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Strong and Healthy Housing Market

The New Home Sales report was just released showing that newly constructed homes with committed buyers increased by 47,000 units to 713,000 for the month of August.  The demand for new homes is currently nearing the highest levels seen in about twelve years.  Monitoring this number is important because new home sales point to people spending money for things such as appliances, furniture, electronics, etc.  Analysts look to this report to help gauge future economic momentum. 

The Federal Housing Finance Agency (FHFA) has reported that single family homes purchased with conforming loan amounts across the nation have increased in price by 0.2% since last month and by 5% since last year.  These numbers came in better than expectations, and the annual number was slightly stronger than last month’s 4.8%.

Overall, both of these reports show that home purchase demand is still strong.  New homes are getting bought at near twelve month highs, and demand for homes that fall in the FHFA report are still pushing prices higher.  The housing market is still running strong and healthy. 

Sources:

https://us.econoday.com


30-Second Update: Home Sales Rise to 17-Month High!

According the National Association of Realtors (NAR), U.S. home sales rose to a 17-month high in the month of August, up 1.3% from the previous month.  In addition, total existing home sales, which represents completed transactions on single-family homes, townhomes, condos, and co-ops increased to a seasonally-adjusted annualized rate of 5.49 million, which was a gain of 2.6% above last year’s rate. 

The increase in existing home sales appears to be directly tied to low mortgage rates that buyer’s have experienced throughout the summer.  Leading the way were first-time home buyers, which comprised 31% of sales in August.  In addition to the increase in home sales, the median price for an existing home is also on the rise.   According to NAR, the median price for an existing home was $278,000 in August, a gain from last August’s average of $265,600, which marks an impressive 90th straight month of year-over-year gains. 

Sources:

https://cnb.cx/2lXntXq

https://bit.ly/2mt0fZz


 

30 Second Update: Week of September 16th, 2019

According to the National Association of Home Builders (NAHB), from April to June, 55% of home shoppers who were actively seeking to purchase a home were unsuccessful in finding one, even after three months of shopping. 

What were the reasons for these people not being able to find a home?

-50% said affordability

-43% said the lack of inventory in the right neighborhood

-40% said they couldn’t find the right home paired with the features they wanted

Of those surveyed, 36% plan on expanding their search radius, 21% are opting to go with a smaller/older home and 16% said they will just have to spend some more money on the home they seek and desire.

According to Housing Wire, almost 65% of homes in the US are over 25 years old and about 50% of the homes in the US need some type of renovation or updating.

If you are struggling to find the right home, the right move might be to purchase one that needs some updating at a discount and leverage Advisors Mortgage’s FIX-IT program to help you, “Fix –it” or update it the way you want it.

Sources:

https://bit.ly/2knNeQj

https://bit.ly/2k1SkOj

 


Healthy Market Conditions Continue

Mortgage application data just came in from the Mortgage Bankers Association, and refinances dropped slightly for the week by 8%, but are still up almost 170% for the year.  Home purchase applications were down by 4% last week, but are still up 2% this year.  Tighter inventories have made it harder for buyers to find homes, but the demand is still certainly there.

On the home appreciation front, we are seeing that appreciation levels are still strong.  The Federal Housing Finance Agency (FHFA) has reported that homes with conforming conventional mortgages have appreciated across the nation by 4.8%.  The S&P Case-Schiller Home Price Index, which analyzes single family homes, showed that homes across the nation have appreciated by 3.1%.  Both of these reports have mitigated slightly, but they are still at very strong and healthy levels.

When looking at the current market conditions, this is a great time to take advantage of historically-low interest rates to either purchase or refinance a home.  Call your Advisors Mortgage Loan Officer today to discuss the current market in more detail and to learn what you qualify for.

We Are Happy To Help” Call us at 855-LOANS-USA or visit us at AdvisorsMortgage.com

Sources:

https://www.fhfa.gov/

https://bit.ly/2MHUl2r


30 Second Update:  Mortgage Rates Hit 3-Year Lows/Demand for Housing Increasing


According to Mortgage News Daily, for the week ending August 2nd, rates on 30-year fixed mortgages have reached 3-year lows.  Current rates are the lowest since November 2016.  Freddie Mac Chief Economist Sam Hater stated, as mortgage rates continued to hover near 3-year lows, purchase demand has responded, rising steadily over the last two months to the highest year-over-year change since the fall of 2017.  Khater went on to say, “while the improvement has yet to impact home sales, there’s a clear firming of purchase demand that should translate to higher home sales in the 2nd half of this year.”

In addition to purchases, refinancing right now could not be more opportunistic for current homeowners.  According to a study by Black Knight, based off current market rates, there are nearly 10 million borrowers that could lower their current mortgage rate by .75% by refinancing right now.  The average borrower would save $267 per month via a refinance, resulting in a whopping $96,000 in savings over the course of a 30-year mortgage.

We Are Happy To Help” Call us at 855-LOANS-USA or visit us at AdvisorsMortgage.com

Sources:


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