60% of Americans Agree Now is a Good Time to Buy a Home
Fannie Mae’s Home Purchase Sentiment Index tracks consumer’s housing-related attitudes, intentions, and perceptions. Although this metric is down 15 points year-over-year, June’s gain marked the second rise in the HPSI in a row. According to this report, over 61% of Americans believe it’s a good time to buy a home, increasing by 9% since May’s polling. The share of people currently renting who believe it’s a good time to buy a home has reached a five year high, signaling favorable conditions for first-time home buyers. Low mortgage interest rates and high consumer confidence make now a great time to consider buying a...Number of Loans in Forbearance Drop
According to the Mortgage Bankers Association’s Forbearance and Call Volume survey, the number of loans in forbearance fell from 8.55% to 8.48%. This represents over 100,000 less loans in forbearance this week than the week prior. The share of Fannie Mae and Freddie Mac loans in forbearance fell from 6.38% to 6.31%. Fewer homeowners being in forbearance further shows the improvement in the job market and in addition shows fundamental strength in the housing market as well. As the job market returns to normal, the number of loans in forbearance will continue to decrease and strengthen the housing market as a whole. The unemployment benefits and stimulus payments underlined in the CARES Act are likely contributors to people being able to afford their mortgage payments in these very uncertain...Home Prices Continue to Rise
Despite recent events affecting the real estate industry and the world as a whole, the prices of homes have continued to rise across the country. According to the Federal Housing Finance Agency, the home price index is up 5.5% from this time last year. On an annual basis prices have risen across all regions of the country. The pricing of the housing market regionally in the last month has been a slightly different story. When you examine the housing market region by region, two parts of the country experienced a slight dip in home prices from March to April of this year. The South Atlantic region, which includes Florida, experienced a 0.5% decrease from March to April. This slight drop is much different than the increases in price seen month to month across the rest of the country. The FHFA predicts a return to normal levels of demand in the housing market as the year ends, assuming that the original spring bump in sales is just being pushed back later in the year due to COVID. In a report from Zillow it was predicted that a downturn in home prices may come in the second half of the year, but only time will...Rent Appreciation Haulted
Apartment List, a rental listing platform, reported last week that the national rent index fell by 0.1% from May to June. Since March, that index has fallen a total of 0.3%. Year-to-year the rent index is up only 0.2% which is the lowest increase year-to-year in the last five years. The rent decrease in what would normally be peak season for rental activity is indicative of the financial hardships and shifting preferences in 2020. Low interest rates may be another determining factor in people choosing to purchase homes as opposed to rent, which in turn decreases rent demand and lowers the ability for landlords to increase...Signs Point to Big Rebound in Summer Real-Estate Market
The volume of mortgage applications reached an 11-year high last week marking a complete return to pre COVID-19 levels. Pending sales activity has continued to rise heading into the summer as well. The supply of homes available for sale is dropping recently, causing a constricted effect on sales activity as a whole, but should more properties become available demand will carry sales activity to much higher...Connect With Us
