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"As homebuilding's utopia looks increasingly out of reach, we no longer expect builders to defy gravity," analyst Matthew Bouley wrote in a Wednesday note. Each of those stocks has been under pressure this quarter as investors adjust their expectations for lower Federal Reserve interest rates. On top of that, the incoming Trump administration could impose tariffs on a bevy of imported materials used by homebuilders, which could also make it harder for the central bank to lower rates. Unless interest rates take a sustainable path lower, Bouley said the rise in new and existing home inventory will put downward pressure on home prices. Bouley kept his $170 price target on D.R.
Persons: Lennar, Matthew Bouley, Horton, DHI LEN, PHM, Trump, Bouley, David Auld Organizations: Barclays, of Labor Statistics, KB Locations: Horton, U.S
Without realizing it, Brown had fallen victim to a real estate con that has grown more common as communication for business transactions increasingly move online. The FBI calls this sophisticated scam “business email compromise,” or BEC. Homebuyers and sellers should look for red flags among the large influx of emails and other correspondence around a home’s closing. I’ve worked two jobs just to afford this house.”Advances in technology have increased the risk of real estate fraud, according to CertifID. Joan Rogers, a real estate agent in Portland, Oregon, has been taking extra precautions with buyers and sellers.
Persons: Cullen Brown, Brown, He’d, ” Brown, , Michael Chapple, , it’s, hadn’t, ” Tirthani, I’ve, Tyler Adams, Tirthani, CertifID, don’t, Joan Rogers, didn’t, Rogers doesn’t, Adams, Rogers, ” Rogers, Cliff Steinhauer, ” Steinhauer, “ Don’t Organizations: CNN, FBI, University of Notre Dame, CertifID, Getty, National Cybersecurity Alliance Locations: Chicago, Nashville, scammers, Portland , Oregon
Real estate agent and investor Dana Bull says don't count on rates dropping in 2025. Instead, she offers two tips for securing a lower mortgage rate in any environment. AdvertisementIf you're looking to buy a home or invest in real estate in 2025, don't wait for rates to drop before making a move. AdvertisementAs of December 2024, the average 30-year mortgage rate fell to 6.30% from around 6.56% in November. "If somebody comes in with a significantly lower rate and everything else is the same essentially, it does make sense to go with that lower rate, so long as that lender is going to be able to close the deal."
Persons: Dana Bull, Bull, It's, doesn't Locations: Massachusetts
The red-hot US housing market could cool off slightly in 2025, making it easier to buy a home. There's both some good and bad news on the horizon for homebuyers, according to housing market experts. Another impediment to homeownership has been high mortgage rates, which have more than doubled in the last few years. And rates could come down further in 2025, according to housing market experts. AdvertisementIndeed, first-time homebuyers are having unprecedented difficulty in the housing market.
Persons: it's, homebuyers, Homeownership, it'll, Daryl Fairweather, Chen Zhao, Goldman Sachs, Jeffery Roach, Redfin, Fairweather, Zhao, haven't, Elijah de la, Gen, Edward Yardeni, they've, Gen Zers Organizations: Republican, LPL, National Association of Realtors —, Yardeni Research
Some predicted more people would forego hiring traditional real-estate agents for their deals. AdvertisementA 2023 court ruling against the country's biggest association of real-estate agents was expected to transform how Americans buy and sell homes. The majority of Americans hire a traditional real-estate broker to facilitate their transactions. Read on to hear from the four people who bought or sold homes this year via big companies or real-estate startups instead of a traditional agent. According to Kenneth Bloom, who's already sold two properties with Redy, the savings are significant compared to using a traditional real-estate agent.
Persons: brokerages, RISmedia, Redfin, it's, Chelsea Hutchison, Read, Hutchison, Melissa Gonzales, Opendoor, Josh Altman, Redy, Kenneth Bloom, who's, Bloom, he's, , Sergio Rodriguez, Rodriguez, they'll, TurboHome Organizations: National Association of Realtors, Business, NAR, Opendoor, Realtors Locations: homebuyers, Canby , Oregon, Vegas, Waterford , Michigan, West Bloomfield , Michigan, Atlanta, Dallas, Orlando, Phoenix, San Diego, California, California , Texas, Washington
Potential homebuyers are responding to lower mortgage rates and a higher supply of homes for sale. Applications for a mortgage to purchase a home jumped 6% for the week, the highest level since January. Most borrowers today have loans with far lower rates than are being offered today. "Conventional refinance applications declined despite the lower rates, but FHA and VA refinances rebounded from a week ago," Kan added. Mortgage rates continued their decline to start this week, but nothing dramatic.
Persons: refinance, Joel Kan, Kan, Jerome Powell Organizations: Mortgage, refinances, Federal Reserve, Federal, The New York Times DealBook Locations: France, South Korea
Related Video Millions of homes could flood the US housing market thanks to boomersDanielle Hale, the chief economist at the real-estate listings and data site, said that a "Trump bump" may affect the housing market, but it will take time to determine how. "For now, we expect a gradual improvement in housing market dynamics powered by broader economic factors. AdvertisementHere are five predictions on the housing market from Realtor.com. Mortgage rates stay above 6%Thirty-year mortgage rates have seen a small dip since last year, from 7.22% in late November 2023 to 6.81% during the same time this year, according to FRED. While the housing market overall may still favor sellers, more homes for sale can help buyers secure better deals and more concessions.
Persons: hasn't, Danielle Hale, Hale, Louis, FRED, Realtor.com, Organizations: Federal Reserve Bank of St Locations: Realtor.com
Advertisement"A challenge for first-time homebuyers is higher mortgage rates, especially over the last year," Snowden said. "We see that a large share of homebuyers, especially first-time buyers, rely on gifts or loans from family and friends," Snowden said. The share of first-time homebuyers dropped to just 24% in 2024, down from 32% in 2023 and a record 50% in 2010. AdvertisementIn 2024, the median age of first-time buyers was 38, nine years older than in 1981. AdvertisementSince NAR started collecting data, single women homebuyers have outpaced single men homebuyers, but the gap has grown.
Persons: homebuying, Brandi Snowden, Snowden, hasn't, it's, homebuyers, , Gen Zers, Gen Xers, Jessica Lautz Organizations: National Association of Realtors, Census Bureau, Department of Housing, Urban Development, NAR, Federal Reserve's Survey, Consumer Finances Locations: America, US
It was awful.”Palm Springs Section 14 neighborhood residents and descendants at United Methodist Church in Palm Springs on April 16, 2023. Because of racial covenants in the 1940, it was among the few places Black and Latino residents could live in Palm Springs. Devers’ mother told her the pressures from redlining and racism led her father to alcohol. She finally landed a place about 15 miles north of Palm Springs in a man’s hunting trailer that had no bathroom or kitchen. Courtesy Lawrence WilliamsMcFarland, Williams’ mother, is 101 and lives with him in Mississippi.
Persons: Gloria Holland’s, , , Monday, ” Holland, Damian Dovarganes, Lisa Middleton, “ It’s, Areva Martin, Martin, hadn’t, Taya Gray, Holland, general’s, Pearl Devers, ” Devers, Lucille Ball, Devers, Lawrence Williams, Williams, Lucille McFarland, ” Williams, Lawrence Williams McFarland, She’s, Pearl, , ” Martin Organizations: United Methodist Church, 14, Palm, Palm Springs City, City, Areva, Council, , USA, Agua Caliente, Residents Locations: Palm Springs , California, ” Holland, Atlanta, Holland, Hollywood, Springs, Palm Springs, California, Agua, Columbia , Mississippi, Mississippi
CNN —The US Department of Justice threw even more doubt into a new way of paying for real estate brokers this week, raising concerns about a recent wide-ranging legal settlement. The new rules included in the settlement represented the biggest upheaval to the US real estate market in a century, sowing worry among real estate professionals. The NAR settlement was originally announced in March, and the new rules took effect in mid-August. “This is an important moment for NAR members, home buyers and sellers, and the real estate industry,” said NAR President Kevin Sears in a statement about the settlement approval. Rob Crawford, the owner of Florida real estate firm Loch Realty, said he has heard of real estate brokerages weighing whether to leave the organization.
Persons: Realtors —, , Leo Pareja, Kevin Sears, Department’s, , Tanya Monestier, , Rob Crawford, Crawford, ” Leslie Heindel, hasn’t, ” Heindel, Heindel Organizations: CNN, US Department of Justice, Realtors, eXp Realty, National Association of Realtors, NAR, Justice Department, DOJ, University, Buffalo School of Law, Loch Realty Locations: Missouri, Florida, Loch, New Orleans
Mortgage rates dropped last week, and homebuyers jumped off the fence. They drove total mortgage demand up 6.3% compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. While the drop in rates wasn’t exactly huge, there was a fair amount of pent-up demand among homebuyers. Last year at this time mortgage rates were higher, but falling. The increase in conventional purchase applications helped push the average purchase loan size to $439,200, its highest level in almost a month,” Joel Kan, an MBA economist, said in a release.
Persons: homebuyers, ” Joel Kan, , Kan, Matthew Graham Organizations: Mortgage, , pullbacks, Mortgage News
Mortgage rates dropped last week, and homebuyers jumped off the fence. They drove total mortgage demand up 6.3% compared with the previous week, according to the Mortgage Bankers Association's seasonally adjusted index. While the drop in rates wasn't exactly huge, there was a fair amount of pent-up demand among homebuyers. Last year at this time mortgage rates were higher, but falling. The increase in conventional purchase applications helped push the average purchase loan size to $439,200, its highest level in almost a month," said Joel Kan, an MBA economist in a release.
Persons: homebuyers, Joel Kan, Matthew Graham Organizations: Mortgage, pullbacks, Mortgage News
AdvertisementMeredith Whitney expects home prices to fall by 10% to 20% as the frozen housing market starts thawing. The veteran researcher said baby boomers aren't selling, restricting the number of homes available. Home prices are poised to fall by up to a fifth as the frozen housing market thaws — and that could help baby boomers sell at last and younger people to become homeowners, Meredith Whitney says. Advertisement"The problem is the baby boomers own 60% of the housing stock," she said, referring to single-family, owner-occupied homes. AdvertisementSeveral economists have predicted a "silver tsunami" as baby boomers sell their homes to downsize or move into care homes, increasing the available supply of single-family homes and reducing prices.
Persons: Meredith Whitney, It's, Price, Whitney, millennials Organizations: Meredith Whitney Advisory Group, Homeowners, Federal Reserve, National Association of Realtors, CNBC
President-elect Donald Trump wants to address housing affordability in the U.S. by fomenting the construction of new homes. "We're going to open up tracks of federal land for housing construction," Trump said during an Aug. 15 news conference. While building more homes is the simpler answer to address the housing issue in the country, other promises Trump has made could deter affordability efforts, experts say. He also claimed that he would pull down mortgage rates back to pandemic-era lows, although presidents do not control mortgage rates, experts say. Here's how some of Trump's policies could affect the housing market during his administration, according to experts:
Persons: Donald Trump, Trump, Jim Tobin, it's, Jacob Channel Organizations: National Association of Realtors, National Association of Home Builders, Finance, Federal Reserve, Social Security, LendingTree Locations: U.S
Across the country Tuesday, counties moved toward Trump by a median of 3.1 percentage points compared to the 2020 election. But in the top 10% of counties ranked most difficult for buying a home, the median shift was 4.5 percentage points. In Passaic County, New Jersey, with a population of more than 500,000, voters flipped for Trump by nearly 19 percentage points. Nearby in Pennsylvania, Northampton County — which narrowly tipped red with a shift of 3 percentage points — has a similar story. But not all high-challenge housing counties swung toward Trump.
Persons: Donald Trump, Trump, wasn’t, , Robert Shapiro, Harris, ” Shapiro, It’s, , Bernard Fraga, Fraga, Joe Biden, ” Fraga, Organizations: NBC, Trump, Republicans, Columbia University, “ Voters, Democratic, Emory University Locations: Arizona, Georgia, North Carolina, Pennsylvania, Passaic County , New Jersey, America, In Passaic, Northampton County —, Northampton, Mesa County, Mesa,
In today’s edition, senior national political reporter Jonathan Allen explains why Democrats need to retool their economic message during Donald Trump's second term. Plus, senior national politics reporter Matt Dixon writes that the battle to succeed Trump in four years is already underway. How Trump broke both parties — and where Democrats go from hereBy Jonathan AllenOver the course of the last decade, President-elect Donald Trump broke both national political parties. Before Trump, Democrats nominated — and the country twice elected — Barack Obama, a candidate who ran against leaders that walked the country into forever wars and a finance-and-housing crisis that nearly toppled the economy. Harris’ economic policy offerings were largely expansions of Biden proposals, such as more generous homebuyer and child tax credits than he called for.
Persons: Jonathan Allen, Donald Trump's, Matt Dixon, Trump, Kristen Welker, Donald Trump, Joe Biden’s, , — Barack Obama, Cheney, Trump’s, Ronald Reagan, Sen, Bernie Sanders, Biden, Kamala Harris, Harris, Bill Buckner, omez Organizations: NBC, White House, Capitol, Democratic Party, Trump, Democratic, Democrats, District of Columbia, Republican Party Locations: Minnesota
"The expectation among bond traders coming into the election was that rates would move higher in the event of a Trump victory and especially a red sweep. "The builder stocks are highly sensitive to mortgage rates and mortgage rate expectations. Big builders have been buying down mortgage rates for their customers, but that has been cutting into their margins. Mortgage rates don't follow the Fed, but do react to the central bank's thinking on the economy. Stronger-than-expected economic reports in September and October caused bond yields, and consequently mortgage rates, to move higher.
Persons: Donald Trump's, Matthew Graham, Horton, PulteGroup, Lowe's, John Burns, Trump, Carl Harris, Graham Organizations: Mortgage News, Trump, . Housing, John Burns Real Estate Consulting, National Association of Home Builders, Federal Reserve, National Association of Realtors Locations: U.S, D.R
'The biggest issue of housing today'The housing shortage in the U.S. is "the biggest issue of housing today," said Orphe Divounguy, senior economist at Zillow. As of mid-2023, there's a housing shortage of 4 million homes, according to the NAR. Rent prices increased faster than tenants' wages during the pandemic. "We're seeing renters staying renters for longer because affordability has been so squeezed," he said. High rent prices not only affect your ability to save money to buy a home, it can affect your ability to pay down any existing debt, Lautz said.
Persons: homebuyer, Jessica Lautz, Orphe Divounguy, Jonathan Scott, Scott, Selma Hepp, Divounguy, Lautz Organizations: National Association of Realtors, NAR, HGTV, CNBC Locations: U.S
The typical age of a first-time homebuyer in the US has reached an all-time high: 38. First-time buyers make up 24% of all buyers, the lowest level since NAR started tracking in 1981. The changing characteristics of the typical first-time homebuyer in America are proof of the strain. The typical first-time buyer now has a median age of 38 — up from 35 in 2023. The typical first-time homebuyer is richer than ever, too.
Persons: It's, , — Gen Zers, millennials, haven't, Jorge Argota, Argota, He's Organizations: National Association of Realtors, Service, NAR Locations: America, Miami, Florida
Like first-time buyers, the typical repeat buyer has gotten older, with their median age increasing to 61 years from 58 last year. Repeat buyers’ median household income rose to $114,300 from $111,700 in the last year, as well, according to the NAR. First-time homebuyers may have trouble competing with repeat buyers, who could possibly have sold an existing home to purchase a new one. Repeat buyers were able to enter the housing market with much larger down payments (median 23%) than first-time homebuyers (median 9%). Thirty-one percent of repeat buyers paid all cash for their homes.
Persons: homebuyers, homebuyer, , Jessica Lautz, ” Lautz Organizations: CNN, National Association of Realtors, NAR Locations: America
Agents might be emboldened to share listings among private networks of in-the-know brokers rather than market them to everyone. And if the goal is a transparent market that prioritizes consumers, the clear-cooperation policy is a flawed tool. Redfin estimated that in the second quarter of 2019, about 1.7% of listings, or some 18,000 homes, were likely pocketed. In a hot market, it's easier for brokers to market a home off the databases and still get it sold. What has changed since the rule went into effect is brokerages' eagerness to control access to home listings.
Persons: Smart, , they'll, Brian Boero, Goliath, Davids, MLSes, doesn't, weren't, Joe Schmo, Saul Klein, Howard Hanna's, Howard Hanna IV, Robert Reffkin, Mauricio Umansky, Redfin, Glenn Kelman, Kelman, haven't, Victor Lund, There's, Buckle Organizations: MLS, National Association of Realtors, NAR, Coldwell, Network, San Diego, Compass, Service, of Justice
Detailed below is what Harris and Trump have proposed in order to address these worries. Vice President Kamala Harris and former President Donald Trump have both pledged to address high prices by boosting the supply of homes. Related storiesThe Democratic candidate also said she plans to expand the existing low-income housing tax credit, which incentivizes the rehabilitation or building of housing targeted at lower-income households. As president, Trump proposed major cuts to the federal Department of Housing and Urban Development's budget, including slashing housing assistance and community development aid. AdvertisementWhile in office in 2017, Trump proposed a budget for the 2018 fiscal year that would have significantly cut rural housing subsidies.
Persons: Harris, Trump, , Kamala Harris, Donald Trump, Daryl Fairweather, Redfin, Fairweather, Jessica Lautz, multifamily Organizations: Service, Business, Democratic, Peterson Institute for International Economics, Builders, of Housing, Urban, National Association of Realtors, Democratic Party Locations: America
After months of incremental measures, Chinese President Xi Jinping in late September led a top-level meeting that vowed to "halt the real estate market decline." Earlier this month, the Finance Ministry introduced more measures aimed at stabilizing the real estate sector. Property sales and new home construction are unlikely to stabilize until 2027, Goldman forecast. watch nowS&P Global Ratings and Morgan Stanley this month also published reports forecasting China's real estate market will bottom in the second half of 2025. China's latest efforts to bolster confidence have given the real estate market a lift.
Persons: Xi Jinping, Goldman Sachs, Goldman, Morgan Stanley, Edward Chan, Nomura Organizations: China Vanke Co, Bloomberg, Getty, Finance Ministry, Goldman, China Index Academy, P Global, National Bureau of Statistics Locations: China, Hefei, Beijing
High-yield savings accountsA high-yield savings account earns a higher-than-average interest rate compared with traditional savings accounts, helping your money grow faster. “High-yield savings accounts [are] great if you’re going to be buying in the next year,” Williams said. Money market fundsA money market fund generally has a slightly higher yield than a HYSA, said Dennehy. Some of the highest-yielding retail money market funds are nearly 5% as of Oct. 23, according to Crane Data. Still, money market funds are considered low risk and are intended not to lose value, according to Vanguard.
Persons: , Ryan Dennehy, it’s, Shaun Williams, Dennehy, there’s, Jeffrey Hanson, , ” Williams Organizations: California Financial Advisors, CNBC, Census, Federal Reserve, Paragon Capital Management, National Association of Realtors, PMI, Mortgage, Treasury, U.S ., Traphagen Financial, Federal Deposit Insurance Corp, Vanguard, Securities Investor Protection Corp Locations: California, San Ramon , California, Denver, Oradell , New Jersey, Denver , Colorado
Harrison Beacher real estate agent and managing partner at Coalition Properties Group in Washington, D.C. States such as Georgia do not require real estate agents or sellers to disclose upfront if the home was the site of a death. Nearly three-quarters, 72%, of potential homebuyers said they would buy a "haunted" house for a lower price, according to a new report by Real Estate Witch, a data site owned by Clever Real Estate. In some states, real estate agents need to provide truthful information upon a buyer's request, or at the very least, point you toward the right direction to find out. Besides the real estate agent, neighbors can give you first-hand experience of the area, as well as information about the previous homeowners.
Persons: Matt Champlin, Harrison Beacher, Zers, I'm, homebuyers, Daryl Fairweather, Fairweather, Beacher, Leno, Rosemary LaBianca, Charles Manson's, Zak Bagans, Connie Vavra, Theresa Payton Organizations: National Association of Realtors, NAR, Coalition Properties Group, Washington , D.C, Finance, Real, White House Locations: Washington ,, California, Alaska, Dakota, New York, Georgia, Elgin , Illinois
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