Home insurance isn’t required by law but, most likely, your lender’s going to require it to get a mortgage. Even if they didn’t, it’d probably be in your best interest to have some coverage. After all, the most common home insurance claims are damage from wind, hail, water, fire, and lightning. In other words, wherever there’s weather, there’s a need for insurance. But while it’s necessary, it isn’t the first thing most buyers think of when considering the cost of owning a home. So what do home insurance rates look like these days? Well, according to one new report – which analyzed rates from every major carrier in every state – they’re in flux. Nationally, the average yearly cost is $1,766, up 2 percent from the year before. But, depending on where you live, costs may have changed a bit more dramatically. In fact, some states saw double-digit increases from the year before, while others saw declines of up to 25 percent. The price also varies wildly from state to state. The most expensive insurance was in Oklahoma, where it costs more than $3,500 annually, while in Hawaii it’s just $412 per year. In short, if you’re buying a home and haven’t already, it’s a good idea to check rates in your area. (source)

The National Association of Realtors’ Pending Home Sales Index is considered a good indicator of future home sales because it measures contract signings rather than closings. Generally speaking, contracts to buy are signed weeks before a sale is closed, which means a drop in the number of signed contracts will most likely show up as a decline in home sales the following month. In April, the NAR’s index fell 3.9 percent, indicating that home sales will soon slow. The reasons for this are obvious: Spiking mortgage rates, on top of already high home prices, have buyers concerned about affordability. But, according to Lawrence Yun, NAR’s chief economist, quickly changing conditions could soon stabilize, offering home buyers more certainty in the months ahead. “If mortgage rates stabilize roughly at the current level … and job gains continue, home sales could also stabilize in the coming months,” Yun said. “Home prices in the meantime appear in no danger of any meaningful decline. There is an ongoing housing shortage, and properly listed homes are still selling swiftly – generally seeing a contract signed within a month.” (source)

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell across all loan categories last week. Rates were down from one week earlier for 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. It was the second consecutive week mortgage rates declined. But though rates fell, it didn’t lead to an increase in demand for loans to buy homes. In fact, the MBA’s purchase index was unchanged from one week earlier. Joel Kan, MBA’s associate vice president of economic and industry forecasting, says higher rates, prices, and low inventory are suppressing demand. “The 30-year fixed rate declined for the second straight week … but remains well above what borrowers were used to over the past two years,” Kan said. “Currently, higher rates, low inventory, and high prices are keeping prospective buyers out of the market.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

Home buyer preferences are usually pretty consistent. What home shoppers are looking for in a house or neighborhood doesn’t change all that much from year to year. But, while that’s typically true, the pandemic caused a shift in what buyers are looking for and, two years after its initial onset, the effects are becoming more clear. One recent example can be seen in an analysis of home-price growth and inventory levels in more than 1,000 cities nationwide. The analysis – which aimed to pinpoint the country’s most popular markets – found that all of the top 10 most popular areas were suburban locations about a half-hour from the nearest city center. That’s a change from the pre-pandemic era when urban areas saw faster price growth and higher demand than neighborhoods outside cities. The reason for the shift is fairly easy to see. The pandemic led to an increase in remote work, and with more Americans able to work from home, buyers began looking to live further from city centers, where they could have more space and privacy. (source)

Homeownership has many benefits. It also comes with a fair amount of responsibilities. Among them, maintenance is a big one. It’s up to you to keep your home in good shape, fix things when they break, and make sure mechanical systems are in working order. Of course, you can hire contractors to do the work, but finding good, affordable help can be challenging and the costs definitely add up. So when shopping for a home to buy, it’s also good to have an idea of how handy you are around the house. Being able to handle some home improvement and maintenance projects can help save you money. It can also help widen your options, as you may be more comfortable buying a house that needs a little love and attention. But first, you need to assess your skill level. According to one recent survey, 47 percent of Americans consider themselves handy. Fewer say they’re extremely handy, with 18 percent of respondents ranking their skill level on the higher end of the handiness scale. How handy do you consider yourself? (source)

Affordability is a hot topic these days. After two years of rapid home price growth and the recent spike in mortgage rates, prospective home buyers are increasingly wondering about the cost. That’s natural. When affordability conditions change quickly, it can lead to uncertainty. So what should home buyers expect in the coming months? Fannie Mae’s Economic and Strategic Research Group has answers. According to their latest outlook, the group believes the housing market is headed for a slowdown in sales and construction activity. That’s to be expected, especially while rates are rising. “Historically, rapid and substantial rises in mortgage rates have had the effect of slowing activity, which we reflect in our forecast,” Doug Duncan, Fannie Mae’s senior vice president and chief economist, says. But a slower market should also bring slower price growth – which could help offset higher rates. Recent price increases have largely been driven by a supply imbalance. More buyers than available homes has led to surging prices. When the market slows, and fewer buyers are active in the market, home prices should finally begin to calm down. (source)

Homes for sale continue to sell quickly, according to new numbers from the National Association of Realtors. Data from April shows 88 percent of homes sold during the month were on the market less than 30 days and the typical property was on the market just 17 days. Lawrence Yun, NAR’s chief economist, says the housing market is a little unusual right now. “The market is quite unusual as sales are coming down, but listed homes are still selling swiftly …” Yun said. It’s true. Home sales in April fell 2.4 percent from the month before and are now 5.9 percent lower than they were at the same time last year. But despite buyer demand beginning to slow, the pace of sales remains fast. So what’s happening? Well, the inventory of homes for sale is still lower than normal, which is why good listings don’t last long. Even with fewer buyers active in the market, homes will continue to sell quickly until inventory improves. Luckily, relief may be on the way. In April, for example, the number of homes for sale spiked, rising 10.8 percent from the month before. That’s good news for spring buyers. (source)