Mortgage rates increased again last week due to a heap of political and financial news.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.57%, up from 6.39% the week prior.
A year ago at this time, the 30-year FRM averaged 5.10%.
The 15-year fixed-rate mortgage rose from 5.75% to 5.97%. A year ago, it averaged 4.31%.
Daily average rates even exceeded 7% on May 25, hitting their highest level since November.
“The U.S. economy is showing continued resilience which, combined with debt ceiling concerns, led to higher mortgage rates this week,” said Sam Khater, Freddie Mac’s Chief Economist.
At the current rate, 6.57%, Redfin reported that the typical buyer’s monthly mortgage payment amounts to $2,614, a…
Existing-home sales dipped in April as high interest rates and low inventory continued to negatively impact the market.
Sales declined by 3.4% to a seasonally adjusted annual rate of 4.28 million from 4.44 million the month prior, according to the latest data from the National Association of Realtors.
Year-over-year, sales are down 23.2%.
All four major regions saw sales decline year-over-year and month-over-month.
“Home sales are bouncing back and forth but remain above recent cyclical lows. The combination of job gains, limited inventory, and fluctuating mortgage rates over the last several months have created an environment of push-pull housing demand,” said NAR Chief Economist Lawrence Yun.
“Roughly half of the country is experiencing price gains. Even in markets with lower…
Net new listings and contract volume have officially declined for twelve straight months, according to new data from HouseCanary.
HouseCanary’s latest Market Pulse report, which covers 22 listing-derived metrics and compares data between April 2022 and April 2023, shows market activity was significantly hindered in the first month of Q2.
“As we enter May 2023, the real estate market continues to experience uncertainty, with the purchasing market slowdown being one of the key trends observed for over a year now,” Jeremy Sicklick, Co-Founder and Chief Executive Officer of HouseCanary, said.
Contract and net new listing volume both fell annually, down 17.8% and 39.8%, respectively.
Listings were hit particularly hard by a nearly 45% YOY increase in removals.
Home sellers who…
Mortgage applications rose last week despite rates jumping to their highest point in more than a month.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – increased by 3.7%, changing course after last week’s 8.8% decrease.
Adjusted purchase applications rose by 5%, while the unadjusted index was up 6% from the week before and 28% lower YOY.
The average interest rate for 30-year fixed loans jumped from 6.43% to 6.55%, a second week of increases and the highest level in more than a month.
“Both conventional and government home purchase applications increased last week. However, activity was still nearly 28% below last year’s pace, as high mortgage rates…
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…
Housing construction rebounded by more than expected in February, led by a surge in multifamily projects.
New U.S. home construction rose for the first time in six months, according to data from the U.S. Census Bureau. Residential starts increased by 9.8% from January to an annualized rate of 1.45 million. This greatly exceeds estimates from economists surveyed by Bloomberg, who expected a pace of 1.31 million.
Permits for new homes also increased, up by 13.8% to a rate of 1.52 million. Permits offer an indication of how many homes will be built in the coming months.
Both multifamily and single-family construction saw gains, though multifamily had the best showing with a 24% increase, the most in almost two years. Rents…
Investors are backing away from the home purchase market as price appreciation continues to cool.
Investor home purchases declined 45.8% YOY in Q4 2022, according to a new Redfin analysis of 40 U.S. metros. This is a record drop, besting 2008’s 45.1% dip during the subprime mortgage crisis.
Quarter-over-quarter, investment purchases fell 27%, the largest decline excluding the beginning of the pandemic.
Pandemic boomtowns in particular saw massive dips, with investor purchases in Las Vegas and Phoenix dropping by more than 60%.
High borrowing costs and declining home values have “made real estate investing less attractive,” Redfin said.
Home prices have risen less than 1% YOY, down significantly from 15% growth last year. Investors who bought homes at a premium…
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 may idolize a white Christmas, but owning a home in the nation’s snowiest states costs a premium, according to a LendingTree analysis. Median-priced homes in the states that got the most snow in December 2021 cost $56,814 more on average than those in the states with the least snow. Alaska, Idaho, and Utah saw the most snowfall last December. Their median home values – $304,900, $369,300, and $421,700 – are 4.93 times higher than their median household incomes. Warmer states are typically less expensive than frigid Northern states, as evidenced by the flood of affordability-minded homebuyers to the Sun Belt. But this isn’t always the case. LendingTree noted that the median home value in Hawaii ($722,500) is at least…
Pending home sales fell for the fifth consecutive month in October, with three of the four regions seeing month-over-month declines, according to the National Association of Realtors. The Pending Home Sales Index dropped by 4.6% between September and October. Year-over-year it tanked by 37%. All four regions saw pending sales drop year-over-year. The Midwest, however, experienced a small uptick month-over-month, up by 3.3%. The Northeast PHSI fell by 4.3% from September, while the South fell 6.4% and the West saw a major decline of 11.3%. “October was a difficult month for home buyers as they faced 20-year-high mortgage rates. The West region, in particular, suffered from the combination of high interest rates and expensive home prices. Only the Midwest squeaked out…
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