When you own a home you’re responsible for everything from the front lawn to the furnace. It’s your job to keep things maintained and running smoothly. In other words, it takes some work – or, at least, a list of trusted contractors. But while home maintenance is big part of homeownership, it’s a part that home buyers often overlook. In fact, according to one new survey, buying a home that requires too much maintenance is the most common regret of recent home buyers. Twenty-eight percent of survey respondents named it their top regret. That’s more than those that say they paid too high a price or locked in a higher mortgage rate than they’d like. But while recent buyers feel they took on too much work, future buyers are still prioritizing looks over function, with 33 percent of survey participants saying they want a house with an updated kitchen and bathrooms. That’s almost 10 percent more than those that say they’re looking for one with a strong foundation. (source)

The U.S. Census Bureau and the Department of Housing and Urban Development keep a monthly measure of new home construction. Their report tracks the number of new building permits pulled, the number of homes that began construction, and the number of homes that completed construction during the month. Together, the three components offer a glimpse of where new home construction is and where it may be headed. According to the most recent results, permits and starts were relatively flat from last year in April. Building permits were 2 percent lower than April 2023 and housing starts were 0.6 percent lower than last year. Completions, however, surged. In fact, the number of new homes that completed construction in April was 14.6 percent higher than last year’s level. That may be good news for prospective home buyers, as any increase in the number of homes available for sale can help moderate prices while offering buyers more options. (source)

The National Association of Home Builders’ Housing Market Index measures how confident home builders are in the market for newly built single-family homes. It’s based on a survey and scored so that any number above 50 indicates more builders view market conditions as good than poor. In May, the index scored a 45 – down from 51 in April. Robert Dietz, NAHB’s chief economist, says inflation was behind the decline. “A lack of progress reducing inflation pushed long-term interest rates higher in the first quarter and this is acting as a drag on builder sentiment,” Dietz said. “The last leg in the inflation fight is to reduce shelter inflation, and this can only occur if builders are able to construct more attainable, affordable housing.” According to the index, only the Midwest saw its three-month moving average improve in May, with a three point increase to 49. The Northeast is still the country’s most optimistic region, at 61. (source)

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell again last week. It was the second consecutive week of declines. Rates fell across most loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 5/1 ARMs. Joel Kan, MBA’s vice president and deputy chief economist, says rates are at the lowest level in over a month. “Treasury yields continued to move lower last week and mortgage rates declined for the second week in a row, with the 30-year fixed rate down 10 basis points to … the lowest level since early April,” Kan said. Despite improved rates, however, demand for loans to buy homes declined week-over-week due to a drop in FHA purchase applications. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

The Federal Reserve Bank of New York conducts an annual survey of Americans that asks for their opinion on everything from the housing market to inflation and household finances. According to the most recent results, Americans are feeling pessimistic about housing affordability but are optimistic about homeownership as an investment. Survey respondents say they believe mortgage rates will rise over the next year – though they also say there’s a 61 percent chance they fall over the next 12 months. Home prices, according to participants, should grow 5.1 percent over the next year. That’s up from last year when respondents said prices would rise 2.6 percent. But while respondents are clearly concerned about affordability conditions, they also believe strongly in the financial benefits of owning a home. In fact, 67.1 percent said buying a property in their zip code was a “very good” or “somewhat good” investment, which is well above the level commonly seen during the pre-pandemic period. (source)

A borrower’s ability to get a loan depends on a number of different things. Their financial situation, income, and savings play a big role, of course. Lending standards and the number of available loan programs do too. That means there are times when it’s easier to obtain a mortgage and others when it’s more difficult. The Mortgage Bankers Association’s tracks this each month with their Mortgage Credit Availability Index. When the index increases, it indicates that mortgage credit has become more available. When it falls, credit has gotten tighter. In April, the MBA found credit loosened, though the improvement was slight. Joel Kan, MBA’s vice president and deputy chief economist, says credit has stabilized, but at a low level. “Mortgage credit availability was little changed in April, with credit categories such as conventional, conforming, and jumbo seeing very small monthly gains,” Kan said. “The supply of credit has stabilized, expanding slightly over the past four months but remaining close to 2012 lows.” (source)

Nostalgia can be powerful. It can make you wistful for people, places, and days gone by. According to one new survey, it can even make you wish you could buy your childhood home and move back to the old neighborhood. The survey, which asked participants if they’d buy the home they grew up in, found a lot of us would. In fact, 44 percent of respondents said they’d buy their childhood home if cost weren’t an issue. Among younger Americans, the numbers were even higher. Nearly two-thirds of survey participants born in the 1980s said they’d like to move back home and 55 percent of those born in or after 1990 agreed. But while large percentages of Americans say they’d buy their childhood home if they could, that wish may have more to do with nostalgia for the carefree days of childhood than it does the actual layout and features of the house itself. (source)