Lumber prices are soaring once again: Following a dip last spring and summer, they have nearly tripled over the past four months.Builders say that increase has caused the price of an average new single-family home to rise by more than $18,600. It has also added nearly $7,300 to the price of an average new multifamily home, translating into $67 a month more in rent for a new apartment, according to the National Association of Home Builders.Price v
Conforming loan limits for mortgages backed by Fannie Mae and Freddie Mac have jumped in most of the country to $647,200, an increase of $98,950 from 2021’s limit of $548,250. The higher levels are in response to rising home prices over the past year.The new loan limits took effect Jan. 1.The Federal Housing Finance Agency’s House Price Index shows that home prices rose 18.05%, on average, between the third quarters of 2020 and 2021. The 2022
The hot housing market fueled an all-time record for the amount Americans borrowed to buy homes in 2021.Mortgage lenders issued $1.61 trillion in purchase loans last year, according to preliminary data from the Mortgage Bankers Association. That tops a previous record set in 2005 of $1.51 trillion.Home prices have grown by double digits over the past year. That is driving up mortgage balances as Americans stretch their budgets to afford a home.Th
Mortgage rates stayed low for the final week of 2021, but housing analysts largely predict rates will be heading up in the coming weeks.“Mortgage rates have been effectively been moving sideways despite the increase in new COVID cases,” says Sam Khater, Freddie Mac’s chief economist. “This is because incoming economic data suggests that the economy remains on firm ground, particularly cyclical industries like manufacturing and housing. Mo
Low-interest rates and a hot stock market fueled a drive in the luxury housing market this year. Sales priced at or over $50 million rose 35% year over year, according to a report from appraiser Miller Samuel, as reported by Bloomberg. That marks a record high, topping 2020 levels, the previous record.“This surge in this tier is unprecedented,” Jonathan Miller, Miller Samuel president and CEO, told Bloomberg. “We’ve never seen this kind o
Single-family purchases made by investors are surging as they see opportunities in the rapid growth of home prices and demand for rentals. The Golden State, shunned by investors for some years, is seeing a strong return.“After a decade of moving away, investors are coming back to California,” writes Thomas Malone, an economist at CoreLogic, in a recent analysis. Of the 11 metro areas with the highest investor shares for the third qu
The 30-year fixed-rate mortgage posted a big drop this week, falling to a 3.05% average, Freddie Mac reports.“The market volatility resulting from the COVID-19 omicron variant is causing mortgage rates to decrease,” says Sam Khater, Freddie Mac’s chief economist. “As the year comes to a close, the housing market is proceeding steadily. However, rates are expected to increase in 2022 which will impact home buyer demand as well as refinance
In a new report, the real estate firm Walker & Dunlop calls it “the golden age for multifamily.”High rents in the apartment sector are expected to continue in the new year as demand remains strong. Potential home buyers who have been shut out from the competitive housing market are turning to rentals in swarms. Property owners are expected to see record profits in 2022, predicts Green Street, a commercial real estate analytics firm.Strong
Home buyers may have felt more determined in November to purchase before 2021 comes to an end and mortgage rates and borrowing costs increase, as largely is forecasted to happen.Existing-home sales, which include completed transactions for single-family homes, townhomes, condos, and co-ops, rose 1.9% in November compared to October, the National Association of REALTORS® reported Wednesday. Sales, however, are down 2% compared to a year ago.
The nation’s hottest rental market in 2021: Eugene, Ore., according to a new end-of-the-year report from RentCafe. The city has been attracting new residents and boasts a rapidly growing tech sector. San Diego, Calif., and Knoxville, Tenn., were number two and number three on RentCafe’s list.In 2021, the most competitive rental markets tended to be smaller metros that are within close proximity to nature and allow for a more affordable lifest
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