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Spooky Season is Here to Stay: Mortgage Affordability May Never Recover

Housing affordability has become the highest barrier for both buyers and sellers in today’s housing market. Throughout the pandemic, as prices were rising to never-before-seen heights and inventory plummeted to their lowest level in at least 40 years, low mortgage rates helped keep monthly payments affordable for most home buyers who could afford a down payment. But now that rates are soaring, that monthly payment is climbing out of reach for many.

Nicole Bachaud • Oct 20 2022

Mortgage Rates Rise on Persistent Inflation

Mortgage rates continued to increase last week as economic data showed more persistent inflation than expected.

Zillow Research • Oct 19 2022

September Housing Starts: Permits Stable Amid Soaring Interest Rates

Home builder sentiment plunged far below expectations in September, and housing starts fell again likely in response to interest rates picking up as builders anticipate demand falling even more

Nicole Bachaud • Oct 19 2022

Home Price Declines Moderated in September, Thanks To Temporary Mortgage Rate Relief (September 2022 Market Report)

Home values flatlined in September, ending a 2-month slide in which they fell 0.4% from a peak of $359,719 in June. The reprieve in home price declines may be thanks to a late-summer drop in mortgage rates, to an average of 5.22% in August on a 30-year fixed loan, which gave some buyers a reason to jump off the fence and buy then. Due to the elapsed time of multiple weeks between home purchase offers being made and the transactions closing, August’s more favorable lending conditions likely affected closed sale prices in September. Unfortunately for buyers, rates have risen dramatically since August, and reached a new 20-year high of 6.92% in mid-October, promising a further market cooldown ahead.

Jeff Tucker • Oct 19 2022

Zillow Home Value and Sales Forecast: October 2022

Zillow expects home value growth to continue to slow over the coming months. The national Zillow Home Value Index, which increased by 12.9% in the twelve months ending in September, is expected to grow by just 1.3% in the next twelve months, according to Zillow’s monthly home value forecast. This long-term outlook is in line with last month’s projections, which called for a 1.2% annual increase.

Zillow Research • Oct 19 2022

Mortgage Rates Rise to Twenty Year High

Mortgage rates pressed higher again this week, reaching 20-year highs as markets digested economic developments on both sides of the Atlantic.

Zillow Research • Oct 12 2022

Declining Demand Drives Price Pullback

A sharp retreat in demand for housing has helped drive the market to rebalance – and prices to fall – even as listing activity remains subdued

Orphe Divounguy • Oct 12 2022

Home Price Declines Moderated in September, Thanks to Temporary Mortgage Rate Relief (September 2022 Market Report Preview)

The typical U.S. home value was unchanged in September from August, likely reflecting a response to a late-summer drop in mortgage rates. Rates have since surged higher, which will likely dampen demand this fall and place more downward pressure on prices.

Jeff Tucker • Oct 06 2022

Mortgage Rates Volatile, Roiled by Geo-Political Events

Markets were extremely volatile last week, roiled by geo-political events, economic data and concerns over the health of Credit Suisse, a large bank.

Zillow Research • Oct 05 2022

Home Buyers Are Paying More Attention to Flood Risk, But Not Other Climate Events

Evidence now suggests that while climate risks may not have dented demand for housing, they may be taking more of an active role in buyers’ and lenders’ decision-making processes. 

Nicole Bachaud • Oct 04 2022