The housing market may be impossible for the average American now, but hold on a while longer: it’s heading in the right direction.
That’s ICE’s message, at least, with its latest Mortgage Monitor report, which revealed a mix of good and not-so-good data about the state of homebuying.
Affordability is improving, for one, as rates come down. The share of income required to purchase the median home fell close to 5 percentage points from October 2023’s peak.
Stock is also slowly recovering, up for a seventh consecutive month. Lack of inventory has contributed to high prices and competition, making the bidding process a nightmare for many buyers in the last few years.
But home price appreciation remains off the charts.…
Homebuyers, newly infused with extra spending power, are returning to the housing market as they come to terms with 6% rates and move to beat out increasing competition.
Redfin reported that buyers on a $3,000 monthly budget have gained almost $40,000 in purchasing power as rates have fallen from a peak in October 2023.
This theoretical buyer can afford a $453,000 home with a mortgage rate at roughly 6.7%. Just a few months ago, they could only snag a $416,000 home at a 7.8% interest rate, a $37,000 difference.
Costs are easing for buyers across the income spectrum, of course. The monthly mortgage payment on the typical U.S. home (about $363,000) is $2,545 with a 6.7% rate but clocked in…
Mortgage rates increased slightly last week but remain in the mid-6s, encouraging some potential buyers to come off the sidelines.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.66%, up from the week prior’s 6.62%. A year ago at this time, the 30-year FRM averaged 6.33%.
This is the second consecutive week of increases, but just the second since October. Rates have fallen more than a full percentage point since then, giving homebuyers more breathing room as they struggle against record-high unaffordability.
The 15-year fixed rate bucked this trend and fell for a second week, from 5.89% to 5.87%. A year ago, it averaged 5.52%.
Freddie Mac Chief Economist Sam Khater noted that even as rates…
As the student loan forbearance program comes to an end, Americans are terrified that resuming payments will force them into greater debt.
That’s according to a new survey of student loan borrowers by digital personal finance company Achieve.
Student loan repayments were put on pause in March 2020 as a response to the pandemic. Payments will resume in October. Nearly half of respondents are extremely or very stressed about resuming their payments, while 28% say they will have to take on new debt to manage their personal finances.
45% of respondents paid down other expenses rather than making advance payments on their student loans during forbearance, with 27% using their extra cash for mortgage or rent payments.
More than 60%…
The 2023 spring homebuying season may be cooler than in previous red-hot years, but competition will still be plentiful.
According to a new Zillow analysis, ongoing stock shortages mean that even as fewer buyers enter the market this year, those who do will be competing for many of the same homes.
Affordable markets like Cincinnati and St. Louis are likely to see the most competition, especially on lower-priced homes.
The number of homes for sale now is equal to the number in 2021, which set a record for scarcity at the time. So while homes may sit on the market a little longer and sellers may have to make concessions, the chances of selling a home are still good, so…
Rent price growth is finally slowing, a positive sign for the housing market.
The median asking rent rose 2.4% YOY in January, the smallest increase since May 2012 and the lowest level in almost a year, Redfin reported.
Month-over-month, rents decreased by 1.9% and were down 5.4% from August’s peak.
Eleven U.S. metros saw rents dip, with both Phoenix and Oklahoma City seeing declines of more than 6%.
Though prices are retreating, rents are still 22.5% higher than in January 2020.
Redfin analysts say rents are cooling because of increasing supply and lack of demand. Inflation, economic uncertainty, and low household formation have stalled demand.
“We’re watching closely to see whether rents start falling year-over-year. That would be a welcome…
Americans reported their highest level of financial well-being since 2013 in the Federal Reserve Board’s Economic Well-Being of U.S. Households in 2021 report. The data comes from the Board’s 9th annual Survey of Household Economics and Decisionmaking (SHED), which was conducted in October and November 2021. “The SHED results provide valuable insight into Americans’ financial conditions during the late fall of 2021. This important perspective helps the Federal Reserve better understand the economic challenges that existed during that phase of the pandemic recovery,” Federal Reserve Board Governor Michelle W. Bowman said. In Q4 2021, 78% of adults reported either doing okay or living comfortably financially, while financial well-being rose among all racial and ethnic groups measured. Hispanic adults saw a…
The national average closing costs in 2021 for a single-family property refinance were up $88 YOY, but still less than 1% of the average refi loan amount, according to CoreLogic’s annual Refinance Closing Cost Report. The average closing cost was $2,375, up 3.8% from 2020’s $2,287. The average refi loan amount was $304,909. By contrast, the national average for purchase closing costs was $3,860. The main difference in closing costs between the two are owner title insurance and inspection fees common for purchase transactions, but less often required for refis. Most third-party fees were still lower for refis. “In 2021, homeowners were still able to get good deals on both interest rates and closing costs,” said Bob Jennings, executive, CoreLogic…
Selling a home in May, June, or July brings premiums of 10% or more above market value, according to a new analysis by ATTOM Data Solutions. ATTOM looked at home sales over the past eleven years to determine the best month to sell a home. It found that spring and summer are the most popular times for homebuying, giving sellers the best opportunity to make money on their homes. “April showers may bring May flowers, but May brings home sellers the best opportunities to watch their profits grow,” said Rick Sharga, Executive Vice President of Market Intelligence at ATTOM. “Homeowners looking to maximize the price premium they can claim on their homes should sell their properties in May, June, and…
Good Morning! Today is Tuesday, March 8. Ukrainians defended two crucial cities yesterday, shooting down three Russian fighter jets over Kyiv and preventing troops from entering Mykolaiv, on the Black Sea coast. Florida will recommend that healthy children not get a vaccine, contradicting the C.D.C. The Mortgage Note Reports Working With Professionals In Person Is Important When Buying Property: The CEO of Comey & Shepherd in Cincinnati says there is something to be said for working with realtors and mortgage lenders in person at a time when it seems like more and more of the home buying process can be done from a cell phone. Big City Glow Up: Gen Z is reviving urban hotspots assumed to be dying out …
