Lenders denied mortgages for Black applicants at an 80 percent higher rate than white applicants – and 120 percent more often when applying for a conventional loan, according to an analysis released Tuesday by Zillow. The analysis, based on a review of federal data from the Home Mortgage Disclosure Act, found that credit history was the reason for one-third of Black applicants who are denied a mortgage, compared to about 25 percent of white applicants. “At a time when racism is at the front of many Americans’ minds, the disparity in mortgage rate denials is yet another reminder that the housing market – and country – have not done enough to address inequities and heal the scars from an unjust…
The housing market is officially back to pre-pandemic levels. The realtor.com Housing Recovery Index climbed 2.5 percent to 101 for the week ending July 18, which means market activity has climbed back above the 100 benchmark established before the pandemic hit in the United States in March. Even with the good news, realtor.com cautions that it will take months of sustained growth and an increase in new listings to make up for lost ground from earlier in the year. “There is no blueprint for a pandemic-induced recession, but this recovery milestone is further proof that homebuyers will persevere through the biggest of storms,” said Javier Vivas, director of economic research for realtor.com. “Housing remains a must-have during COVID times, and…
After three straight months of sales declines amid the coronavirus pandemic, existing home sales surged at a record pace in June, according to a report released Wednesday by the National Association of Realtors. Total existing home sales increased 20.7 percent from May – thought remained down 11.3 percent from June 2019. “The sales recovery is strong, as buyers were eager to purchase homes and properties that they had been eyeing during the shutdown,” NAR chief economist Lawrence Yun said. “This revitalization looks to be sustainable for many months ahead as long as mortgage rates remain low and job gains continue.” The NAR report also found: The median existing-home price for all housing types in June was $295,300, up 3.5 percent…
House prices in the United States decreased slightly in May but remain significantly higher than they were a year ago, according to the Federal Housing Finance Agency’s monthly House Price Index released Wednesday. The report found home prices were down 0.3 percent for the month – but were 4.9 percent higher than in May 2019. “The May HPI results are based on contracts for sale signed in late March and throughout April, which was a period when many states announced stay-at-home orders,” according to Dr. Lynn Fisher, Deputy Director of the Division of Research and Statistics at FHFA. “The number of transactions powering the FHFA HPI in May was down by just over 30 percent compared to a year ago,…
The housing market is almost all the way back. That’s according to realtor.com’s Housing Market Recovery Index, which reached 98.5 in the weekly report released Thursday. An index of 100 is the pre-coronavirus pandemic baseline level. “Today’s market remains tipped in favor of sellers as would-be spring buyers are shopping well into what would normally be summer vacation season,” said Danielle Hale, chief economist for realtor.com. “Home buyers, trying to take advantage of record-low mortgage rates and make up for lost time, are finding limited and more expensive options. Although sellers are slowly acclimating to this unexpected surge in buyer interest, inventory is still lagging behind demand which is driving quick time on market and listing price growth on par with…
A shortage of homes on the market and pent-up demand continue to drive bidding wars for homes across the country even in the face of a resurgent coronavirus pandemic, according to a report released by Redfin. In June, 53.7 percent of Redfin offers faced competing offers – up from 51.8 percent in May and 44.4 percent in April. “Bidding wars continue to be fueled by historically low mortgage rates and fewer homes up for sale than almost any time in the last two decades,” Redfin economist Taylor Marr said. “It’s like a game of musical chairs where only the best bidders get a seat. Both renters and move-up buyers who have held onto their jobs are vying for the small…
A new survey from Redfin points to demographic differences in the housing market as furthering the divide between the “haves” and the “have nots.” The study , which the real estate brokerage said highlights the “wealth divide” in the United States, looked at unemployment rates, demographic housing sales data, and racial breakdowns among industries hit hard by the economic shutdown versus those that appear to have weathered the storm. “The housing market has mostly been driven by white households with higher incomes—households less likely to have been severely affected economically by the coronavirus shutdowns,” Redfin said, adding that this exacerbates inequality trends in the housing market over the past decade. “The great injustice of this recession is that it is…
After the largest drop in history in April, pending home sales mounted a record comeback in May. Funny how that works. The Pending Home Sales Index increased by 44.3 percent to 99.6 in May, the highest month-over-month gain since the National Association of Realtors started the index in 2001. That comes a month after back-to-back decreases, including a 21.8 percent drop in April. “This has been a spectacular recovery for contract signings and goes to show the resiliency of American consumers and their evergreen desire for homeownership,” NAR chief economist Lawrence Yun said. “This bounce back also speaks to how the housing sector could lead the way for a broader economic recovery.” NAR said every major region recorded an increase…
Affordable homes are getting a less affordable. A report released Friday by Redfin found that the most affordable third of homes in the United States were 5.5 percent more expensive at the end of May than they were a year ago – while the price of the most expensive third of homes increased just 2 percent. “The severe shortage of affordable homes that we’ve been grappling with for years is now being exacerbated by an increase in the number of buyers who are in search of lower-cost houses,” Redfin lead economist Taylor Marr said. “Many Americans—especially millennials—were already toying with the idea of buying their first house before the pandemic. Now they’re actually taking the plunge because mortgage rates are so…
By Jim Perskie The housing recovery is continuing, even as the coronavirus pandemic is showing no signs of letting up across the United States. The realtor.com Weekly Housing Recovery Index released Thursday increased two points for the week ending June 20 – climbing to 92 points, just eight points short of the pre-pandemic baseline. This week’s data shows the housing market is continuing to warm up as economies reopen and more buyers return to the streets, but with COVID cases increasing in some regions uncertainty still remains,” said Javier Vivas, director of economic research for realtor.com. The report found: Time on market dropped by three days last week, though remains 13 days slower than last year.New listings are down 19…
