According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell again last week. Rates were down 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. Joel Kan, MBA’s vice president and deputy chief economist, says rates are now at a two-year low. “Application activity was up significantly last week, as market expectations of a rate cut from the Fed pulled mortgage rates lower,” Kan said. “The 30-year fixed mortgage rate … is now at its lowest since September 2022 and is more than a full percentage point lower than a year ago.” As a result, demand for loan applications skyrocketed, with refinance activity up 24 percent and purchase demand 5 percent higher than one week earlier. The MBA’s weekly survey has now been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

The National Association of Home Builders conducts a monthly survey to gauge builder confidence in the market for newly built homes. Its Housing Market Index scores builders’ responses on a scale where any number above 50 indicates more builders view conditions as good than poor. In September, the index rose two points to 41, breaking a streak of four consecutive monthly declines. Carl Harris, NAHB’s chairman, says the reason is simple. “Thanks to lower interest rates, builders now have a positive view for future new home sales for the first time since May 2024,” Harris said. “However, the cost of construction remains elevated relative to household budgets, holding back some enthusiasm for current housing market conditions.” Survey results do show builders more optimistic about the future than current conditions, with the component measuring expectations for the next six months up four points and the component measuring current conditions up only one point from last month. (source)

Despite recent affordability challenges, Americans never stopped wanting to buy a home. Even as prices soared and rates climbed higher, the desire for homeownership remained strong. Now, with the housing market beginning to balance, the time may be right for buyers who paused their plans, waiting for a better deal. Why? Several reasons. Mortgage rates, for one. Average rates have now fallen for several consecutive weeks and are about a point lower than they were earlier this year. Inventory has also improved, offering home shoppers more choices, less competition, and a better chance at avoiding a bidding war. Additionally, the increasing number of homes for sale helps keep available options on the market longer, giving buyers more time to make a smart choice and a solid offer. Altogether, it could add up to a hotter than normal fall housing market, as buyers look to take advantage of the improved conditions. (source)

Home prices are a hot topic after years of skyrocketing growth. Double-digit annual increases were common in most markets during the pandemic and, though they’ve slowed considerably, prices are still moving upward in most markets. But what should home buyers – and sellers – expect in the months ahead? Well, Fannie Mae’s Home Price Expectations Survey polls industry experts each quarter and gets their read on where they think prices are headed. According to the most recent release, Fannie Mae’s panel raised their expectations for 2024, now saying they expect prices to be up 4.7 percent for the year, rather than the 4.3 percent they predicted last quarter. As for 2025, they expect prices to gain an additional 3.1 percent next year. The national appreciation rate since 1987, according to the Case-Shiller Home Price Indices, is 4.8 percent. (source)

Credit availability isn’t typically among home buyers’ top concerns – but it matters. Lending standards and the availability of loan programs affect how easy or difficult it is to get approved for a loan. When credit is tight, for example, prospective borrowers will need to have their finances in order more so than they would if it were looser. That’s why the Mortgage Bankers Association keeps a monthly measure of how tight or loose credit is with their Mortgage Credit Availability Index. Any increase in the index lets borrowers know credit has loosened, while decreases mean availability has tightened. According to the most recent release, the index rose another 1 percent in August, continuing recent gains and providing better access to borrowers. Joel Kan, MBA’s vice president and deputy chief economist, says credit availability is at a two-year high. “Credit availability increased in August, with the conventional credit index reaching its highest level since July 2022,” Kan said. The MBA’s index has now shown month-over-month increases for eight consecutive months. (source)

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell for the sixth consecutive week last week, bringing rates to the lowest level since February 2023. Rates fell across all loan categories, including 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. Joel Kan, MBA’s vice president and deputy chief economist, says there are a number of factors behind the recent declines. “Treasury yields have been responding to data showing a picture of cooling inflation, a slowing job market, and the anticipated first rate cut from the Federal Reserve later this month,” Kan said. “With rates almost a full percentage point lower than a year ago, refinance applications continue to run much higher than last year’s pace.” As of last week, the refinance index was up 106 percent over year-before levels. Purchase demand, on the other hand, still trails last year by 3 percent, despite a 2 percent week-over-week gain. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

Traditionally, spring and summer are the housing market’s busiest seasons. Home shoppers tend to arrive as the weather begins to warm and then, as summer fades, the market tends to slow. But that doesn’t mean potential buyers should put their plans on hold until next spring. In fact, fall can be among the best times to buy and, according to a new analysis from the National Association of Realtors’ consumer website, early October, in particular, could be this year’s best time for buyers. Why? Well, for one, mortgage rates have been falling in recent weeks, making affordability levels more manageable. Danielle Hale, the website’s chief economist, says improved inventory is another reason. “Unlike the past few years, we are seeing ample for-sale inventory which could soak up any late-season demand in many markets, making the fall a great time to buy even if falling mortgage rates amp up more demand than is typical,” Hale said. “This year’s buyers who are looking for that optimum mix of ample options and the potential to save on list price are going to find some of the best market dynamics in years during the first week of October.” (source)