Loan applications to buy spring ahead 5 percent
Home buyers are returning to the mortgage market, undeterred by rising mortgage rates. Mortgage applications to buy a home, viewed as a gauge of future homebuying activity, climbed 4 percent last week on a seasonally adjusted basis, according to the Mortgage Bankers Association. Purchase applications are now nearly 5 percent higher than a year ago.
The average 30-year fixed-rate mortgage was 4.23 percent, up from 4.2 percent the week prior.
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NAR upgrades housing forecast for remainder of year
The housing market has been off to a roar this spring. In fact, the market is performing so strongly that the National Association of REALTORS has upgraded its forecast for the year.
At the start of the year, home sales were expected to match last year’s pace due to higher mortgage rates and diminishing affordability. But the market is hardly slowing down, with NAR Chief Economist Lawrence Yun predicting existing-home sales to rise by 3.5 percent, and home prices to likely increase by 5 percent this year.
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New households favoring homeownership
For the first time in a decade, more new households chose to buy a home rather than rent one in the first quarter of 2017, according to Census Bureau data. About 854,000 new households purchased a home – more than double the 365,000 new households who chose to rent. New homeowners have not outpaced new renters since the third quarter of 2006.
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Lower mortgage rates boost loan demand
Total mortgage activity, which includes applications for refinancings and home purchases, rose 2.7 percent on a seasonally adjusted basis as homeowners rushed to take advantage of lower mortgage rates, according to the Mortgage Bankers Association.
The average 30-year fixed-rate mortgage was at 4.2 percent last week, decreasing from 4.22 percent the week prior.
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Urgency increases for first-time buyers
New buyers are gradually increasing their stake in the housing market. First-timers comprised 32 percent of existing-home sales in March, up from 30 percent a year ago and 29 percent in 2014, according to last month’s REALTORS Confidence Index.
The looming threat of interest rate increases may be prompting more buyers to enter the market this year. Sustained job and income growth is also playing a role.
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Buyers rushing toward new construction in Northeast
The Northeast saw the strongest uptick in new-home sales last month, rising 25.8 percent month over month, according to the U.S. Commerce Department. Nationally, sales of newly-built single-family homes increased for the third consecutive month, posting a strong showing to the spring selling season. Single-family new-home sales rose 5.8 percent in March to a seasonally adjusted annual rate of 621,000 units.
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Closing timelines get even shorter
The average time to close on all home loan types dropped to 43 days in March, the quickest pace since February 2015, according to Ellie Mae’s Origination Insight Report. A year ago, the average closing time was 46 days. Broken out, loans to purchase a home took 43 days to close, and refinance loans took 43 days in March, down from 45 and 47 days, respectively, in February.
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Empire State housing market posts record first quarter home sales total
Albany, NY – April 21, 2017 – The New York State housing market’s growth trend continued through the 2017 first quarter with sales setting the high-water mark for the quarter at 25,366, according to the housing market report released today by the New York State Association of REALTORS. The first quarter statewide median sales price of $245,000 represents an increase of 6.5 percent from the 2016 first quarter.
“An overall healthy economy and the specter of mortgage rate increases combined to keep buyer activity at a record-setting pace throughout the 2017 first quarter,” said Duncan R. MacKenzie, CEO of the New York State Association of REALTORS. “The number of closed sales may well have been pushed higher if buyers had not been constrained by the ongoing decline in the number of homes available for purchase.”
“The additional influx of buyers during the spring and summer months creates a great opportunity for homeowners who are considering listing their homes,” said MacKenzie. “Selling prices continue to grow and buyers are eagerly watching for the newest listings as they compete to find their dream home.”
There were 25,366 closed sales in the 2017 first quarter, up 2.7 percent from the 2016 first quarter total of 24,704. March 2017 closed sales increased 2.9 percent compared to a year ago to reach 8,889.
The 2017 first quarter statewide median sales price was $245,000, an increase of 6.5 percent compared to the first quarter 2016 median of $230,000. The March 2017 statewide median sales price of $249,000 represents an increase of 9.5 percent compared to the March 2016 median of $227,500.
Pending sales increased 5.1 percent to reach 30,596 in the 2017 first quarter compared to the 2016 first quarter total of 29,121. March 2017 pending sales (12,610) were up 4 percent compared to March 2016 (12,129).
The months supply of inventory dropped 23.6 percent at the end of the first quarter to 5.5 months supply. It was at 7.2 months at the end of the 2016 first quarter. A 6 month to 6.5 month supply is considered to be a balanced market. Inventory stood at 61,857, a decrease of 19.6 percent compared to the 2016 first quarter.
Additional data is available at http://www.nysar.com/industry-resources/market-data
Editor’s Note: All data is compiled from multiple listing services in the state of New York and the data include townhomes, condominiums and existing single-family homes.
The New York State Association of REALTORS is a not-for-profit trade organization representing more than 53,000 of New York State’s real estate professionals. The term REALTOR is a registered trademark, which identifies real estate professionals who subscribe to a strict code of ethics as members of the National Association of REALTORS. These REALTORS are also members of the New York State Association of REALTORS as well as their local board or association of REALTORS.
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Freddie Mac: Mortgage rates fall to 2017 low
Last week’s Freddie Mac Primary Mortgage Market Survey showed the 30-year mortgage rate dropping for the fourth consecutive week and hitting a new low for 2017.
The 30-year fixed-rate mortgage (FRM) averaged 4.08 percent with an average 0.5 point for the week ending April 13, 2017, down from the previous week when it averaged 4.10 percent, according to the report. A year ago, the 30-year FRM averaged 3.58 percent.
The 15-year FRM averaged 3.34 percent with an average 0.5 point, down from the previous week’s average of 3.36 percent. A year ago, the 15-year FRM averaged 2.86 percent.
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NAR: Vacation home sales drop in 2016, investment sales rise
Last year’s strongest pace of home sales in a decade included a sizeable drop in activity from vacation buyers and a jump from individual investors, according to the National Association of REALTORS’ 2017 Investment and Vacation Home Buyers Survey. The survey additionally found that vacation and investment buyers in 2016 were more likely to take out a mortgage and use their property as a short-term rental.
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Majority of REALTORS say clients interested in sustainability
Growing consumer interest and demand for greener, more sustainable properties is driving a dialogue between REALTORS and homebuyers and sellers. More than half of REALTORS find that consumers have interest in real estate sustainability issues and practices, according to the National Association of REALTORS’ recent REALTORS and Sustainability report.
The home features that REALTORS said clients consider as very or somewhat important include a home’s efficient use of lighting (50 percent), a smart/connected home (40 percent), green community features such as bike lanes and green spaces (37 percent), landscaping for water conservation (32 percent), and renewable energy systems such as solar and geothermal (23 percent).
When it comes to the sustainable neighborhood features for which clients are looking, 60 percent of REALTORS listed parks and outdoor recreation, 37 percent listed access to local food and nine percent listed recycling.
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SRI: Buying plans for homes up more than 10 percent in March
Buying plans for homes stood at 10.1 percent in March, up from 8.8 percent since the previous measurement in November 2016, according to Siena Research Institute’s Consumer Sentiment Index. Overall, the index was at 94.1, up 6 points from November.
Dr. Doug Lonnstrom, professor of statistics and finance at Siena College and SCRI founding director, said home buying plans remain strong, with one in 10 New Yorkers planning to buy a house in the next six months.
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