http://georgemichaelockovic.unmb.com/

George Ockovic UNMB Home Loan Inc., 3601 Hempstead Tpke, Ste 300, Levittown, NY (2026)

09/06/2024

Mortgage Refinance Demand Surges 94% as Rates Drop Again

Mortgage demand is increasingly focused on refinancing as interest rates declined for the fifth week in a row. Total mortgage application volume rose just 1.6% last week, with the average rate for 30-year fixed mortgages slightly decreasing to 6.43%. Although refinancing applications fell 0.3% for the week, they are up 94% from last year, driven by borrowers seeking to lower their monthly payments amid previously higher rates. The refinance share of applications reached its highest point since March 2022.

Applications for home purchase loans rose 3% for the week, though they remain 4% lower than a year ago due to high home prices. The slight increase in purchase applications was led by government loans, particularly FHA and VA loans, which cater to lower-income buyers. While the drop in interest rates hasn’t significantly boosted homebuying activity, the market is closely watching upcoming economic data to gauge further changes.

Pending Home Sales Fall 5.5% in July

Pending home sales dropped by 5.5% in July, marking a decline across all U.S. regions except for the Northeast, which saw a slight year-over-year increase. The National Association of Realtors (NAR) reported that the Pending Home Sales Index (PHSI), a key indicator based on contract signings, fell to 70.2, the lowest level since its inception in 2001. Year-over-year, pending transactions decreased by 8.5%, reflecting ongoing challenges in the housing market despite job growth and higher inventory.

Regionally, the Northeast experienced a 1.4% monthly decline but grew 2.4% from last year. The Midwest saw the most significant drop at 7.8%, with an 11.4% year-over-year decrease. The South fell 6.5%, and the West saw a 3.8% decline in July. NAR Chief Economist Lawrence Yun attributed the downturn to affordability issues and uncertainty surrounding the upcoming presidential election, though falling mortgage rates may encourage future buyers.

Existing-Home Sales Rose 1.3% in July, Ending Four-Month Decline

Existing-home sales rose 1.3% in July, breaking a four-month decline, according to the National Association of REALTORS®. Sales increased in three of four major U.S. regions, while the Midwest remained steady. Year-over-year, sales fell 2.5%, with declines in the Midwest and South but gains in the Northeast and West. The total annual rate of sales reached 3.95 million, down from 4.05 million in July 2023.

Housing inventory in July increased slightly by 0.8% from June and 19.8% year-over-year, with 1.33 million units available. The median home price also rose 4.2% from last year, reaching $422,600, with all regions seeing price increases. Despite modest gains in sales, affordability is improving due to lower interest rates.

Next week's potential market-moving reports are:

Monday, Sept. 9: Wholesale Inventories, Consumer Credit
Tuesday, Sept. 10: NFIB Optimism Index
Wednesday, Sept. 11: Consumer Price Index
Thursday, Sept. 12: Initial Jobless Claims, Producer Price Index, Monthly U.S. Federal Budget
Friday, Sept. 13: Import Price Index, Consumer Sentiment

As your mortgage and real estate professional, I am happy to assist you with any information you may need regarding mortgage or real estate trends. I welcome the opportunity to serve you in any way I possibly can.

08/09/2024

Housing Industry Awaits Fed's Next Rate Cut

The Federal Reserve held interest rates steady but hinted at possible cuts in the coming months, keeping the federal funds rate between 5.25% and 5.5%. While acknowledging that inflation has eased and unemployment has risen, the Fed signaled a more balanced risk to the economy, with some experts predicting rate cuts as early as September. Mortgage rates, already showing signs of decline, may drop further if the Fed reduces rates, potentially boosting refinancing activity and offering some relief to the housing market.

However, experts like Eric Orenstein of Fitch Ratings caution that the housing market's recovery may be slow even with potential rate cuts. High home prices and tight affordability continue to challenge the market, and while lower mortgage rates could help, the road to increased home buying and higher origination volumes remains uncertain. The next few months will be critical as the housing industry anticipates the Fed's actions and their impact on the market.

August Mortgage Rates May Keep Falling

Mortgage rates are expected to continue their downward trend in August as inflation eases. Since peaking in April, the average 30-year fixed-rate mortgage has steadily decreased, reaching 6.74% in July. This decline is linked to falling inflation, with the Fed's preferred inflation gauge dropping from 4.3% in June 2023 to 2.6% in June 2024. The Federal Reserve may consider cutting rates in September if inflation continues to move towards their 2% target, which could further lower mortgage rates.

However, if inflation unexpectedly rises, or if there are significant geopolitical or political events, mortgage rates could increase instead. Despite the overall trend of declining rates, they are expected to fall only slightly in August. Some homeowners with high-rate mortgages from last fall might consider refinancing, though the decision depends on various factors like the difference in rates, closing costs, and how long they plan to keep the home.

CoreLogic’s Price Index Declines: What It Means Next

Home price growth is slowing, with the CoreLogic Home Price Index showing a 4.7% year-over-year increase in June, marking the second consecutive month with growth under 5%. This follows six months of higher growth, and CoreLogic predicts further slowing, projecting only a 2.3% increase by June next year. The housing market has been impacted by high mortgage rates, which are reducing affordability and discouraging buyers, resulting in a modest 0.3% month-over-month price gain in June, much lower than pre-pandemic averages.

Geographically, the cooling trend is spreading, with nine states experiencing monthly price declines in June, up from just three in May. Although no state saw an annual price decrease, only one (South Dakota) recorded double-digit growth. Sun Belt cities like Miami, San Diego, and Las Vegas led in yearly price gains, while high mortgage rates continued to pressure home price appreciation nationwide. CoreLogic attributes the slowing growth to these elevated rates, as buyers anticipate a lower rate environment later in the year.

Next week's potential market-moving reports are:

Monday, Aug. 12: Monthly U.S. Federal Budget
Tuesday, Aug. 13: NIB Optimism Index, Producer Price Index
Wednesday, Aug. 14: Consumer Price Index
Thursday, Aug. 15: Initial Jobless Claims, Business Inventories, Import Price Index
Friday, Aug. 16: Housing Starts, Building Permits, Home Builder Confidence Index

As your mortgage and real estate professional, I am happy to assist you with any information you may need regarding mortgage or real estate trends. I welcome the opportunity to serve you in any way I possibly can.

08/02/2024

Are Homebuyers Seizing Dropping Housing Payments?

The typical homebuyer’s monthly housing payment dropped to $2,671 in the four weeks ending July 21, the lowest in four months and down $166 from April’s peak. This decrease is due to falling mortgage rates, now at 6.77%, and an increase in inventory, giving buyers more options. However, despite these favorable conditions, pending home sales are down 5.7% year over year, and buyer interest, as measured by Redfin’s Homebuyer Demand Index, is flat month over month and down 16% from last year.

High home prices and political and economic uncertainty are keeping buyers cautious. Some potential buyers are waiting until after the November presidential election to make a move, hoping for a more stable economy and housing market. This hesitation is reflected in lower Google searches for homes and reports from Redfin agents that clients are delaying purchases due to these uncertainties.

Case-Shiller Index Rises Again: Impact on Housing Market

The S&P CoreLogic Case-Shiller U.S. National Home Price Index recorded a 5.9% year-over-year gain in May, marking the 11th consecutive month of annual increases. Although this is a slight decrease from the previous month's 6.4% gain, the index still reached a new peak, surpassing the previous high set in April. The 10-City and 20-City Composite Indices, which track prices in major metro areas, also saw annual gains, albeit at a slower rate compared to the previous month. Brian D. Luke from S&P Global noted that the national index has appreciated 4.1% year-to-date, the fastest start in two years.

New York posted the highest annual gain among the 20 major cities, with a 9.4% increase, while Portland had the lowest growth at 1%. All 20 markets observed yearly gains for the past six months, a streak not seen since the COVID housing boom. CoreLogic's chief economist, Selma Hepp, expects further weakening in home price growth due to seasonal effects and high mortgage rates. She noted that potential Fed rate cuts and falling mortgage rates could lead to renewed interest from homebuyers, potentially heating up prices in some markets. Luke added that the longer rates remain high, the more home prices will continue to climb, making the waiting game costly for potential buyers.

Existing-Home Sales Down 5.4% in June; Median Price Hits Record $426,900

In June, existing home sales fell 5.4% from May, reaching a seasonally adjusted annual rate of 3.89 million, according to the National Association of REALTORS®. This decline was consistent across all four major U.S. regions. Despite the drop in sales, the median sales price hit a record high of $426,900, a 4.1% increase from the previous year. Inventory levels rose to 1.32 million units, up 23.4% from last year, providing a 4.1-month supply, the highest since May 2020.

The REALTORS® Confidence Index showed homes typically stayed on the market for 22 days in June. First-time buyers accounted for 29% of sales, while all-cash sales comprised 28%. Single-family home sales fell 5.1% from May, and condo/co-op sales dropped 7.5%. Regionally, the Midwest saw the largest monthly decline in sales at 8%, while the Northeast had the highest price increase at 9.7%. The 30-year fixed-rate mortgage averaged 6.77% in mid-July, slightly down from the previous week.

Next week's potential market-moving reports are:

Monday, Aug. 5: No Report
Tuesday, Aug. 6: U.S. Trade Deficit
Wednesday, Aug. 7: Consumer Credit
Thursday, Aug. 8: Initial Jobless Claims, Wholesale Inventories
Friday, Aug. 9: No Report

As your mortgage and real estate professional, I am happy to assist you with any information you may need regarding mortgage or real estate trends. I welcome the opportunity to serve you in any way I possibly can.

07/19/2024

Gen Zers Regret Buying Fixer-Uppers, New Report Finds

About 22% of Gen Zers see the lack of affordable starter homes as a barrier to homeownership, leading some to consider fixer-uppers. A fixer-upper is a house needing various maintenance work, typically offered at a lower price. According to a Clever Real Estate report, 57% of Gen Zers are willing to buy a fixer-upper. However, among the 40% who did purchase one, 27% regret their decision. This regret is often due to unexpected renovation costs and the reality of maintaining an older home.

The median cost of a fixer-upper is $283,000, about 29% lower than that of a move-in-ready home. Yet, buying such a home requires careful consideration of renovation expenses and functionality. Key areas to inspect include the roof, plumbing, electrical system, walls, stairs, and overall land condition. While some Gen Z buyers are willing to take on homes with significant disrepair, it's crucial to ensure the property is safe and livable. Despite potential savings, fixer-uppers' financial and logistical challenges can overwhelm first-time buyers.

Refinance Demand Hits 2-Year High as Rates Drop

Mortgage rates fell to their lowest level since March last week, spurring a notable increase in refinancing demand. Refinance applications surged 15% from the previous week, reaching their highest level since August 2022, and were 37% higher than the same week last year. However, this surge comes from a low base, with demand still over 70% lower than early 2020 levels before the pandemic. The average contract interest rate for 30-year fixed-rate mortgages dropped 6.87% from 7.00%.

In contrast, home purchase applications declined 3% for the week and were 14% lower than a year ago. The current market is challenging for buyers due to high prices and limited supply. Many potential buyers are waiting for rates to drop further as more homes gradually come onto the market and sellers start to reduce prices. Despite a strong retail sales report, mortgage rates have remained relatively stable this week.

Housing Market to Guide Fed Rate Cuts

Since fall 2022, the housing market has needed lower interest rates to address issues like affordability and reduced activity for companies tied to homebuilding. However, the Federal Reserve's focus was on controlling inflation rather than aiding the housing market. Recent economic data has shifted priorities, with investors expecting interest rate cuts starting in September to support the labor market. This means the Fed now views housing as a crucial sector to monitor for economic balance. The rising unemployment rate and business reluctance to hire indicate a need for lower interest rates to boost demand and spur hiring.

Lower borrowing costs would benefit the housing market significantly. Current home sales are 25% below normal, and many homeowners are sitting on untapped home equity. Increased transactions would provide work for real estate professionals and boost industries related to home improvements and furnishing. Mortgage rates of around 6.5% are seen as a potential trigger for increased housing activity. The extent of the Fed's rate cuts will depend on how effectively lower mortgage rates revive housing transactions and support the labor market. If 6.5% rates are insufficient, further easing might be necessary to stabilize the economy.

Next week's potential market-moving reports are:

Monday, July 22: No Report
Tuesday, July 23: Existing Home Sales
Wednesday, July 24: New Home Sales
Thursday, July 25: Initial Jobless Claims, GDP, Advanced Retail & Wholesale Inventories
Friday, July 26: Personal Income, Personal Spending, Core PCE, Consumer Sentiment

As your mortgage and real estate professional, I am happy to assist you with any information you may need regarding mortgage or real estate trends. I welcome the opportunity to serve you in any way I possibly can.

07/12/2024

Fannie's Consumer Sentiment Index Rebounds in June

Fannie Mae's Home Purchase Sentiment Index (HPSI) rose by 3.2 points in June, recovering from the previous month's dip and nearing its high for the year at 72.6. The increase reflects improved consumer confidence in the housing market, with notable rebounds in perceptions of buying and selling conditions. Nineteen percent of consumers now believe it's an excellent time to buy a home, up from 14% in May, while those thinking it's a wrong time to buy dropped from 86% to 81%. Similarly, those who think it's a good time to sell rose from 64% to 66%, and those saying it's a wrong time to sell decreased from 35% to 33%.

Despite these improvements, affordability remains a significant concern. More consumers expect home prices and mortgage rates to rise over the next year. While there is increased confidence in job security and household finances, the ongoing imbalance between supply and demand continues to dampen overall sentiment. Fannie Mae's deputy chief economist, Mark Palim, emphasized that significant progress on affordability, through lower rates or increased supply, is needed to see a substantial improvement in housing sentiment.

ATTOM: Home Affordability Worsens in Q2

In Q2 2024, ATTOM's U.S. Home Affordability Report revealed that median-priced homes and condos became less affordable in 99% of U.S. counties with sufficient data. Major expenses for owning a median-priced home, such as mortgage payments, insurance, and property taxes, now consume 35.1% of the average national wage—the highest since 2007. This marks a significant increase from both the previous quarter and the same period last year. The typical monthly homeownership cost was pegged at $2,114.

ATTOM's CEO, Rob Barber, highlighted the challenges faced by homebuyers due to rising home prices and relatively high mortgage rates, making this spring buying season particularly tough. Out of 589 counties analyzed, 582 were found to be less affordable compared to historical averages. This trend worsened from Q1 to the same time last year. The data also showed mixed results regarding wage growth versus home price growth, with home prices outpacing wages in about half of the counties analyzed.

Housing Market Sees More Price Cuts Amid Growing Inventory

The housing market has seen a slow pace for several months, with inventory up 40% compared to last year. Despite this, some markets have defied national trends with tighter inventory and consistent demand. Rising mortgage rates, which started increasing in June 2023 and reached 8% by October, have impacted sales. As we move into the latter half of 2024, there's hope that rates will stabilize, possibly encouraging buyers.

Inventory continues to rise, with 653,000 unsold single-family homes now available, up 1% for the week. New listings are also up 12% from last year, contributing to the growing inventory. However, pending home sales remain sluggish, with 8% fewer contracts than a year ago. Home prices have stabilized at around $455,000, with no significant annual appreciation. Price reductions are up, indicating weaker demand, but prices remain flat rather than falling. As mortgage rates remain high, the market's future depends on rate declines and inventory adjustments.

Next week's potential market-moving reports are:

Monday, July 15: Fed Chairman Powell Speaks
Tuesday, July 16: Homebuilder Confidence Index, Business Inventories
Wednesday, July 17: Housing Starts, Building Permits, Fed Beige Book
Thursday, July 18: Initial Jobless Claims, U.S. Leading Economic Indicators
Friday, July 19: New York Fed President Williams Speaks

As your mortgage and real estate professional, I am happy to assist you with any information you may need regarding mortgage or real estate trends. I welcome the opportunity to serve you in any way I possibly can.

06/07/2024

April Pending Home Sales Hit Pandemic Low

Signed sales contracts on existing homes dropped 7.7% in April compared to March, marking the slowest pace since April 2020, according to the National Association of Realtors. Pending sales, which indicate future closed sales, were also 7.4% lower than in April last year, despite expectations of stable sales. This decline reflects buyers' reactions to rising mortgage rates, which hit 7.5% by the end of April, compounded by high home prices and low inventory.

The drop in sales affected all regions, with the Midwest and West experiencing the most significant declines. Chief economist Lawrence Yun noted that higher rates dampened buying, even with increased inventory. However, the anticipated Federal Reserve rate cut later this year could improve conditions. In response to slow sales, the share of sellers cutting prices in May reached its highest level since 2022, and active inventory in April was 30% higher than a year ago, suggesting a potentially more active summer market if mortgage rates fall.

Freddie Mac: U.S. Needs 1.5 Million More Homes

According to Freddie Mac economists, the U.S. housing market is short by at least 760,000 for-sale units and another 760,000 for-rent units, making it 1.5 million units shy of being balanced. This shortage means the market needs an additional 1.5 million vacant homes to align with historical vacancy rates. Without this supply, housing market pressures will continue. However, the analysis used for this estimate likely underestimates the total shortage as it needs to account for latent housing demand and non-market vacant units.

Previously, Freddie Mac estimated a 3.8 million home shortage using a different methodology. This latest analysis focuses solely on immediate for-sale and for-rent units, excluding broader demand factors. Despite slight improvements in housing inventory, the substantial undersupply remains a significant obstacle for the market, as highlighted by Len Kiefer, deputy chief economist at Freddie Mac.

Buyers Are Beginning to Push Back on Home Prices

Sellers are struggling with high mortgage rates, limiting demand during the peak home-buying season. More owners are cutting asking prices to attract buyers as inventory remains on the market longer. With mortgage rates staying above 7%, buyers are reluctant to enter the market, and the hoped-for rate cuts by the Federal Reserve have yet to materialize, keeping borrowing costs high. This has led to a disappointing spring selling season, with median home prices still rising and the average rate on a 30-year mortgage hovering near 7%.

Geography is a key factor in understanding the current sales trends. Sun Belt markets, such as Florida and Texas, which experienced a boom during the pandemic, are now cooling as prices are pushing people out. On the other hand, western markets like Seattle and San Francisco, which had corrections in late 2022, are starting to recover. This is reflected in the significant decrease in contract signings in cities like Houston and Atlanta, while San Jose has seen an increase. Overall, the market remains challenging for both buyers and sellers, with active listings on the rise and price reductions becoming more common. The recovery of the housing market is slow, with high costs and limited supply continuing to pose challenges for potential buyers.

Next week's potential market-moving reports are:

Monday, June 10: No Report
Tuesday, June 11: NFIB Optimism Index
Wednesday, June 12: Consumer Price Index, Monthly U.S. Federal Budget
Thursday, June 13: Initial Jobless Claim, Producer Price Index
Friday, June 14: Import Price Index, Consumer Sentiment

As your mortgage and real estate professional, I am happy to assist you with any information you may need regarding mortgage or real estate trends. I welcome the opportunity to serve you in any way I possibly can.

05/31/2024

Weekly Mortgage Rates Drop, Existing Home Sales Sag

Mortgage rates fell for the third consecutive week, right at the start of the homebuying season, with the average rate on a 30-year fixed-rate mortgage dropping to 6.87%. Despite this decline, rates are still high for many buyers, leading to a slump in home sales. In April, existing home sales fell 1.9% from March and the previous year, totaling an annual pace of 4.14 million dwellings. High mortgage rates, elevated prices, and low inventory have deterred buyers, contributing to the slowdown.

As the prime homebuying season from May to August begins, the outlook remains uncertain. Sellers are returning to the market, but buyers are cautious due to the earlier rise in mortgage rates. Even with recent rate declines, mortgage rates remain slightly higher than in March and early April, causing hesitation among potential buyers. Financial markets anticipate that the Federal Reserve may cut short-term interest rates this fall, which could lower mortgage rates and potentially revive buyer interest.

March Case-Shiller Index Confirms Stubborn Home Prices

In March, the CoreLogic S&P Case-Shiller Index showed a 6.5% year-over-year home price gain, consistent with February's growth. This marked the ninth consecutive month of annual growth, despite a leveling off in the growth curve. Notably, the non-seasonally adjusted month-over-month index saw a significant seasonal increase, similar to last spring's robust rise. Selma Hepp, chief economist at CoreLogic, noted that home prices continue to rise beyond pre-pandemic levels, up 1.3% month-over-month compared to the pre-pandemic average of 0.8%. Despite high borrowing costs, this price resilience has led to affordability challenges and slow sales activity. While some homeowners have sold properties due to increased costs like insurance and property taxes, price stickiness has limited inventory improvements, leaving many buyers waiting for potential rate drops later in the year.

Hepp highlighted that non-mortgage costs have influenced regional price growth, with weaker price growth in areas like Tampa due to affordability issues. In contrast, strong labor markets in cities like Seattle, Boston, and New York are driving demand and price pressure. The latest HPI data indicated the weakest home price growth in New Orleans, Austin, San Antonio, Cape Coral, and North Port, Florida, areas facing increased supply or rising costs and some at higher risk for severe weather events. The 10-city and 20-city composite indices also saw their ninth straight month of year-over-year increases, with 8.2% and 7.4% growth, respectively, reflecting stronger appreciation in major employment centers and cooling prices in cities that experienced high migration during the pandemic.

Mortgage Applications Fall in Latest MBA Survey

Mortgage applications dropped 5.7% from the previous week, according to the Mortgage Bankers Association's survey for the week ending May 24, 2024. The Market Composite Index, measuring mortgage loan application volume, fell 5.7% on a seasonally adjusted basis and 6.3% on an unadjusted basis. The Refinance Index decreased by 14% from the previous week, although it was 12% higher than last year. The seasonally adjusted Purchase Index saw a 1% decline from the prior week, while the unadjusted Purchase Index dropped by 3% and was 10% lower than last year.

Mortgage rates increased for the first time in four weeks, with the 30-year fixed rate rising to 7.05%, contributing to the decline in applications. Both purchase and refinance applications fell, pushing overall activity to its lowest level since early March. Borrowers remain sensitive to rate changes, affecting the refinance market and keeping purchase applications below last year's levels. However, it's not just the rates that are posing a challenge. Limited existing home inventory continues to be a major hurdle for buyers, further impacting the market. The average interest rates for various mortgage types, including jumbo loans, FHA-backed loans, and 15-year fixed-rate mortgages, all saw increases during this period.

Next week's potential market-moving reports are:

Monday, June 3: Construction Spending, ISM Manufacturing
Tuesday, June 4: Factory Orders, Job Openings
Wednesday, June 5: ADP Employment, U.S. Productivity, U.S. Trade Deficit
Thursday, June 6: Initial Jobless Claim
Friday, June 7: Consumer Credit, U.S. Employment Report, U.S. Hourly Wages

As your mortgage and real estate professional, I am happy to assist you with any information you may need regarding mortgage or real estate trends. I welcome the opportunity to serve you in any way I possibly can.

05/24/2024

Happy Memorial Day Weekend!

Home Sales Dip In April Despite Increased Supply

In April, sales of previously owned homes declined unexpectedly by 1.9% compared to March, totaling 4.14 million units, contrary to forecasts for a slight increase. These figures also marked a 1.9% decrease from April 2023. The drop in sales can be attributed to the impact of rising mortgage rates, which surged at the beginning of February and remained high throughout April, reaching unprecedented levels compared to pre-pandemic rates.

Despite a 9% increase in total housing inventory from the previous month and a 16% rise from the last year, housing supply remains tight, with just a 3.5-month supply at the current sales pace. Homes priced above $1 million saw a notable increase in sales activity, rising by 40% year over year, while sales of homes priced below $100,000 experienced a 7.1% decline. The median price of existing homes sold in April reached a record high of $407,600, up 5.7% from the previous year, reflecting strong demand and competitive bidding, with 27% of homes selling above the list price.

Weekly Refinance Demand Rises As Rates Hit 7-Week Low

Mortgage rates dipped for the third consecutive week, leading to a 1.9% increase in total mortgage application volume, primarily driven by a 7% surge in refinancing applications compared to the previous week. Despite the slight uptick, demand remains notably lower than historical averages, with rates still considerably lower than those offered today, maintaining the appeal of refinancing for many borrowers. While the decrease in rates spurred activity, especially in conventional and government refinance applications, home purchase mortgage applications dipped by 1% for the week and were 11% lower than last year, reflecting ongoing challenges such as low housing inventory and stiff competition in the housing market.

Joel Kan, MBA's vice president and deputy chief economist, noted that while the drop in rates encouraged some borrowers to act, refinancing levels still lag behind historical averages. VA refinances experienced a notable increase for the third consecutive week but remain below their historical norms. Looking ahead, there is little anticipation of significant movement in mortgage rates, with market watchers expecting minimal impact from the Federal Reserve's release of minutes on Wednesday. This trend underscores the current environment's stability, characterized by high transparency and frequent communications from Fed members, which may dampen the potential for dramatic shifts in rates based on Fed communications.

Over 90% of Metro Areas See Home Price Growth in Q1 2024

In the first quarter of 2024, over 90% of metro markets saw increases in home prices despite facing the highest mortgage rates in two decades, according to the National Association of Realtors®. This growth was largely attributed to insufficient housing supply meeting high demand. The national median single-family existing-home price rose by 5% to $389,400 compared to the previous year, with significant increases observed in different regions such as the South, Northeast, Midwest, and West.

Despite improving affordability conditions due to declining mortgage rates, first-time buyers still encountered limited inventory and high home prices in the first quarter. The median monthly mortgage payment for a typical starter home with a 10% down payment loan slightly decreased to $1,998, but it was still 9.2% higher than the previous year. While affordability improved slightly in some areas, families needed varying qualifying incomes to afford homes, ranging from less than $50,000 to over $100,000, depending on the market.

Next week's potential market-moving reports are:

Monday, May 27: No Report
Tuesday, May 28: S&P Case-Shiller Home Price Index (20 cities), Consumer Confidence
Wednesday, May 29: New York Fed President John Williams Speaks, Fed Beige Book
Thursday, May 30: Initial Jobless Claim, Pending Home Sales
Friday, May 31: Personal Income, Personal spending, PCE Index

As your mortgage and real estate professional, I am happy to assist you with any information you may need regarding mortgage or real estate trends. I welcome the opportunity to serve you in any way I possibly can.

George Ockovic UNMB Home Loan Inc.

09/06/2024

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