Pending home sales kicked off the spring season with a strong start, but challenges for the homebuying market remain, new NAR data shows.Pending home sales increased in March, reaching their highest level of the year so far, while new-home sales also rose last month. But with mortgage rates now in the 7% range, which could scare home buyers moving forward.The National Association of REALTORS®’ Pending Home Sales Index—a
Real estate is increasingly a tale of two markets — a luxury sector that is booming, and the rest of the market that continues to struggle with higher rates and low inventory.Overall real estate sales fell 4% nationwide in the first quarter, according to Redfin. Yet, luxury real estate sales increased more than 2%, posting their best year-over-year gains in three years, according to Redfin.Real estate experts and brokers chalk up the di
More Americans than ever are priced out of the housing market and President Biden has outlined steps his administration is taking to increase development of affordable housing.In the 2024 Economic Report of the President, President Biden said housing shortages and unaffordability have risen dramatically over the past 60 years, primarily affecting low- and middle-income families. The President mostly blames the nation’s affordable housing s
Economists have been scratching their heads over how Americans can continue to prop up the economy with their spending despite high interest rates, persistent inflation, dwindling savings and rising debt.There may be a simple answer: Jobs.Payroll growth has been stunningly strong this year. Most people who land new jobs have been opening their wallets, with many making big lifestyle changes that include buying a new house or car, according
Home buyers are left pondering: Lock in now or wait and see?Mortgage rates surged this week, jolting home buyers who may have just started to grow accustomed to borrowing costs in the 6% range. The 30-year fixed-rate mortgage rose to a 7.1% average this week, its highest level since last December, Freddie Mac reports.“As rates trend higher, potential home buyers are deciding whether to buy before rates rise even more or hold off in hopes of dec
Higher-than-expected inflation data is expected to push borrowing costs up during the busy homebuying season.Mortgage rates are inching toward 7% after new data this week revealed a sensitive economy still coping with stubbornly high inflation. The 30-year fixed-rate mortgage now averages 6.88%, Freddie Mac reports.“If one were to shake a Magic 8 Ball, the answer to the question of ‘where are mortgage interest rates going to be in the next mo
The consumer price index accelerated at a faster-than-expected pace in March, pushing inflation higher and likely dashing hopes that the Federal Reserve will be able to cut interest rates anytime soon.The CPI, a broad measure of goods and services costs across the economy, rose 0.4% for the month, putting the 12-month inflation rate at 3.5%, or 0.3 percentage point higher than in February, the Labor De
Bond market investors who fund most mortgage loans are increasingly convinced the latest inflation numbers mean the Federal Reserve won't cut rates in June With would-be homebuyers already in retreat, mortgage rates soared to new 2024 highs Wednesday after yet another discouraging inflation report pushed the prospect of Federal Reserve interest rate cuts further into the future.Applications for purchase loans were down by a seasonally adjusted 5
U.S. prices moderated in February, with the cost of services outside housing and energy slowing significantly, keeping a June interest rate cut from the Federal Reserve on the table.The report from the Commerce Department on Friday also showed consumer spending rising by the most in just over a year last month, underscoring the economy's resilience. The United States continues to outperform its global peers despite higher borrowing costs, thanks
Mortgage rates moved down a bit this week, in line with the benchmark 10-year Treasury, as the markets continue to digest comments from Federal Reserve members.The 30-year fixed loan averaged 6.79% as of Thursday morning, down 8 basis points from the previous week's 6.87%, according to the Freddie Mac Primary Mortgage Market Survey. For the same period last year, the average was 6.32%.Meanwhile the 15-year FRM averaged 6.11%, down from
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