As inflation appears to have peaked, borrowing costs are starting to stabilize. Mortgage rates appear to be settling in the 5% range after recent dramatic climbs that shocked home buyers. The 30-year fixed-rate mortgage averaged 5.13% this week, down slightly from its 5.22% average a week ago, Freddie Mac reports. Mortgage rates peaked at 6% …
Category: Real Estate Tips
Feb 20
Housing affordability
Housing affordability hit a 33-year low in June, according to NAR data. But an increase in inventory and stabilizing mortgage rates may stem the tide. The average monthly mortgage payment jumped 54% year over year in June while the median household income rose only 5.8%, according to the National Association of REALTORS®’ Housing Affordability Index. …
Feb 19
Contract Signings, Down Again, May Have Hit Bottom
Pending home sales in July dropped nearly 20% year over year as the housing market continues to slow. But a turnaround is in sight, says Lawrence Yun. Home buyers continue to recoil from higher mortgage rates and home prices, with pending home sales in July plummeting nearly 20% year over year, according to data from …
Feb 16
Mortgage Rates Rise Again, Nearing Affordability Threshold
If borrowing costs get just a little higher, the average household may be blocked from homeownership, warns an NAR economist. Mortgage rates continued inching up this week, nearing a threshold that would bring the average American household to a financial tipping point, warns Nadia Evangelou, senior economist and director of forecasting for the National Association …
Feb 15
Experts: Buyers Should Shop Around for a Mortgage as Rates Rise
Borrowers stand to save thousands by gathering multiple quotes from lenders. As mortgage rates surge and remain volatile, it’s becoming increasingly necessary for home buyers to shop around for a loan to find savings. According to Freddie Mac, borrowers potentially could save an average of $1,500 over the life of a loan by gathering one additional …
Feb 14
Mortgage Rates
Monthly mortgage payments are 60% higher than a year ago, according to NAR. Buyers can save by shopping around for different types of loans. The interest rate for the 30-year fixed-rate mortgage crossed a major threshold this week, hitting 6.02%—the first time it has broken 6% since 2008, Freddie Mac reported Thursday. Volatile mortgage rates …
Feb 13
Existing-Home Sales Slip Again
Still, homeowners are faring well, with property prices surging despite a pullback in buyer demand, says NAR’s chief economist. Existing-home sales slipped further in August as economists blame the “housing recession” mostly on higher mortgage rates, though home prices continue rising, according to newly released data from the National Association of REALTORS®. But while existing-home …
Feb 12
Mortgage Rates Inch Closer to 7%
Buyers would be smart to shop around: The large dispersion in rate offerings among lenders could amount to several hundreds of dollars, Freddie Mac says. Home buyers who waited to buy a home this month compared to last month may have some regrets. Home buying is 12% more expensive than just a month ago. Fast-rising …
Feb 09
Mortgage Rates Average 6.66%
Home buyers have lost about $107,000 in buying power since the beginning of the year—and that’s what’s truly scary. Despite a slight decrease this week in mortgage rates, the average for the 30-year fixed-rate loan remains more than double what it was a year ago, adding hundreds of dollars per month to financing costs for …
Feb 08
Housing Starts Rebound, Builders Aim to Win Buyers Back
Despite an unexpected jump in new construction in September, demand for new homes is falling due to high prices and mortgage rates. Builders are lowering their asks to boost buyer traffic. Even as demand for new homes fizzles—about a quarter of homebuilders are reducing their prices to attract more buyers as foot traffic falls—single-family construction jumped …
Feb 07
Home Prices, Bidding Wars Withstand Sliding Sales
There’s some encouraging news in NAR’s latest housing report, though sales of existing home are still falling amid economic uncertainty. Home sales continued sliding in September as home buyers retreat from the market amid near-7% mortgage rates and mounting recession fears. Total existing-home sales—comprising transactions for single-family homes, townhomes, condos and co-ops—dropped 1.5% last month …
Feb 06
Builders Call New-Home Market ‘Unhealthy and Unsustainable’
Forced to slow down construction as buyer demand plummets, builders predict lower home starts through 2023. Builders are pulling back as the new-home market stalls, and a slowdown in construction is projected to last through 2023. In a housing market already sorely lacking inventory—which is leading to falling home sales—this isn’t good news for buyers …
