Mortgage Rates Drop from Recent Highs
Based on Freddie Mac reports, after weeks of rising rates, mortgage rates are now falling. The 30-year fixed-rate mortgage averaged 5.10% recently. “Mortgage rates decreased for the second week in a row due to multiple headwinds that the economy is facing,” says Sam Khater, Freddie Mac’s chief economist. “Despite the recent moderation in rates, the housing market has clearly slowed, and the deceleration is spreading to other segments of the economy, such as consumer spending on durable goods.”
Source and link to the full article: Freddie Mac
Buyers’ Outlook Positive for Upcoming Quarter
According to a new survey from OJO Labs, many industry analysts have expected increasing hesitation in the housing market, but buyers largely remain optimistic. About 28% of 5,000 prospective home buyers are “mostly confident” that the next three months will be a good time to buy a home. However, they aren’t quite as confident as they felt in April when 31.1% of respondents responded at that level. That group of buyers is the largest cohort of respondents, the survey authors say. Further, 18.7% of survey respondents “strongly agreed” that the next three months will be a good time to buy a home, bringing the total of positive responses to about 47% of respondents overall, the authors say. Home buyers have felt headwinds with rising prices and mortgage rates and a shortage of homes for sale. But they’re not giving up their hunt this spring and summer.
Source and link to the full article: “Market Conditions Won’t Shake Buyer’s Faith in the Housing Market,” OJO Labs (May 19, 2022)
Sellers Rush Before Market Slows
Based on realtor.com®, home sellers are growing concerned that they could miss out on the buyer frenzy. Signs of a slowing real estate market are growing across the country, existing-home sales and new-home sales are falling as well as pending home sales. The inventory of homes for sale rose 9% recently compared to a year ago. New listings are rising nearly twice as fast in the past four weeks as they did a year ago. “Rising mortgage rates have caused the housing market to shift, and now home sellers are in a hurry to find a buyer before demand weakens further,” Daryl Fairweather, Redfin’s chief economist, told CNBC.
Source and link to the full article: “Home Listings Suddenly Jump as Sellers Worry They May Miss Out on the Red-Hot Housing Market,” CNBC (May 26, 2022)
Over 10 Years, Homeowners Obtained $240K in Equity
According to a new analysis by the National Association of REALTORS®, as prices climb, homeowners who’ve owned their homes for a while have seen a boost in appreciation. Over the past decade, a homeowner who purchased a single-family existing home would have gained $229,400 in home equity if the home were sold at the median price in the fourth quarter of 2021. In the past five years, home prices have notably climbed, rising at an annual pace of nearly 10%, NAR reports. A homeowner who purchased a typical home five years ago would have gained $125,300 from just price appreciation alone.
Source: NAR Calculations. Principal repayment is based on a 30-year fixed rate 10% down payment mortgage. The annual percent change is a compounded annual growth rate. *These can be considered as typical gains. When buying or selling a home, talk to a REALTOR® who can assist with giving you the best offer or list price.
Source and link to the full article: “Homeowners Typically Built Housing Wealth of $240,200 Over 10 Years,” National Association of REALTORS® Economists’ Outlook blog (May 25, 2022)