While the national homeownership rate sat at a disappointing 65 percent as of the end of 2013's second quarter, data collected and published by the National Association of Realtors (NAR) shows local market conditions have created a huge gap between state homeownership figures. In a blog for the association, Ken Fears, NAR's manager of regional economics and housing finance policy, notes that the dispersion ranges equally around the national average, with a gap of 22.4 percentage points between the top and bottom states.
Read More »Analyst: Affordability High Despite Rising Prices, Interest Rates
Even with home prices marching ever upward and mortgage rates bouncing back more than a full percentage point over last year, Capital Economics' Paul Diggle insists housing affordability is still as good as most other experts say it is--if not better. Even with first-time buyers earning less on average and paying more of their income for their starter homes, "metrics are still considerably more favourable than historical norms," he said, suggesting that concerns about a bubble are "premature."
Read More »Housing Affordability Dips to Four-Year Low in Second Quarter
While rising home prices across the nation may be good news as they imply recovering markets, the trend may dampen housing affordability.
Read More »Loan Officers Report Rising Demand for Non-Traditional Loans
According to the Federal Reserve's latest quarterly Senior Loan Officers Opinion Survey, a net 3.1 percent of lenders responding said demand for "non-traditional" residential loans increased from the survey released three months ago and a net 25 percent of respondents said demand for loans from sub-prime borrowers was higher than it was in May. At the same time, a net 6.3 percent of lenders said they had eased lending terms and standards for non-traditional mortgage loans.
Read More »FOMC Issues Mortgage Rate Warning, Sticks to Bond Purchases
Despite concerns about rising mortgage rates and low inflation, the Federal Open Market Committee (FOMC) voted Wednesday to continue its policy of near-zero interest rates and its $85-billion-per-month bond-buying program. In a subtle change of language, the committee "reaffirmed its view that a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the asset purchase program ends."
Read More »Commentary: Walking the Walk
In the last three months, confidence is up 16 points, or almost 40 percent. With giddy numbers like these, one would think builders would rush to break ground, but they're not.
Read More »Report: Widespread Affordability Not Likely to Reverse
As home prices continue climbing, CoreLogic assures us housing is still affordable and any concerns that rising prices will make it not so are unfounded.
Read More »Asking Prices Up 10.7% in June
The newest Price Monitor report from Trulia shows asking prices are heating up along with the weather. The company reported a 10.7 percent year-over-year increase and a 1.5 percent month-over-month improvement. Trulia also tracked the 100 largest metro areas and revealed 99 markets experienced an increase in asking prices over the last year. According to Trulia's chief economist Jed Kolko, the increase in home prices and mortgage rates has added a significant cost to homeownership.
Read More »Price Gains Strong in May, Growth Expected to Fade
Zillow expects prices will continue their upward trajectory in the short-run with a 4.1 percent increase over the following 12 months. However, as inventory increases and interest rates rise, "some demand may also ebb," said Stan Humphries, Zillow's chief economist. These predictions prompted the economist to advise, "Enjoy it while it lasts, because the housing market will undoubtedly look very different a few years down the road from how it appears now."
Read More »Report: Rising Rates No Threat to Recovery
While experts at Capital Economics don't believe the recent rise in mortgage rates will be enough to derail the recovery entirely, it does bring some difficulties with it.
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