Mortgage Rates Rise Again – Based on Freddie Mac reports, for the third consecutive week, the interest rate for the 30-year fixed-rate mortgage increased. The rise came despite the Federal Reserve cutting its key benchmark rate for the third time this year. The Fed’s interest rate often influences mortgage rates. However, home buyers are still taking advantage of historically low mortgage rates, Freddie Mac reports. “Purchase activity continues to show strength, indicating obvious homebuyer demand,” says Sam Khater, Freddie Mac’s chief economist. “However, the lack of housing supply remains a major barrier to not just the housing market but the overall economic recovery.”
Source and link to the full article: Freddie Mac
8.3M First-Time Buyers Are Coming – Based on a new report from TransUnion, a surge in first-time home buyers is expected to hit the housing market over the next three years. About 8.3 million first-time buyers are projected to enter the mortgage market between 2020 and 2022. That marks a jump from the 7.6 million first-time buyers that were added in the previous three-year period between 2016 and 2018. However, plenty of housing market challenges persist for new buyers, including higher home prices, sluggish wage growth, and limited housing inventory. “But we may be starting to see daylight as slowing home price appreciation, low unemployment, increased wage growth, and low interest rates are helping affordability,” says Joe Mellman, senior vice president and mortgage business leader at TransUnion. “As a result, we are optimistic that first-time home buyers will contribute more to homeownership than at any time since the start of the Great Recession.”
Source and link to the full article: TransUnion
Buyer Competition to Grow Fiercer this Fall – According to realtor.com®’s October 2019 Housing Report, while low mortgage rates have made it cheaper to buy a home, finding the right property remains a challenge for home buyers. Would-be buyers are finding that a worsening inventory shortage is heating up competition in the housing market this fall. “Owning a home continues to be a priority for buyers as we head into the cooler months of the year,” says George Ratiu, realtor.com®’s senior economist. “Driven by the tailwind of sub-4% mortgage rates, the steady demand for housing is drying market inventory at an accelerating pace. With dwindling supply, prices maintain their upward pressure, increasing affordability challenges for first-time buyers.” Inventory nationwide fell by 6.9% year over year in October, realtor.com® reports. That equates to a loss of 98,000 listings compared to a year ago. Meanwhile, the median list price was $312,000, which is a 4.3 percent annual increase.
Source and link to the full article: Realtor.com®
Real Estate Is the Safest Investment, Consumers Say – Based on a new survey from Porch.com, consumers across age groups believe that purchasing a home is a solid investment. They’re upbeat even though many, particularly the youngest generation, believe they will face another housing crisis in their lifetime. About 76 percent of Generation Z members, between 18 to 21 years old, said they believe another housing crisis will happen within the next 10 years. Still, they remain cautiously optimistic and are saving for a down payment to buy their first home. Homeownership has long been linked with long-term wealth building. Porch.com surveyed nearly 1,400 consumers to ask them what they believe is the safest investment over the next 10 years. Owning a home was the overall leader.
Source and link to the full article: Porch.com