There are many reasons you might be thinking about buying a house, and a lot of them are based on your age. After all, different age groups have different needs and some are more likely to be ready to buy than others. For example, a recent survey found 52 percent of respondents said they’re thinking about buying a house. But when broken down into age groups, one generation lead the list of prospective buyers by a significant amount. In fact, among participants, millennials were by far the most likely to say they were looking to buy, with 61 percent responding that a home purchase was in their plans. Next up was Gen X, at 25 percent. From there, it drops off even further, with Gen Z at 12 percent and baby boomers last on the list at 2 percent. The explanation is simple: Millennials are at the age when they’re most likely to be starting a family, settling down, and looking to buy their first home. (source)

Americans are feeling better about the housing market, according to the most recent results of Fannie Mae’s monthly Home Purchase Sentiment Index. The index – which surveys Americans and asks them whether they think now is a good time to buy or sell a house, how confident they are in their finances and job, and where they think home prices and mortgage rates are headed – found respondents more optimistic than they’ve been in months. In fact, the index was at its highest level since May 2022, with an increasing number of respondents saying they feel now is a good time to buy a house. Doug Duncan, Fannie Mae’s senior vice president and chief economist, says Americans’ optimism is partly due to mortgage rates. “This month’s increase in the HPSI was the largest in over two years, primarily driven by consumers’ more optimistic mortgage rate expectations,” Duncan said. “An increased number of respondents indicated that they think mortgage rates will go down over the next year, a belief that could be due to a combination of factors, including an awareness of decelerating inflation, market suggestions that monetary conditions will ease in the not-too-distant future, and, of course, actual mortgage rate declines over the month.” (source)

You can tell a lot about how competitive a housing market is by looking at how many showings the typical listing receives. If listings are seeing a lot of traffic from buyers, it’s a pretty good indication that homes will sell quickly and bidding wars may be more likely. So what do things look like today? Well, according to one new analysis of showings per listing, the number of home showings increased in March and remains significantly higher than its pre-pandemic norm. In fact, showings are 43 percent higher than where they were in 2019. But while showings are higher than they were before the pandemic, they have slowed from the record-breaking heights of 2021 and 2022. That means markets will be slower than last spring, but still fairly competitive depending on where you’re looking. Showings in the Midwest and Northeast both saw double-digit increases in March, while the South was up 1.4 percent and the West saw a 2.7 percent decrease. (source)

If you’re selling your house, you’re also looking for a new place to live. In many cases, that means buying another home. Which is why a recent survey from the National Association of Realtors’ consumer website found finding a home to buy among the top concerns for today’s potential home sellers. It makes sense. Before you put your home up for sale, you have to weigh the available homes in your target area and the financial costs of making the move. In other words, you have to have a plan, especially in today’s market. Danielle Hale, the website’s chief economist, says some households are better positioned than others. “Many sellers are likely future buyers too, which may be why a majority of would-be sellers report feeling ‘locked-in’ to their current home because of a low mortgage rate, especially younger homeowners,” Hale said. “But older seller-buyers, who are likely to have a smaller mortgage balance and built up greater equity, are less likely to report feeling locked-in by a low interest rate and are more likely to report that they need to sell anyway.” (source)

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell last week from one week earlier. It was the first decline following three consecutive weeks of increases. Rates were down for 30-year fixed-rate loans with both conforming and jumbo balances, 15-year fixed-rate loans, and 5/1 ARMs. Loans backed by the Federal Housing Administration were up slightly from the week before. But despite more favorable rates, demand for mortgage applications still fell last week. Both refinance and purchase activity were down from the week before. Joel Kan, MBA’s vice president and deputy chief economist, says home buyers have been sensitive to market trends so far this year. “Home purchase activity has been very sensitive to rates and local market trends, including the low supply of existing-home inventory,” Kan said. “However, newly constructed homes account for a growing share of inventory, giving more options for prospective buyers.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

Mortgage points allow home buyers to pay an upfront fee in exchange for a lower mortgage rate. It’s an option for buyers looking to lower monthly mortgage costs and one more borrowers are opting to use. In fact, a recent analysis found that nearly 45 percent of conventional borrowers opted to buy points in 2022. That’s a jump from 29.6 in 2021 – and an even bigger increase over 2019 when just 27.3 percent of buyers purchased points. The reason behind the increase is fairly easy to see, as mortgage rates rose early in 2022 after hovering just above historic lows for several years. As mortgage rates increased, buyers began looking for ways to cut costs, including points. But they may not be the right strategy for every buyer. There are several things to consider, including how long you intend to stay in the house you’re buying. (source)

Buying a home is a big undertaking. So when you purchase a house, you typically plan to stay a while. But for how long? The average number of years a homeowner lives in their home before selling tends to vary over time. As recently as a few years ago, homeownership tenure was growing. It hovered around eight years for a long time, with it occasionally reading closer to 10. But these days, it’s headed in the opposite direction. In fact, according to ATTOM Data Solutions’ first-quarter 2023 U.S. Home Sales Report, homeowners who sold at the beginning of this year had owned their homes an average of 5.59 years. That’s down from 5.81 years at the end of last year and is the shortest tenure has been since the middle of 2011. Among individual metros, tenure dropped the most from last year in Atlantic City, which saw it fall 27 percent. Other cities where homeowners are on the move included Dayton, Tallahassee, Chattanooga, and St. Louis. Homeownership tenure was longest in the Northeast and West, with Honolulu leading the list with an average tenure of 8.21 years. (source)

If the pace of new home sales is any indicator, the housing market is about to pick up steam. New numbers from the U.S. Census Bureau and the Department of Housing and Urban Development show sales of new single-family homes rose 9.6 percent in March from one month earlier. The improvement pushed sales to their highest level in a year and far exceeded economists’ expectations. In fact, forecasts had new home sales falling from February’s pace. So why did sales spike? Well, there are a few reasons behind surging sales. One is mortgage rates, which were mostly lower in March. Another is the lack of existing homes for sale, which has caused more home buyers to look for newly built options. Combine that with still-high levels of buyer demand and the start of the spring home sales season, and the nearly 10 percent jump isn’t as surprising. (source)

The number of contracts to buy homes signed in March was 5.2 percent lower than the month before, according to new numbers from the National Association of Realtors. The data, from the NAR’s latest Pending Home Sales Index, shows pending sales – which measure contracts, not closings – were down for the first time since last November. Lawrence Yun, NAR’s chief economist, says buyer demand is still outpacing the inventory of available homes for sale. “The lack of housing inventory is a major constraint to rising sales,” Yun said. “Multiple offers are still occurring on about a third of all listings, and 28 percent of homes are selling above list price. Limited housing supply is simply not meeting demand nationally.” Yun expects things to brighten up in the months ahead, though. In fact, he says sales in the second half of the year should be considerably better, as job gains and lower mortgage rates are expected. (source)

According to the Mortgage Bankers Association’s Weekly Applications Survey, demand for mortgage applications moved higher last week from one week earlier. Gains were seen in both purchase and refinance activity, with overall demand up 3.7 percent week-over-week. The improvement came even as average mortgage rates rose. In fact, rates were up from the week before for 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. Joel Kan, MBA’s vice president and deputy chief economist, says rates moved higher because of Treasury yields. “Although incoming data points to a slowdown in the U.S. economy, markets continue to expect that the Fed will raise short-term rates at its next meeting, which have pushed Treasury yields somewhat higher,” Kan said. “As a result of the higher yields, mortgage rates increased for the second straight week to their highest level in over a month.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)