Homes are staying on the market longer but are still selling faster than they did in the fall of 2019, according to a new analysis from Zillow. The typical home that switched to “pending sale” in September did so after 19 days, up from the pandemic’s record lows, but 10 days faster than in September 2019. Homes are also staying on the market with a median of 54 days in October, up 45% YOY. “Buyers are still out there and willing to buy when they find the right home at the right price, which will provide a floor for the price declines we are currently seeing. But sellers need to do things right to attract the attention of these buyers…
This Halloween, mortgage brokers have more to fear than your typical ghosts and ghouls. Some economists say the market is rebalancing, while others say the housing slowdown is more severe than a correction. “Last year, sellers could seemingly list their home at any price and see multiple offers roll in above list price within days,” said Senior Economist Nicole Bachaud of Zillow. “Now, buyers have some negotiating power, and sellers are under pressure. Buyers are still out there and willing to buy when they find the right home at the right price, which will provide a floor for the price declines we are currently seeing.” Either way, mortgage brokers are facing a seriously spooky situation: dwindling home sales, decades-high interest rates,…
It’s finally happened: average mortgage rates topped 7% for the first time in 20 years, after hovering just under it for several weeks, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey found that the 30-year fixed-rate mortgage averaged 7.08%, up from 6.94% the week prior. A year ago at this time, the 30-year FRM averaged 3.14%. “The 30-year fixed-rate mortgage broke 7% for the first time since April 2002, leading to greater stagnation in the housing market,” said Sam Khater, Freddie Mac’s Chief Economist. “As inflation endures, consumers are seeing higher costs at every turn, causing further declines in consumer confidence this month. In fact, many potential homebuyers are choosing to wait and see where the housing market will…
Homebuyers saw affordability plunge in September as the typical monthly payment rose $102 from August. The national median payment applied for by applicants jumped to $1,941 from $1,839 in the month prior, the Mortgage Bankers Association reported. MBA’s Purchase Applications Payment Index fell for a second consecutive month, up 5.5% to a reading of 163.6. PAPI measures monthly payments across time and relative to income, so this reading indicates that payments on new mortgages accounted for a smaller share of a typical person’s income. The increase reverses four months of improvement from an index high of 164.2 in May. “With mortgage rates continuing to rise, the purchasing power of borrowers is shrinking. The median loan amount in September was $305,550…
New home sales fell in September to a seasonally adjusted annual rate of 603,000, down 10.8% from August and 17.6% YOY, according to data from the U.S. Census Bureau and the Department of Housing and Urban Development. The month-over-month figure is slightly better than expected. Economists polled by The Wall Street Journal predicted home sales to fall 13.4%. The seasonally‐adjusted estimate of new houses for sale at the end of August was 462,000, representing a supply of 9.2 months at the current sales rate. September saw mortgage rates soar from the high-5%s to nearly 7% at month’s end, pricing many potential buyers out of the market. Home shoppers who could have afforded a mortgage payment earlier this year now may…
Mortgage loan application volume surprised no one with another week of declines, accompanied by the 10th consecutive week of rising interest rates, according to the Mortgage Bankers Association’s weekly survey. Interest rates finally topped the dreaded 7% mark, reaching 7.16%. This is their highest point since 2001. The adjusted Market Composite Index, a measure of mortgage loan application volume, dropped by 1.7%. Application activity is at its slowest pace since 1997. The adjusted purchase index fell 2%, while the unadjusted purchase index decreased by 3% and was 42% lower YOY. Purchase applications are now at their slowest pace since 2015, 40% slower than a year ago. “Despite higher rates and lower overall application activity, there was a slight increase in…
Mortgage rates inched up last week, slowing to a crawl as they get closer to a 7% average, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey found that the 30-year fixed-rate mortgage averaged 6.94%, up from 6.92%. This is a slowdown for rates, which the week prior jumped from 6.66% to 6.92%. A year ago at this time, the 30-year FRM averaged 3.09%. “Mortgage rates slowed their upward trajectory this week,” said Sam Khater, Freddie Mac’s Chief Economist. “The 30-year fixed-rate mortgage continues to remain just shy of seven percent and is adversely impacting the housing market in the form of declining demand. Additionally, homebuilder confidence has dropped to half what it was just six months ago and construction,…
Mortgage loan application volume has now seen four months of decline and fallen to its lowest level since 1997, according to the Mortgage Bankers Association’s weekly survey. Interest rates rose to 6.94%, their highest point since 2002. The adjusted Market Composite Index, a measure of mortgage loan application volume, dropped by 4.5%. The adjusted purchase index fell 4%, while the unadjusted purchase index decreased 3% and was 38% lower YOY. The refinance index dropped by 7% and was 86% lower than at the same time last year. Refis made up 28.3% of total applications. “The speed and level to which rates have climbed this year have greatly reduced refinance activity and exacerbated existing affordability challenges in the purchase market. Residential…
After shrinking slightly the week prior, mortgage rates shot back up last week to a 20-year high, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey found that the 30-year fixed-rate mortgage averaged 6.92%, up from 6.66%. A year ago at this time, the 30-year FRM averaged 3.05%. “Rates resumed their record-setting climb this week, with the 30-year fixed-rate mortgage reaching its highest level since April of 2002,” said Sam Khater, Freddie Mac’s Chief Economist. “We continue to see a tale of two economies in the data: strong job and wage growth are keeping consumers’ balance sheets positive, while lingering inflation, recession fears, and housing affordability are driving housing demand down precipitously. The next several months will undoubtedly be important…
Mortgage loan application volume fell another 2% last week, according to the Mortgage Bankers Association’s weekly survey. Interest rates rose to 6.81%, their highest point since 2006. The adjusted Market Composite Index, a measure of mortgage loan application volume, dropped by 2%. The adjusted purchase index fell 2%, while the unadjusted purchase index decreased 2% and was 39% lower YOY. The refinance index dropped by 2% and was 86% lower than the same time last year. Refis made up 29% of total applications. The ARM share of activity dipped slightly from last week as the 5/1 interest rate jumped 20 basis points from 5.36% to 5.56%. “The ARM share of applications remained quite high at 11.7%– just below last week’s…
