Luxe Austin Homes - homebuyers

"Homebuyer sentiment is up, but for how long?"

RealEstateNews.com shares, "Consumers were considerably more upbeat about the housing market in September, but rising mortgage rates may put a damper on their enthusiasm.

Homebuyer sentiment reached its highest level in more than two years in September, but that may not last as mortgage rates continue to rise.

The Fannie Mae Home Purchase Sentiment Index jumped 1.8 points last month to 73.9, fueled by the expectation that mortgage rates will decline in the next 12 months. 

Optimism around rates was at a survey high, according to Fannie Mae, with a record 42% of consumers saying they expect mortgage rates to decline — a significant increase since June, when only 24% anticipated a drop in rates. Just under a third of respondents expect rates to…

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"How buyers have (and haven’t) changed in recent years"

RealEstateNews.com writes, "Zillow’s latest trends report finds that, despite turbulence in the market, consumer traits and preferences are fairly stable — with some key exceptions.

Key points:

• The 2024 Consumer Housing Trends Report reveals that buyer demographics have remained fairly consistent overall, but the share of first-time buyers has declined.
• Buyers are continuing to fork out a higher percentage of the sale price for their down payment, but many are able to secure lower-than-average mortgage rates.
• Staying within their budget and finding a home with air conditioning and the right number of bedrooms are top priorities.

The real estate market has experienced its share of ups and downs over the past few years, but when it…

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"Why mortgage rates may not continue to drop"

Austin Business Journal writes, "Relief on housing costs from interest-rate cuts issued by the Federal Reserve last month may not be as straightforward as some would-be homebuyers might expect. But some areas of the country are poised to feel the impacts of rate cuts more significantly than others.

A recent analysis by Realtor.com found 60.2% of homeowners in the U.S. lived in homes with a mortgage while 39.8% of owners owned their homes free and clear. But the share of mortgaged homeowners versus those who owned their homes outright vary — sometimes significantly — by state.

And, of course, areas with a higher share of homeowners that have a mortgage are more likely to be affected by rate movement than those where more people own their homes…

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"Austin makes new list of 10 easiest cities to pay off a mortgage"

CultureMap Austin writes, "Whether a homeowner's mortgage lasts for 15 or 30 years, paying off such a large debt can be an arduous process. But luckily for homeowners living in the Austin area, paying off a mortgage is much easier than it is in many other large metropolitan areas in the country, according to a new report by SmartAsset.

Austin-Round Rock-Georgetown ranked No. 10 in SmartAsset's new study analyzing the top 40 large U.S. metros where it's easiest to pay off a mortgage. Rankings were determined based on the principal and interest payments for conventional 30-year fixed rate mortgages issued in 2023, relative to the median income of new homeowners.

Leading the nation as the No. 1 easiest place to pay off a mortgage is Pittsburgh,…

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"2024 Q4 housing market trends: Rate relief arrives"

Bankrate.com writes, "Leaves aren’t the only things falling this autumn: Mortgage rates are finally heading down, too. And that, combined with a seasonal dip in home prices, is causing some end-of-year excitement among homebuyers and sellers.

The median existing-home price was $416,700 in August, per the National Association of Realtors — a record high for August, but still down from $422,600 a month earlier. And average rates for the benchmark 30-year fixed-rate mortgage loan have dropped from a high this year of 7.39 percent in May to 6.24 percent in late September.

With rates already down more than a full percentage point and more Fed interest-rate cuts on deck, many market-watchers are asking, what do the final three months of 2024 have in…

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"Contract Signings Rise as Buyers Eye Market Opportunities"

Realtor Magazine writes, "Pending home sales rose slightly in August as lower mortgage rates provided some motivation to prospective home buyers. But buyers continue to face challenges such as high home prices, and many may be holding out for even lower rates, surveys show.

The National Association of REALTORS®’ Pending Home Sales Index—a forward-looking indicator of home sales based on contract signings—eked out a 0.6% increase in August. Contract signings, however, remain 3% lower than a year ago.

Still, last month’s “slight upward turn [in contract signings] reflects a modest improvement in housing affordability, primarily because mortgage rates descended to 6.5% in August,” says NAR Chief Economist Lawrence Yun. “However, contract signs…

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"Housing Market Predictions: What Homebuyers Should Know"

Business Insider writes, "After watching mortgage rates hit two-decade highs and inventory plummet last year, many hopeful homebuyers are eager to get off the sidelines and into a home.

Fortunately, housing market conditions have been getting slightly better, and they should ease somewhat throughout the rest of 2024 and beyond now that the Federal Reserve has started cutting rates. If you're planning to buy a house this year, here's what you need to know about housing market predictions in 2024, and how you can prepare.

Overview of the housing market

The average home value in the U.S. is $361,282, according to Zillow — up 2.9% year over year. Last month, average 30-year mortgage rates fell to 6.05%, down 40 basis points from the month before.…

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"Latest Drop in Mortgage Rates May Motivate Home Buyers"

Realtor Magazine writes, "Prospective home buyers may be enticed to move forward on a home purchase as mortgage rates fall. The 30-year fixed-rate mortgage averaged 6.09% this week, down more than 150 basis points from earlier this year.

“Mortgage rates continued declining towards the 6% mark, reviving purchase and refinance demand for many consumers,” says Sam Khater, Freddie Mac’s chief economist.

Mortgage rates have been closely watched this week after the Federal Reserve’s announcement on Wednesday that it's cutting its short-term benchmark rate. “While mortgage rates do not directly follow moves by the Federal Reserve, this first cut in over four years will have an impact on the housing market,” Khater says. “Declining mortgage rates over…

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"Mortgage Rates Hit Lowest Level Since February 2023"

Realtor Magazine reports, "Borrowing costs fell ahead of the Federal Reserve’s anticipated rate cut next week. But economists say home buyers may not want to wait to see if rates go lower.

The 30-year fixed-rate mortgage fell to 6.2% this week, down significantly compared to a year ago when they surged above 7%. But some prospective home buyers are holding out for even lower rates in anticipation of the Federal Reserve’s meeting next week, where it’s expected to cut short-term interest rates.

Still, home buyers may be getting their hopes up too much: “Even with the September expected rate cut [by the Fed], mortgage interest rates are not likely to move as this cut has been baked into the mortgage market,” says Jessica Lautz, deputy chief…

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"Texas needs 306,000 more homes to meet demand, experts say"

Community Impact reports, "Texas’ population growth has outpaced homebuilding since 2020, according to the state comptroller’s office, resulting in a widespread housing shortage. Up For Growth, a national housing policy organization, reported that Texas needs about 306,000 more homes to meet demand.

High home prices, steep mortgage rates and limited supply are driving some potential homebuyers out of the market, said Clare Knapp, a housing economist for the Austin Board of Realtors. Texas also had the sixth-highest property tax rate—1.68%—in 2021, according to research from the Tax Foundation.

Home prices shot up during the height of the COVID-19 pandemic, Knapp added, as remote work policies allowed more people to move to Texas.

In 2019, the median home…

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