Thursday, September 21, 2023 / by Richard Eimers
With a nod to the economy having “mixed signals,” Fannie Mae’s 3Q forecast calls for a “modest contraction” and mortgage rates “settling above 7%.”
WASHINGTON – The key question for economists: Is the U.S. headed toward a soft landing or a mild recession?
According to September 2023 commentary from the Fannie Mae Economic and Strategic Research (ESR) Group, it’s a modest contraction.
“Mixed signals from key economic data releases continue to muddle the near-term outlook and the answer to that question, but a modest contraction remains the most likely outcome as consumption continues to outpace incomes and previous monetary policy tightening works its way through the system,” the report says.
The housing market faces renewed headwinds with mortgage rates settling above 7%, according to the ESR Group. Still, the downside risk to total home sales is limited as more sales are being driven by life events rather than d ...
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Tuesday, September 12, 2023 / by Richard Eimers
Not long ago, home sellers were in their heyday, as historically-low mortgage rates triggered a real estate buying frenzy. However, the Federal Reserve shut down the party when it began raising interest rates last year.1
Now, it’s not as simple to sell a home. While pandemic-era homebuyers were racing the clock—trying to lock in a low mortgage rate and gain a foothold in the market—current buyers are more discerning. Higher prices and mortgage rates have pushed their limits of affordability, leading them to prioritize cost, condition, and overall value.2
The reality is, home inventory remains low, so most properties will still sell with some basic prep, the right price, and a good real estate agent. But owners who go the extra mile are more likely to sell faster and for a higher amount.
If you have plans to sell your home and want to net the most money possible, this list is for you. Here are our top seven strategies to attract the best offers and maximize yL ...
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Tuesday, September 12, 2023 / by Richard Eimers
Sellers stopped selling and some buyers stopped buying, but demand still outweighs supply. The result: Declining sales prices may have bottomed out in early summer.
NEW YORK – After falling on a year-over-year basis for five consecutive months, U.S. home prices increased in July. The recovery suggests that the residential real-estate downturn is turning out to be shorter and shallower than many housing economists expected after mortgage rates soared last year.
Analysts note that high interest rates have prompted homeowners to stay put rather than buy new homes and take on more expensive mortgages, resulting in an unusually low inventory of homes for sale.
The current market has a much lower overall volume of transactions, with sales of previously owned homes now down approximately 36% since January 2022 – but prices are generally holding firm outside of a few trouble spots as lower demand continues to outweigh a tighter supply.
The national median existing-home sale ...
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Monday, September 11, 2023 / by Richard Eimers
However, the 30-year fixed-rate mortgage remains near the 22-year high it hit three weeks ago. Last week, it was 7.18%.
LOS ANGELES (AP) – The average long-term U.S. mortgage rate fell again this week but remains near the 22-year high it hit three weeks ago, offering little relief for house hunters facing persistently high prices and a near-historic low number of homes for sale.
Mortgage buyer Freddie Mac said Thursday that the average rate on the benchmark 30-year home loan fell to 7.12% from 7.18% last week. A year ago, the rate averaged 5.89%.
The average rate on 15-year fixed-rate mortgages, popular with those refinancing their homes, fell to 6.52% from 6.55% last week. A year ago, it averaged 5.16%, Freddie Mac said.
High rates can add hundreds of dollars a month in costs for borrowers, limiting how much they can afford in a market already unaffordable to many Americans. They also discourage homeowners who locked in low rates two years a ...
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Monday, September 4, 2023 / by Richard Eimers
If you're following the news, you might be wondering how the housing market could be impacted by a recession. Understanding historical data and trends can provide valuable insights into what might happen in such situations.
A recession is a significant and prolonged economic decline, typically characterized by two consecutive quarters of negative gross domestic product (GDP) growth. It's important to note that recessions don't usually occur out of nowhere; they can often be predicted by tracking various economic indicators such as payrolls, industrial production, and retail sales, among others. The National Bureau of Economic Research plays a crucial role in identifying and defining recessions.
During a recession, the economy experiences several challenges. One of the most noticeable impacts is a rise in unemployment rates, leading to a decrease in people's disposable income. This reduction in income causes individuals to curtail their spending, which, in turn, affects businesses ...
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