According to the Mortgage Bankers Association’s Weekly Applications Survey, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances fell slightly last week. Rates for jumbo loans increased, while rates for 15-year and FHA loans were steady from the week before. Overall, mortgage rates remain well below where they were at the same time last year. Joel Kan, MBA’s associate vice president of economic and industry forecasting, says low rates didn’t result in a significant increase in mortgage demand, however. Mostly because refinance applications were down week-over-week. “Mortgage applications were down slightly, even after adjusting for the July 4^th holiday, as we saw opposing moves in purchase and refinance applications over the week,” Kan said. “Purchase applications increased from the previous week and were up 5 percent from a year ago, a continuation of the strong annual growth that we saw in the first of half of 2019.” Refinance activity was down 7 percent from the previous week, though it’s 88 percent higher than the same week one year ago. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

Naturally, for home buyers, affordability is a top concern. That’s not a surprise. Anyone thinking about buying a home in the near future is likely going to first try to figure out how much house they can afford. That means, keeping an eye on mortgage-rate fluctuations and where home prices are headed. But there are other, less obvious, factors that can affect the cost of housing in your area. Construction, for example. The amount and type of housing that’s being built in the neighborhoods you’re interested in can have an impact on affordability. That’s because, as the number of homes available for sale increases, it reduces competition and helps relieve pressure on prices. So, if there are a lot of new homes being built in your area, chances are they’re helping to keep prices from spiking. That’s why there’s been a renewed focus on diversifying the housing stock and building smaller, more affordable new homes. Since much of the new residential construction taking place these days is of higher-end, more expensive homes, there’s a growing need for homes that will help meet demand from first-time buyers and slow entry-level home prices. More here.

Fannie Mae’s monthly Home Purchase Sentiment Index surveys Americans about the housing market, buying and selling a home, prices, mortgage rates, etc. According to the most recent release, consumers see stable conditions ahead. In fact, an 8 percent increase in the number of respondents who feel mortgage rates will go down over the next 12 months is an indication that prospective home buyers think affordability conditions are beginning to settle. Doug Duncan, Fannie Mae’s senior vice president and chief economist, says optimism about mortgage rates has helped sentiment, though it depends on where you look. “Regional variations in housing optimism appear to be tied to a divergence in housing affordability; for example, home purchase sentiment is higher in the Midwest and South than in the West and, to a lesser extent, the Northeast, where the lack of entry-level inventory and the resultant strong price appreciation has had a more profound impact on affordability,” Duncan said. However, though affordability conditions will vary from location to location, declining mortgage rates have helped take the pressure off buyers everywhere, which is why the index remains near an all-time survey high. More here.

First-time home buyers are important to the health of the housing market. After all, historically, they’ve accounted for around 40 percent of total home sales. But who is the typical first time home buyer and what do they buy? Well, a recent study from Harvard’s Joint Center for Housing Studies, took a look at buyers over the past few years and broke down the profile of the average first timer. According to the study, the typical first-time home buyer is under the age of 35, married, and has children. Not surprisingly, the house they buy tends to be smaller and less expensive than those purchased by repeat buyers. According to the report, “43 percent of first-time buyers in 2017 purchased homes with less than 1,500 square feet of living space, compared with 27 percent of repeat buyers.” They generally buy a detached single-family home and pay less than $200,000 for it – just 12 percent pay $400,000 or more for their house. The report also points out the challenges ahead for younger buyers, specifically the lower-than-normal number of available homes in their price range and the need for more affordable housing options. More here.

According to the Mortgage Bankers Association’s Weekly Applications Survey, demand for home purchase loans is now 10 percent higher than the same week one year ago. The improvement comes after a 1 percent increase week-over-week. Joel Kan, MBA’s associate vice president of economic and industry forecasting, says purchase applications have been gradually increasing since the beginning of the year. “Purchase applications picked up slightly last week, as conventional and government activity were each up around 1 percent. Furthermore, in continuation of the gradual growth trend seen throughout the first half of 2019, purchase activity was almost 10 percent higher than a year ago,” Kan said. “A still-strong job market, improving affordability, and lower mortgage rates continue to support growth.” Also in the report, average mortgage rates were mostly flat last week, showing little change across all loan categories. The 30-year fixed-rate was up slightly but remains just above lows last seen in 2016. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

For most potential buyers, thinking about purchasing a home means thinking about applying for a loan. After all, most of us don’t carry around a suitcase full of cash when we’re out shopping houses. So before we start looking at listings, we have to look at things like our finances, credit score, requirements, and minimums to get an idea of whether or not we might be qualified to borrow. But, according to a study from Fannie Mae, though we have more access to information these days, we’re still unsure about what’s required to be approved for a mortgage. The study says, “The lack of mortgage qualification understanding is pervasive, even among current homeowners, those who say they are actively planning to purchase a home in the next three years, and those who successfully answered questions testing general financial literacy.” In other words, a lot of us are mistaken about things like what our credit score needs to be and how much of a down payment is required. Which means, many perfectly qualified buyers may be overestimating the requirements and not pursuing homeownership. If you’re interesting in buying a home, don’t discourage yourself. Talk to your lender about what’s required before giving up on buying a house. More here.

Selling a house can seem daunting. Not only do you have to get your home ready for viewings, you also have to worry about getting a good price and selling it within a timeframe that works for you. Add in all the little details and possibly shopping for a new place at the same time and you have a recipe for stress. One recent survey shows just how much. According to the results, 36 percent of recent home sellers said they cried during the process and, among them, 20 percent cried more than once. Overall, younger sellers were more likely to say they cried – which makes sense since they’re also more likely to be going through it for the first time. But, whatever the case, the evidence is clear. Selling a house can be a stressful experience. It doesn’t have to be, though. Having a good team of experienced professionals to guide you through the process is key. As is listing at the right time, having appealing photographs to post online, and staying flexible and ready for anything. It can be overwhelming, but with a good team and appropriate expectations, it will be far more manageable. More here.