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…
Student loan payments are set to resume this October, giving Americans yet another monthly bill to stress about, and the impact is expected to set in early.
“It’s going to quickly reverse all the progress that was made during the repayment pause, especially for those who took out new debt in mortgages or auto loans where they had the financial room because they weren’t paying their student loans,” Laura Beamer, who researches higher education finance at the Jain Family Institute, told the New York Times.
Monthly student loan bills before the pandemic came in between $200 and $299, a serious chunk of change that borrowers have not had to budget around.
A report by the Federal Reserve found that about…
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…
After an uptick last week, mortgage applications sank again, falling to their lowest level in a month as rates surged.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – decreased by 4.4%, wiping out last week’s 3% gains.
Adjusted purchase applications fell by 5%, though the unadjusted index rose 6% from the week before and 22% lower YOY.
Refinances dropped, down 4% from the week prior. They remain 30% lower than the same time last year, comprising only 27.4% of total applications. In the past decade, refis averaged 58% of total activity.
The average interest rate for 30-year fixed loans rose from 6.75% to 6.85%. This is the…
New home sales jumped in May as homebuilders continue to experience a boom, according to new data from the U.S. Census Bureau and the Department of Housing and Urban Development.
Sales rose by 12.2% to a seasonally adjusted annual rate of 763,000, compared to April’s 680,000. They were up 20% from the same time last year, which saw an annualized rate of just 636,000.
The seasonally‐adjusted estimate of new houses for sale was 428,000, down from last month and representing a supply of 6.7 months at the current sales rate.
The median sales price for a new home was $416,300, while the average sales price was $487,300.
Homebuilders are working overtime to accommodate surging demand. Americans still want to buy…
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.…
Millions of Americans who bought new homes during the pandemic have enjoyed them and the benefits of historically low interest rates. But for those who missed out, the homebuying process has become a drag.
A new survey from Clever Real Estate found more than half of Americans who recently bought a home feel that they overpaid for their home and have struggled financially since.
One thousand Americans who purchased a home in 2022 or 2023 were surveyed on April 12 and 13, 2023. Respondents answered up to 21 questions regarding their recent home purchase, previous home sales, and views on buying and selling homes.
Almost half of respondents exceeded their budget and 58% believe they overpaid. Considering that, it’s no…
