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☆ The spring homebuying season isn’t what it used to be, thanks to the Fed
▼ + stars: | 2024-04-30 | by ( Elisabeth Buchwald | ) edition.cnn.com time to read: +4 min

All that has caused the spring homebuying season to take a timeout — and could spell trouble for the remainder of the year. Since 1999, more than a third of home sales for the entire year occur between March and June on average, according to Freddie Mac data. Given the Fed is in no rush to cut interest rates, Khater expects mortgage rates to remain elevated for longer. Taken together, all these factors will likely put upward pressure on home prices, Khater and his team said in the report. “Our outlook does depend on mortgage rates, which are creating their own seasonality,” she added.

Persons: That’s, ” Zillow, Nicole Bachaud, “ Buyers, Bachaud, Sam Khater, Freddie Mac, Khater, ” Organizations: New, New York CNN, Federal Reserve, CNN, “, Fed Locations: New York, Texas, Florida

☆ New home sales inch higher despite 7% mortgage rates: 'There's more opportunity,' economist says
▼ + stars: | 2024-04-26 | by ( Ana Teresa Solá | ) www.cnbc.com time to read: +1 min

While the spring housing market has been plagued with low supply, high prices and spiking interest rates, would-be homebuyers are focusing on new construction. New homes have more incentives and availability than previously owned ones. "There's more opportunity in new construction," said Nicole Bachaud, a senior economist at Zillow Group. Meanwhile, sales for previously owned homes dropped by 3.7% from March 2023, the National Association of Realtors found. With 30-year fixed-rate mortgage rates sitting above 7%, homeowners who bought at much lower rates in recent years don't like the prospect of trading in their low rate for a higher one.

Persons: Nicole Bachaud, Biden, Bachaud Organizations: Zillow, . Census, U.S . Department of Housing, Urban Development, National Association of Realtors, Finance, Buyers Locations: U.S

☆ Move over, millennials: Gen Zers are coming for boomers' houses
▼ + stars: | 2024-01-17 | by ( James Rodriguez | ) www.businessinsider.com time to read: +11 min

After all their economic misfortune, they'll still face a turbulent housing market and potentially tens of thousands of dollars' worth of necessary updates to boomers' aging houses. In his 2022 paper, "Who will buy the baby boomers' homes when they leave them? ", Engelhardt argued that mass aging would send ripples through the housing market but fail to push down prices significantly. After that point, demand for home purchases will once again outpace supply as millennials buy more homes and younger generations, like Gen Z and Gen Alpha, file in behind them. The timing of boomers' exit will mostly benefit younger generations, like Gen Z and Gen Alpha, who should find themselves on steadier footing than their predecessors.

Persons: Xers, they've, Zers, they'll, Odeta Kushi, Kushi, Gary Engelhardt, Engelhardt, Issi Romem, Meredith Whitney, Boomers, Gen Zers —, Gen, who've, millennials, boomers, Jessica Lautz, Nicole Bachaud, They've, Redfin, Alpha, they're, Lautz, savvier, Zoomers, James Rodriguez Organizations: millennials, Syracuse University, Boomers, Federal Reserve, Alpha, National Association of Realtors Locations: granny, New York, Los Angeles, Chicago, Dallas

☆ Why the housing market is going from tough to terrible
▼ + stars: | 2023-10-20 | by ( Anna Bahney | ) edition.cnn.com time to read: +4 min

The current housing market offers a crushing affordability picture for would-be-homebuyers and is keeping many out of the market. The monthly payment on an average-priced home now requires 40% of the median household income, making housing the least affordable it’s been since 1984, according to ICE. “Longer term Treasury yields — which mortgage rates tend to follow — depend on expected economic growth and inflation expectations,” said Orphe Divounguy, senior economist at Zillow. The median household income was $74,580 in 2022, according to the US Census Bureau. “Good news in the economy causes rates to stay higher for longer — but the longer rates are higher, the more likely something in the market goes ‘boom.’”

Persons: Freddie Mac, ”, Andy Walden, ” Walden, Orphe Divounguy, Nicole Bachaud, Bachaud, John Toohig, Raymond James, ” Toohig, “ Organizations: DC CNN —, ICE Mortgage Technology, Black, ICE, “, Zillow, Census Bureau Locations: Washington

☆ 'House-rich' Americans are sitting on nearly $30 trillion in home equity. Here's how to tap it
▼ + stars: | 2023-09-07 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

Thanks to skyrocketing housing prices, homeowners are now sitting on nearly $30 trillion in home equity, according to the St. Louis Federal Reserve — just shy of the 2022 peak. How to tap your home for cashFactor in the terms, rates and risksWhen it comes to borrowing against your home, the terms can vary greatly, according to a LendingTree report that analyzed more than 580,000 home equity loan offers across the country. The average home equity loan amount offered to homeowners is $104,102, LendingTree found. Access to HELOCs has improved, although the most preferable terms still go to borrowers with higher credit scores and lower debt-to-income ratios. "Though a home equity loan can be a good way to pay for big expenses, like major renovations, or to consolidate high-interest debt, getting one isn't without drawback," added Jacob Channel, LendingTree's senior economist.

Persons: Louis Federal Reserve —, LendingTree, Nicole Bachaud, Jacob, LendingTree's Organizations: Louis Federal Reserve Locations: Homes, Iowa, Maryland

☆ Mortgage rate tipping point: Homeowners say roughly 5% is the magic number to move
▼ + stars: | 2023-09-05 | by ( Jessica Dickler | ) www.cnbc.com time to read: +4 min

Higher interest rates created a 'golden handcuff' effectSince it's unlikely rates will drop anytime soon, this has created a so-called golden handcuff effect. Similar to the financial incentives employers may offer to discourage employees from leaving a company, homeowners are now bound by their low mortgage rate. They don't want to move now and give up that low rate to buy at a higher rate. Between 1978 and 1981, mortgage rates similarly doubled from around 9% to more than 18%, compelling more homeowners to hold on to their homes. However, "mortgage rates weren't at record lows in the late 70s before they started to skyrocket in the early 80s, nor did home prices increase as rapidly," Channel said.

Persons: Nicole Bachaud, Bachaud, John Burns, Tomas Philipson, Bob, Terri Wood, Bob Wood Bob Wood, Terri, It's, Wood, he'd, Greg McBride, Jacob Channel Organizations: Finance, John Burns Research & Consulting, University of Chicago, White House Council, Economic Advisers, CNBC Locations: Mobile , Alabama, Tennessee, LendingTree

☆ People Are Using Mortgage Points to Lower Their Rates—Are They Worth It?
▼ + stars: | 2023-06-24 | by ( Michele Lerner | ) www.wsj.com time to read: +6 min

A recent analysis by Zillow Home Loans found that nearly 45% of borrowers purchased mortgage points, also known as discount points, in 2022 to reduce their monthly payments. That compares to 29% of borrowers who bought mortgage points in 2021, 28% in 2020 and 27% in 2019. “We started seeing more buyers purchasing discount points as soon as mortgage rates ticked up in 2022,” says Nicole Bachaud, senior economist for Zillow in Seattle. The combination of high home prices and high mortgage rates contributes to the current appeal of paying discount points. Cash-out refinance borrowers were also more likely than other borrowers to buy mortgage points.

Persons: Michele Lerner, “, ”, Nicole Bachaud, we’re, Chuck Cavanaugh, ” Cavanaugh, Mike Salierno, ” Salierno, Cavanaugh, ” Bachaud, Cash, Bachaud Organizations: Zillow, Citibank, Northwestern Mutual Locations: Seattle, New York City, Clearwater, Fla

☆ Mortgage points may help homebuyers lower monthly costs amid high interest rates. How to know if this strategy is right for you
▼ + stars: | 2023-06-17 | by ( Lorie Konish | ) www.cnbc.com time to read: +4 min

Other experts say buyers purchasing mortgage points can be a great strategy for the right situation. Being able to lower that monthly payment can really help give some more wiggle room in people's budgets and help them reach affordability. "Being able to lower that monthly payment can really help give some more wiggle room in people's budgets and help them reach affordability," Bachaud said. In addition to higher upfront costs, home buyers should also weigh other factors before buying mortgage points. But putting those sums toward a down payment likely will not make much of a difference on your monthly costs, Elliott said.

Persons: Getty, Grubbs, Nicole Bachaud, Bachaud, Kamila Elliott, Atlanta . Elliott, Elliott, Stephanie Grubbs Organizations: Fed, Zillow, Wealth Partners, CNBC, Douglas Locations: Atlanta ., Douglas Elliman

☆ US consumer confidence dips to six-month low, labor market views soften
▼ + stars: | 2023-05-30 | by ( Lucia Mutikani | ) www.reuters.com time to read: +6 min

The Conference Board's consumer confidence index slipped to 102.3 this month, the lowest level since last November, from an upwardly revised 103.7 in April. The cutoff date for the survey, which places more emphasis on the labor market, was May 22. The survey's so-called labor market differential, derived from data on respondents' views on whether jobs are plentiful or hard to get, fell to 31.0, the lowest since April 2021, from 36.9 in April, suggesting the labor market was loosening up. More timely data like first-time applications for state unemployment benefits suggests the labor market remains tight, but is gradually easing. "Investors should expect Friday's job report to reveal emerging cracks in the labor market."

Persons: Christopher Rupkey, Joe Biden, Kevin McCarthy, Jeffrey Roach, Nicole Bachaud, Lucia Mutikani, Chizu Nomiyama, Andrea Ricci, Paul Simao Organizations: Labor, Conference, Social Security, Medicare, Reuters, University of, Republican U.S . House, Sunday, U.S . Labor Department, LPL, Treasury, Federal Reserve, National Association of Realtors, Federal Housing Finance Agency, Thomson Locations: WASHINGTON, New York, North Carolina, U.S, Seattle

☆ US home prices rose in March for the second month in a row
▼ + stars: | 2023-05-30 | by ( Anna Bahney | ) edition.cnn.com time to read: +5 min

Washington, DC CNN —US home prices rose slightly in March, showing a continuing recovery, according to the latest S&P CoreLogic Case-Shiller US National Home Price Index, released Tuesday. It’s the second month in a row that prices have increased, after an increase in February that snapped a seven-month streak of month-over-month declines. Home prices went up 0.7% in March from the year before, down from 2.1% in the previous month. “The farther west we look, the weaker prices are.”Miami continued to have the largest year-over-year price growth for the eighth consecutive month with a 7.7% increase. Still, “the housing market is likely to remain relatively tense until either home prices or mortgage rates fall enough to bring balance via both buyer and seller activity.”

☆ New home sales rise as prices drop in January
▼ + stars: | 2023-02-24 | by ( Anna Bahney | ) edition.cnn.com time to read: +4 min

CNN —New home sales rose in January from December, as mortgage rates eased off their highs of the past year at the start of 2023. Sales of new single‐family houses were at a seasonally adjusted annual rate of 670,000 last month, up from a revised 625,000 in December. Mortgage rates eased in January and ended the month nearly a point lower than they were at the beginning of November when they topped 7%. But in addition to volatile mortgage rates, another challenge for many buyers has been finding homes on the market to buy. “The backlog of new construction homes continues to emerge into the market just in time for the spring shopping season,” she said.

☆ Higher mortgage rates depress U.S. single-family housing starts, building permits
▼ + stars: | 2022-12-20 | by ( Lucia Mutikani | ) www.reuters.com time to read: +6 min

Summary Housing starts fall 0.5% in NovemberSingle-family starts drop 4.1%; multi-family up 4.8%Building permits plunge 11.2%; single-family fall 7.1%WASHINGTON, Dec 20 (Reuters) - U.S. single-family homebuilding tumbled to a 2-1/2-year low in November and permits for future construction plunged as higher mortgage rates continued to depress housing market activity. We don't know about the rest of the economy, but the housing market is clearly in recession." Single-family housing starts, which account for the biggest share of homebuilding, dropped 4.1% to a seasonally adjusted annual rate of 828,000 units last month. The jump in multi-family housing projects offset some of the drag from single-family housing units, resulting in overall housing starts falling only 0.5% to a rate of 1.427 million units last month. The single-family housing market boomed early in the pandemic as Americans sought bigger properties to accommodate home offices.

☆ U.S. single-family housing starts, building permits plunge in November
▼ + stars: | 2022-12-20 | by ( Lucia Mutikani | ) www.reuters.com time to read: +4 min

Summary Housing starts fall 0.5% in NovemberSingle-family starts drop 4.1%; multi-family up 4.8%Building permits plunge 11.2%; single-family fall 7.1%WASHINGTON, Dec 20 (Reuters) - U.S. single-family homebuilding tumbled to a 2-1/2 year low in November and permits for future construction plunged as higher mortgage rates continued to depress housing market activity. The housing market has borne the brunt of the Federal Reserve's fastest interest rate-hiking cycle since the 1980s as the U.S. central bank wages war against inflation. We don't know about the rest of the economy, but the housing market is clearly in recession." Single-family housing starts, which account for the biggest share of homebuilding, dropped 4.1% to a seasonally adjusted annual rate of 828,000 units last month. The jump in multi-family housing projects offset some of the drag from single-family housing units, resulting in overall housing starts falling only 0.5% to a rate of 1.427 million units last month.

☆ U.S. consumer confidence at four-month low; house price growth slows
▼ + stars: | 2022-11-29 | by ( Lucia Mutikani | ) www.reuters.com time to read: +5 min

The labor market has remained resilient despite the Federal Reserve's stiff interest rate increases, helping to keep consumer spending and the overall economy afloat. "That tectonic shift in consumer confidence from inflation worries to job concerns is coming though." The Conference Board's consumer confidence index fell to 100.2, the lowest reading since July, from 102.2 in October. Though house prices have came off the record highs reached during the COVID-19 pandemic-driven housing market boom, they remain significantly high. A third report from the Federal Housing Finance Agency showed house prices increased 11.0% in the 12 months through September after advancing 12.0% in August.

☆ U.S. consumer confidence at four-month low; house price inflation slows
▼ + stars: | 2022-11-29 | by ( Lucia Mutikani | ) www.reuters.com time to read: +6 min

"However, any potential recession could be short and shallow given the tight labor market and the hint that layoffs may not be as bad as feared." The Conference Board's consumer confidence index fell to 100.2, the lowest reading since July, from 102.2 in October. Lower-income households have borne the brunt of inflation that, before October, was marked by annual consumer prices increasing at rates not seen since the early 1980s. Though house prices have came off the record highs reached during the COVID-19 pandemic-driven housing market boom, they remain significantly high. Tight supply will, however, likely keep a floor under house prices.

☆ U.S. existing home sales plunge; tight inventory keeps prices rising
▼ + stars: | 2022-11-18 | by ( Lucia Mutikani | ) www.reuters.com time to read: +5 min

"The combination of rising house prices and mortgage rates have sent housing affordability plummeting," said Daniel Vielhaber, an economist at Nationwide in Columbus, Ohio. The 30-year fixed mortgage rate breached 7% in October for the first time since 2002, according to data from mortgage finance agency Freddie Mac. "A deteriorating housing market, nagging inflation and an aggressive Fed puts the economy on unsure footing for 2023." Even as demand weakens, housing supply remains tight, limiting the slowdown in house price inflation. The median existing house price increased 6.6% from a year earlier to $379,100 in October.

☆ U.S. existing home sales dive; tight supply keeps prices elevated
▼ + stars: | 2022-11-18 | by ( Lucia Mutikani | ) www.reuters.com time to read: +4 min

"Higher mortgage rates and still-elevated prices remain key constraints for home sales," said Rubeela Farooqi, chief U.S. economist at High Frequency Economics in White Plains, New York. Existing home sales dropped 5.9% to a seasonally adjusted annual rate of 4.43 million units last month. Economists polled by Reuters had forecast home sales would tumble to a rate of 4.38 million units. The 30-year fixed mortgage rate breached 7% in October for the first time since 2002, according to data from mortgage finance agency Freddie Mac. At October's sales pace, it would take 3.3 months to exhaust the current inventory of existing homes, up from 2.4 months a year ago.

☆ Sorry, millennials, you're never getting a good home
▼ + stars: | 2022-09-29 | by ( James Rodriguez | ) www.businessinsider.com time to read: +13 min

Like a lot of millennials, Enrique Gonsalves is a victim of poor timing. For most millennials, born between 1981 and 1996, the path to homeownership has been fraught with pitfalls and false starts. Add it all up, and the homeownership rate among millennials is lagging that of previous generations. Compared with these generations, millennials have more debt, a lower net worth, and a worse chance of making more than their parents. Those factors, particularly the rise in student debt, have prevented millennials from getting a home.

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