Traditionally, buying a house was something you did with your spouse. First, you’d get married then you’d move into your newly purchased home together. But while married couples still account for the largest share of home buyers, things have been changing recently. In fact, according to one new survey from the National Association of Realtors’ consumer website, an overwhelming majority of survey participants now say they’d be willing to buy a home with someone other than a spouse or partner. Danielle Hale, the website’s chief economist, says market conditions are partly responsible for the shift in attitudes. “The challenging market conditions this year are changing buyer behavior in significant ways, driving many more people to explore alternative living situations they may not have considered in the past,” Hale said. Among survey respondents, 83 percent said they’d consider buying a house with a family member or friend, with 37 percent saying they’d be most open to buying with their child – though romantic partners, siblings, cousins, or other family members in the same age group followed closely behind. (source)

Fannie Mae’s Home Purchase Sentiment Index measures how Americans feel about their finances, the economy, their job, and the housing market. Based on a monthly survey, the index gauges whether consumers believe mortgage rates and home prices are headed up or down, whether they think it’s a good or bad time to buy or sell a home, and whether their personal finances and job security has improved or worsened over the past year. According to the most recent results, Americans are feeling cautious about the housing market, with an increasing number of survey respondents saying they believe mortgage rates and prices will continue to rise. But while participants are clearly worried about affordability, the vast majority say they think it’s still a good time to sell. In fact, 63 percent said they think now’s the right time. However, among them, a growing number list elevated rates as a reason to hold off. Doug Duncan, Fannie Mae’s chief economist, says homeowners aren’t eager to give up their current rate. “This indicates to us that many homeowners are probably not eager to give up their ‘locked-in’ lower mortgage rates anytime soon …” Duncan said. (source)

A lot about the way we live changed during the pandemic. Some of those changes were temporary. Others, though, are here for the long term. Remote work, for example. The Internet made working from a home a possibility but it was the pandemic that turned it into a reality. Now, more than three years later, it’s clear that remote work is here to stay. So are the changes it brought to the housing market. With more people able to work from anywhere, ideas about how and where we want to live changed too. People who no longer needed to consider their commute were free to live wherever they’d like – and many took advantage. That led to growing demand for privacy, space, and affordability which pushed buyers further from urban centers and out into the suburbs and exurbs. The subsequent surge in competition for homes, higher prices, and faster sales in those areas has largely continued ever since, as remote-working home buyers exchange proximity to city centers for more space and lower costs. (source)

The housing market has an inventory problem. The lower-than-normal number of homes for sale has prices rising and home buyers frustrated. But while year-over-year numbers show fewer homes on the market and prices higher than last year, monthly data tells a different story. In fact, it shows some short-term improvement. For example, according to newly released numbers from the National Association of Realtors’ consumer website, inventory increased in September from the month before, rising nearly 5 percent. That’s a significant bump, and at a time of year when the housing market typically begins to slow down. Additionally, the analysis found a rising number of homes saw price reductions during the month. The increase in price cuts – also unusual for the season – is an encouraging sign for fall buyers. Danielle Hale, the website’s chief economist, says it’s a break for buyers but challenges remain. “An uptick in homes with reduced prices is a small break for buyers on top of the usual seasonal factors that align to make [the] first week in October the best week to buy,” Hale said. “Yet, the larger context remains challenging. Buyers still struggle with the triple threat of rising listing prices, record-high mortgage rates, and limited inventory, making affordability a continued concern.” (source)

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates were up last week from one week earlier. Rates rose across all loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, 15-year fixed-rate loans, and 5/1 ARMs. Joel Kan, MBA’s vice president and deputy chief economist, says rates have been moving higher in recent weeks. “Mortgage rates continued to move higher last week as markets digested the recent upswing in Treasury yields,” Kan said. “Rates for all mortgage products increased, with the 30-year fixed mortgage rate increasing for the fourth consecutive week …” Because of increasing rates, demand for mortgage applications fell during the week, with demand for loans to buy homes down 6 percent from one week earlier. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

These days, home buyers face a number of challenges. With prices and mortgage rates both up and the supply of homes for sale down, the market has gotten more difficult over the past year and a half. But not all the news is bad for buyers. For example, according to the Mortgage Bankers Association, median mortgage payments were relatively flat this summer. The MBA’s Purchase Applications Payment Index measures new monthly mortgage payments based on the loan applications of recent home buyers. The latest results show the median payment rising just $8 in August from the month before. That brought it to $2,170 – about the same as it was in May when it came in at $2,165. Edward Seiler, MBA’s associate vice president, housing economics, and executive director of the Research Institute for Housing America, says there could be even better news ahead. “If mortgage rates shift lower in 2024 as we anticipate, the combination of rising inventory levels and lower rates should lead to stronger demand for buying a home,” Seiler said. (source)

Home shoppers focus their energy on the type of house they want and the features they’d like it to have. Things like the number of bedrooms, the size of the kitchen, and the available outdoor space are the first things they check when an interesting listing pops up. It makes sense. After all, too few bedrooms or a small kitchen can be a deal breaker. But while the layout of the house and the condition of the physical structure are obviously top considerations, there are other external factors that will also have an impact on how much you like your new place. Like your prospective neighbors. It’s almost impossible to know how well you’ll get along with your future neighbors before you buy, but they matter. In fact, a recent survey found 92 percent of Americans know at least a few of their neighbors on a first-name basis and 85 percent plan to stay in their current home long term. That means, when you buy a house, you’re also buying a potentially long-lasting relationship with the people who live near it. (source)