It’s no secret that home prices have been increasing lately, and especially in the nation’s most populous metropolitan areas. So what are home buyers doing to ensure they find – not only a house they love – but one that fits well into their budget? Well one strategy is to look beyond the priciest locations for a more affordable neighborhood in the surrounding area. In other words, home buyers are getting creative in their search for a great home at a great price. And while this usually means moving to the suburbs, in some cases potential buyers are moving even further out. “Buyers have traditionally sought refuge in the suburbs during times of high home prices,” Javier Vivas, director of economic research for the National Association of Realtors’ consumer website. “But with today’s record highs even the suburbs have gotten pricey, which has demand flooding outward as options disappear and prices move further out of reach in top job hubs.” In short, expanding your search radius might be a good way to find a home that’s within reach of both your budget and your job. More here.
Archive for March 2018
Steady Rates Fuel Home Purchase Demand
According to the Mortgage Bankers Association’s Weekly Applications Survey, average rates for 30-year fixed-rate mortgages with conforming loan balances remained unchanged last week – though rates were up for mortgages backed by the Federal Housing Administration and 15-year fixed-rate loans. Still, despite those increases, demand for loans to buy homes jumped 6 percent from one week earlier. Overall, mortgage application demand was up 2.7 percent from the previous week, as a drop in refinance activity pulled total demand downward. Joel Kan, an MBA economist, told CNBC refinance activity has slowed as the market has become more purchase focused. “The refinance share of all applications dropped to 41.8 percent, its lowest share since May 2017 as we move further into a purchase-dominated market,” Kan said. Generally, refinance activity is more sensitive to rate fluctuations. So as rates have moved up, refinance demand has declined. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.
