Housing More Affordable Than Anytime In Past 35 Years

Buyers in today’s market can expect to pay about 17 percent of their gross monthly income on their mortgage. The average, since 1975, has been 25 percent and at times, such as the early 1980s, mortgage payments were as much as 45 percent of gross income. Zillow.com calculated housing affordability using data dating back to 1975. Based on median household income, median home value, the average 30-year fixed-rate mortgage, and an assumed 20 percent down payment, their research determined that homes are more affordable now than they’ve been at any point in the past 35 years. More here.

Filed under: Uncategorized

Pending Home Sales Rise 5.1 Percent

The National Association of Realtors’ Pending Home Sales Index rose 5.1 percent in March, the sixth increase in the past nine months. The Index is a forward-looking indicator that tracks contract signings but not closings. Lawrence Yun, NAR’s chief economist, said home sales have shown an uneven but notable improvement. Since reaching their bottom last June, pending home sales have risen 24 percent, which demonstrates that the market is recovering on its own. Yun said modest near-term gains in existing-home sales are likely. More here and here.

Filed under: Uncategorized

Average Interest Rate Falls to 4.80 Percent

According to the Mortgage Bankers Association’s Weekly Applications Survey, the average contract interest rate for 30-year fixed-rate mortgages fell to 4.80 percent last week from 4.83 percent the week before. Despite the drop in rates, the Market Composite Index, which measures total mortgage loan application volume, decreased 5.6 percent. Michael Fratantoni, MBA’s vice president of research and economics, said applications fell last week due to a decrease in government purchase applications as new, higher FHA premiums went into effect. More here and here.

Filed under: Uncategorized

Declining Mortgage Default Rates Help Maintain Recovery

Data through March, released by the S&P/Experian Consumer Credit Default Indices, shows mortgage defaults fell to 2.33 percent from 2.45 percent in February. It was the fourth consecutive month of declines in mortgage default rates and puts them 41 percent below year-before levels. David M. Blitzer, managing director and chairman of the index committee for S&P Indices, said declining debt levels, combined with the economic recovery, are supporting lower defaults and improvement in consumers’ financial condition which should help maintain the recovery. The indices track defaults of consumer balances across major loan categories. More here.

Filed under: Uncategorized

New Home Sales Jump 11.1 Percent In March

According to estimates released by the U.S. Census Bureau and the Department of Housing and Urban Development, sales of new single-family houses rose 11.1 percent above the revised February rate. The better than expected increase follows three consecutive months of declines. The median sales price for a new home was also up, climbing 2.9 percent from the month before. The median price of new houses sold in March was $213,800. The average sales price was $246,800. At the current sales rate, there was a 7.3-month supply of new homes for sale at the end of March. More here and here.

Filed under: Uncategorized

Home Prices Show Signs of Stability

The FNC Residential Price Index shows national home prices remaining relatively flat in February, a month known for large seasonal price movement. The Index indicated that home values declined just 0.7 percent from the month before. The better-than-expected report could signal that the housing market is ready to rebound at the same time the spring-selling season usually leads to an uptick in buyer activity. FNC says the near-term outlook for housing remains subdued but rising distressed sales and excess inventory reduction combined with improved consumer perception and confidence should lead to a more sustainable recovery ahead. More here and here.

Filed under: Uncategorized

Existing Home Sales Rebound in March

Existing home sales increased 3.7 percent in March from February’s estimates, according to The National Association of Realtors. And, though sales of previously owned homes were down 6.3 percent from last year’s pace, the homebuyer tax credit led to elevated sales levels from March through June of 2010. Lawrence Yun, NAR’s chief economist, said existing-home sales have risen in six of the past eight months and, he expects, the improving pattern will continue. The NAR also reports that first-time buyers purchased 33 percent of the homes sold in March and total available housing inventory at the end of the month represented an 8.4-month supply. More here and here.

Filed under: Uncategorized

Mortgage Loan Demand Increases as Rates Fall

According to The Mortgage Bankers Association’s Weekly Applications Survey, demand for mortgage loan applications rose 5.3 percent last week. The seasonally adjusted Purchase Index was up 10.0 percent from the week before, reaching its highest level since December. The average contract interest rate for 30-year fixed-rate mortgages fell to 4.83 percent from 4.98 percent, which lead to a 2.7 percent increase in the Refinance Index. Michael Fratantoni, MBA’s vice president of research and economics, said mortgage rates fell to the lowest level in a month toward the end of last week. More here.

Filed under: Uncategorized

Housing Construction, Building Permits Surge in March

Construction of single-family homes climbed 7.7 percent in March, according to the U.S. Census Bureau and the Department of Housing and Urban Development. Total housing starts rose 7.2 percent above February’s estimates. Building permits, an indicator of future construction, reached their highest level since December. Permits jumped 11.2 percent above February’s revised rate, with single-family authorizations up 5.7 percent. More here.

Filed under: Uncategorized

Builders Say 1st-Time Buyers Driving New Home Sales Traffic

The National Association of Home Builders/Wells Fargo Housing Market Index dropped a point in April, after rising to 17 in March. The Index has now been at 16 for five of the past six months. The monthly survey gauges builder perceptions of the market for newly built, single-family homes on a scale where any number over 50 indicates more builders view sales conditions as good than poor. Despite the dip, however, the component measuring traffic of prospective buyers hit its highest level since last June. David Crowe, NAHB’s chief economist, said pockets of improving activity are appearing in some markets with the most sales activity happening among first-time buyers. Crowe said consumers who can take advantage of today’s low mortgage rates and attractive pricing are finding bargains and buying. More here and here.

Filed under: Uncategorized