According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates were mostly unmoved last week from one week earlier. Rates for 30-year fixed-rate loans with conforming balances, loans backed by the Federal Housing Administration, and 5/1 ARMs all saw slight decreases week-over-week, while rates for jumbo loans and 15-year fixed-rate loans both increased. Joel Kan, MBA’s vice president and deputy chief economist, says mortgage demand was also relatively flat. “Purchase activity picked up slightly, driven by increases in FHA and VA applications,” Kan said. “Refinance applications decreased for the fourth consecutive week, in line with higher rates.” Refinance activity was down 2 percent from the previous week, while demand for loans to buy homes saw a 1 percent increase. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

In a competitive market, home buyers have to make big decisions fast. There’s no time to deliberate when other interested buyers are right behind you, ready to make an offer. That’s been the case for the past several years, as the number of buyers outpaced the number of homes available for sale. Homes sold quickly and received multiple offers from competing buyers. These days, though, things are improving. In fact, according to new numbers from the National Association of Realtors’ consumer website, home buyers may finally be getting some relief. That’s because the number of homes actively for sale has now risen for eight consecutive months and is up nearly 37 percent from last year at the same time. Danielle Hale, the website’s chief economist, says this news is good for buyers. “The combination of more for-sale homes and longer time on the market is beneficial for home shoppers as they have more selection and don’t need to feel as rushed in picking a place to call home,” Hale said. (source)

Americans started feeling better about the housing market as it headed into the summer season, according to the latest survey results from Fannie Mae’s monthly Home Purchase Sentiment Index. The percentage of survey respondents who said it’s a good time to buy a home rebounded in June, with a 5 percent increase over the month before. The share who say it’s a good time to sell also improved, rising 2 percent from May. Mark Palim, Fannie Mae’s vice president and deputy chief economist, says affordability remains a concern, despite the optimistic turn. “Affordability concerns remain the primary driver of consumer housing sentiment, even as the topline findings from our monthly survey showed a modest uptick in optimism on both home buying and home selling conditions,” Palim said. “If mortgage rates decline through the end of the year, as we currently forecast, we do think home sales activity will pick up, but progress on that front is likely to be slow due to the ongoing imbalance between supply and demand.” (source)

ATTOM Data Solutions keeps a quarterly record of how affordable it is to buy a house based on monthly homeownership expenses for a median-priced home, including mortgage payments, property taxes, and insurance. Its U.S. Home Affordability Report looks at data from 589 counties to determine whether homeownership is more or less affordable today compared to historical levels. According to the most recent report, affordability was more challenging during the second quarter, as prices continued to increase and mortgage rates briefly spiked. In fact, 582 of the 589 analyzed counties were less affordable than in the past. Rob Barber, ATTOM’s CEO, says some of the affordability crunch was seasonal. “It’s common for these trends to intensify during the spring buying season when buyer demand increases,” Barber said. “However, the trends this year are particularly challenging for house hunters, more so than at any point since the housing market boom began in 2012.” (source)

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates increased across all loan categories last week. Rates were up from the week before for 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, 15-year fixed-rate loans, and 5/1 ARMs. Mike Fratantoni, MBA’s senior vice president and chief economist, says the rate increase was slightly unexpected. “Mortgage rates moved higher last week … even as the latest inflation data has kept market expectations alive for a rate cut from the Fed later this year,” Fratantoni said. “Purchase applications decreased the final full week of June, even as both new and existing inventories have increased over the past few months.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

Home buyers got a bit of a break in May, according to new numbers from the Mortgage Bankers Association. The MBA tracks mortgage payments each month with its Purchase Applications Payment Index – which measures mortgage payments relative to income. In May, the index fell 1.6 percent, indicating affordability improved. In fact, the national median mortgage payment fell to $2,219 from $2,256 the month before. For borrowers applying for lower-payment mortgages, the median payment fell to $1,508. Edward Seiler, MBA’s associate vice president, housing economics, and executive director, Research Institute for Housing America, says mortgage rates calmed in May after spiking in April. “Home buyer affordability conditions improved in May as slightly lower mortgage rates and an uptick in housing inventory slightly eased the recent rise in application payment amounts,” Seiler said. The MBA is forecasting further affordability improvement as the year goes on, with lower rates and slowing home-price growth in the months ahead. (source)

The S&P Case-Shiller Home Price Index has been tracking home prices for decades and is among the most closely followed measures of US home values. The index is based on a three-month moving average and covers all nine census divisions. According to the most recent release, home prices continue to rise, though at a slightly slower pace than before. For example, the National Index found prices up 6.3 percent from last year at the same time, which is just short of the 6.5 percent year-over-year gain found in last month’s report. Brian D. Luke, head of commodities, real & digital assets at S&P, says prices look to be on a similar path as last year. “2024 is closely tracking the strong start observed last year, where March and April posted the largest rise seen prior to a slowdown in the summer and fall,” Luke said. “Heading into summer, the market is at an all-time high, once again testing its resilience against the historically more active time of the year.” (source)