deals.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – increased by 2.8%.
Adjusted purchase applications rose by 3%, while the unadjusted index slipped 0.3% from the week before and was 12% lower YOY.
Rates held steady at 7.61% after seeing their largest single-week drop in more than a year the week prior, down 30 bps in three weeks.
But while buyers mid-sale benefitted from the cooldown, rates have not dropped enough to entice many off the sidelines.
“Both purchase and refinance applications increased to the highest weekly pace in five weeks but remain at…
