Posts Tagged ‘mortgage rate’

Housing Affordability Still Strong Despite Price Increases

Posted on November 14, 2017 by Laura Lam

Home prices continue to increase, yet affordability actually improved since July, according to the latest Mortgage Monitor report from Black Knight.  As of September, the average homeowner needed 21.4% of their median income to purchase a home. This is actually down from July’s post-recession peak of 21.7% and low by historical standards.  For comparison, an average 24.2% of the median income was required to purchase a home from 1995 to 1999. That increased to 26.2% in the years before the housing boom from 2000 to 2003. Interest rates declined about 40 basis points over the past 6 months, offering the opportunity…

Housing Confidence Dips in March

Posted on April 25, 2017 by Laura Lam

Americans came down off their confidence high in March as fewer say now is a good time to buy a home, according to Fannie Mae’s Home Purchase Sentiment Index.  The index decreased 3.8 percentage points to 84.5 in March, down from February’s survey high. “Home purchase sentiment gave back some of the gains accumulated over the prior two months that sent the index to its survey high in February,” said Doug Duncan, Fannie Mae senior vice president and chief economist. “Strong home price appreciation has turned into a double-edged sword for the housing market as it boosted the net share…

Homebuilder Confidence Slips in April

Posted on April 19, 2017 by Laura Lam

Confidence among homebuilders cooled in April after jumping a month earlier to the highest level since mid-2005, according to data from the National Association of Home Builders/Wells Fargo.  Builder sentiment eased to 68 in April from a reading of 71 in March that was the strongest since June 2005. The median forecast in a Bloomberg survey was for 70; readings greater than 50 indicate more respondents reported good market conditions. The measure of the 6-month sales outlook fell to 75 after a reading of 78 that matched the highest since 2005. The index of current sales cooled to 74 this…

Most Markets Hit Record Housing Prices in 2016

Posted on March 02, 2017 by Laura Lam

The fourth quarter of 2016 saw the best quarterly sales pace of the year – but also pushed housing inventory to record lows, and many markets to home prices with record highs, according to the latest quarterly report from the National Association of Realtors (NAR).  Home prices in over half of measured markets either hit or surpassed their previous peak level, according to the report. The median existing single-family home price increased in 89% of measured markets. While 158 of metro areas saw gains from the fourth quarter of 2015, the remaining 20 metros recorded lower home prices than the year…

Will Higher Interest Rates Lead Buyers to Cheaper Homes?

Posted on January 18, 2017 by Laura Lam

Homebuyers haven’t had it easy lately. Prices were up nearly 8% in November compared to last year while inventory declined.  Add rising mortgage rates to the mix and the outlook starts to appear pretty grim. But, despite rising rates and falling inventory, real estate agents report homebuyers remain optimistic. In a recent Redfin survey, real estate agents were asked to describe the general attitude of today’s homebuyer in one word. More than one in three agents described buyers as being “hopeful,” which outranked other choices such as “fatigued,” “disappointed” and “rushed.” When asked if now is a good time to…

Will These Mortgage Trends Make a Comeback in ’17?

Posted on January 05, 2017 by Laura Lam

The boom-bust cycle of refinancing and a host of other mortgage trends and strategies tend to come and go and come again depending on varying factors.  “It is a cyclical business,” said David Kittle, president of The Mortgage Collaborative.  It’s been a while since the cycle has turned, but it’s finally expected to this year due to the new administration and Congress and the recent rise in rates. Some mortgage-related ideas and market conditions from the past are likely to be back as a result.  Not all of the following retro industry market trends or proposals may become realities in…

Higher Rates May Cool Housing Market in 2017

Posted on December 20, 2016 by Laura Lam

Higher mortgage rates are expected to put a damper on the housing market’s potential along with home price appreciation next year, according to First American Financial Corp. First American predicts that the home price growth rate could decline by nearly a percentage point by the end of next year due to higher mortgage rates, according to Mark Fleming, the company’s chief economist.  Existing-home sales are also expected to go down. “The ‘taper-tantrum’ in 2013, which was a larger increase in mortgage rates than we have seen in recent weeks, produced a similar result — a decline in sales activity, but…

Low Rates Support Improving Housing Markets

Posted on October 11, 2016 by Laura Lam

Low interest rates are keeping the housing market strong even as affordability keeps declining, according to the latest Freddie Mac Multi-Indicator Market Index (MiMi).  July’s index is 85.1, a gain of 0.14% from June and up 4.7% from July 2015. Since bottoming out in October 2010, the index has increased 43%.  When compared with June, the purchase component gained 0.45% to 77.8, but the payment-to-income index declined 1.72% to 67.3. “Despite rising house prices, the majority of housing markets have sustained their momentum due in large part to low mortgage rates. For example, purchase applications, as measured by MiMi, were up…

Why Aren't Americans Buying Homes?

Posted on May 30, 2014 by Saldutti

Activity in the U.S. housing market has slowed to a level that even Fed chair Janet Yellen has said she’s concerned about the recovery. This comes even as mortgage rates have been declining, and lending standards have been easing. A lot of attention has been paid to the demand-side of the story. Specifically, there’s concern that Americans don’t want to buy homes, perhaps because they’re not optimistic about the economy, or they’re worried about the security of the jobs. But an increasing number of economists are saying housing supply is the real problem, not home-buyer demand. “This entire housing recovery…

2014 Predictions: Mortgage and Real Estate

Posted on January 21, 2014 by Saldutti

In December, the New York Times ran a great article about what Americans can expect in the upcoming year when it comes to mortgages and home buying. Overall, the news is pretty good for home buyers, who can expect to get more home for their buck and lenders making getting a mortgage just a little easier as restrictions loosen. While affordability will continue to be a problem in hot markets like New York and San Francisco, buyers in general may find they have more homes to choose from and more lenders vying for their business. However, the news isn’t all…