According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates increased again last week. Rates were up across all loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. With rates continuing to climb, refinance activity has slowed. Last week, it dropped another 9 percent and is now 54 percent lower than last year at the same time. Purchase activity, on the other hand, only fell 1 percent. Joel Kan, MBA’s associate vice president of economic and industry forecasting, says government loans saw the biggest week-over-week decline. “Purchase applications saw a modest decline over the week, with government purchase applications accounting for most of the decrease,” Kan said. “Prospective buyers still face elevated sales prices in addition to higher mortgage rates. The heavier mix of conventional application again contributed to another record average loan size at $453,000.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

The winter housing market is typically the slowest of the year. Many prospective home buyers, anticipating the start of the spring sales season, put their plans on hold and wait for warmer weather. But while this winter saw the market slow down a bit, it’s been anything but typical. With the number of homes for sale still much lower than normal, even winter home buyers have encountered a fast-paced market with plenty of competition from other buyers. In fact, one recent analysis covering the four weeks ending February 6 found that 55 percent of homes recently for sale had an accepted offer within the first two weeks on the market – that’s up from 49 percent in January 2021 and 41 percent in 2020 – and the share of those homes that went under contract within one week climbed to 43 percent, up from 29 percent in 2020. In other words, homes for sale are still selling quickly and buyers need to be prepared to act fast when they find one they want. (source)

When you choose a home to buy, you’re also choosing a neighborhood. The area surrounding the house you buy will play a big part in how much you like living there. After all, you aren’t going to be spending all of your time indoors. That’s why it’s important as a home buyer to take note of the area’s amenities and how close you are to the things you’ll want and need. How important? Well, one recent survey found that 80 percent of Americans said they love their home and, among them, 77 percent said it was because of the location, neighborhood, or neighbors. In fact, their neighborhood came in second only to the memories they’ve made in their house. So how can you make sure you choose a neighborhood you’ll love? You can start by checking for amenities like parks, trails, shopping, restaurants, entertainment, and walkability. Also, consider how far away you’ll be from work, family, and friends. Everybody wants a great kitchen and plenty of storage space, but a perfect interior may not be enough if it’s far from the things you love. (source)

Determining how much house you can afford can be complicated. There are a lot of numbers involved. Home prices and mortgage rates are important, of course, but so is your downpayment, household budget, and income. In other words, it’s an equation that’s pretty specific to your financial situation, the house you’re looking at, and which neighborhoods you’re targeting. Ultimately, though, you’re trying to figure out how much your monthly mortgage payment will be. And while it does depend a lot on your particular situation, having a ballpark figure can help you visualize what to expect. So what does the typical mortgage payment look like these days? Well, according to new numbers from the National Association of Realtors, the average monthly mortgage payment on an existing home rose to $1,240 in the fourth quarter of 2021. That’s up $201 from the same time one year earlier. But while rising home prices have pushed mortgage payments higher, Lawrence Yun, NAR’s chief economist, says there’s good news on the horizon. “The good news is that home prices should begin to normalize later in 2022 as more homes come on the market,” Yun says. (source)

Traditionally speaking, marriage and homeownership go hand-in-hand. First, you get married, then you buy a home and start a family. It’s all a part of settling down. But while that’s the classic order of things – and the majority of today’s home buyers are still married couples – this somewhat old-fashioned notion is starting to change. These days, there’s an increasing number of single Americans buying homes and, according to one recent survey, even a rising number of buyers who have purchased a house with a partner, friend, or family member. In fact, 31 percent of Americans have bought a primary residence with someone they aren’t married to – and an even larger percentage would consider it. Among respondents, 55 percent said they’d be open to it, and among 18-to-34-year-olds, 68 percent said so. Of course, among home buyers who weren’t married, the most common buying partners were romantically involved couples, though older and younger relatives, siblings, roommates, and friends also made the list. (source)

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates increased again last week. Rates were up week over week across all loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. The increases led to a decline in both refinance and purchase application demand. Overall, demand was down 8.1 percent from the week before. Joel Kan, MBA’s associate vice president of economic and industry forecasting, says the lack of affordable inventory has slowed activity and also led to an increase in the average loan size. “The average loan size again hit another record high at $446,000,” Kan said. “Activity continues to be dominated by larger loan balances, as inventory remains tight for entry-level buyers.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

Buying a house is a major financial transaction. For most of us, it’ll be among the biggest we’re ever involved in. But money isn’t the only thing you’re committing when you purchase a home, you’re also committing your time. The average home buyer will spend the next five to 10 years living in the house they buy. Which is why it’s important to know exactly what you’re looking for when shopping for a home – especially, in a fast-paced market. You likely won’t have days to debate the pros and cons of a particular property. You’ll have to make a decision quickly, and that can lead to buyer’s remorse. In fact, a recent survey of homeowners who bought in the past two years found 75 percent said they had at least one regret about the home they purchased. An almost identical number of respondents said they wish they’d done at least one thing differently when they were shopping for a home. But while compromise is inevitable as a home buyer, regrets aren’t. Before you begin, make a list of must haves and deal breakers. Knowing where you’re willing to compromise, and where you won’t, will help you choose a house you’re less likely to regret. (source)