Mortgage applications fell last week, wiping out the prior week’s gains, as purchase applications dropped to their slowest pace in a month.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – decreased by 6.3%, changing course after last week’s 6.3% increase.
Adjusted purchase applications fell by 4.8%, while the unadjusted index was down 5% from the week before and 26% lower YOY.
The average interest rate for 30-year fixed loans rose from 6.48% to 6.57%, its highest level in two months.
Refinances fell 8% from the week prior after a 10% increase last week.
They remain 43% lower than the same time last year, comprising only 27.4% of…
Home sale prices went up last quarter due to high competition in budget-friendly markets.
The National Association of Realtors’ latest quarterly report found that single-family existing-home sales prices increased in 152 of 221 metros — about 70% — in Q1 2023.
The monthly mortgage payment on a typical existing single-family home with a 20% down payment was $1,859, up 33% YOY.
The divide in demand between affordable and expensive markets is the main factor in these numbers. High-end markets with the most expensive homes are seeing declines, while cheaper areas are seeing intense competition for the few affordable homes for sale, pushing prices up.
“Generally speaking, home prices are lower in expensive markets and higher in affordable markets, implying greater…
Consumers are becoming more optimistic that the housing market will turn in their favor in the coming year, though affordability concerns continue to weigh them down.
Fannie Mae’s Home Purchase Sentiment Index (HPSI) jumped to its highest level since May 2022 in April, up 5.5 points to 66.8. This is the largest increase in more than two years.
Every component increased month-over-month as consumers start to see the light at the end of the tunnel for their homebuying struggles.
As the market is still seized by affordability concerns, the components remained negative, with the full index down 1.7 points YOY. However, more respondents say they expect the tide to turn in their favor.
The component associated with mortgage rate expectations…
Data released today shows a modest increase in home prices took place in February.
Year-over-year, prices increased by 2%, down from 3.7% in the previous month, according to the S&P CoreLogic Case-Shiller National Home Price NSA Index.
The 20-City Composite posted a 0.4% year-over-year gain, down from 2.6% in the previous month.
“February’s results were most interesting because of their stark regional differences… It’s unsurprising that the Southeast (+7.8%) remains the country’s strongest region, while the West (-4.2%) continues as the weakest,” noted Craig J. Lazzara, Managing Director at S&P DJI.
West Coast hubs that saw huge migration during the pandemic remained negative YOY in February, with San Francisco, Seattle, San Diego, and Portland all experiencing declines.
Southern cities continued…
Home shoppers following rates closely jumped on retreating rates in March, giving the spring buying season a boost.
Black Knight’s March 2023 Originations Monitor showed that rate lock dollar volume exploded in March, up 43%, as rates retreated due to economic uncertainty.
Lock volumes rose in all categories. Purchase locks were up 44% month-over-month, significantly higher than its average of 30% across the last five years.
“This continues to be an incredibly rate-sensitive housing market, and March’s rate lock activity perfectly illustrates this dynamic,” said Andy Walden, vice president of enterprise research at Black Knight.
He explained that rates were inching up at the beginning of the month, but came down later in March due to banking sector turmoil.
“The…
Gen Z is proving that young Americans want to be homeowners and are willing to prioritize it.
According to new Redfin data, Gen Z is ahead of Millennials when it comes to homeownership, with 37% of Gen Z respondents already owning a home or planning to purchase one within the next five years.
Only 32% of Millennials said they have taken that step or plan to within the same time frame.
“The rising tide lifted Gen Z homebuyers in 2020 and 2021; they were part of the pandemic-driven homebuying frenzy,” said Redfin Chief Economist Daryl Fairweather.
Gen Z is more likely to prioritize homeownership as a financial goal, with 60% of Gen Z respondents citing it as a top priority…
The Community Home Lenders of America and National Association of REALTORS sent a letter to the Federal Housing Administration offering advice on the 203(k) loan program.
Section 203(k) insurance enables allows homebuyers to pay for both a house and the cost of its renovation through a single mortgage. It applies to refinances as well, so long as the home is more than a year old and the repairs cost at least $5,000.
Both organizations applauded the program, saying the loans “create an opportunity for low to moderate income and first-time buyers to participate in homeownership by facilitating the financing of homes in need of rehabilitation.”
There are 16 million vacant homes in the U.S., many of which are uninhabitable due…
Mortgage rates ticked down again, the fifth straight week of declines.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.27%, down from 6.28% the week prior.
A year ago at this time, the 30-year FRM averaged 5%.
The 15-year fixed-rate mortgage fell from 5.64% to 5.54%. A year ago, it averaged 4.17%.
“Incoming data suggest inflation remains well above the desired level but showing signs of deceleration,” said Sam Khater, Freddie Mac’s Chief Economist. “These trends, coupled with tight labor markets, are creating increased optimism among prospective homebuyers as the housing market hits its peak in the spring and summer.”
First-time buyers particularly are feeling prepared to enter the market.
More than half of respondents to…
Mortgage applications righted themselves last week after a brief dip as buyers took advantage of cooling rates.
The Mortgage Bankers Association’s weekly survey says the adjusted Market Composite Index – a measure of mortgage loan application volume – increased by 5.3%, outstripping last week’s 4.1% decline.
Adjusted purchase applications rose by 8%, while the unadjusted index was up 9% from the week before and 31% lower YOY.
The average interest rate for 30-year fixed loans fell from 6.40% to 6.30%. This is the lowest level in two months. MBA’s SVP and Chief Economist Mike Fratantoni attributed this to slowing job market data released last week. Slowing employment leads to less demand for housing, typically pushing rates down, and vice versa.…
Vacation home hunters are poised to face less competition this spring buying season as the number of locks on second homes dwindles.
According to a new report from Redfin, the number of people locking in mortgages for second homes remained close to a 7-year low in March. Locks for these buyers are down by 52% from February 2020, before the pandemic housing boom, and 49% YOY.
In comparison, primary loan locks are only down 13% from pre-pandemic levels, and 29% YOY.
Locks for second homes peaked at 89% in August 2020 as wealthy Americans took advantage of historically low rates and remote work opportunities.
Now, second-home buyers are deterred by high costs and lifestyle changes. Remote work is gradually fading…
