Most housing markets still favor sellers despite increasing buyer-friendliness, especially in more affordable markets in the South and Midwest. Knock’s Buyer-Seller Market Index found that 71 of America’s 100 largest housing markets still remain seller’s markets. “Although the general consensus is the housing market is undergoing a much-needed reset, which is welcome news to many home shoppers who will have more choices and less competition for the foreseeable future, not all markets are seeing the same trends,” said Knock Co-Founder and CEO Sean Black. “In reality, there’s a great housing divide taking place in the U.S., especially in the East and South, where despite a slowdown in sales and slower home price growth, many markets continue to favor sellers.” Fayetteville,…
Mortgage loan application volume returned to its downward trajectory, wiping out gains from last week as mortgage rates breached 6.5% for the first time since mid-2008, according to the Mortgage Bankers Association’s weekly survey. The adjusted Market Composite Index, a measure of mortgage loan application volume, dropped by 3.7%, effectively negating a 3.8% rise last week. The adjusted purchase index fell 0.4%, while the unadjusted purchase index decreased 1% and was 29% lower YOY. The refinance index dropped by 11% and was 84% lower than the same time last year. Refis made up 30.2% of total applications. “Applications for both purchase and refinances declined last week as mortgage rates continued to increase to multi-year highs following more aggressive policy measures…
New home sales rose in August to a seasonally adjusted annual rate of 685,000, up 28.8% from July’s revised rate but down 0.1% YOY, according to data from the U.S. Census Bureau and the Department of Housing and Urban Development. The seasonally‐adjusted estimate of new houses for sale at the end of August was 461,000, representing a supply of 8.1 months at the current sales rate. The median sales price of a new home was $436,800, while the average sales price was $521,800. The data comes on the heels of a surprise increase in mortgage applications last week, despite rates rising to their highest point since October 2008. “As with the swings in rates and other uncertainties around the housing…
Home price appreciation cooled in July though growth remained elevated from a year earlier, according to new data. The S&P CoreLogic Case-Shiller National Home Price NSA Index saw home prices decelerate, posting a 15.8% annual gain in July, down from 18.1% in the previous month. This is the largest monthly deceleration in the history of the index. “Although U.S. housing prices remain substantially above their year-ago levels, July’s report reflects a forceful deceleration,” said Craig J. Lazzara, Managing Director at S&P DJI. The 10-City Composite reported a 14.9% increase YOY, down from 17.4% in June, while the 20-City Composite rose by 16.1% YOY, down from 18.7%. July’s gains were less than June’s for each of the 20 cities analyzed. Tampa…
By CHUCK GREEN There are those who downright groove to the tune of a lifestyle embedded squarely in the middle of the action. You know, the big city, the vibe of being at the nexus of it all. Downright intoxicating. Conversely, others are swayed by the tranquility of a smaller city or town, finding it as relaxing as, oh, say, a running tab on hot totties. Oh, yeah. Pure nirvana. Now, for those who prefer to be where life can be chill but also gyrate to the beat of maintaining relatively close proximity to where it can be a regular buzzsaw of activity as well, the concept of adjacent cities just might speak their language. Adjacent towns or cities share…
The historically low delinquency rate dropped further in August, closing in on May 2022’s record low, but rising foreclosure starts may cause it to increase, according to Black Knight’s First Look at August 2022 mortgage data. Nationally, delinquencies dropped 3.6% in August to 2.79%. This is just four basis points above May’s record. Improvements were seen across the spectrum of borrowers, with the number of those owing only a single late payment down 4%. Those 90 or more days delinquent fell by 4.5%. Cure activity also increased, with 62,000 seriously delinquent loans curing to current status. Cure rates refer to loans that were delinquent in the prior month but are now current. Start activity rose 15% from July, though it…
Mortgage rates jumped by a quarter point this week in the wake of another 75-point rate hike from the Central Bank, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 6.29%, up from 6.02% just last week. A year ago at this time, the 30-year FRM averaged 2.88%. “The housing market continues to face headwinds as mortgage rates increase again this week, following the 10-year Treasury yield’s jump to its highest level since 2011,” said Sam Khater, Freddie Mac’s Chief Economist. “Impacted by higher rates, house prices are softening, and home sales have decreased. However, the number of homes for sale remains well below normal levels.” Existing-home sales dropped for the…
As first-time buyers struggle to find an affordable home, many Millennials say they are willing to co-buy in order to access bigger mortgages. Pairadime, a new fractional ownership solution with a focus on co-buying, surveyed 1,000 Millennials who say they don’t want to wait for marriage to co-buy a home. Instead, they want to co-buy with their parents, friends, or other family members in order to afford a house in current market conditions. Only 4% of respondents said they would wait until marriage to buy with another person. “During the pandemic, people have been renting and they may have wanted more space, and so they looked at, perhaps, their roommate and decided, ‘Let’s go buy a home together,'” Jessica Lautz,…
Luxury home sales tanked by 28.1% YOY in the three months ending August 31, the biggest drop since 2012, according to new Redfin data. The decline overtook even the 23.2% drop that happened at the beginning of the pandemic, when home sales slowed to a crawl in every area. Non-luxury home sales also fell by the largest margin on record, but in a far less dramatic drop of 19.5%, a change of 0.5%. The same stressors that are beating down the non-luxury market are impacting high-end buyers: low inventory, rising rates, and economic uncertainty. “High-end-house hunters are getting sticker shock when they see the impact of rising mortgage rates on paper. For a luxury buyer, a higher interest rate can…
Existing-home sales dropped for the seventh straight month in August, down 0.4% from July and 19.9% YOY, according to the National Association of Realtors’ most recent data. Sales fell to a seasonally adjusted annual rate of 4.80 million and declined in every major region. Inventory of unsold homes fell 1.5% from July to 1.28 million, breaking a five-month streak of increases. This is a 3.2 months supply at the current sales pace. “The housing sector is the most sensitive to and experiences the most immediate impacts from the Federal Reserve’s interest rate policy changes,” said NAR Chief Economist Lawrence Yun. “The softness in home sales reflects this year’s escalating mortgage rates. Nonetheless, homeowners are doing well with near nonexistent distressed…
