Housing markets

Fannie Mae's latest forecast now predicts rates to be half a percentage point higher, and volume to be $1.5 trillion lower than previously expected in 2024.

U.S. residential starts increased 10.7% in February, the largest since May, to a 1.52 million annualized rate, government data released on Tuesday disclosed.

Even with the recent pickup, builder sentiment may remain below its longer-term average until borrowing costs fall more significantly.

Listings of existing homes rose 12% in February compared with a year earlier, and one in five of them are seeing price cuts, according to Zillow Group Inc. 

Some potential sellers are realizing that waiting for lower rates might not be worth it given the amount of equity they have, Zillow said.

While prices for concrete, steel and gypsum products all increased, softwood lumber declined, the National Association of Home Builders said.

Gen Z and millennials are more willing to take a higher mortgage rate in order to buy a home than Gen X and baby boomers, the ServiceLink report found.

A greater number of refinances, particularly in the government market, led overall volumes higher, the Mortgage Bankers Association said.

In an address on Tuesday, economic advisor Lael Brainard also discussed the controversy surrounding the president's proposed title waiver program.

Voters approved Proposition C, which offers a tax break for developers to convert up to 5 million square feet of commercial space by 2030.

Regardless of the effect housing prices have on ballot decisions, almost two-thirds of respondents indicate that current economic trends left them feeling negative about the economy, Redfin said.

Home sellers accuse the corporate giant, which owns HomeServices of America, of making billions of dollars in ill-gotten gains in 2023 alone.

Fannie Mae's home price sentiment index grew to 72.8 in February, up 2.1 points from the month prior.

Activity increased for both purchases and refinances, as well as for both conventional and government lending, the Mortgage Bankers Association said.

Prices in several cities came in more than 20% above what would be considered a sustainable level when compared to local economic factors, according to the rating agency's report.

While a Fannie Mae study confirms that the vast majority want to age in place, people 60 and older don't want to use their residence as a piggy bank.

Until Congress addresses the federal deficit, the tendency will be for higher long-term interest rates regardless of what the Fed does with the short end of the yield curve, writes the Chairman of Whalen Global Advisors.

The income needed to comfortably afford a home in the US has leapt 80% since 2020, far exceeding a 23% increase in median income over the same period, according to a post on Thursday by Zillow.

Nearly half of sellers and buyers in a recent LendingTree survey said they didn't know what commission percentage their agent received in their most recent transaction.

Loan volumes fell for the third straight week, with depressed demand for government lending driving activity downward, the Mortgage Bankers Association said.