A top pet peeve of homeowners: an old or outdated space in the owner’s suite bathroom. It has sparked a wave of renovations of the space, according to the 2020 U.S. Houzz Bathroom Trends Study, reflecting nearly 1,600 homeowners in the midst of or planning a remodeling project for an owner’s suite bathroom .

Nearly 90% of homeowners renovating an owner’s suite bathroom say they are changing the style as a way to bring it up to date, the study says. Insufficient storage, small showers, poor lighting, and limited counter space were the chief complaints about the spaces.

Continue… https://magazine.realtor/daily-news/2020/10/13/pet-peeves-drive-bathroom-renovations-houzz-says

Young Adults Are Speeding Up Their Home Purchases

October 7, 2020

Millennial home shoppers are quickening their homebuying timelines due to the COVID-19 pandemic, according to a new survey by realtor.com® and HarrisX of 2,000 buyers. Born between 1981 and 1997, millennials make up the largest generation in U.S. history, and they are now very eager to buy, many surveys show.

“If there is a silver lining to the current economic landscape, it’s that mortgage rates are hanging around record lows,” says Danielle Hale, chief economist at realtor.com®. “With little to no equity to leverage, millennial home buyers tend to take out larger loans. Historically low rates are making this more manageable, even with rising home prices.”

Shelter-in-place orders helped many millennials who were able to keep their jobs to save for a down payment, Hale said, which is often one of the largest hurdles when buying a home. Sixty-eight percent of survey respondents said shelter-in-place orders helped them save for their down payment. “The combination of low rates and the opportunity to save is enabling many millennials to move up their homebuying timeline,” Hale says.

Of the three-fourths of the 2,000 millennial respondents who have been working remotely since the pandemic, 63% said they plan on purchasing a home because of their ability to work remotely.

Young adults are embracing more virtual options in their house hunt. The pandemic has prompted them to do even more of their home search online, perusing listing photos, videos, researching properties, and evaluating neighborhoods. Thirty-one percent of respondents said they are being more selective about the homes they decide to tour.

About a quarter of millennials surveyed say they’re tired of their current home and want room to increase the size of their family. More than half of the millennials surveyed said they are looking for a home below the U.S. median home price of $350,000, while 37% are looking for a home priced at more than $350,000. About half were looking for a home in their current city. The majority of millennials surveyed expressed a greater desire to move to the suburbs.

Source: realtor.com®

Mortgage Rates Are Sinking Close to All-Time Lows

October 2, 2020

The 30-year fixed-rate mortgage neared its all-time low this week, averaging 2.88%. The record low was 2.86%, set in mid-September.

The low rates are turning into a boon for the housing market. The National Association of REALTORS® reported this week that housing contract signings in August jumped 24% year over year. Pending home sales are exceeding pre-pandemic levels, with all four major regions of the U.S. posting higher sales activity.

“As a result of low mortgage rates that have stayed under 3% since July, the housing market has seen a strong, upward trajectory during a very uncertain time,” says Sam Khater, Freddie Mac’s chief economist. “We’re seeing potential home buyers who now have more purchasing power and many current homeowners who have the option to refinance their loan for a better rate. However, several factors could disrupt this activity including high home prices, low inventory, and lender capacity.”

Home prices have climbed as housing inventories remain low. NAR recently reported that the median existing-home sales price was $310,600 in August, up 11.4% compared to a year ago ($278,800).

Freddie Mac reported the national averages with mortgage rates for the week ending Oct. 1:

• 30-year fixed-rate mortgages: averaged 2.88%, with an average 0.8 point, falling from last week’s 2.9% average. A year ago, 30-year rates averaged 3.65%.
• 15-year fixed-rate mortgages: averaged 2.36%, with an average 0.7 point, falling from last week’s 2.4% average. A year ago, 15-year rates averaged 3.14%.
• 5-year hybrid adjustable-rate mortgages: averaged 2.9%, with an average 0.2 point, unchanged from last week. A year ago, 5-year ARMs averaged 3.38%.

Freddie Mac reports average points with rates to reflect the total upfront cost of obtaining a mortgage.Source: Freddie Mac

The 30-year fixed-rate mortgage neared its all-time low this week, averaging 2.88%. The record low was 2.86%, set in mid-September.

The low rates are turning into a boon for the housing market. The National Association of REALTORS® reported this week that housing contract signings in August jumped 24% year over year. Pending home sales are exceeding pre-pandemic levels, with all four major regions of the U.S. posting higher sales activity.

“As a result of low mortgage rates that have stayed under 3% since July, the housing market has seen a strong, upward trajectory during a very uncertain time,” says Sam Khater, Freddie Mac’s chief economist. “We’re seeing potential home buyers who now have more purchasing power and many current homeowners who have the option to refinance their loan for a better rate. However, several factors could disrupt this activity including high home prices, low inventory, and lender capacity.”

https://magazine.realtor/daily-news/2020/10/02/mortgage-rates-are-sinking-close-to-all-time-lows

The frenzy in the housing market continued in August as buyer competition remained elevated. Properties that closed in August received an average of three offers, according to the August REALTORS® Confidence Index Survey. The report is based on a survey of about 4,000 REALTORS® about their latest real estate transactions.Further evidence that the housing market is going strong: Buyer foot traffic to listings remains high. The REALTORS® Buyer Traffic Index increased to 76—any value above 50 means stronger buyer traffic compared to a year ago. All states except North Dakota and Illinois reported higher buyer traffic. North Dakota’s housing market is still being affected by weak oil prices, the report says.

https://magazine.realtor/daily-news/2020/09/29/august-closings-properties-averaged-3-offers

Mortgage Rates Edge Up, Still Near Record Lows

September 25, 2020

Mortgage rates ticked up this week but still remain under a 3% average and near historical lows. Freddie Mac reported the 30-year fixed-rate mortgage averaged 2.90% this week. The all-time low for rates was set in mid-September, averaging 2.86%.

Home buyers are seeing how record-low rates can significantly decrease their borrowing costs. Compared to a year earlier, mortgage rates have dropped more than 70 basis points. That has brought monthly payments on a $400,000 loan down by nearly $160, according to the National Association of REALTORS®. “With these ultra-low mortgage rates, homebuying activity is expected to remain strong in the fall,” NAR reports.

Freddie Mac reports the following national averages for mortgage rates for the week ending Sept. 24:

• 30-year fixed-rate mortgages: Averaged 2.90%, with an average 0.8 point, rising from last week’s 2.87% average. A year ago, 30-year rates averaged 3.64%.
• 15-year fixed-rate mortgages: Averaged 2.40%, with an average 0.7 point, increasing from last week’s 2.35% average. A year ago, 15-year rates averaged 3.16%.
• 5-year hybrid adjustable-rate mortgages: Averaged 2.90%, with an average 0.2 point, falling from last week’s 2.96% average. A year ago, five-year ARMs averaged 3.38%.

Freddie Mac reports average points to reflect the total upfront cost of obtaining the mortgage.Source: Freddie Mac

Mortgage rates ticked up this week but still remain under a 3% average and near historical lows. Freddie Mac reported the 30-year fixed-rate mortgage averaged 2.90% this week. The all-time low for rates was set in mid-September, averaging 2.86%.
Home buyers are seeing how record-low rates can significantly decrease their borrowing costs. Compared to a year earlier, mortgage rates have dropped more than 70 basis points. That has brought monthly payments on a $400,000 loan down by nearly $160, according to the National Association of REALTORS®. “With these ultra-low mortgage rates, homebuying activity is expected to remain strong in the fall,” NAR reports.
https://magazine.realtor/daily-news/2020/09/25/mortgage-rates-edge-up-still-near-record-lows

Inventory Is Way Down From Last Year

September 24, 2020

Since the start of the COVID-19 pandemic in March, there have been nearly 400,000 fewer homes listed than the same time period in 2019. That has created a large deficit in the housing supply at a time when consumers are rushing to buy. Home prices are increasing at double the pace of last year, and homes are selling 12 days faster than in 2019, according to realtor.com®’s Weekly Housing Report.

“Sellers are more reluctant to list their home, given the uncertainty over the economy and the pandemic environment,” says Javier Vivas, director of economic research for realtor.com®. “Buyers, on the other hand—especially hungry first-timers—remain largely unfazed by the challenges and are motivated by low mortgage rates and the fear of missing out on the right home.”

Further, the majority of sellers will go on to buy another home. “So even as new listings hit the market, another buyer is also added,” Vivas says. “Adding to the inventory issues, thousands of previously vacant homes, such as second homes and rentals, have been reoccupied by their owners during the pandemic, effectively taking them off the market.”

For the week ending Sept. 19, the number of homes on the market was down 39% compared to a year prior. Median listing prices are roaring ahead at a record pace, increasing 11.1% year over year and more than double January 2020’s price appreciation rate, realtor.com® reports.

Source: realtor.com®

Record low mortgage rates are drawing a new wave of first-time home buyers to the market, Freddie Mac reports. “In August, activity among first-time home buyers rose 19% from July to the highest monthly level ever for Freddie Mac,” says the mortgage giant’s Chief Economist Sam Khater, adding that the rebound “has come at a critical time for the economy.”
Since the beginning of the year, mortgage rates have dropped more than 80 basis points, the National Association of REALTORS® reports. As such, the qualifying income to buy a starter home has dropped by 10% to nearly $43,000. Further, the monthly mortgage payment dropped by $100.
Continue…https://magazine.realtor/daily-news/2020/09/18/first-time-buyers-rush-to-lock-in-low-mortgage-rates

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