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☆ The US housing market slowdown will last longer that originally expected as pending home sales fall off a cliff, says the top economist at the National Association of Realtors
▼ + stars: | 2022-09-29 | by ( James Faris | ) www.businessinsider.com time to read: +5 min

Here's what Yun expects for mortgage rates, home sales, and home prices in 2023. A one percentage point rise in mortgage rates may not sound like much, but it's a monumental shift. And while it's not his base case, Yun said that 8% mortgage rates can't be ruled out if already-high inflation "gets out of hand." "If mortgage rates moderate and the economy continues adding jobs, then home buying should also stabilize." Expensive markets like San Francisco, Los Angeles, New York City, and Seattle are among the cities that are most sensitive to higher mortgage rates, Yun said.

☆ Here's why the real-estate market will continue to struggle over the next 6 months, with existing home sales mired in their worst slump since 2007, according to a director at the National Association
▼ + stars: | 2022-09-27 | by ( James Faris | ) www.businessinsider.com time to read: +6 min

The US housing market is firmly in a recession as existing home sales keep sliding. Nadia Evangelou of the National Association of Realtors shared what's next for the housing market. The trajectory of the housing market is heavily dependent on mortgage rates, Evangelou noted. But that's no guarantee as the Federal Reserve's interest rate-hiking cycle affects US Treasuries, which in turn sway mortgage rates, she said. So for that reason, we think that mortgage rates usually are pricing some of these upcoming rate hikes."

☆ The pandemic's real estate jobs boom is turning into a bust as layoffs hit
▼ + stars: | 2022-09-24 | by ( Https | Media-Cldnry.S-Nbcnews.Com Image Upload Newscms Shannon-Pettypiece-Circle-Byline-Template.Jpg | Shannon Pettypiece | ) www.nbcnews.com time to read: +7 min

Some of the biggest players in the real estate industry, including RE/MAX, Redfin and Wells Fargo, have announced layoffs in recent months totaling thousands of jobs. Over that period, 200,000 people became real estate agents, according to data from the National Association of Realtors. Workers in the mortgage industry have been among the hardest hit as demand for refinancing and home sales tumble. Real estate brokers have also been affected, said Ken H. Johnson, a former real estate broker who is now an associate dean at Florida Atlantic University, where he studies the real estate industry. Even in the best of times, it can be a struggle for new brokers to be able to make a full-time living selling real estate.

☆ Home sales dropped 20% in August from a year ago
▼ + stars: | 2022-09-21 | by ( Anna Bahney | Cnn Business | ) edition.cnn.com time to read: +1 min

Home sales declined for the seventh month in a row in August as higher mortgage rates and stubbornly high prices pushed prospective buyers out of the market. Sales of existing homes -- which include single-family homes, townhomes, condominiums and co-ops -- were down nearly 19.9% from a year ago and down 0.4% from July. Home prices continued to climb during the month, although it was the lowest year-over-year increase since June 2020. The median home price was $389,500 in August, up 7.7% from a year ago, according to a report from the National Association of Realtors. The price increase marks more than a decade of year-over-year monthly gains.

☆ Existing home sales fall in August, and prices soften significantly
▼ + stars: | 2022-09-21 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +3 min

That is the slowest sales pace since May 2020, when activity stalled very briefly due to the start of the pandemic. The sales figures represent closings, so contracts that were likely signed in June and July, when mortgage rates spiked higher and then pulled back. At the current sales pace, that represents a 3.2-month supply. That may have been due to a brief drop in mortgage rates during, which sparked more interest from buyers. But building permits, which are an indicator of future construction, fell as mortgage rates were expected to rise again.

The average 30-year mortgage rate has climbed to 6.02% — the first time the figure has surpassed 6% since 2008, according to new data from mortgage giant Freddie Mac. The new rate level — double what it was this time last year — is an effect of the Federal Reserve's aggressive campaign to raise interest rates as it works to fight inflation. The impact of higher rates will be to reduce housing demand and put downward pressure on home prices, Freddie Mac Chief Economist Sam Khater said in a statement. “With mortgage rates expected to stabilize near 6% alongside steady job creation, home sales should start to rise by early next year.”The higher rates have caused refinance activity to fall by more than 80% from last year, according to the Mortgage Bankers Association. “Thanks largely to mortgage rates near or even above 6%, potential homebuyers and sellers are focusing on the back-to-school season and enjoying the last days of summer rather than getting into an uncertain market."

Some of the most expensive housing markets, including San Jose and San Francisco, experienced slight home-price declines. Homebuyers in the San Francisco metro area must earn just under $200,000 a year to qualify for a mortgage with 20% down. Each quarter, NAR calculates qualifying income requirements for all US metropolitan-statistical areas assuming the buyer puts 25% of gross income toward the mortgage principal and interest. Metro areas are based on the US Census definitions. Below, we've pulled the qualifying annual income amounts for the 25 largest metros by population, ranked from lowest to highest qualifying income with 20% down.

Persons: Lawrence Yun, Yun, we've Organizations: National Association of Realtors, Service, Los Locations: United States, Jose, San Francisco, Wall, Silicon, Los Angeles, Detroit, Pittsburgh

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