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☆ Interest rates staying where they are is a forgone conclusion, but the Fed's decision day still matters
▼ + stars: | 2024-05-01 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +7 min

In today's big story, what another delay to interest rate cuts means for a market banking on them. The big storyThe waiting game continuesChip Somodevilla/Getty Images; BISpoiler alert: The Federal Reserve won't be lowering interest rates today. The official announcement won't come until this afternoon, but interest rates staying where they are is a forgone conclusion. The CME FedWatch Tool, which calculates the probability of the Fed's decision based on interest rate traders, has the odds of rates staying untouched at 97.5%.) Talk of cutting interest rates has been going on for the better part of a year.

Persons: —, it's, doesn't, We'll, Chip Somodevilla, Jerome Powell, Matt Rourke, Sarah Silbiger, Alyssa Powell, CME's, aren't, Powell, Erin Schaff, Paul Krugman, Donald Trump's, Krugman, Trump, Marko Kolanovic, Rebecca Zisser, Instagram, Changpeng Zhao, Binance, Amazon, Emma Tucker's, Steve Bannon, Dan DeFrancesco, Jordan Parker Erb, Hallam Bullock, George Glover Organizations: Business, Service, Stagecoach, Trump, Tech, Investors, Bloomberg, Getty, The New York Times, Hunterbrook, JPMorgan, Adobe, Wall Street Journal, Staff, eBay, Pfizer, Google Locations: stagflation, New York, London

☆ Demand for riskier adjustable-rate mortgages hits highest level of the year, due to rising rates
▼ + stars: | 2024-05-01 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +2 min

When mortgage rates rise, consumers look for any way to lower their monthly payments, and that often leads them to adjustable-rate mortgages (ARMs). These loans offer lower interest rates than their fixed-rate counterparts but are considered riskier. When mortgage rates hit record lows back in 2021, the ARM share of applications was in the 3% range. Meanwhile, the average contract interest rate for 5/1 ARMs decreased to 6.60% from 6.64%. "Inflation remains stubbornly high, and this trend is convincing markets that rates, including mortgage rates, are going to stay higher for longer.

Persons: Mike Fratantoni Organizations: Mortgage, Association, ARM, MBA's, Federal Reserve Locations: Hawthorn Woods , Illinois

☆ 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

☆ I'm a millennial first-time buyer who moved into a micro home village. I had to downsize my stuff, but it was worth it for the community.
▼ + stars: | 2024-04-30 | by ( Alcynna Lloyd | ) www.businessinsider.com time to read: +6 min

Read previewThis as-told-to essay is based on a conversation with Kristi Campbell, a 28-year-old business consultant, who moved into micro-home community South Park Cottages in 2023. In 2022, my boyfriend sent me a link to South Park Cottages' website, a Black-owned tiny home village. South Park Cottages afforded me the opportunity to buy my first home sooner than planned — it was the official stamp for adulthood. AdvertisementBefore I was even considered for a home at South Park Cottages, I had to be pre-approved for the full loan amount of the home. I chose South Park Cottages' preferred lender, along with a preferred closing attorney.

Persons: —, Kristi Campbell, It's, Campbell, it's, — we're, There's, you've, I've Organizations: Service, Business, East, Bluetooth Locations: New York, East Atlanta, Atlanta, California, Georgia

☆ Hong Kong stocks are back from the dead. Here’s why
▼ + stars: | 2024-04-30 | by ( Laura He | ) edition.cnn.com time to read: +6 min

Hong Kong CNN —Hong Kong’s benchmark Hang Seng Index surged more than 7% in April as the best-performing major index in the world. The valuation of Hong Kong stocks has also become more “compelling” relative to the rest of the Asian region after the pullback last year, said Zhikai Chen, head of Asian equities at BNP Paribas Asset Management. He added that there is a shift in investors’ sentiments as Chinese economic data turned more positive. Innes said global investors are currently “underweight” in Chinese markets, including Hong Kong, because of geopolitical tensions and concerns surrounding potential fallout from the upcoming US elections. Stock exchange data showed that southbound investors (meaning investment from mainland China into Hong Kong) have bought nearly $20 billion of Hong Kong-listed stocks in March and the first three weeks of April on a net basis.

Persons: ”, Kelly Chung, Zhikai Chen, Stephen Innes, David Chao, Nomura, Xiaomei Chen, Angelina Lai, Innes, Kong, BNP Paribus Organizations: Hong Kong CNN, Hong, Value Partners, BNP, Management, P Global, PMI, Kong's, Reuters, US, People’s Bank of, HK, “ Locations: China, Hong Kong, United States, Beijing, India, James’s, People’s Bank of China

☆ Strained Chinese cities struggle to pay home buying subsidies
▼ + stars: | 2024-04-30 | by ( ) www.cnbc.com time to read: +2 min

Chinese cities have promised subsidies and other incentives to prop up the ailing property sector but have failed to deliver, frustrating potential homebuyers. The 30-year-old now pays 6,000 yuan of her 8,000 monthly salary on the mortgage for the 1.1 million yuan apartment and another 1,800 yuan to rent another one, relying on her parents for other basic expenses. Weifang, with a population of more than 9 million and an economy larger than Croatia's, and dozens of other Chinese cities, have promised subsidies and other incentives to homebuyers to prop up the ailing property sector. But the real estate downturn also affects the ability of cities to lease land to developers, a key revenue source. This meant some local governments were unable to raise funds to pay the promised subsidies, frustrating buyers and casting doubts over future support measures.

Persons: Amy Wang, Wang, Christopher Beddor, Gavekal Organizations: People's, Communist Party Locations: Hangzhou city, Zhejiang province, China, Weifang, Shangqiu

Currently, 30-year mortgage rates are above 7%, according to Zillow data. Hotter-than-expected economic data has pushed mortgage rates up this year. This would allow more hopeful homebuyers to enter the market and find a home with an affordable monthly mortgage payment. See more mortgage rates on Zillow Real Estate on ZillowToday's refinance ratesMortgage type Average rate today This information has been provided by Zillow. This means your entire monthly mortgage payment, including taxes and insurance, shouldn't exceed 28% of your pre-tax monthly income.

Persons: Fannie Mae, homebuyers, you'll Organizations: Zillow, Mortgage, Association, Sky Locations: Chevron

☆ 10 metros where sellers are slashing listing prices the most
▼ + stars: | 2024-04-28 | by ( Alcynna Lloyd | ) www.businessinsider.com time to read: +3 min

Sellers are reducing prices in cities with surplus housing inventory, according to Redfin data. As sellers lower prices and builders offer concessions, homebuyers are gaining more power. It means two things for prospective homebuyers: One, more sellers are likely to slash listing prices to attract buyers. To calculate which metros have the highest share of sellers reducing list prices, Redfin analyzed home price data from 85 US metros with populations of at least 750,000. Below are the 10 metros with the largest share of price drops in March, according to Redfin.

Persons: Sellers, Price, —, Eric Auciello, Auciello, Redfin Organizations: Service Locations: Florida, Texas

☆ 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

☆ 2 states where home prices are falling because there are too many houses and not enough buyers
▼ + stars: | 2024-04-26 | by ( Filip De Mott | ) www.businessinsider.com time to read: +3 min

Despite a US housing shortage, Florida and Texas have too much supply, Redfin said. AdvertisementA lack of US housing has fenced off most would-be buyers, but two states are dealing with the opposite problem — an overflow of homes. According to Redfin, Florida and Texas have properties stagnating on the market, as demand is shifting away from these areas. The number of homes also jumped 25% in McAllen, Texas, Redfin reported on Thursday. Of the country's top 10 metros where sellers were most likely to slash listed prices, seven are located in these two states.

Persons: Redfin, —, Eric Auciello, Auciello, isn't Organizations: Service, North Port, First Locations: Florida, Texas, Redfin , Florida, Coral, North Port , Florida, McAllen , Texas, North, North Carolina, Tennessee

Mortgage rates should go down later this year, increasing affordability for many hopeful homebuyers. See more mortgage rates on Zillow Real Estate on ZillowMortgage CalculatorUse our free mortgage calculator to see how today's mortgage rates would impact your monthly payments. 30-year Fixed Mortgage RatesThe average 30-year fixed mortgage rate was 7.17% this week, according to Freddie Mac. 15-year Fixed Mortgage RatesThis week, average 15-year mortgage rates were 6.44%, a five-basis-point increase from the previous week, according to Freddie Mac data. Once the Fed cuts rates, mortgage rates should fall even further.

Persons: Freddie Mac, Lawrence Yun, homebuyers, you'll, it's Organizations: National Association of Realtors, NAR, Zillow, Federal Reserve Locations: Chevron

☆ US pending home sales jumped in March, beating expectations by a mile
▼ + stars: | 2024-04-25 | by ( Bryan Mena | ) edition.cnn.com time to read: +3 min

Washington CNN —Home sales based on contract signings jumped in March despite elevated mortgage rates that month. Contract signings rose across the country in March from the prior month, except in the Midwest. Hotter-than-expected inflation readings in recent months are now keeping the Federal Reserve from cutting interest rates anytime soon. Those are the so-called “golden handcuffs” of low mortgage rates. They began to climb in early 2022 when the Federal Reserve started to hike interest rates in a bid to tamp down high inflation.

Persons: ”, Lawrence Yun, ” Oliver Allen, it’s, Yun Organizations: Washington CNN —, National Association of Realtors, Federal Reserve, Treasury, Pantheon

☆ 7 major cities where renting is significantly cheaper than buying following the worst year for home affordability in decades, according to leading analyst Ivy Zelman
▼ + stars: | 2024-04-25 | by ( James Faris | ) www.businessinsider.com time to read: +4 min

Home affordability has also been crippled by a combination of limited home supply and resilient demand due to solid wage growth, Zelman noted. Rent growth fell again on a year-over-year basis in April, according to a new report from real-estate site Zumper. And Zelman found that wage growth will outpace that of rent this year. AdvertisementOwning a home costs an average of 9% more on a square-foot basis than renting, according to Zelman & Associates. Along with each is the per-square-foot cost premium of owning compared to renting, according to Zelman & Associates.

Persons: —, Ivy Zelman, I've, Zelman, Zelman isn't Organizations: Service, Zelman, Associates, Business, Wall, Toll Locations: Houston, Tampa

☆ Tractor Supply CEO says there's still 'significant migration' out of urban areas
▼ + stars: | 2024-04-25 | by ( Julie Coleman | ) www.cnbc.com time to read: +2 min

Tractor Supply CEO Hal Lawton told CNBC's Jim Cramer on Thursday that a substantial number of Americans are moving out of cities, and many are headed to rural areas. "They've continued, albeit to a lesser absolute number, but net we're still seeing significant migration out of urban America, and most of that migration, or a lot of it, is going into rural America," Lawton said. Tractor Supply is a retail chain that sells equipment for home improvement, such as supplies for gardening and farming. Lawton told Cramer that the company has been dealing with business headwinds, with consumer spending trends swinging from goods to services. But he expressed optimism for the future, saying Tractor Supply can "begin to see light at the end of the tunnel now against those headwinds."

Persons: Hal Lawton, CNBC's Jim Cramer, Lawton, They've, Cramer Organizations: Tractor, Neighbor's Locations: America

☆ Judge approves NAR settlement on broker commissions
▼ + stars: | 2024-04-24 | by ( Samantha Delouya | ) edition.cnn.com time to read: +2 min

On Tuesday, Judge Stephen Bough granted preliminary approval to the $418 million antitrust settlement in a Missouri court. Housing experts say the settlement may effectively demolish the current real estate business model. Under the terms of settlement, which was announced in March, sellers’ agents will no longer be required to offer commissions to buyers’ agents. While the settlement does not explicitly spell the end of the traditional 6% commission, split between the seller’s agent and the buyer’s agent, commissions are expected to fall because they will become competitive and negotiable. If sellers are no longer paying buyers’ agents, homebuyers may be on the hook to pay their broker directly.

Persons: Stephen Bough, Matt Hanley, ” Hanley, “ I’m Organizations: CNN, National Association of Realtors, NAR, homebuyers Locations: United States, Missouri, Minnesota

Though mortgage rates are currently at a five-month high, they still should ultimately trend down this year. But if inflation remains sticky in the coming months, mortgage rates will likely remain elevated for longer than currently expected. See more mortgage rates on Zillow Real Estate on ZillowMortgage Refinance Rates TodayMortgage type Average rate today This information has been provided by Zillow. See more mortgage rates on Zillow Real Estate on ZillowMortgage CalculatorUse our free mortgage calculator to see how today's mortgage rates will affect your monthly and long-term payments. But because inflation has been somewhat sticky in recent months, mortgage rates have remained elevated so far this year.

Persons: Fannie Mae, Hamilton Fout Organizations: Zillow, Federal Reserve, Mortgage, Association, ARM Locations: Chevron

☆ New home sales surged in March despite elevated mortgage rates
▼ + stars: | 2024-04-23 | by ( Bryan Mena | ) edition.cnn.com time to read: +2 min

Washington CNN —Sales of newly built single-family homes in the United States soared in March despite mortgage rates remaining elevated that month. Housing market poised to remain difficultThe broader US housing market is expected to remain tough for Americans, with mortgage rates poised to stay well above 6% this year, economists say. The Federal Reserve doesn’t directly set mortgage rates, but its actions do influence them, and the central bank isn’t expected to cut interest rates anytime soon. “Despite high prices and mortgage rates, homebuyers have limited options on the resale market, although resale inventories have improved some over the course of this year,” Gregg Logan, managing director at RCLCO Real Estate Consulting, said in a note Tuesday. “The willingness of the major homebuilders to utilize incentives such as price reductions, mortgage rate buy-downs and paying buyers closings costs continue to support a healthy pace of new home sales,” he added.

Persons: ” Gregg Logan, “ Organizations: Washington CNN —, National Association of Realtors, Housing, Federal Reserve, Fed, Real Estate Consulting Locations: United States, Northeast

☆ A homebuyer's guide to the real-estate revolution
▼ + stars: | 2024-04-23 | by ( James Rodriguez | ) www.businessinsider.com time to read: +16 min

Real-estate agents' commissions have fluctuated between 5% and 6% of the sale price for decades, despite advances in technology and an influx of agents. The recent lawsuits, which accused the NAR and some of the country's largest brokerages of conspiring to keep agents' commissions unfairly high, could signal the start of a new era. If sellers aren't paying out commissions to buyers' agents, buyers themselves could end up on the hook. For example, what happens if the seller isn't willing to pay the buyer's agent's commission? In most states, the buyer's agent can technically just rebate that extra money to their client.

Persons: Austin Whitt, Whitt, —, I've, Steve Brobeck, Sabrina Brown, they've, Michael Warren, Sellers, Prentiss Cox, it'll, you've, doesn't, Jack Ryan, Ryan, homebuying, Rob Hahn, Wendy Gilch, Gilch, I'm, it's, David Dworkin, Dworkin, Cox, It's Organizations: Realtors, National Association of Realtors, NAR, Consumer Federation of America, Getty, University of Minnesota, MLS, Consumer Federation of, National Housing Conference, Justice Department Locations: Tennessee, Nashville, America, North Carolina, United Kingdom, Australia

☆ This small town in France is selling a house for 1 euro—applications are open, but there's a catch
▼ + stars: | 2024-04-22 | by ( Celia Fernandez | ) www.cnbc.com time to read: +1 min

Towns in Italy have done it several times and now a small town in France is taking a second run at their own $1 home program. The French town of Saint-Amand-Montrond is selling a 828-square-foot house for 1 euro or $1.07 USD. The property also includes a courtyard and a garage, according to Ouest France, and is located in the city center of the small town. Much like with some of the other deals in Europe, this house needs serious work. It hasn't been lived in for 12 years, and the town estimates it will cost about $136,180 USD to renovate.

Persons: Amand, Montrond, hasn't, Francis Blondieau Organizations: Ouest France, Urban Planning Locations: Towns, Italy, France, Saint, Europe

☆ Luxury real estate prices just hit an all-time record
▼ + stars: | 2024-04-22 | by ( Robert Frank | ) www.cnbc.com time to read: +1 min

Overall real estate sales fell 4% nationwide in the first quarter, according to Redfin. Yet, luxury real estate sales increased more than 2%, posting their best year-over-year gains in three years, according to Redfin. Real estate experts and brokers chalk up the divergence to interest rates and supply. In Manhattan, all-cash deals hit a record 68% of all sales, according to Miller Samuel. The median price of luxury homes hit an all-time record of $1,225,000 during the period.

Persons: Miller Samuel, David Palmer Locations: Real, Manhattan, Seattle

☆ Top 10 U.S. cities for eco-conscious living—they're almost all on the West Coast
▼ + stars: | 2024-04-21 | by ( Celia Fernandez | ) www.cnbc.com time to read: +2 min

In honor of Earth Month, realtyhop ranked the greenest U.S. cities for homebuyers. The report evaluated each city based on the following criteria: SustainabilityPolicy and infrastructureEnergyEnvironmentAffordability Overall, the study found that the majority of the greenest cities are on the West Coast — five are in California alone. Portland, Oregon is the greenest city in AmericaWith a total score of 62.34, Portland, Oregon took the No. The city uses green streets, eco-roofs, trees and more to manage the stormwater. Top 10 greenest cities in AmericaPortland, Ore. Washington, D.C. San Francisco, Calif. Seattle, Wash. Oakland, Calif. Spokane, Wash. New York, N.Y. Sacramento, Calif. San Diego, Calif. San Jose, Calif.

Persons: realtyhop, Gavin Newsom, Jordan Organizations: Earth, Energy, Coast, CNBC, Portland, Jordan Siemens, Getty, Environmental Services, Calif, D.C, Washington D.C, Istock Locations: U.S, homebuyers, California, Portland , Oregon, America, realtyhop, Portland, America Portland, Ore . Washington ,, San Francisco, Calif, Seattle, Wash . Oakland, Calif . Spokane, Wash . New York, N.Y, Sacramento, San Diego, San Jose, Washington

☆ The Meteoric Rise and Spectacular Fall of the Queen of Airbnb
▼ + stars: | 2024-04-21 | by ( Dan Latu | ) www.businessinsider.com time to read: +18 min

Now, after she made her pitch at the VFW hall, attendees clamored around Widell, eager to have her manage their Airbnb rentals. The reign of the Airbnb Queen of Tulsa was over — and her subjects were left to pick up the pieces. Dominic Bugatto for BIThe "Queen of Airbnb" label, which started off as Widell's Airbnb account name, helped create an aura of omnipotence. According to those familiar with the business, Widell seemed to be shifting her focus away from Airbnb rentals to the house-staging business. Today, her "Tulsa Airbnb Group" on Facebook remains active, with some 1,000 members.

Persons: Airbnb, Dani Widell, Widell, Kathy Portley, weren't, —, Emily Burke, Will Widell, They'd, thrifty, Will, who'd, Logan Haskett, Dominic Bugatto, Burke, hadn't, Knikki Nash, she'd, Mallory Massey, Massey, David Brunson, Brunson, Renee Brummett, We've, Dani hasn't, Brummett, doorstepped, unraveled, Nash, Dani, Widell's, carting, Will cosigned, Brummet, Tulsa's, Meagan McCollum, Bram Gallagher, Gallagher, Dan Latu Organizations: VFW, Tulsa, Facebook, Tulsa Real Estate Investors Association, Oklahoma State University, Tulsa People, Mahogany Prime, Summit, Downtown, Social, Bank of America Center, PGA, Investors, Widell, Employees, Rover, BI, nonpayment, University of Tulsa, Business Locations: Tulsa, Tulsa ., Widell, Airbnb, Brady, Arkansas, —

☆ 10 charts that explain the historically strange US housing market, according to bubble-spotting real-estate analyst Ivy Zelman
▼ + stars: | 2024-04-20 | by ( James Faris | ) www.businessinsider.com time to read: +1 min

Top researcher Ivy Zelman shared where home prices are heading next in this market. Here are 10 charts from Zelman's April report that help explain what's happening. NEW LOOK Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . This story is available exclusively to Business Insider subscribers.

Persons: Homebuyers, Ivy Zelman, — Organizations: Zelman's, Service, Point2, Business

We could see mortgage rates start to trend down later this year if incoming data shows that inflation is coming down sustainably. See more mortgage rates on Zillow Real Estate on ZillowMortgage CalculatorUse our free mortgage calculator to see how today's mortgage rates will affect your monthly and long-term payments. As inflation comes down and the Federal Reserve is able to start cutting the federal funds rate, mortgage rates should fall further as well. Now that the Fed has paused hiking rates, mortgage rates have come down a bit. Once the Fed starts cutting rates, which is likely to happen this year, mortgage rates should fall even further.

Persons: Freddie Mac, they'll, Sam Khater, Freddie Mac's Organizations: National Association of Realtors, Zillow, Federal Reserve, Fed Locations: February's, Chevron

☆ What stalled this year’s seemingly infallible stock market rally
▼ + stars: | 2024-04-19 | by ( Krystal Hur | ) edition.cnn.com time to read: +7 min

Investors had hoped that corporate earnings would help revive the stalled rally, but a strong start to the season hasn’t been enough to excite investors. The 30-year fixed-rate mortgage averaged 7.10% in the week ending April 18, up from 6.88% the previous week, according to Freddie Mac data released Thursday. Mortgage rates are climbing based on expectations that the Federal Reserve won’t cut interest rates anytime soon. The Fed doesn’t directly set mortgage rates, but its actions do influence them, and persistently hot inflation readings are keeping the Fed on hold. If inflation stalls any further, or even worsens, mortgage rates could climb higher this year.

Persons: —, hasn’t, Jerome Powell, “, ”, Michael Landsberg, Pierre, Olivier Gourinchas, Israel, Brent, Bryan Mena, Freddie Mac, Sam Khater, Freddie Mac’s, Read, Anna Cooban, Tim Cook, Pham Minh Chinh, Cook, Apple “ Organizations: CNN Business, Bell, New York CNN, Dow Jones, Nasdaq, Federal Reserve, Data, Employers, Fed, Landsberg Bennett, Wealth Management, Monetary Fund, Treasury, Investors, CNN, Federal, China Apple, Vietnamese, Apple Locations: New York, East, Iran, Israel, Syria, Vietnam, China, Hanoi, Beijing

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