Rising home prices are prompting more borrowers to take out supersized home loans. Borrowers are taking out the largest mortgages ever on record.The average purchase loan size reached an all-time high of $453,000, the Mortgage Bankers Association reports. Loan sizes have continuously been hitting new record highs over recent weeks. Home prices are up by double-digit percentages compared to a year ago.“Prospective buyers still face elevated sale
Investors are capitalizing on sky-high single-family and condo investments in winter resort housing markets. Rising home prices and strong demand are keeping investments in these resort towns profitable.The real estate data firm ATTOM Data Solutions and ZRankings.com identified the top ski resorts based on single-family and condo sales data in 2021. Researchers found that in nearly half of the counties analyzed, home sellers more than d
Lumber prices are climbing once again, adding thousands of dollars to the cost of a new home. Builders and consumers thought relief had arrived when the price of lumber started to fall late last year, after soaring to record highs earlier in the year. But starting in December 2021, lumber prices again started to increase.Lumber prices are about triple their average pre-pandemic levels, reports Random Lengths, a lumber industry news site.That
Mortgage rates continue to rise and are nearly a full percentage point higher than a year ago. House hunters should brace themselves for rates near 4% before the end of the year, economists say. “The normalization of the economy continues as mortgage rates jumped to the highest level since the emergence of the pandemic,” says Sam Khater, Freddie Mac’s chief economist. “Rate increases are expected to continue due to a strong labor market a
Home prices continue to climb, adding to homeowner wealth and putting buyers into the position of considering how much home they can afford.The median sales price of single-family existing-home sales increased nearly 15% year over year to $361,700 in the fourth quarter, the National Association of REALTORS® reported Thursday. That is down slightly from a 15.9% gain in the prior quarter.“Homebuyers in the last quarter saw little relief as home
Building material prices, production bottlenecks, and labor shortages will continue to dampen the pace of construction and affect home prices this year, economists told a crowd at the 2022 International Builders’ Show in Orlando.Building material costs have surged 21% compared to a year ago. Further, more than 300,000 job openings went unfilled in the construction industry in December 2021. The National Association of Home Builde
Buyers who have been preapproved for a mortgage may be tempted to shop for homes at that lender allowance amount. But real estate pros and financial experts advise setting a limit somewhat lower than that figure.House hunters should look at homes with list prices that fall below the top of their price range because they likely will need to leave room in their budget to bid up in the competitive housing market.“These days, houses are selling for
Many renters are making moves toward homeownership as quickly rising mortgage rates and rents have them feeling increased pressure.Average monthly rents climbed more than 14% year over year in December 2021, reaching $1,877. Miami and Austin, Texas, have seen rents surge more than 30% over the past year.Economists point to homeownership as a way to stave off inflation and build wealth, The Wall Street Journal reports. But higher rents a
Homeowners are seeing soaring profits when they sell. Home sellers nationwide saw a profit of $94,092 on a typical sale in 2021, according to a recent report from ATTOM Data Solutions. That is up 71% from two years ago when it was $55,000.Seller profits rose in more than 90% of housing markets analyzed by researchers. Some markets are seeing seller profits surge at even higher rates than others, particularly in several California markets.ATT
Mortgage rates held steady overall this week, a welcome relief to home shoppers who may have been watching them rise week after week since the beginning of the year.The 30-year fixed-rate mortgage averaged 3.55% this week, Freddie Mac reports.“Following a month-long rise, mortgage rates effectively stayed flat this week,” says Sam Khater, Freddie Mac’s chief economist. “Recent rate increases have yet to significantly impact purchase deman
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