Home Sales Hit 2006 Levels, ‘Continue to Amaze’ – Based on the National Association of REALTORS® report, home sales climbed in August to the likes of the 2006 housing boom days, despite the COVID-19 pandemic. Existing-home sales in each of the four major regions of the U.S. saw month-over-month and annual growth. The Northeast saw the largest monthly improvement in home sales. Housing inventories continue to remain tight, putting upward pressure on home prices. Existing-home prices for all housing types in August climbed 11.4% compared to a year ago, reaching a median of $310,600. Prices rose in every region of the U.S. last month. “Home sales continue to amaze, and there are plenty of buyers in the pipeline ready to enter the market,” says Lawrence Yun, NAR’s chief economist. “Further gains in sales are likely for the remainder of the year, with mortgage rates hovering around 3% and with continued job recovery.”
© National Association of REALTORS®
Source and link to the full article: National Association of REALTORS®
3 in 4 Mortgage Holders Could Benefit From Refinancing – According to data from Black Knight, the 30-year fixed-rate mortgage continues to hit new all-time lows practically on a monthly basis. That has dramatically increased the pool of homeowners who could benefit from refinancing and lowering their monthly mortgage payment. In fact, 75% of homeowner (19.3 million) could benefit from refinancing. That’s the largest number of potential refinance candidates ever on record, Black Knight says. According to Black Knight, the average homeowner could potentially reduce their mortgage payment by $299 a month. More than 7 million refinance candidates could save from $300 to $500 per month. Nearly 2.5 million homeowners could save $500 a month or more, the firm notes.
Source and link to the full article: “Refinancing Could Benefit 3 in 4 Mortgage Holders,” National Mortgage Professional (Sept. 10, 2020)
Affordability Dips as Home Prices Reach All-Time High – Based on the National Association of REALTORS® reports, from June to July, median sales price rose by 8.5%, more than double the 4.1% increase seen in family income levels. But mortgage rates that have fallen to all-time lows are helping to offset some of the rising costs. As of July, all of the national and regional data in NAR’s affordability index was above 100, which means a family with a median income had more than the income required to afford a median-priced home. For the analysis, the income required to afford a mortgage is calculated as no more than 25% of a family’s income.
Source and link to the full article: “Housing Affordability Drops Modestly in July 2020 as Median Family Prices Reach All Time High,” National Association of REALTORS® Economists’ Outlook blog (Sept. 14, 2020)
Homeowners Saw Average Equity Gain of $9,800 in Q2 – According to a new report from CoreLogic, homeowners are gaining wealth in the pandemic. The average homeowner gained about $9,800 in equity year over year in the second quarter. “Homeowners’ balance sheets continue to be bolstered by home price appreciation, which in turn mitigated foreclosure pressures,” says Frank Martell, president and CEO of CoreLogic. “Although the exact contours of the economic recovery remain uncertain, we expect current equity gains, fueled by strong demand for available homes, will continue to support homeowners in the near term.” The housing market remained strong in the second quarter as buyers rushed to take advantage of record-low mortgage rates. Limited housing inventories mixed with strong buyer demand has helped fuel the increases in home prices.
Source and link to the full article: “Home Equity Insights,” CoreLogic (2020)