The rate of inflation reached 8.5% in March, continuing at a 40-year high and showing few signs of relief for consumers. Higher gas prices, food, and housing costs fueled the consumer price index’s jump.“Aggressive inflation will force the Federal Reserve to raise interest rates multiple rounds this year and actively pursue quantitative tightening,” says Lawrence Yun, chief economist of the National Association of REALTORS®. “T
The lack of affordable homes for sale is the top challenge home buyers face in the current market, but it’s not the only one, according to the 2022 Obstacles to Home Buying, a new study released by the National Association of REALTORS® and Morning Consult.Finding homes that fit buyers’ criteria, competing with multiple offers, and saving for a down payment also were commonly cited challenges. Homebuying obstacles, however, can vary by r
The Austin, Texas, metro area in March became the latest market to join the half-million-dollar club, according to a new analysis by Movoto by OJO Labs, a real estate search site. In Austin, the median home sold price was at least $500,000, joining 10 other large metros at that level.Other markets with a median sale price of $500,000 or more include Boston ($560,000), Denver ($565,000), Los Angeles ($720,000), New York ($520,000), Portland,
With mortgage rates now nearing 5%, many aspiring home buyers may have reached the top of what they can afford, especially as 40-year-high inflation affects the threshold for them.As a result, the number of sellers dropping their asking price is growing at a faster clip than in the recent past. About 12% of homes for sale had a price drop during the four weeks ending April 3, according to Redfin. That marks a jump from 9% a year ago.“Price drop
Home buyers this spring are facing a double whammy of rising home prices and mortgage rates. The 30-year fixed-rate mortgage rose to 4.72% this week, from 3.13% when compared to a year ago, Freddie Mac reports.Over the last three months, mortgage rates have risen by 1.5 percentage points, the fastest three-month rise since May 1994. Also, during the first two months of 2022, home prices have climbed by more than 15% compared to a year ago, Nadia
The income required required to meet a common standard for home affordability are growing at the fastest pace in more than 15 years, according to ATTOM Data Solution’s first quarter 2022 U.S. Home Affordability Report. Housing affordability has fallen in nearly 80% of the markets tracked as median home prices continue to increase—and now mortgage rates are too.Home prices continue to rise faster than wages in most of the country. Researchers
Some unusual or uncommon home features are not only attracting buyers but also encouraging them to pay more for those features. In a study for Angi, formerly Angie’s List, researchers combed through sold listings to identify common or trending home features and determine whether a price premium could be attached to some amenities.In the kitchen, buyers may appreciate a pot filler faucet over the cooktop. Angi researchers said that feature alone
Mortgage rates may be moving higher but eager buyers continue to drive loan applications to purchase a home higher as well. Mortgage applications to purchase a home rose 1% last week, the Mortgage Bankers Association reported Wednesday. Home shoppers may be rushing to lock in rates ahead of any further increases.But higher mortgage rates are taking a toll on homeowners looking to refinance. Mortgage demand for refinance applications fell 15%
The nation’s housing crunch has raised the profile of accessory dwelling units—small homes sharing a plot of land with a larger single-family home. Also known as granny flats, in-law units, or backyard bungalows, ADUs tend to be under 1,200 square feet and can be a viable, lower-cost alternative for renters who are unable to afford larger pricier units.In her new book Bigger than Tiny, Smaller than Average, author Sheri Koones says that
Elevated inflation and the Federal Reserve’s monetary tightening policy drove the latest leap in mortgage rates this week. Since the beginning of this year, mortgage rates have jumped by 1.2%. The typical home buyer would need to spend $250 more every month to be able to purchase a home, Nadia Evangelou, senior economist and director of forecasting for the National Association of REALTORS®, writes on the association’s blog.The 30-year fixed-
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