Though steep mortgage rates have made homebuying considerably more expensive than a few years ago, shopping around for a mortgage and comparing offers from different lenders could still help borrowers save a significant amount of money.

To show just how much money those who shop around could save, we analyzed data from 34,000 users of LendingTree's online loan marketplace who received two or more offers from mortgage lenders in 2024. Using this data, we determined how much borrowers in each of the nation’s 50 states could save if they chose the lowest APR offered instead of the highest. Here's what we found. 

  • Borrowers across the nation’s 50 states could save an average of $76,410 over the lifetime of their loans by shopping around for a mortgage. That breaks down to an average savings of $212 a month and $2,547 a year.
  • Three states with expensive home prices, California, New Jersey and Hawaii, are where shopping around could save borrowers the most money. Respectively, borrowers in these states could save $131,190, $127,125 and $115,947 over the lifetime of their loans by shopping around.
  • Even in the state where potential savings are lowest, South Dakota, borrowers could still save more than $35,000 over their loan’s lifetime by shopping around for a mortgage.
  • Nationwide, the spread between the average highest and lowest APRs offered to borrowers who shopped around for a mortgage and received offers from two or more lenders is 92 basis points. This spread varies from as high as 146 basis points in Minnesota to as low as 58 in Alaska.

You can check out our full report here: https://www.lendingtree.com/home/mortgage/mortgage-shopping-study/

LendingTree's Senior Economist and report author, Jacob Channel, had this to say:


"Different lenders have different standards and criteria that they look at when deciding who to lend to. It’s for that reason that different lenders can offer such drastically different rates to the exact same people. And, by extension, it’s also why shopping around for a lender can help homebuyers save so much money."

Posted On Wednesday, 05 June 2024 07:05 Written by

Is it better to live a successful life or a significant one? The better question here is: Is it better to only work in the name of bettering your own situation or to leave the world a better place than how we found it?

As an entrepreneur and advisor of organizations both large and small around the globe, I can tell you that it is much more advantageous to pursue significance over success, as significance almost certainly always leads to success.

In my Anticipatory Leader System, I define significance as what we hope to achieve for others, using our business prowess for the betterment of society and humankind. By putting ourselves at the service of others, it adds meaning to what we do, and in the age of accelerated digital transformation, the possibilities are truly endless in what we can achieve.

Pre-Solve Tomorrow’s Problems Today

In the realm of prioritizing significance over success, using Hard Trend future certainties to pre-solve problems is more about finding ways to pre-solve others’ problems, not just your own, before they become major issues.

When you implement this Anticipatory competency with significance at the forefront of your mind, you lead a successful business while becoming a positive disruptor in your industry and in the world. More importantly, you use those positive disruptions to improve the lives of human beings across the map!

Pre-solving issues by transforming how we approach processes, create products, and offer business services is what gives organizations this competitive advantage. Change is easy. Anyone can create change by making something taller, thinner, or wider, but change does not always implement the significant impacts necessary in revolutionary transformation in the service of others.

In the digital age we are in today, where technological transformation is increasing exponentially, we will not solve the most pressing problems by simply changing something that already exists. We will need to look to the future to what could and very possibly will be based on Hard Trend future certainties and transform the tools at our disposal to create something completely new.

Current Technology Should Be Adapted and Evolved

As I teach in my Anticipatory Leader Membership, the competency of exponential thinking is vital in all aspects of business management and leadership. 

Every year in the Midwest, snowstorms and subzero temperatures are inevitable. While one may assume that snow will be cleared and after a day or two the cold will subside, it is not always that simple. When the snow falls and the temperature drops, some households lose power, leaving families in the dangerous cold for days.

Now, solving power outages is a lofty goal, but current technology can most definitely guide us in the right direction when looked at exponentially!

The power grid is likely far more complicated to the average individual than someone who works directly with it. It is a quite complex system, but no matter how complex a system is, there is always a better solution to the problems it faces.

Late last year, there had been progress in the concept of smart grids. Smart grids leverage the concept of edge computing and intelligent devices in an exponential way — a way that can remedy power outages and fix them faster. This implements software and hardware in homes and other properties that measure the supply and demand of electricity in real time, making for two-way communication between the user and the provider.

In lieu of this advancement, outages are reported faster, electricity is distributed appropriately, the power grid evolves quicker, and it even has a positive impact on the environment by making renewable energy better integrated into the system. As you can see from this example, technology exists to make widespread change for the betterment of society. In most cases, it just needs to be leveraged in an exponential way!

Be Anticipatory for the Prosperity of All

Being too busy managing today’s crisis as opposed to seeing tomorrow’s opportunity disables your ability to transform the world in the most significant ways. Obstacles are always heading our way as a human race, and your organization can easily identify the exponential opportunities in solving them by using an Anticipatory mindset.

Yes, we still need to be reactionary in some cases and use agility to handle some unforeseen challenges. But we want to be careful to not stay locked in crisis mode constantly with no foothold to move forward. For many organizations, humankind depends on your services and their evolution. Resting on your laurels not only sets your organization backward, but in turn, it may have a widely negative impact on several individuals who depend on you.

Understanding Hard Trend future certainties that will impact individuals globally is a crucial starting point. This approach allows you to innovate with significantly lower risk to your organization. Every day, I dedicate myself to encouraging as many people as possible to adopt an Anticipatory mindset and embrace these principles to meaningfully improve the world. I urge you to leverage disruptive technological advancements to your advantage and drive positive transformations today!

Posted On Tuesday, 04 June 2024 00:00 Written by

Choosing between lead generation through cold calling or LinkedIn is not a toss up. It depends on various factors, such as your industry sector, target audience and budget. In the real estate industry, both are powerful but the effectiveness can vary depending on the market segment. Residential real estate is very different than commercial, for example. Using AI on LinkedIn can significantly enhance your lead generation efforts.

LinkedIn Pros:

Targeted outreach: You can be precise when targeting your audience based on factors like their industry or role. This is beneficial for commercial and residential markets. AI tools can automate and personalize messages. It also ensures regular communication that is timely. Lead generation done through AI can identify the right prospects based on job title, industry and location.

Professional network: LinkedIn offers access to a vast network and companies. You can connect with other realtors, investors and commercial clientele. LinkedIn Sales Navigator, while not purely AI, offers advanced filters and recommendations to help find great leads.

Sharing of content: LinkedIn allows you to share valuable content and establish thought leadership. For example, success stories and market insights can both build credibility. When using AI on LinkedIn, AI can suggest relevant content topics based on trends in order to engage your audience.

LinkedIn Cons:

Indirect approach: LinkedIn provides a less immediate response and is not as direct as a simple phone call. Initial contact is less personal.

Algorithm: Success can be impacted by your activity level on the platform as well as the algorithm.

What is the best approach?

Start with LinkedIn and end with a phone call

For many realtors and brokers, a hybrid approach works best. Individuals can begin by reaching out to potential clients via LinkedIn. They can share regular content on the platform including success stories in order to keep people engaged. Following up will be key for maintaining new connections and building relationships. A phone call will be powerful for discussing specific needs and opportunities.

Reminder For Sales Calls:

Develop a clear script that doesn’t sound forced. Refer to great bullet points. Schedule calls daily. Block a few hours in your busy day to make them. Use a CRM system to track your efforts.  In real estate, leveraging both sales calls and LinkedIn can provide a powerful approach to lead generation.

Posted On Monday, 03 June 2024 10:46 Written by

So much of the mortgage industry is based upon simple rules like, it either works or it doesn’t, or you can either document it, or you can’t! We don’t make the rules, we just navigate each opportunity. The path to success is different, but always we strive for the same conclusion; a closed loan, satisfied referral partners, and clients that experienced an exceptional process. It doesn’t matter about the markets, the interest rates, or the type of loan programs that were involved, if you are aware of what the true mission is, history will repeat for you over and over and over again! Unfortunately, the same holds true when you don’t produce these outcomes and experiences, your poor results will also repeat! Those that don’t learn the lessons of history are condemned to endless failures, while those that do, will prosper knowing that it isn’t price that makes a career; it’s the PROCESS! Master your process and control your own success!

History also teaches us that our markets are framed by national rules, regulations, and pricing, but our individual environment shapes the when, where, and how business is transacted. Never is that more important than these 90 days from just before school closes, and a couple of weeks after school is back in session. That 90-day window can control as much as 70% of your annual production IF you have a plan and execute it well! The reason: those families trying to navigate selling, buying, and moving in a short window is about as stressful as it gets. If you can guide those families well, referrals, like history, will repeat!

Speaking of history, the bond market has been very unhappy the past couple of days and history tells us that it doesn’t take much to push it one way or the other. Especially given we have out regular initial jobless and continuing claims this morning, along with GDP numbers. Add in that tomorrow we have the PCE numbers, and we could easily see the good, the bad, and possibly the UGLY!

So please, be aware of the information and the impact on the markets both today and tomorrow. It may be completely benign, or we could easily see significant movement in one direction or the other. So be sure to check your resources for the information and be certain you are prepared for any outcome. It doesn’t hurt to be prepared for the worst, and then celebrate the best if that should be the case.

As always, questions or comments: This email address is being protected from spambots. You need JavaScript enabled to view it.

Posted On Monday, 03 June 2024 00:00 Written by

U.S. renters are less likely to move than they were a decade ago, as soaring housing costs have priced many out of homeownership

One in six (16.6%) U.S. renters stayed in their home for 10 years or more in 2022, up from 13.9% a decade earlier. That’s according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.

Redfin also analyzed renter tenure by other timeframes:

  • 5-9 years: One in six (16.4%) lived in their home for five to nine years in 2022, up from 14% a decade earlier.
  • 1-4 years: The lion’s share of renters stay put for one to four years. Just over two in five (41.8%) stayed in their home for one to four years in 2022, up from 39.9% a decade earlier.
  • 12 months or less: One-quarter (25.2%) of renters stayed in their home for 12 months or less before moving in 2022. That’s down from 32.2% in 2012.

“The uptick in tenure is beneficial for renters and their landlords,” said Redfin Senior Economist Sheharyar Bokhari. “While the fact that people are staying longer in their rentals may mean they can’t afford to buy a home in today’s market, staying put also means they’re saving some money that could eventually go toward a down payment if they do have a goal of homeownership. Staying in the same home means they’re likely to face smaller rent increases, and they’re saving money on moving costs and application fees. Landlords typically prefer long-term tenants because they don’t have to spend money on cleaning and marketing vacant units.”

There are a few main reasons renters are staying put in their homes longer than they used to:

  • Renters are priced out of homeownership. The median U.S. home-sale price has more than doubled since 2012, and it has risen more than 40% since 2019 alone, and mortgage rates are elevated near two-decade highs. That makes it difficult for renters to save for down payments and monthly mortgage payments, and encourages them to stay put.
  • Rental prices have risen, too. Asking rental prices have also soared, increasing more than 20% since 2019, discouraging people from moving from one rental to another.
  • Renting as a lifestyle has risen, too. The pandemic-driven rise in remote work encouraged some Americans to be renters rather than homeowners so they could easily relocate for jobs or lifestyle without being tied down to a home they own. Some renters also choose to invest their money in places other than real estate. That increases renter tenure because those are the people who may have otherwise moved out of a rental into a home they purchased.
  • One thing that hasn’t risen enough: supply of homes for sale. There are far fewer homes for sale in the U.S. than there were a decade ago. Even the renters who can afford to become homeowners—and want to—may not be able to find a home to buy.

Renters move less often than they did a decade ago, but they move much more often than homeowners. Just one in five (20.8%) renters nationwide moved in 2022, down from 28.9% in 2012. Just 7.6% of homeowners moved in 2022, up slightly from 6.4% in 2012.

Bokhari noted that it’s possible we could start to see renter tenure decline soon. There was an apartment-building boom in 2023, giving renters more options for places to move and cooling rental-price growth.

Young renters more likely to move often than older renters

Gen Z renters are much more likely than renters of other generations to move within one year, while baby boomers are much more likely to live in their rental for 10-plus years.

  • Gen Z: More than half (55.5%) of Gen Z renters stayed in their home for 12 months or less as of 2022, and another 40.6% stayed for one to four years. Just under 4% of Gen Z renters have lived in the same place for five-plus years.
  • Millennial: 28.8% have lived in their home for 12 months or less, and 50.7% have lived there for one to four years. Roughly 20% stayed for five-plus years.
  • Gen X: The lion’s share of Gen X renters (39.5%) stayed in their home between one and four years, while just 17.1% stayed for 12 months or less. Roughly 22% stay for 5 to 9 years, and another 22% stay for 10 years or longer.
  • Baby boomers: Roughly one-third (32.9%) of baby-boomer renters have lived in their home for 10-plus years, and another one-third (32.2%) have lived there for one to four years. Just over one in five (21.5%) have lived in their home for 5 to 9 years, and 13.3% have lived there for 12 months or less.

There are several reasons young renters move a lot. Many adult Gen Zers are in college or in the early stages of their career, life stages that often beget moves. They also have more flexibility because they’re less likely than millennials and Gen Xers to have children living at home. Additionally, many Gen Zers and millennials move out of rentals into the first home they purchase.

Metro-level highlights: Where renters stay in their homes longer

The 50 most populous U.S. metros are included in this section

  • Renters move most often in Austin, TX, where 38.2% of renters stayed put for 12 months or less in 2022. That’s the highest share of the 50 most populous U.S. metros. Next come Denver (34.4%) and Nashville, TN (34.4%).
  • Renters stay put longest in New York, where just 15.8% of renters moved in 12 months or less in 2022. Next come Riverside, CA (16.5%) and Los Angeles (17.5%). That’s partly because it’s expensive to buy a home or sign a new lease in those metros, discouraging renters from moving; staying put allows renters to stay in areas where there’s opportunity for jobs and desirable schools even if they cannot afford to buy a home.
  • Renters move less often than a decade ago in all but one of the metros in this analysis (San Jose, CA is the exception). Roughly one-quarter (24.8%) of Las Vegas renters stayed in their home for 12 months or less in 2022, down from 42.4% in 2012, the biggest decline. Next come Riverside, CA (16.5%, down from 32.8%), and Atlanta (25.8%, down from 37.8%).
  • Renters in San Jose, CA, San Francisco and Boston are just about as likely to move within a year as they were a decade ago. In San Jose, 30.3% of renters moved in 12 months or less in 2022, up slightly from 29.1% in 2012. In San Francisco, it’s 23.8%, down slightly from 24.6%. And in Boston, it’s 26.5%, down from 27.3%.

To view the full report, including charts, metro-level summaries and methodology, please visit:
https://www.redfin.com/news/renters-staying-put-longer

Posted On Friday, 31 May 2024 07:56 Written by

--  Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing the 30-year fixed-rate mortgage (FRM) averaged 7.03 percent.

“Following several weeks of decline, mortgage rates changed course this week,” said Sam Khater, Freddie Mac’s Chief Economist. “More hawkish commentary about inflation and tepid demand for longer-dated Treasury auctions caused market yields to rise across the board. This reality, as well as economic signals that have moved sideways over the last few weeks, have resulted in mortgage rates drifting higher as markets continue to dial back expectations of interest rate cuts.”

News Facts

  • The 30-year FRM averaged 7.03 percent as of May 30, 2024, up from last week when it averaged 6.94 percent. A year ago at this time, the 30-year FRM averaged 6.79 percent.
  • The 15-year FRM averaged 6.36 percent, up from last week when it averaged 6.24 percent. A year ago at this time, the 15-year FRM averaged 6.18 percent.

The PMMS® is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20 percent down and have excellent credit. For more information, view our Frequently Asked Questions.

Freddie Mac’s mission is to make home possible for families across the nation. We promote liquidity, stability, affordability and equity in the housing market throughout all economic cycles. Since 1970, we have helped tens of millions of families buy, rent or keep their home. Learn More: Website |

Posted On Friday, 31 May 2024 06:16 Written by

More home sellers are cutting their asking price, suggesting sale-price growth could soften in the coming months. But this week, the median sale price rose to another record high, pricing out some buyers.

Nationwide, 6.4% of home sellers cut their asking price during the four weeks ending May 26, on average, the highest share since November 2022. That’s according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.

The median asking price dropped roughly $3,000 to $416,623 in the last week, the first decline in six months. Additionally, for-sale supply is growing more stale: Age of inventory (the typical number of days active listings have been on the market) started rising year over year in May for the first time in eight months, hitting a median of 46 days. Together, those metrics suggest sale-price growth could soften in the coming months as persistently high mortgage rates turn off homebuyers. For now, the median-home sale price is up 4.3% year over year to another record high, though sale prices are a lagging indicator because they’re typically negotiated at least a month before a deal closes.

Buyers did get a modicum of relief on housing costs this week. The typical U.S. homebuyer’s monthly housing payment dropped to $2,812, its lowest level in six weeks. Payments are declining because even though sale prices remain at all-time highs, mortgage rates have come down from their peak: The weekly average mortgage rate is 6.94%, the first time it has dipped below 7% since early April. (It’s worth noting that the reprieve in rates may be short-lived; daily average rates started increasing this week after a string of disappointing treasury auctions.)

High costs are dampening demand. Pending sales are down 3.4% year over year, on par with declines over the last month, and mortgage-purchase applications are sitting near their lowest level in six months. Low inventory is another factor pushing down sales. Even though 7.8% more new listings hit the market than during the same period last year, listing growth has been losing momentum for the last few months, leaving buyers with fewer homes to choose from than there typically are in May.

“The market is slower than usual, but well-maintained properties listed for under a million dollars still get multiple offers,” said Christine Chang, a Redfin Premier agent in the Bay Area. “People who are buying right now are typically doing so because they’re having a baby or looking for a more family friendly home. My advice for those buyers is to be open-minded: Consider single-family homes that are a bit outdated but don’t need major renovations, and/or homes in lesser-known, non-trendy neighborhoods. That type of home tends to sit on the market longer, and buyers may be able to avoid competition and get a home for asking price instead of engaging in a bidding war. Buyers who can get by with less space should consider a condo; they’re relatively unpopular right now and many are going under asking price.”

For Redfin economists’ takes on the housing market, including more on how current financial events are impacting mortgage rates, please visit Redfin’s “From Our Economists” page.

Leading indicators

Indicators of homebuying demand and activity

 

Value (if applicable)

Recent change

Year-over-year change

Source

Daily average 30-year fixed mortgage rate

7.34% (May 29)

Up from 6.99% 2 weeks earlier, but down from a 5-month high of 7.52% 5 weeks earlier

Up from 6.95%

Mortgage News Daily

Weekly average 30-year fixed mortgage rate

6.94% (week ending May 23)

Down from 5-month high of 7.22% 3 weeks earlier

Up from 6.57%

Freddie Mac

Mortgage-purchase applications (seasonally adjusted)

 

Declined 1% from a week earlier (as of week ending May 24)

Down 10%

Mortgage Bankers Association

Redfin Homebuyer Demand Index (seasonally adjusted)

 

Down 7% from a month earlier to lowest level in 3 months (as of week ending May 23)

Down 12%

Redfin Homebuyer Demand Index, a measure of requests for tours and other homebuying services from Redfin agents

Touring activity

 

Up 10% from the start of the year (as of May 27)

At this time last year, it was up 12% from the start of 2023

ShowingTime, a home touring technology company

Google searches for “home for sale”

 

Unchanged from a month earlier (as of May 28)

Down 14%

Google Trends

Key housing-market data

U.S. highlights: Four weeks ending May 26, 2024

Redfin’s national metrics include data from 400+ U.S. metro areas, and is based on homes listed and/or sold during the period. Weekly housing-market data goes back through 2015. Subject to revision.

 

Four weeks ending May 26, 2024

Year-over-year change

Notes

Median sale price

$390,613

4.3%

All-time high

Median asking price

$416,623

6%

 

Median monthly mortgage payment

$2,812 at a 6.94% mortgage rate

7.3%

$58 below all-time high set during the 4 weeks ending April 28

Pending sales

89,218

-3.4%

 

New listings

101,172

7.8%

 

Active listings

912,320

15.2%

Highest level since Dec. 2022

Months of supply

3.2

+0.5 pts.

4 to 5 months of supply is considered balanced, with a lower number indicating seller’s market conditions

Share of homes off market in two weeks

44.7%

Down from 49%

 

Median days on market

32

+3 days

 

Share of homes sold above list price

31.8%

Down from 34%

 

Share of homes with a price drop

6.4%

+2 pts.

Highest level since Nov. 2022

Average sale-to-list price ratio

99.5%

-0.2 pts.

 

Metro-level highlights: Four weeks ending May 26, 2024

Redfin’s metro-level data includes the 50 most populous U.S. metros. Select metros may be excluded from time to time to ensure data accuracy.

 

Metros with biggest year-over-year increases

Metros with biggest year-over-year decreases

Notes

Median sale price

Anaheim, CA (19.3%)

Detroit (16.4%)

Nassau County, NY (12.5%)

San Jose, CA (12.4%)

West Palm Beach, FL (12.4%)

Fort Worth, TX (-0.4%)

San Antonio, TX (-0.3%)

Decreased in 2 metros

Pending sales

San Jose, CA (13.7%)

San Francisco (7.2%)

Columbus, OH (6.5%)

San Diego (5.3%)

Anaheim, CA (4.2%)

Houston (-15.1%)

West Palm Beach, FL (-14.4%)

Atlanta (-14.1%)

Fort Lauderdale, FL (-12.5%)

Orlando (-11.5%)

Increased in 13 metros

New listings

San Jose, CA (34.5%)

Phoenix (24.7%)

San Diego (21%)

Oakland, CA (20.1%)

Montgomery County, PA (19.5%)

Chicago (-10%)

Atlanta (-9.4%)

Newark, NJ (-6.4%)

Detroit (-3.4%)

Warren, MI (-1.9%)

Decreased in 8 metros

To view the full report, including charts, please visit: https://www.redfin.com/news/housing-market-update-sellers-drop-asking-prices

Posted On Thursday, 30 May 2024 07:24 Written by

Growing sales in real estate and beyond, requires a multifaceted approach that encompasses marketing strategies, client engagement, market understanding and more. The following are some best practices to help sales professionals achieve sustainable growth:

  1. Learn your audience: Conducting market research is so important prior to making any cold calls or outreach. Market research will help you understand industry trends, client preferences and the competition. Next, by taking the time to gather feedback from your clients and prospects, you will zero-in on their needs and pain points.
  1. Deliver superior services: This might sound obvious, but it will serve you well. Ensure your services exceed client expectations. Through continuous innovation, you will keep your offerings relevant and better than your competition.
  1. Strengthen your client relationships: By providing exceptional customer service, trust will be established and maintained. Resolve issues right when they happen. Don’t wait. And tailor your offers to the specific needs of different client segments. There is no one-size-fits-all here.
  1. Optimize sales processes: Use a CRM software to manage and track all sales leads. Excel spreadsheets are not sufficient. Data analytics will track sales performance and identify patterns and trends. You can’t make informed decisions without this detailed feedback.
  1. Expand your outreach: In terms of geographical expansion, it’s a good idea to explore new markets and regions in order to gain new clientele. Next, by diversifying your approach, you will also reach a wider audience. You can use a mix of direct sales and online platforms.

By combining these 5 suggestions, you can effectively grow sales in real estate and any industry for that matter. You want to build a strong foundation for sustained success and growth.

For more tips on Sales, watch this video that discusses sales in the context of real estate:

 

Posted On Wednesday, 29 May 2024 05:59 Written by

Homebuying is no simple feat. It can be time-consuming, expensive and confusing, so it’s no wonder people want to cut corners. But those cuts can be costly, especially when mortgage shopping.

Our latest survey found that the majority of buyers don't shop around for a mortgage and many are leaving money on the table because of that. Here’s what else we found. 

  • Over half (54%) of those who took out a mortgage for their most recent home purchase only got one loan offer. Meanwhile, 22% got two offers and 17% got three or more. 
  • Among those who compared more than one mortgage offer, 45% say the lowest offer didn’t come from their first lender.
  • Refinancers are more savvy with comparison shopping. Of the 45% of homebuyers who refinanced, 56% shopped around. Comparison shopping paid off, as 81% found a lower rate than their current lender offered.
  • Over a third (35%) of buyers say they purchased a home earlier than planned to take advantage of low rates. 

You can check out our full report here: https://www.lendingtree.com/home/mortgage/shopping-around-survey/

LendingTree's Senior Economist and report author, Jacob Channel, had this to say:


"The exact amount that a borrower can save by shopping around for a mortgage will vary based on factors such as the rates they’re offered and the size of their loan. That said, it’s not out of the realm of possibility for someone who received multiple offers and then picked the one with the lowest rate to save hundreds of dollars a month, thousands of dollars a year and tens, if not hundreds, of thousands of dollars over the lifetime of their loan."

Posted On Tuesday, 28 May 2024 08:05 Written by

Prices keep rising because this spring’s inventory is lower than usual. The sliver of good news for buyers is that mortgage rates have declined slightly

The median U.S. home-sale price hit a record $387,600 during the four weeks ending May 19, up 4% from a year earlier. That’s according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. Weekly average mortgage rates dipped to 7.02% from a five-month high of 7.22% at the start of the month, bringing the median monthly housing payment to $2,854, roughly $20 shy of April’s all-time high.

High housing costs pushed pending home sales down 4.2% year over year, the biggest decline in three months (except the prior 4-week period, when sales declined 4.4%). Prices keep rising despite declining sales because there aren’t enough homes on the market: New listings are up about 8% year over year, but inventory remains lower than typical spring levels. Many homeowners are staying put because they would rather hold onto their relatively low mortgage rate than move up to a bigger and/or better home.

“Move-up buyers feel stuck because they’re ready for their next house, but it just doesn’t make financial sense to sell with current interest rates so high,” said Sam Brinton, a Redfin Premier agent in Salt Lake City, UT. “The homeowners listing right now are often doing so because they need to: One of my clients is selling because of a family emergency, and another couple is selling because they had a baby and simply don’t have enough room. Buyers should take note that many of today’s sellers are motivated; if a home doesn’t have other offers on the table, offer under asking price and/or ask for concessions because many sellers are willing to negotiate.”

For Redfin economists’ takes on the housing market, including more on how current financial events are impacting mortgage rates, please visit Redfin’s “From Our Economists” page.

Leading indicators

Indicators of homebuying demand and activity

 

Value (if applicable)

Recent change

Year-over-year change

Source

Daily average 30-year fixed mortgage rate

7.09% (May 22)

Up from 6.99% a week earlier, but down from a 5-month high of 7.52% 4 weeks earlier

Up from 6.95%

Mortgage News Daily

Weekly average 30-year fixed mortgage rate

7.02% (week ending May 16)

Down from 5-month high of 7.22% 2 weeks earlier

Up from 6.39%

Freddie Mac

Mortgage-purchase applications (seasonally adjusted)

 

Declined 1% from a week earlier (as of week ending May 17)

Down 11%

Mortgage Bankers Association

Redfin Homebuyer Demand Index (seasonally adjusted)

 

Essentially unchanged from a month earlier (as of week ending May 19)

Down 11%

Redfin Homebuyer Demand Index, a measure of requests for tours and other homebuying services from Redfin agents

Touring activity

 

Up 31% from the start of the year (as of May 19)

At this time last year, it was up 22% from the start of 2023

ShowingTime, a home touring technology company

Google searches for “home for sale”

 

Down 8% from a month earlier (as of May 19)

Down 18%

Google Trends

Key housing-market data

U.S. highlights: Four weeks ending May 19, 2024

Redfin’s national metrics include data from 400+ U.S. metro areas, and is based on homes listed and/or sold during the period. Weekly housing-market data goes back through 2015. Subject to revision.

 

Four weeks ending May 19, 2024

Year-over-year change

Notes

Median sale price

$387,600

4%

All-time high

Median asking price

$420,250

6.6%

All-time high

Median monthly mortgage payment

$2,854 at a 7.02% mortgage rate

10.5%

$18 below all-time high set during the 4 weeks ending April 28

Pending sales

89,303

-4.2%

Biggest decline since 4 weeks ending Feb. 25 (except the prior 4-week period, when sales declined 4.4%)

New listings

102,671

8.5%

 

Active listings

901,194

14.8%

 

Months of supply

3.2

+0.6 pts.

4 to 5 months of supply is considered balanced, with a lower number indicating seller’s market conditions

Share of homes off market in two weeks

44.9%

Down from 49%

 

Median days on market

33

+3 days

 

Share of homes sold above list price

31.3%

Down from 34%

 

Share of homes with a price drop

6.4%

+2 pts.

Highest level since Nov. 2022

Average sale-to-list price ratio

99.5%

-0.1 pts.

 

Metro-level highlights: Four weeks ending May 19, 2024

Redfin’s metro-level data includes the 50 most populous U.S. metros. Select metros may be excluded from time to time to ensure data accuracy.

 

Metros with biggest year-over-year increases

Metros with biggest year-over-year decreases

Notes

Median sale price

Anaheim, CA (20.1%)

Detroit (16.9%)

San Jose, CA (12.9%)

Oakland, CA (12.5%)

West Palm Beach, FL (12%)

San Antonio (-1%)

Fort Worth, TX (-0.6%)

Decreased in 2 metros

Pending sales

San Jose, CA (18.4%)

San Francisco (8%)

San Diego (4.3%)

Newark, NJ (3.6%)

Columbus, OH (3.3%)

West Palm Beach, FL (-15.3%)

Atlanta (-14.9%)

Houston (-14.5%)

Phoenix (-12.3%)

Providence, RI (-11.6%)

Increased in 10 metros

New listings

San Jose, CA (36.7%)

Montgomery County, PA (26.2%)

Phoenix (26.1%)

Seattle (21.2%)

San Diego (21%)

Atlanta (-8.1%)

Chicago (-4.9%)

Detroit (-3.9%)

Virginia Beach, VA (-2.6%)

Newark, NJ (-2%)

Warren, MI (-1.8%)

Decreased in 6 metros

To view the full report, including charts, please visit:
https://www.redfin.com/news/housing-market-update-pending-sales-fall-prices-increase

Posted On Saturday, 25 May 2024 06:48 Written by
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