2024-02-26 | demographics housing
... es of Black renting families rose faster during the pandemic, significant disparities persist in homeownership rates and home values between Black and white Americans. Nationally, white households owned homes at a much higher rate (73%) than Black households (44%), and the gap exceeded 30 percentage points in more than half of the country's 50 largest metros in 2022.Compounding the issue, the typical home owned by a white family is still worth far more than the typical home owned by a Black family. Although there has been incremental progress in narrowing the home value gap, it still exce...
2024-01-18 | housing
... rates will fall below 6%, and homebuilders will keep producing new homes, which will help with affordability. Along with some increase in purchase finance, the drop in mortgage rates is also expected to drive up refinancing volumes. In our opinion, rates will still need to be raised significantly in order to significantly lessen the "lock-in effect" that homeowners who refinanced or purchased during the pandemic faced. This is even with rates less than 6%. In general, we anticipate that both the mortgage market and homebuyer affordability will fare better in 2024 than they did in 2023." ...
2024-01-18 | housing
... ach for regular workers, making it difficult for individuals with modest incomes to get mortgages and giving them no choice except to rent. Despite rising mortgage rates, the price of homes continued to rise in 2023, partly due to a shortage of available properties.Even yet, rent hasn't increased to the point where renting and ownership account for more than a third of typical income in most local markets, making them the more affordable choice for most workers. While the trend has persisted across the nation, it is still more noticeable in the urban and suburban areas with the highest populat...
2023-06-06 | housing
... buy a home soon will this summer and only 4 percent this fall. 32 percent say they plan to enter the market in 2024 or later if mortgage rates decline.Americans pause on refinancing: Among those planning to refinance their home, 81 percent say they are waiting until rates drop.Millennials and Gen Z feel the homebuying stress: More than half (56 percent) of those generations say they feel homebuying is more out of reach for them compared to when their parents were the same age.Financial anxiety high overall: Housing costs (68 percent) remain among the leading sources of financial anxiety for Am...
2023-06-01 17:00:00 | housing interest rates
... s data covers the four-week period ending May 28. Redfin’s weekly housing market data goes back through 2015. For bullets that include metro-level breakdowns, Redfin analyzed the 50 most populous U.S. metros. Select metros may be excluded from time to time to ensure data accuracy.The median home sale price was $377,750, down 1.9% from a year earlier, the smallest decline in two months.Home-sale prices declined in 30 metros, with the biggest drops in Austin, TX (-16.4% YoY), Oakland, CA (-11.5%), Las Vegas (-9.9%), San Francisco (-8.6%) and Sacramento, CA (-8.5%).Sale prices increased most in...
... In fact, the pace of new home listings in May was even lower than in May 2020 when the real estate market was still contending with pandemic-era closures and restrictions.Nationally, the number of active listings grew +21.5% year over year in May; however, the inventory growth rate continued to slow for the third month in a row. Both newly listed homes (-22.7%) and homes under contract (-18.1%), or pending listings, declined year over year.Compared to last year, active inventory decreased in 21 out of 50 of the largest metros. Markets that reported large yearly declines included San Jose, Cali...
2022-11-07 11:30:14 | consumers economy housing
... onditions surrounding both buying and selling homes. The "poor time to purchase" component of the poll surged this month to a new high amid continuously high property prices and unfavorable mortgage rates, while the "good time to sell" component maintained its downward trend. Consumers continue to be concerned about the movement of home prices, and expectations that prices will fall, particularly among homeowners, hit a new survey high, adding credence to our prediction of home price decreases in 2023. We anticipate that home sales will continue to decline in the upcoming months, in line with ...
2022-08-08 12:00:01 | housing
... Americans who say home prices will go up or down in the next 12 months has decreased. The percentage who say it's a good time to buy a home has increased, but not at the same rate as those who think mortgage rates will go down. Home Purchase Sentiment Index (HPSI) distills consumer sentiment from Fannie Mae's National Housing Survey. The HPSI reflects consumers' current views and expectations of housing market conditions. The net share of those who say their household income is significantly higher than it was 12 months ago increased....
2022-07-28 10:00:00 | housing
... April. But the Federal Reserve and other central banks are increasingly hiking interest rates as they fight rampant inflation. Because of this, bond yields and mortgage rates have skyrocketed, which has decreased demand for mortgages and home purchases. According to mortgage company Freddie Mac, the average interest rate for a 30-year mortgage was 5.54 percent last week, more than twice as high as the rate of 2.76 percent from one year ago. On July 27, the Mortgage Bankers' Association reported its Market Composite Index, which tracks the volume of mortgage loan applications,...
... ve many homebuyers pulled forward their purchase plans to avoid expected increases in mortgage rates, contributing to demand for homes and strong price appreciation. Given the sharp rise in mortgage rates since that time, and the resulting negative impact on affordability to potential homebuyers, we expect purchase demand to cool in the quarters ahead, and for home price appreciation to moderate as a result." The FNM-HPI is produced by aggregating county-level data to create both seasonally adjusted and non-seasonally adjusted national indices that are representative of the whole country an...
2022-04-22 | housing
... 2% year over year. New listings of homes for sale were down 8% from a year earlier, the 22nd-straight annual decline and the biggest drop since early February. Active listings (the number of homes listed for sale at any point during the period) fell 21% year over year. A record 58% of homes that went under contract had an accepted offer within the first two weeks on the market, up from 54% a year earlier. A record 44% of homes that went under contract had an accepted offer within one week of hitting the market, up from 41% a year earlier. Homes that sold were on the m...
2021-12-22 12:00:00 | real estate
... es rose 31.4% year on year to $ 38.3 trillion last month, well above the 9.7% year on year ($ 2.6 trillion) recorded in November last year. Housing prices rose sharply during the pandemic as mortgage rates hit record lows, teleworking and the skyrocketing stock market boosted demand for housing amid continuing housing shortages. November marked the 16th straight month of double-digit price increases as the number of homes for sale fell to an all-time low. “The rise in property values during the pandemic has widened the gap between homeowners and tenants in America. Homeowners...
2021-08-16 09:08:19 | housing
... lowing months of fierce competition and soaring prices that were driven by an intensifying housing shortage, a pandemic moving spree made possible by remote work and historically low mortgage rates. Home prices are stabilizing amid an increase in housing supply. Increased supply gives buyers more options to choose from, which helps reduce competition. It's also typical for competition to ease in the summer following the spring homebuying season, so seasonality is another factor at play. "Competition has started to slow in the last three weeks. We're now seeing five to eight offers on homes ...
2021-06-10 08:52:09 | housing interest rates
... time. But with offices reopening and life returning to some semblance of normal, people are less focused on fleeing to the beach or the lake." Source: Redfin...
2021-06-01 | housing real estate
... ...
2021-05-11 12:00:04 | housing real estate
... ding clarity on permanent remote-work policies, the economy is recovering and mortgage rates remain low. All of these factors mean that we'll likely see even more buyers enter the market this year and in 2022."The South is expected to lead the way with $1.09 trillion of home sales forecast for 2021, followed by the West with $696.3 billion, the Midwest with $422.6 billion and the Northeast with $322.8 billion. The South has consistently held the top spot, but has inched further ahead in recent years. This is likely because it has more vacant land on which to build, and has attracted score...
2021-05-10 12:00:01 | real estate
... plan to work remotely for the long term, at least part of the time. "The combination of the wealthy becoming wealthier, remote work turning into the new normal and low mortgage rates is creating an ideal environment for affluent Americans to buy vacation homes," said Redfin Chief Economist Daryl Fairweather. "As long as the economy continues to grow, I don't foresee demand for second homes slowing down anytime soon." The elevated demand for second homes in the pandemic era is one sign of economic inequality in the U.S., with some buyers able to afford second homes and o...
2021-05-07 | housing real estate
... a substantial increase in home prices, which could be a precursor to more widespread inflation throughout the economy," said Redfin Chief Economist Daryl Fairweather. "Lumber prices are surging, which has driven up prices of new homes and indirectly drives up prices of existing homes. As states lift their pandemic restrictions, we will likely see more shortages and price increases on everything from gasoline to hotel stays and food. These price increases will likely be short-lived, but could cut into homebuyers' budgets and ease competition enough for the housing market to become more balance...
2021-04-30 12:00:00 | housing real estate
... kon with just how expensive housing has become," said Redfin Chief Economist Daryl Fairweather. "But I'm not worried about a housing crash because these sky-high prices are supported by the new reality of well-funded buyers who are often benefiting from newfound mobility via remote work. As the economy recovers, we have the opportunity to reimagine our country's role in supporting a healthy housing market. For instance, we can subsidize construction of affordable homes or support first-time homebuyers in underserved communities. We have our work cut out for us when it comes to ensuri...
2021-04-20 12:00:09 | housing real estate
... ng the pandemic or because they have a growing family." The U.S. housing market is experiencing a record deficit of homes for sale as demand soars due to low mortgage rates and remote work, but the shortage is less extreme in the luxury price tier, which is allowing high-end home sales to flourish. The number of luxury homes for sale fell 5.1% year over year in the first quarter, the smallest decline of all five price tiers. By comparison, the supply of affordable homes for sale slumped 14.9%, and the supply of mid-priced homes plummeted 19.8%. The supply shortage in the luxury marke...
2021-04-15 12:00:05 | housing
... ese super-low mortgage rates and price gains in the year ahead." Median sale prices increased from a year earlier in all but two of the 85 largest metro areas Redfin tracks. The only places prices didn't increase were Honolulu, where they fell 4.7% from a year ago and San Francisco, where they were down 1.6%. The largest price increases were in Austin, TX (+28%), Fresno, CA (+23%) and North Port, FL (+23%), three popular destinations for newly-remote workers who have been leaving the most expensive metro areas during the pandemic in search of more affordable locales. Market Summary ...
... prices up for locals. To read the full report, including charts, please visit: https://www.redfin.com/news/second-home-demand-record-high. Source: Redfin...
2021-04-07 12:00:00 | housing
... to 34%. As a result, the net share of Americans who say mortgage rates will go down over the next 12 months decreased 9 percentage points month over month. Job Concerns: The percentage of respondents who say they are not concerned about losing their job in the next 12 months remained unchanged at 82%, while the percentage who say they are concerned also remained unchanged at 17%. As a result, the net share of Americans who say they are not concerned about losing their job remained unchanged month over month. Household Income: The percentage of respondents who say their household inc...
2021-04-01 12:00:01 | housing real estate
... indling supply of homes for sale, prices shot up – just not enough to significantly outweigh the benefits of increased wages and average mortgage rates that sat below 3 percent. "The past year certainly has been an odd one for the U.S. housing market. Home prices surged at a remarkable pace even as the virus pandemic damaged the U.S. economy, which dropped historical affordability levels. But average workers untarnished by the pandemic were still able to afford the typical home because wages and rock-bottom interest rates worked to their favor in a big way," said Todd Teta, chief product of...
2021-04-01 | housing real estate
... breaking prices and rising interest rates, according to the realtor.com® Monthly Housing Trends Report released today. And while more choices and slowing price growth may come to those who wait, mortgage rates will likely continue to creep up. "In many areas of the country, there are half as many available homes for sale than a year ago -- and in some markets that number increases to less than one-third. For a buyer, that means if they had 10 homes in their price range to choose from last year, they have less than five, perhaps as few as three, available to them today," said realtor.com®...
2021-03-25 19:08:19 | housing interest rates
... As a result, strong purchase demand continues—but buyers also outnumber the sellers,” said Sam Khater, Freddie Mac’s Chief Economist. “Since January, mortgage rates have increased half a percentage point from historic lows and home prices have risen, leaving potential homebuyers with less purchasing power. Unfortunately, this has disproportionately affected the low end of the market, where supply is the slimmest.” News Facts 30-year fixed-rate mortgage averaged 3.17 percent with an average 0.7 point for the week ending March 25, 2021, up from last week when it averaged 3.09 percent...
2021-03-24 | housing real estate
... hly mortgage payments for most buyers because it has been offset by low mortgage rates, but it has driven up down-payment costs," said Redfin Chief Economist Daryl Fairweather. "This is likely putting homeownership out of reach for many cash-strapped first-time buyers who can't afford to put an additional $9,000 down." In addition to spending more on down payments, homebuyers have been boosting their bids. During the last six months, 1 in 3 buyers (34.4%) paid more than the seller's original asking price, up from 1 in 5 buyers (21.2%) a year earlier. "It's extremely compe...
2021-03-22 12:00:00 | housing
... -pandemic levels,” said Lawrence Yun, NAR’s chief economist. He cautioned of a possible slow down in growth in the coming months as higher prices and rising mortgage rates will cut into home affordability. “I still expect this year’s sales to be ahead of last year’s, and with more COVID-19 vaccinations being distributed and available to larger shares of the population, the nation is on the cusp of returning to a sense of normalcy,” Yun said. “Many Americans have been saving money and there’s a strong possibility that once the country fully reopens, those reserves will...
2021-03-19 12:00:00 | housing real estate
... s shutting down as many cities implemented strict shelter in place orders. A year later the pandemic is still with us, but the housing market is red-hot. It's so hot some buyers are acting irrationally," said Redfin Chief Economist Daryl Fairweather. "Some people are willing to do whatever it takes to win a bidding war to the point they may be overpaying. Still, I wouldn't call this a housing bubble because the demand for homes is truly there and the buyers can afford these high prices. Bubbles burst; I don't see that happening. The best hope buyers have is that home prices start to grow at a ...
2021-02-26 | real estate
... ing market is now like a Soviet-era supermarket, with most of the shelves empty," said Redfin CEO Glenn Kelman in remarks on Redfin's Q4 earnings call this week. "In the week leading up to this call, demand slackened for the first time in months, probably because of cross-country snowstorms. But prior to that, the stories we heard from our agents were harrowing, juicy and bizarre. Migrations are warping the space-time continuum of small-town economies. The affordability crisis that flowed like some huge, unspent electrical charge from San Francisco to Seattle to Portland to Denver an...
2021-02-25 | housing
... geles. "There's such a huge shortage of houses for sale that most homes will attract a long line of eager buyers no matter what. As a result, many sellers feel they don't need to compensate the buyer's agent as much for that part of the process." iBuyers Pave the Way for Lower CommissionsHomes are increasingly being sold by thrifty businesses like iBuyers instead of individual sellers' agents. The term "iBuyer" (short for instant buyer) is used to describe a real estate company that purchases houses from homeowners in quick cash transactions, makes any necessary improvements to the homes, and...
2021-02-17 | real estate
... ncommonly low interest rates, the ascent of the millennial homeowner and the prospect of working from anywhere are converging to shape a housing market unlike any other. We could see mortgage rates begin to inch up soon, so now might be an ideal time for homebuyers and sellers to make their move and take advantage of the favorable conditions." Although the growth in sales moderated a bit, other key metrics showed the aftereffects of housing's 2020 record-setting, second-half recovery: January inventory dipped to the lowest level of any time in the 13-year history of the report. The 35....
2021-02-09 | investing
... ared to Q2 2020. Plummeting rental rates in city centers, rent abatements and cuts, temporary rent and mortgage non-payments, and historically low mortgage rates all drove this decline. With these housing savings, total spending on essential goods and services (including food/beverage at home, routine transportation, education, and medical) fell −4.1 ppts in Q4 2020 compared to Q2. Consumers shifted their spending, in large part, to discretionary products (+3.8 ppts)—including electronics and, especially, apparel. Political stability and climate change climbed on the list of US ...
2021-02-03 09:30:30 | housing economy
... ly afford for their first home. Forty-seven percent were surprised because their budget was larger than they thought, and 21% were surprised because it was less. "The dramatic decline of mortgage rates in 2020 was a pleasant surprise for many buyers," said realtor.com® Senior Economist George Ratiu. "For first-time buyers, especially, the drop in the 30-year mortgage rate from 3.65 percent in March 2020 to a record-low of 2.65 percent in January has provided unexpected leverage. Lower rates allowed many buyers to stretch and buy more expensive homes while keeping their monthly budget the s...
2021-02-03 09:30:30 | housing economy
... ar back as our data for this measure goes. "There will continue to be a lack of new listings in early 2021," said Redfin chief economist Daryl Fairweather. "But rock-bottom mortgage rates will have buyers eager to purchase the few listings that do hit the market. So I expect bidding wars, fast sales and double-digit price growth to continue. We are at a point in the pandemic where would-be sellers are expecting to be vaccinated in the next 6 months, so they may be waiting for that before selling. Once many more people are vaccinated for the coronavirus and more homeowners start to feel comf...
2021-02-02 13:00:01 | housing
... ice gains: for-sale inventory and mortgage rates,” said Dr. Frank Nothaft, chief economist at CoreLogic. “Prospective sellers with flexible timetables have opted to delay listing their home until the pandemic fades or they are vaccinated. We can expect more inventory to come available in the second half of the year, leading to slowing in price growth toward year-end.” Source: CoreLogic...
2021-01-28 | housing
... ficer at ATTOM Data Solutions. "Demand remained strong as people who could afford the space and relative safety of single-family homes did just that, aided by super-low mortgage rates and a strong stock market. But they went after a narrowing supply of housing stock, so prices soared and so did seller profits. While it's unclear how long that will last, in the annals of history, there will be few years recorded as better for sellers and more challenging for buyers." Among 132 metropolitan statistical areas with a population greater than 200,000 and sufficient sales data, those in western s...
2021-01-22 15:00:00 | mortgage interest rates
... eflect the total upfront cost of obtaining the mortgage. Visit the following link for the Definitions. Borrowers may still pay closing costs which are not included in the survey. Sourc: FreddieMac...
2021-01-22 13:00:00 | housing
... dinarily low 2.71%, hit a monthly high of 2.79% on Dec. 25 and ended the month at 2.75%. Even as prices rose late in 2020, record low mortgage rates have made monthly payments more affordable for buyers. Rates are currently on an upward trend, but are still far below long-term averages. Source: Zillow...
2021-01-22 | housing
... to enter the market." Yun predicts a continuation of the strong activity that's currently taking place in the housing market and in the overall economy. "Although mortgage rates are projected to increase, they will continue to hover near record lows at around 3%," Yun said. "Moreover, expect economic conditions to improve with additional stimulus forthcoming and vaccine distribution already underway." The median existing-home price for all housing types in December was $309,800, up 12.9% from December 2019 ($274,500), as prices increased in every region. December's national price incr...
2021-01-15 12:00:00 | housing mortgage rates
... market performed well in the second half of 2020,” said Sam Khater, Freddie Mac’s Chief Economist. “Low mortgage rates and the ability to work remotely continued to support the demand for housing, which is reflected in home sales reaching levels not seen since 2006.” Khater continued, “Entering 2021, we anticipate a modest rise in rates that will likely affect refinance originations, which are coming off a remarkable year. We therefore forecast total originations to decline slightly to $3.3 trillion but remain strong this year.” According to Freddie Mac’s Forecast: The averag...
2021-01-15 | economy
... cent of outstanding mortgages have at least a half-percentage point incentive to refinance. "COVID-19 remains the dominant force altering the path of the economy through the behaviors of people, businesses and policy makers," said Doug Duncan, Fannie Mae Senior Vice President and Chief Economist. "Therefore, the best policy for economic recovery is the broad distribution of an effective vaccine, which is underway. The sooner this can be successfully accomplished the sooner growth can accelerate, and our thought is that by mid-year vaccine distribution efforts will be well-established, allowin...
2021-01-10 08:24:41 | housing
... ape the housing market in the months to come. The recent migration of Americans to affordable places like Atlanta, Phoenix and suburbs across the country has contributed to what will be a major change in fiscal and economic policy starting on January 20. While more government spending could lead to moderate mortgage-rate increases, it will also likely include programs to make homeownership affordable to more people." Source: Redfin...
2021-01-08 | housing
... d income is significantly higher than it was 12 months ago decreased from 24% to 20%, while the percentage who say their household income is significantly lower remained unchanged at 18%. The percentage who say their household income is about the same increased from 57% to 61%. As a result, the net share of those who say their household income is significantly higher than it was 12 months ago decreased 4 percentage points month over month. SOURCE Fannie Mae ...
2020-12-31 | housing
... 17. The fallback came as continued spikes in median home prices of at least 10 percent over the past year in most of the country outpaced the impact of increasing wages and declining mortgage rates to historic lows. Those price increases occurred as the U.S. housing market kept booming despite economic troubles related to the ongoing Coronavirus pandemic. With prices rising faster than earnings, major home-ownership expenses consumed 29.6 percent of the average wage across the nation during the fourth quarter of 2020. That figure was up from 26.4 percent in the fourth quarter of 2019 and wa...
2020-12-31 | interest rates housing
... rding to the latest results of Freddie Mac's Primary Mortgage Market Survey® (PMMS®), showing that the 30-year fixed-rate mortgage (FRM) averaged 2.67 percent. “All eyes have been on mortgage rates this year, especially the 30-year fixed-rate, which has dropped more than one percentage point over the last twelve months, driving housing market activity in 2020,” said Sam Khater, Freddie Mac’s Chief Economist. “Heading into 2021 we expect rates to remain flat, potentially rising modestly off their record low, but solid purchase demand and tight inventory will continue to put pressur...
2020-12-29 | housing real estate
... st the new year will bring many more new listings, but they will likely be snatched up quickly. So if you are a homebuyer, now is a good time to get pre-approved for a mortgage, and come up with your wishlist, so you can act quickly when your dream home hits the market." To view the full report, including charts and methodology, please visit: https://www.redfin.com/news/housing-market-update-december-20/ Source: Redfin ...
2020-12-28 | interest rates mortgage
... year fixed-rate mortgage (FRM) averaged 2.66 percent, the lowest rate in the survey’s history which dates back to 1971. “The housing market is poised to finish the year strong as low mortgage rates continue to fuel homebuyer demand and refinance activity,” said Sam Khater, Freddie Mac’s Chief Economist. “Moving into 2021, we expect rates to hold steady but the key driver in the near term will be the trajectory of the COVID-19 pandemic and the execution of the vaccine.” 30-year fixed-rate mortgage averaged 2.66 percent with an average 0.7 point for the week ending December...
2020-12-28 | housing
... lightly higher mortgage rates to reverse that trend in 2021, so buyers contemplating a move may consider doing so sooner rather than later. Given the expected volume of sales, hopes for an economic recovery as the COVID-19 vaccine rolls out, and the expectations for demand to continue to outpace supply, Zillow forecasts annual home value growth to reach 10.3% in November 2021 -- the highest since 2006. Mortgage rates, which hit record lows in 2020, are expected to rise. Rates are likely to remain low by historical standards and not rise enough to meaningfully limit demand, but even a small...
2020-12-21 | credit cards mortgages borrowing
... tes for mortgage refinances continued to surge through 2020, with primarily high credit score borrowers taking advantage of lower mortgage rates. Looking ahead, households generally lowered their expectations during 2020 regarding applying and receiving credit over the coming year. The average probability of being able to come up with $2,000 for an unexpected need also reached a new series low in October 2020. More specific findings from the Survey over the past year include: Experiences Reported application rates for any kind of credit over the past 12 months dropped 11 percentage ...
2020-12-20 | housing mortgages
... sale and fierce bidding wars is that once you do land a home, today's sub-3% mortgage rates are largely cancelling out the high prices." April was the second-best month of the year for homebuyers, with a median monthly mortgage payment of $1,112, just $18 more than November. The relatively low median payment in April was due largely to a slump in the housing market caused by buyers' uncertainty about purchasing a home at the onset of a pandemic. Prices rose 4.9% year over year to $304,000 in April, a slowdown from 7% growth the month before. The average mortgage rate was 3.31%, a dip from 3...
News and insights about consumer and demographic financial trends
Economic Uncertainty and Inflation Impact Retirement Prospects for Americans
AARP Survey Reveals Alarming Retirement Savings Trends
Hispanic Consumers More Optimistic About Finances
Homeowners Facing Increasing Insurance Rates
U.S. Foreclosures Increase In First Quarter
Consumers Perceive Less Buying Power Despite Lower Inflation
Consumer Price Index - March 2024
Americans Fear Running Out of Money More Than Death, New Study Finds
Consumers and Small Businesses Still Grapple with Persistent Check Fraud
Financial Education Gap Leaves Middle-Income Americans Seeking More