Luxe Austin Homes - interest rates

"The Housing Market Was Supposed to Recover This Year. What Happened?"

The New York Times writes, "As 2025 began, the stars were aligning for a housing market rebound.

Inflation was easing, the economy looked strong and mortgage rates were drifting downward. By April, there were more available homes to buy than at any time since January 2020, according to the Federal Reserve of St. Louis. The conditions were ripe for buyers to re-emerge, checkbooks in hands, and sellers to negotiate.

Then on April 2, President Trump rolled out his expansive global trade tariffs, shocking the stock and bond markets and sparking fears of a recession. Mortgage rates jumped again, hitting 6.89 percent for a 30-year fixed-rate loan on May 29, their highest level since early February. The extreme volatility threw cold water on a fragile…

401 Views, 0 Comments

"Austin's housing inventory went up and sales fell in April, per report"

CultureMap Austin shares, "Austin's homebuyers are uncovering an uncertain future for the housing market, as April sales took a nearly 14 percent dip from last year and housing inventory increased by 11.5 percent.

The latest real estate report from the Austin Board of Realtors (ABoR) and Unlock MLS said Austin's April housing data closely resembles a nationwide trend of higher mortgage rates and a decline in home sales.

New home listings in the Austin-Round Rock-San Marcos metropolitan statistical area (MSA) rose to 5,710 homes in April, adding to a total number of 13,351 active home listings. That's nearly 20 percent more from April 2024.

Only 2,484 homes in the Austin area were sold in April, and median home prices took a small 3.2 percent…

949 Views, 0 Comments

"Here's where home prices grew the most in Q1 as affordability worsens for many Americans"

Story Highlights

• The National Association of Realtors says 83% of metro areas saw their single-family home prices grow in Q1.
• Nationally, the median single-family home price grew 3.4% in the first quarter.
• The Northeast performed the best in sales and price gains while the South lagged.

Austin Business Journal writes, "The U.S. housing market may be showing signs of softening but in most cities, single-family homes only got more expensive at the start of 2025.

A new report by the National Association of Realtors found 83% of metro areas tracked by the NAR saw their existing single-family home prices increase in the first quarter of 2025. While down from the 89% of metro areas that saw price growth in the fourth quarter of…

294 Views, 0 Comments

"Mortgage Demand From Homeowners Recovers as Applications Rise for the Second Week in a Row"

Realtor.com reports, "Home loan applications slightly ticked up 1.1% for the second week, but are trending lower than last week when overall applications increased 11%.

The latest data from the Mortgage Bankers Association's Weekly Mortgage Applications Survey shows a 1.1% increase on mortgage loan application volume on a seasonally adjusted basis from one week earlier. The refinance index decreased 0.4% from the prior week but was 44% higher than the same week one year ago.

"The most notable change in this week's data was the increase in purchase applications, which jumped 2.3% on a weekly basis and were up 18% year over year," says Hannah Jones, senior economic research analyst at Realtor.com®. "The spring housing market is picking up, and…

90 Views, 0 Comments

"Gen Z's regret grows over generational housing divide"

Austin Business Journal writes, "High home prices and elevated interest rates have members of Generation Z worried about missing out on the dream of homeownership — or deeply regretting having taken the plunge.

According to the BMO Real Financial Progress Index, 54% of American renters envy people their age and younger who have purchased a home. It's a dynamic that's even stronger among Gen Zers, with 63% of those respondents saying they are envious of homeowners. The Gen Z share is second only to that of millennials, who are most likely to be envious, at 67%.

"The data show that owning a home remains a key component of the American dream, but with some obstacles still facing first-time homebuyers, younger generations worry they missed their…

624 Views, 0 Comments

"Mortgage Interest Rates April 17, 2025: Mortgage Rates Swing Up After Bond Sell-Off"

Realtor.com writes, "Mortgage rates swung up on Thursday compared to the previous week, inching toward the dreaded 7% level, following the recent surge in 10-year-Treasury yields driven by investor concerns about escalating global trade tensions. 

The average rate on 30-year fixed home loans increased to 6.83% for the week ending April 17, up from 6.62% the previous week, according to Freddie Mac. It is the largest one-week increase in 12 months. Rates average 7.1% the same week in 2024. 

"The 30-year fixed-rate mortgage ticked up but remains below the 7% threshold for the thirteenth consecutive week," says Sam Khater, Freddie Mac’s chief economist. "At this time last year, rates reached 7.1% while purchase application demand was 13% lower than…

118 Views, 0 Comments

"Austin-area housing market poised for another stable year, experts say"

Austin American-Statesman writes, "Steady as she goes.

That about sums up the 2025 outlook by real estate experts for the housing market in the Austin metro area, a five-county region stretching from Georgetown to San Marcos.

Peering into their crystal balls, several leading experts who have tracked the ups and downs of the Central Texas real estate market for years, even decades, foresee stable conditions this year. They predict the 2025 housing landscape could mirror last year's, as more normal trends continue in the wake of the COVID-19 pandemic era buying frenzy, when multiple offers, often well above asking price, were common.

Those expected trends include home prices remaining relatively flat; a steady supply of housing; predictable…

271 Views, 0 Comments

"Elevated prices, interest rates will continue to curb housing affordability in 2025"

Austin Business Journal reports, "Homebuyers and sellers in the Austin metro likely will see little change in prices and inventory in 2025.

That's because median sales prices are likely to hover around the $450,000 mark reported in December 2024, and interest rates are expected to stay high, according to Clare Knapp, housing economist for the Austin Board of Realtors and Unlock MLS. It's a combination that's considered unaffordable for many first-time homebuyers, which means the onus is on homebuilders to build more homes with lower price tags to help move the needle on affordability in the metro.

A first-time homebuyer can typically afford to pay three times their income for a home, putting many in the market for a home in the $300,000 to $400,000…

147 Views, 0 Comments

"Millennials desperate for affordable homes are willing to make surprising concessions"

Austin Business Journal reports, "Few millennials believe their generation can afford a home, and some are so desperate for an affordable purchase they would be willing to buy a home with serious defects.

According to a new survey of millennials by Clever Real Estate, just 21% of millennials believe their generation can afford a home, a substantial decline from 52% who said the same in early 2024. Additionally, 96% of respondents said they have concerns about purchasing a home, with 44% saying they're worried about finding an affordable home — up from 35% in 2024.

The report notes that the median home price is about $420,000, but 68% of millennials who want to buy a home in 2025 want to spend less than $400,000. That's up from 57% who planned to…

194 Views, 0 Comments

"Mortgage Rates Rise Again, to 6.93%—but Economists Predict Housing Market Conditions Will Improve"

Realtor.com reports, "Mortgage rates jumped to a six-month high of 6.93%, up from 6.91% last week, for the average 30-year fixed home loan for the week ending Jan. 9, according to Freddie Mac.

“In the first full week of the new year, the 30-year fixed-rate mortgage remained elevated at just under 7%,” said Sam Khater, Freddie Mac’s chief economist. “The continued strength of the economy has put upward pressure on mortgage rates, and along with high home prices, continues to impact housing affordability.”

Khater also pointed to a continued lack of entry-level inventory, which presents a stumbling block, especially for consumers looking to become first-time homeowners.

“The Freddie Mac rate for a 30-year mortgage climbed this week as the…

154 Views, 0 Comments