By CHUCK GREEN
As Americans remain determined to climb the homeownership ladder despite affordability challenges and a lack of inventory, the link between buying a house and success is strengthening, but that may not be benefitting society or the people who have to sacrifice to compete in the current market.
Roger Valdez, director at the Center for Housing Economics, told The Mortgage Note that life in the United States has been profoundly shaped by the 30-year mortgage, and as a result, mobility and entrepreneurship have likely suffered.
“There’s been a sort of desperation to get into a home and a mortgage over the last three years. The pandemic shifted people’s work and life habits in such a way that, for…
Home prices surged again in the third quarter as home shoppers butted heads because of low inventory.
Annual single-family home price growth increased annually and quarterly from Q3 2022 to Q3 2023, according to Fannie Mae’s Home Price Index.
Price growth rose 2% quarter-over-quarter and was up 5.3% YOY, showing home price appreciation remains resilient amid stock shortages. The index measures the average quarterly price change for all single-family properties in the United States, excluding condos.
“Slightly slowing house price growth may reflect in part the affordability impact of the higher mortgage rate environment – even though prices were still solidly higher this past quarter than a year earlier,” said Doug Duncan, Fannie Mae Senior Vice President and Chief Economist. …
As floods, fires, and devastation become commonplace in areas with high climate impact, more Americans than ever are factoring disasters into their homebuying decisions.
A majority of buyers in every region of the U.S. consider at least one climate risk when home shopping, according to a new report from Zillow.
Americans living in the West are the most likely to say climate fears are “very or extremely” impactful on their purchase decisions, with Northeastern buyers in second place. Southern and Midwestern shoppers are less concerned, though two-thirds report that disaster risk affects their searches at least somewhat.
Millennial and Gen Z buyers are the most likely to worry about global warming’s impact on their new homes. They also make up…
Mortgage rates increased for a third consecutive week, pushing averages closer to 7% and adding pressure to buyers.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.96%, up from 6.90%. A year ago at this time, the 30-year FRM averaged 5.22%.
The 15-year fixed-rate mortgage also increased, up to 6.34% from 6.25%. A year ago, it averaged 4.59%.
“There is no doubt continued high rates will prolong affordability challenges longer than expected, particularly with home prices on the rise again,” said Sam Khater, Freddie Mac’s Chief Economist.“However, upward pressure on rates is the product of a resilient economy with low unemployment and strong wage growth, which historically has kept purchase demand solid.”
Demand has been sluggish…
By CHUCK GREEN
Okay, you’ve undoubtedly heard of those who play with house money. Yeah, that rocks.
By the same token, you’re probably similarly familiar with those who don’t owe money on their house. No mortgage. Zippo.
That not only rocks – and thunderously, at that — it brings the house down. C’mon, who doesn’t dream of having a mortgage-burning party and being free of that debt?
But home mortgage burnings are nearly unheard of in present-day America as the country is now more of a mortgage-ownership society than a home-ownership society.
Mortgage balances were at $12.04 trillion at the end of March, according to officials at the Federal Reserve Bank of New York’s Center for Microeconomic Data.
The free…
Competition for limited inventory has led to surprisingly hot home prices this spring season.
Zillow’s latest market report found that home values grew 1.4% between April and May, the highest since June 2022.
This is cooler growth than the previous two springs, but more than in 2018 or 2019. The typical home is valued at $346,856, up 0.9% YOY and 3.4% from January’s low point.
Buyers are desperate to make this market work for them despite its challenges, with sales up nearly 10% from April to May. At the same time, inventory reached a record low.
“Many homeowners are still opting not to sell and give up historically low mortgage rates. But those who do have been rewarded with bidding…
As the country approaches D-Day for defaulting on its debts, analysts are breaking down the impact of such a scenario on the economy.
The Treasury Department said in January that the U.S. was close to its $31.4 trillion borrowing limit. As a result, it announced “extraordinary measures” to keep the government’s funding above water through spring.
Treasury Secretary Janet Yellen and other experts are now saying the U.S. could default on its debt as early as June in a worst-case scenario.
Dramatic as the news may be, it’s highly unlikely that Congress would actually allow a breach of the debt ceiling.
“While we have a highly polarized Congress negotiating, it isn’t in either party’s interest to let a default happen,”…
By CHUCK GREEN
Industry leaders and economists are sharing their opinions about changes to fees for loans backed by Fannie Mae and Freddie Mac after reports that homebuyers with good credit scores and substantial down payments will pay more so fees for borrowers limited by income or wealth can be reduced.
The changes to the loan-level price adjustment matrix by officials at the Federal Housing Finance Agency went into effect on May 1 and are the target of two bills in Congress.
Rep. Stephanie Bice of Oklahoma, vice chairwoman of the Republican Main Street Caucus, introduced the Free Market Mortgage Act. She said the changes will force homebuyers with good credit to pay more for their mortgages to subsidize loans…
Home sale prices went up last quarter due to high competition in budget-friendly markets.
The National Association of Realtors’ latest quarterly report found that single-family existing-home sales prices increased in 152 of 221 metros — about 70% — in Q1 2023.
The monthly mortgage payment on a typical existing single-family home with a 20% down payment was $1,859, up 33% YOY.
The divide in demand between affordable and expensive markets is the main factor in these numbers. High-end markets with the most expensive homes are seeing declines, while cheaper areas are seeing intense competition for the few affordable homes for sale, pushing prices up.
“Generally speaking, home prices are lower in expensive markets and higher in affordable markets, implying greater…
Zoomers are approaching homeownership from a different perspective than past generations, focusing more on their pets than their romantic partners.
A recent Zillow survey found that Gen Z adults consider a fenced backyard more essential than a double sink in the primary bathroom, a home office for their partner, or a kids’ playroom.
When asked whether it was more important to have a pet-friendly home or a kid-friendly home, features, 10% more Zoomers chose the former. At the same time, almost a full quarter of Gen Z pet owners would move if their home wasn’t working for their pets. Only 12% said the same about their partners’ preferences.
“Young adults may be delaying parenthood, but they’re not putting off pet…
