Mortgage Rates in 2016: Gradually, Then Suddenly
At the start of 2016, expectations were high for mortgage rates. Following the Federal Reserve Board’s December 2015 rate hike, the first in a decade, financial markets expected mortgage rates to steadily inch higher with a series of three to four more Fed rate hikes over the year. Instead, mortgage rates followed the famous path to bankruptcy described by Ernest Hemingway: They moved gradually, then suddenly.
Will More Oil Prove a Boon or Burden to West Texas?
Last month, geologists announced the discovery of an oil field in West Texas that is likely the largest ever found in the United States – typically the kind of announcement that could be expected to reap big economic dividends for local communities, including a big boost to home values. But in today’s economic and geopolitical climate, the presence of the oil itself will likely matter less to the local economy than global markets’ reaction to it.
U.S. Conforming Loan Limits Upped for First Time Since 2006
A broader pool of U.S. mortgage borrowers will be able to access the more flexible terms of government-backed loans next year after the Federal Housing Finance Agency (FHFA) upped the national conforming loan limits for the first time in a decade, effective in 2017.
October New Home Sales Report: Not Much to Be Thankful for
October new home sales fell 1.9 percent from September, to 563,000 units at a seasonally adjusted annual rate (SAAR), according to the U.S. Census Bureau, another month of anemic sales of new construction in the face of chronic inventory shortages and robust home buyer demand.
October Existing Home Sales Key Takeaways: When Do Surprises Stop Being Surprising?
October existing home sales defied gravity for the second consecutive month, beating expectations for flat to negative growth and instead rising 2 percent from September to 5.6 million units at a seasonally adjusted annual rate (SAAR) according to the National Association of Realtors.
California’s Dry Spell Leads to Flood of Drought-Related Listing Terms
The past five years have been the driest in California’s history, leading to a statewide water emergency and the imposition of water-use reduction targets. Homeowners have responded both by cutting their per-capita water use, and by changing how they market their homes.
October Home Sales Forecast: Sooner or Later, Gravity Wins
Home sales have been surprisingly robust in 2016, despite steadily contracting for-sale inventory. Existing home sales have grown on average by about 1.1 percent each month in 2016, even as inventory has fallen by about 1.7 percent each month over the same time. Higher velocity – homes spending less time on the market and buyers spending more – has allowed the market to seemingly defy gravity. But sooner or later, gravity wins.
It’s True: The Country’s Most Expensive Housing Markets Are Creating the Most Jobs
However you look at it, the nation’s most expensive housing markets are home to a growing share of the nation’s jobs.
How Affordable is Housing in Your Congressional District?
In looking at housing affordability across the nation’s congressional districts, we found home values and rents tend to be higher along the coasts and in denser, urban communities, regardless which party represents a given community in Congress.
Q3 2016 Homeownership Rate: Signs of a Turning Tide?
An encouraging quarterly uptick in the homeownership rate in Q3, and a close examination of its core driving factors, suggests the decade-long streak of annual homeownership declines may be on the cusp of reversing.
