Buyers who purchase newly constructed homes are paying more not only because of intense competition in the market but also surging lumber prices. Record-breaking growth for the cost of lumber is pressing on builders’ budgets and prompting them to pass along price increases to buyers.The increase in lumber prices over the past year has added $35,872 to the price of an average new single-family home and $12,966 to the price of
Home buyers had another opportunity to snag ultra-low rates this week. The 30-year fixed-rate mortgage averaged 2.98%, Freddie Mac reports.“In light of the rising COVID-19 caseloads globally, U.S. Treasury yields stopped moving up a month ago and have remained within a narrow range as the market digests incoming economic data,” says Sam Khater, Freddie Mac’s chief economist. “The good news is that with rates under 3%, refinancing continue
The Federal Housing Finance Agency is giving low-income homeowners who missed out on the refinancing boom last year another chance. FHFA announced a program this week that will help low-income homeowners with government-backed mortgages to refinance into a lower mortgage rate to reduce their monthly mortgage payments.The program is geared to homeowners with single-family, Fannie Mae or Freddie Mac-backed mortgages. It could help qualifying borrow
Housing isn’t just the backbone of the American dream and the way most Americans build wealth. It also makes up nearly one-fifth of the entire U.S. economy.In his first 100 days in office, President Joe Biden has understandably made housing a key focus of his agenda, aiming to help renters struggling during the pandemic remain in their homes, bring homeownership within reach for millions more Americans, and fight discrimination. Perhaps the mos
Baby boomers are the wealthiest generation in the country, and they remain one of the most active in the housing market.LendingTree researchers recently analyzed mortgage purchase requests in 2020 on its platform across the 50 largest metros nationwide to identify where baby boomers are most likely to buy a home. Baby boomers, born between 1946 and 1964, are making up a larger share of markets like in Las Vegas, Tampa, Fla., and Phoenix, the stud
Student debt holders and minorities tend to purchase lower-priced homes, leading to lost wealth accumulation over time, according to a new working paper, “Mind the Gap: Home Price Differences By Race and Student Debt.” The research, which evaluates purchase price differences among home buyers from January 2014 to December 2017, was conducted by Jessica Lautz, vice president of demographics and behavioral insights at the National Association o
Buyers are increasingly turning to newly constructed homes for more options. Sales of new single-family homes surged 20.7% month over month in March to a 1.02 million seasonally adjusted annual rate, according to new data from the Department of Housing and Urban Development and the Census Bureau. New-home sales are at the highest annual pace since September 2006.“Our members are seeing strong buyer traffic as continued low mortgage rates are he
Million-dollar listings are a hot commodity. The number of homes sold for more than $1 million jumped by 81% in February compared to a year earlier. Meanwhile, the number of homes sold for under $100,000 dropped 26% compared to a year ago, according to data from the National Association of REALTORS®.Wealthy Americans are taking advantage of low mortgage rates, increased savings, and the growth in remote work in order to hunt for larger homes.The
The majority of home sale contracts are settling on time, but 26% faced delays in February while 6% were terminated completely, according to the latest REALTORS® Confidence Index. The following chart shows the most common issues sparking a delay to closing.The most common problems leading to a termination of the contract were related to appraisal issues (11%), obtaining financing (10%), and home inspection/environmental issues (9%).Nevertheless,
Some housing analysts have grown concerned about what will happen to the real estate market when temporary foreclosure moratoriums are lifted. Will it spark a wave of new foreclosures and lead to a crisis?Already, foreclosure activity is on the rise, even though the moratoriums are still in place and the government has relaxed requirements for mortgage forbearance due to the COVID-19 pandemic. Foreclosure filings in March rose 5% compared to the
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