Consumer Sentiment On Housing Hits Lowest Level Since May 2020

By KIMBERLEY HAAS Consumers across the country continue to report difficult homebuying conditions due to inflation, higher mortgage rates, and home price appreciation. Doug Duncan, Fannie Mae Senior Vice President and Chief Economist, says that in April their Home Purchase Sentiment Index fell to its lowest level since the spring of 2020. The percentage of respondents who said it is a good time to buy a home decreased from 24% to 19%, while the percentage who said it is a bad time to buy increased from 73% to 76%. As a result, the net share of those who say it is a good time to buy decreased 8 percentage points month over month, according to the survey. “The current lack…

Rates Shoot Back Up After One-Week Reversal

Mortgage rates shot back up after a one-week reversal of their upward trend, averaging 5.29% last week, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 5.29%, up from 5% last week. A year ago at this time, the 30-year FRM averaged 2.96%. “Mortgage rates resumed their climb this week as the 30-year fixed reached its highest point since 2009,” said Sam Khater, Freddie Mac’s Chief Economist. “While housing affordability and inflationary pressures pose challenges for potential buyers, house price growth will continue but is expected to decelerate in the coming months.” Affordability dropped in Q1 2022, with monthly mortgage payments on the typical home rising to $1,383 (+30% YOY). Homeowners…

May Is The Best Time Of The Year To Sell A Home For Maximum Profit, CoreLogic Says

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…

Rates Fall Back To 5%

Mortgage rates declined for the first time after a weeks-long upward streak, averaging 5% last week, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 5%, down from 5.11% last week. A year ago at this time, the 30-year FRM averaged 2.98%. “The combination of swift home price growth and the fastest mortgage rate increase in over forty years is finally affecting purchase demand,” said Sam Khater, Freddie Mac’s Chief Economist. “Homebuyers navigating the current environment are coping in a variety of ways, including switching to adjustable-rate mortgages, moving away from expensive coastal cities, and looking to more affordable suburbs. We expect the decline in demand to soften home price growth…

Mortgage Rates Average 5.11%, Causing “Volatility In Demand”

Mortgage rates averaged 5.11% last week, up from 5%, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 5.11%. A year ago at this time, the 30-year FRM averaged 2.97%. “Mortgage rates increased for the seventh consecutive week, as Treasury yields continued to rise,” said Sam Khater, Freddie Mac’s Chief Economist. “While springtime is typically the busiest homebuying season, the upswing in rates has caused some volatility in demand. It continues to be a seller’s market, but buyers who remain interested in purchasing a home may find that competition has moderately softened.” Mortgage rates have grown from 3.51% at the beginning of March while home prices remain elevated. The combo has…

Fannie Mae HPI Rises To Fastest Pace On Record

The Fannie Mae Home Price Index (FNM-HPI) rose to its fastest annual pace ever on record in Q1 2022, measuring 20% YOY, the company reported. This is up from an annualized rate of 19.1% in Q4 2021, the fastest pace in the index’s 47-year history. Seasonally adjusted home prices rose 4.8% from last quarter. The FNM-HPI is a national, repeat-transaction home price index that measures average quarterly price change on all single-family properties in the U.S., excluding condos. The FNM-HPI will now be publicly available as a quarterly series with a start date of Q1 1975. “We’re pleased to begin sharing the Fannie Mae Home Price Index with external audiences. We have long used this index within the company, including…

Mortgage Rates Average 5%

Mortgage rates averaged 5% flat last week, up from 4.72%, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 5%. A year ago at this time, the 30-year FRM averaged 3.04%. “This week, mortgage rates averaged five percent for the first time in over a decade,” said Sam Khater, Freddie Mac’s Chief Economist.  “As Americans contend with historically high inflation, the combination of rising mortgage rates, elevated home prices and tight inventory are making the pursuit of homeownership the most expensive in a generation.” Home prices continue growing despite hope for a cool down this year due to mortgage rate increases pricing many out of the market and reducing competition. For…

Rates Continue Climb Toward 5%

Mortgage rates rose to an average of 4.72%, up from last week’s 4.67%, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 4.72%. A year ago at this time, the 30-year FRM averaged 3.13%. “Mortgage rates have increased 1.5 percentage points over the last three months alone, the fastest three-month rise since May of 1994,” said Sam Khater, Freddie Mac’s Chief Economist.  “The increase in mortgage rates has softened purchase activity such that the monthly payment for those looking to buy a home has risen by at least 20 percent from a year ago.” The daily fixed rate crossed 5% this week for the first time since 2011, save two days…

Rates Hit 4.67%

Mortgage rates jumped again to an average of 4.67%, up from last week’s 4.42%, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 4.67%. A year ago at this time, the 30-year FRM averaged 3.18%. “Mortgage rates continued moving upward in the face of rapidly rising inflation as well as the prospect of strong demand for goods and ongoing supply disruptions,” said Sam Khater, Freddie Mac’s Chief Economist.  “Purchase demand has weakened modestly but has continued to outpace expectations. This is largely due to unmet demand from first-time homebuyers as well as a select few who had been waiting for rates to hit a cyclical low.” Though refinance applications continue dropping,…

Rates Rise To 4.42%

Mortgage rates continued their upward march this week, averaging 4.42%, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 4.42%. A year ago at this time, the 30-year FRM averaged 3.17%. “This week, the 30-year fixed-rate mortgage increased by more than a quarter of a percent as mortgage rates across all loan types continued to move up,” said Sam Khater, Freddie Mac’s Chief Economist. “Rising inflation, escalating geopolitical uncertainty, and the Federal Reserve’s actions are driving rates higher and weakening consumers’ purchasing power. In short, the rise in mortgage rates, combined with continued house price appreciation, is increasing monthly mortgage payments and quickly affecting homebuyers’ ability to keep up with the…