Archive for May 2014

Sunny Outlook May Motivate Buyers, Sellers

May 9, 2014 Housing Market Comments Off on Sunny Outlook May Motivate Buyers, Sellers

Throughout the winter, analysts and industry experts said the housing market would regain its strength this spring and summer. Now, according to the most recent National Housing Survey from Fannie Mae, a combination of rising consumer confidence and an improving job market may be about to prove them right. The survey polls 1,000 Americans each month to gauge their attitudes toward homeownership, price changes, the economy, their personal financial situation, and overall consumer confidence. The most recent survey found the number of respondents who said they think now is a good time to sell a house at a record high, while the number who were concerned about losing their job hit a record low – both encouraging signs. Doug Duncan, senior vice president and chief economist at Fannie Mae, said consumer confidence is moving in a positive direction. According to Duncan, the optimistic results are in line with Fannie Mae’s forecast of increased housing activity and gradual strengthening of the housing market this spring and summer selling season. Also among the results, 69 percent of participants said they felt now is a good time to buy a home. More here.

Demand For Loans To Buy Homes Increases

May 8, 2014 Housing Market Comments Off on Demand For Loans To Buy Homes Increases

Demand for loans to purchase homes surged last week, according to the Mortgage Bankers Association’s Weekly Applications Survey. The seasonally adjusted Purchase Index gained 9 percent from one week earlier, contributing to a 5.3 percent increase in overall mortgage loan application volume. Mike Fratantoni, MBA’s chief economist, said the spike in demand for purchase applications likely reflects the impact of continued growth in the job market and lower mortgage rates. In fact, average mortgage rates fell across all loan categories last week, including 30-year fixed-rate loans with conforming and jumbo balances, FHA loans, and 15-year fixed-rate loans. The drop brought average rates on conforming and jumbo balances to their lowest level all year. Also, the Refinance Index gained 2 percent from the week before. The MBA’s survey has been conducted weekly since 1990 and covers more than 75 percent of all U.S. retail residential mortgage applications. More here.

Americans Say They’d Prefer To Buy New

May 7, 2014 Housing Market Comments Off on Americans Say They’d Prefer To Buy New

Nearly twice as many Americans say they’d prefer to buy a new home over a previously owned house, according to the results of a new survey from Trulia. In the poll, 41 percent of respondents said they’d strongly or somewhat prefer to buy a newly built home, while just 21 percent said they’d rather buy an existing home. But despite their preference, survey participants who said they wanted to buy a new house also said they weren’t willing to pay the extra cost. In fact, just 46 percent said they were willing to pay at least 20 percent more to buy a newly built home. Among the most popular reasons cited for a preference for new homes, modern features such as bigger closets, kitchen islands, and radiant floor heating was number one. Participants also said they would prefer to buy new because of the ability to customize the house and the fact that they’d spend less on maintenance and repairs over time. Jed Kolko, Trulia’s chief economist, said fewer people prefer existing homes but those that do are drawn to their traditional features and locations in older, established neighborhoods. More here.

Potential Home Buyers Get Ready To Buy

May 6, 2014 Housing Market Comments Off on Potential Home Buyers Get Ready To Buy

As confidence in the economy grows, so do the number of potential home buyers that say they’re ready to enter the housing market. According to a new survey from PulteGroup, one of the nation’s largest homebuilders, 74 percent of Americans say the economy has remained steady or improved in the last year and 57 percent think now is a good or excellent time to purchase items they need or want. And buying a home ranks high on the list of things Americans want. Among respondents, 67 percent said they plan to purchase a home in the future with 32 percent looking to buy within the next two years. Margaret Gramann, senior vice president of sales for PulteGroup, said Americans have a growing sense of optimism that the housing market is improving and that these positive changes may be sustainable. And that growing sense of optimism has boosted their interest in buying a home, with 41 percent of respondents indicating that their interest has increased over the past year. Needing more space and the view that owning a home is a smart financial investment were the top two reasons cited by participants as spurring their interest in buying a home. More here.

Rent Vs. Buy: Why Buying Is A Better Deal

May 5, 2014 Housing Market Comments Off on Rent Vs. Buy: Why Buying Is A Better Deal

New research shows the costs associated with buying and owning a home are less expensive than monthly rent after just two years living in a house. The study, from Zillow’s economics team, looked at a comprehensive list of costs and benefits for both buying and renting a home, including a 20 percent down payment, property tax, owner’s insurance, maintenance, rent payments and rental insurance. The results found buying a home to be a better deal in half of the nation’s metropolitan areas. This is due primarily to the fact that rent has been rising across the country and, despite recent increases in home prices and mortgage rates, buying a house remains very affordable based on historical averages. Among the factors to watch in order to determine whether it’s more costly to buy or rent, home values are one of the most significant. The faster home prices rise, the quicker a homeowner’s equity will offset the costs of owning a home. On the other hand, as rental costs increase, the cost of renting becomes more expensive than buying that much quicker. More here.

Survey Asks Recent Buyers What They’d Do Differently

May 2, 2014 Housing Market Comments Off on Survey Asks Recent Buyers What They’d Do Differently

A new survey asked recent home buyers what they’d change if they could go through the buying process all over again. The independent survey – conducted by Research Now – polled 807 new homeowners about how prepared they felt during their home search and what they’d change about the home they eventually purchased. According to the results, 56 percent of respondents said they wish they had more knowledge about the financial aspects of buying a home, specifically making an offer and negotiating, closing on the house, and financing their home. At the time of the purchase, however, 90 percent said they felt prepared. Also, 34 percent said their home cost more than they expected and 80 percent said they considered their home move-in ready – though three quarters of them eventually renovated or had plans to renovate in the near future. A number of recent buyers also said they’d buy a different home altogether if they had a second chance, with 39 percent saying they’d buy a home in another neighborhood or of a different size or price. More here.

Demand For Mortgage Loans Down Last Week

May 1, 2014 Housing Market Comments Off on Demand For Mortgage Loans Down Last Week

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates for 30-year fixed-rate loans with jumbo balances and those backed by the FHA fell from the previous week, while interest rates for conforming balances were unchanged. But though rates didn’t rise last week, neither did demand for home purchase loans. The seasonally adjusted Purchase Index, which is an indicator of future home sales, was down 4 percent from the week before. Combined with a 7 percent drop in refinance activity, total demand for mortgage applications fell 5.9 percent. Mike Fratantoni, MBA’s chief economist, said refinance activity continued a declining trend that began last May. Industry analysts believe this year will see a change from a market dominated by refinance activity to one with increasing demand for home purchase loans. The MBA’s survey has been conducted weekly since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

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