According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell across all loan categories last week, 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. The decline was the biggest week-over-week decrease since July 2022. Joel Kan, MBA’s vice president and deputy chief economist, says there are a few reasons for the improvement. “Last week’s decrease in rates was driven by the U.S. Treasury’s issuance update, the Fed striking a dovish tone in the November FOMC statement, and data indicating a slower job market,” Kan said. Lower rates helped push the Market Composite Index – which measures overall demand for mortgage applications – up 2.5 percent from the week before, including a 3 percent increase in demand for loans to buy homes. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

Fannie Mae’s monthly Home Purchase Sentiment Index measures how Americans feel about the housing market and overall economy. Based on a survey that asks participants for their view of buying and selling a home, home prices, mortgage rates, their income and job, the survey provides a look into what Americans are thinking and how willing they may be to get into the market. According to the most recent results, Fannie Mae’s survey shows a large majority of respondents feel now is a good time to sell a house. In fact, 63 percent of survey participants said they think it’s time to sell. But while Americans think selling a house is a good idea, they’re still cautious overall. Doug Duncan, Fannie Mae’s senior vice president and chief economist, says inflation has affected sentiment . “Consumers expressed even greater pessimism toward the larger economy this month, in addition to their ongoing frustration with the housing market,” Duncan said. “Via our October National Housing Survey, 78 percent of respondents told us the economy is on the ‘wrong track’ – up from 71 percent last month – and they overwhelmingly cited inflation as the primary reason why.” (source)

As home prices have increased, so has the share of homeowners who can consider themselves equity rich – meaning the combined amount of loan balances secured by their home is no more than half the home’s value. That’s a good position to be in as a homeowner and its one in which a significant share of homeowners find themselves, according to a new report from ATTOM Data Solutions. ATTOM’s third-quarter U.S. Home Equity & Underwater Report shows 47.4 percent of mortgaged homes in the country were equity rich in the third quarter. That’s down slightly from the second quarter but only by a little. Rob Barber, ATTOM’s CEO, says homeowner equity is still strong. “By all measures, homeowner equity around the country remained strong during the third quarter as millions of households kept benefitting from the nation’s extended runup in home values,” Barber said. Equity levels rose in 21 states during the third quarter, with the biggest improvements seen in the Northeast, including Connecticut, New Jersey, and New Hampshire. (source)

October is the first full of month of fall and a time when more than just the weather cools off. Typically, the housing market does too. Summer shoppers have settled in and the number of active buyers and homes for sale both tend to decline as winter approaches. This year, however, the typical seasonal slowdown in homes for sale has reversed, according to the National Association of Realtors’ consumer website. The site’s October Monthly Housing Trends Report found that, in October, the number of homes for sale actually rose, with inventory up 5.1 percent month-over-month. Still, it’s down from last year at the same time and nearly 42 percent lower than what was normal in the three years before the pandemic. But Danielle Hale, chief economist for the site, says there are signs the market is beginning to adjust. “The current housing market continues to challenge home buyers and sellers alike, but we do see signs of adjustment,” Hale said. “Buyers did see some measure of relief in stable home prices this month and we’ll be watching the rising share of listings with reduced prices to see how that impacts prices in the near future.” (source)

There are a lot of numbers to keep track of when you’re a home buyer trying to figure out how much you can afford. There’s the price of the home, your prospective mortgage rate, your down payment, closing costs, and moving expenses. It can be dizzying. In the end, though, after all the upfront costs are paid for, what you’ll be left with is your monthly mortgage payment. So how much can you expect to pay each month after the dust settles? Well the Mortgage Bankers Association tracks median mortgage payments with their monthly Purchase Applications Payment Index. It’s a good gauge of what today’s buyers are paying each month. According to the most recent results, payments have gotten slightly more affordable. In fact, the median payment in September fell to $2,155 from $2,170 in August. Similarly, borrowers applying for lower-payment mortgages also saw improvement, with payments decreasing to $1,437 from $1,444. Edward Seiler, MBA’s associate vice president of housing economics and executive director of the Research Institute for Housing America, says more improvement may be on the way. “Challenges remain as 2023 comes to an end, but MBA is forecasting for a slight rebound in originations and a moderation in mortgage rates in 2024,” Seiler said. (source)

According to the Mortgage Bankers Association’s Weekly Applications Survey, the average mortgage rate for 30-year fixed-rate loans with conforming loan balances fell last week for the first time in more than a month. The decline is encouraging news for prospective borrowers but Joel Kan, MBA’s vice president and deputy chief economist, warns rates are still high. “Mortgage applications declined for the third straight week as mortgage rates remained elevated, with all rates around 30 basis points higher than they were a month ago,” Kan said. “The impact of higher rates continued to be felt across both purchase and refinance markets.” With rates still high, demand for loans to buy homes fell 1 percent from the previous week while refinance activity was down 4 percent. The survey found rates were also down for 5/1 ARMs, though up slightly for jumbo loans, 15-year fixed-rate loans, and FHA loans. Conducted since 1990, the MBA’s weekly survey covers 75 percent of all retail residential mortgage applications. (source)

The double-digit home price increases seen a couple of years ago have subsided, but that doesn’t mean prices aren’t still increasing. In fact, according to the latest S&P Case-Shiller Home Price Indices – considered among the leading measures of U.S. home values – prices remain strong. Craig J. Lazzara, managing director at S&P, says they’re even hitting all-time highs. “One measure of the strength of the housing market is the relationship of current prices to their historical level,” Lazzara said. “On that dimension, it’s worth noting that the National Composite, the 10-City Composite, and seven individual cities, stand at their all-time highs.” S&P’s index, which covers data through August, shows prices up 2.6 percent year-over-year, with 19 of the 20 included cities showing a positive trend in annual acceleration compared to the previous month. Put simply, home price increases have slowed from their peak but have continued in most regions of the country. (source)