Latest news with #Case-Shiller
Yahoo
4 days ago
- Business
- Yahoo
Home equity news: Home prices hit another record while HELOC rates fall
HELOCs drop, home equity loans barely budge After rising for the past few weeks, HELOCs dropped to 8.14 percent, still holding close to their lowest level in two years. Meanwhile, the average $30,000 home equity loan inched a tick up to 8.24 percent, according to Bankrate's national survey of lenders. …while mortgage rates stay below 7% The national average for 30-year fixed-rate mortgage inched lower in the most recent week to 6.94 percent, according to Bankrate's latest lender survey. Think your home equity credit line is safe? Think again. Not only is HELOC fraud on the rise, but it's also sneaky and could drain your savings before you even notice. Find out how scammers can steal your money and the simple steps you can take to protect your hard-earned home equity funds. Find out: How to protect yourself from HELOC fraud Fears about an economic downturn might have you thinking about putting homeownership plans on pause. But experts say if you're financially ready and plan to stay put for a few years, it could actually cost you more to wait. Here's why it might make more sense to buy a home now instead of later. Read more: Why recession fears shouldn't derail your homebuying plans Single women buy homes in greater numbers than single men. Yet they derive less wealth from their home, the most significant asset many Americans have. From higher prices to lower sale returns and wage gaps to tougher negotiations, the housing market still stacks the deck unevenly for women. What can be done to even the playing field? Learn more: The housing gender gap Home prices keep climbing to new heights: The latest Case-Shiller index shows a 3.4 percent annual rise in March. But the growth is slowing and has in fact been dropping in the two previous months. Which cities have the hottest and coldest housing markets? Read more: Case-Shiller Index: Home prices push higher, but they're cooling off No doubt about it, it's a frustrating time to be a homebuyer: While home prices keep rising and mortgage payments have doubled since 2020, new homes are the smallest they've been in about a decade. However, experts say holding out for a bigger, 'forever' home might not be the best strategy. Learn why: Bigger isn't always better for homebuyers facing rising costs Have you ever shopped for a HELOC or home equity loan and wondered how the rate you're offered is actually set? It's not just your lender calling the shots. The Federal Reserve's monetary moves, along with your credit profile and home's value also play a significant role. Find out : How are home equity loan rates determined? $13 trillion Mortgage debt, including home equity loans, accounted for $13.09 trillion in consumer debt as of March 2025, a 74 % share of total debt. Source: Equifax Technically, these stories were released in the previous weeks, but they're still worth highlighting. Real estate not only holds value, but it also tends to appreciate over time. For many families, homeownership is often their first, and sometimes their only chance, to build real wealth they can pass down. Here's why having a home can be so important — not just for now, but for the future. Learn more: How a home builds generational wealth Origination fees, appraisal reports and credit report fees are some of the closing costs you may have to pay when taking out a home equity loan or a HELOC. The good news? Overall closing costs are often less than what you would pay with a primary mortgage — and some of them are even negotiable. Read on: How much are home equity loan closing costs in 2025?
Yahoo
27-05-2025
- Business
- Yahoo
Home prices are still rising, but at a slower rate: What to know
Home prices are still rising but at a slower pace, with March showing a 3.4% annual gain and a rare monthly decline, according to S&P Corelogic Case-Shiller. Yahoo Finance Senior Reporter Claire Boston joins Wealth to break down what the latest Case-Shiller data means for buyers heading into the summer season. To watch more expert insights and analysis on the latest market action, check out more Wealth here. Home prices are at historic highs and the latest read from the S&P Case-Shiller National Home Price Index shows that potential buyers have had a tough road ahead here. Here to break down the report, we've got Yahoo Finance senior housing reporter Claire Boston. Claire, what is the latest movement on home prices right now? Hi Brad. So in March, we saw a 3.4% annual gain nationally, compared to a year earlier. And that is actually down a little bit from a 4% gain in February. So we're still seeing that home prices are still rising, but that rate of growth is slowing a little bit. And this 3.4% number was a little bit of a bigger deceleration than economists were expecting. One other thing I'm looking at right now is that month over month, prices actually fell a little bit, just 0.3% down nationally. But that's another sign here that the market is slowing a bit even though things are still very, very expensive. Do you think this is going to impact the spring and summer home buying season, which I guess we're kind of in the unofficial start of summer as of right now. Yeah, so this data is from March. And so if you remember back in March, we had not yet had that tariff surprise. Um, we do have a little bit more data about what spring home buying is looking like. And a lot of signs point to a pretty slowing market. So potentially, in the months ahead, we may continue to see that deceleration, you know, maybe a little bit even of a price move down month over month. Some more data here. Zillow and Redfin, they both expect home values to decline by about 1% this year. Are buyers better off waiting? You know, it is really hard to tell. Um, you know, something I talk about all the time is how regional the housing market is. Um, and you know, when you're looking at this Case-Shiller data, places like New York, home prices are up 8%. Chicago is up more than close to 6%. Uh, but then you look at a place like Tampa and prices are down. So it really depends on where you are and what your market is doing. And um, you know, it it just it's hard to tell right now. It's a weird market. Claire, thanks so much. Appreciate it. Thank you.
Yahoo
27-05-2025
- Business
- Yahoo
Home prices are still rising, but at a slower rate: What to know
Home prices are still rising but at a slower pace, with March showing a 3.4% annual gain and a rare monthly decline, according to S&P Corelogic Case-Shiller. Yahoo Finance Senior Reporter Claire Boston joins Wealth to break down what the latest Case-Shiller data means for buyers heading into the summer season. To watch more expert insights and analysis on the latest market action, check out more Wealth here. Sign in to access your portfolio
Yahoo
05-04-2025
- Business
- Yahoo
Housing market sea change ahead? Buyers hope for a tailwind as sellers face choppy waters
Like an island far away on the horizon, owning a home has never felt more out of reach. Year after year, home prices have climbed higher, leaving many buyers with a tailwind, wondering if they'll ever catch a break. In January, the S&P CoreLogic Case-Shiller index — a key measure of national home prices — jumped another 4.1% year-over-year. And February wasn't any kinder, with the National Association of Realtors (NAR) reporting a 3.8% annual increase in the cost of existing homes. I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) Here are 3 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? But could relief finally be on the way? Housing inventory appears to be on the rise, which could lead to lower home prices. Several major real estate organizations — including Fannie Mae, the Mortgage Bankers Association and the NAR — expect home price growth to slow in 2025. This could benefit buyers, but it's also something sellers should keep in mind. One big reason home prices remain high is limited inventory. When supply is scarce, prices tend to rise. In February, housing inventory climbed 5.1% from the previous month and 17% year over year, according to the NAR. This growing supply could help stabilize or even reduce home prices. Many homeowners have been reluctant to sell in recent years due to high mortgage rates. During and shortly after the pandemic, many homeowners locked in historically low mortgage rates by either purchasing a home or refinancing. As a result, they have been hesitant to trade their affordable loans for costlier ones. However, mortgage rates have fallen modestly in recent months. If this trend continues, more homeowners may decide to list their properties, further increasing supply and cooling the housing market. Home prices could decline more noticeably in regions with abundant supply, such as Texas and Florida. In January's Case-Shiller report, which tracks prices in 20 major U.S. cities, Tampa was the only market to show a year-over-year drop. Meanwhile, as more companies implement return-to-office policies, large metropolitan areas like New York City may experience stronger home price growth due to increased demand. New York, Boston and Chicago saw the largest price gains in January's Case-Shiller reading. Read more: Trump warns his tariffs will spark a 'disturbance' in America — use this 1 dead-simple move to help shockproof your retirement plans ASAP While U.S. home prices are unlikely to plummet, inventory is gradually normalizing. Some experts worry that factors such as tariff policies could fuel an economic recession, potentially dampening homebuyer demand and pushing home values downward. Some markets — particularly major job hubs — may be more insulated from these effects. However, all homeowners should be prepared. As of the third quarter of 2024, the average U.S. homeowner had approximately $311,000 in home equity, according to CoreLogic. If you're a homeowner, you may want to capitalize on the equity you have now — and protect yourself against a potential recession — by applying for a home equity loan or line of credit (HELOC) sooner rather than later. A HELOC could be a more flexible option than a home equity loan since it doesn't require immediate installment payments. Instead, homeowners can access funds as needed. Unfortunately, now is not a particularly good time to refinance a mortgage, as rates are still elevated. Many homeowners would be looking at higher rates than they currently have. However, refinancing — particularly through a cash-out refinance — could still be worth looking at, as it allows homeowners to tap into their home equity. The answer depends on your situation. Selling before prices drop could allow you to lock in a higher sale price. However, if you plan to buy another home at the same time, you'll likely pay more for your new property — potentially at a higher mortgage rate. That said, now could be a good time to sell if you're downsizing, especially if you won't need to take out a mortgage on a smaller or less expensive home. Ultimately, no one has a crystal ball to foresee when the right time to sell will be based on current market conditions. But another factor to consider is the possibility of a recession. A recent Deutsche Bank survey puts the probability of a U.S. recession within the next 12 months at 43%. If you can afford your current home, it may be wise to sit tight rather than take on the financial burden of a more expensive home amid uncertain economic conditions. Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Cost-of-living in America is still out of control — and prices could keep climbing. Use these 3 'real assets' to protect your wealth today, no matter what Trump does This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Yahoo
27-03-2025
- Business
- Yahoo
Americans Are Losing Faith in Trump's Ability To Fix the Housing Market—With 70% Fearing an Impending Crash
A growing number of Americans fear that an already weak housing market is teetering on the verge of collapse, sending a grim warning sign as the spring homebuying season begins in earnest. Several recent surveys show that anxiety is growing over the future of mortgage rates, home prices, and the overall stability of the housing market. The downturn in consumer sentiment might come as unwelcome news to President Donald Trump, who campaigned on plans to lower mortgage rates, reduce inflation, and boost home affordability. Yet Trump's trade policies have left 72% of Americans believing tariffs will hurt the U.S. economy, with 81% worried about the impact of tariffs and potential trade wars, according to a new survey from Clever Real Estate, a St. Louis-based real estate company. That survey found 70% fear an impending housing market crash—while 32% fear they won't be able to afford housing payments as a result of weakness in the economy. 'There's no doubt that the current state of the housing market is a source of anxiety for prospective buyers and sellers,' says senior economist Joel Berner. 'Buyers are faced with high mortgage rates, which are poised to remain high due to the inflationary nature of the Trump administration's trade policy.' Still, Berner does not view a housing market crash as likely in the near future, because for now, demand for homes remains strong, even among those currently unable to afford them. 'If home prices did drop, we would expect a flurry of buying activity from the pent-up households in the nation that are waiting to form, which would buoy the market naturally,' he says. A recent report from the economic research team estimates that Gen Z and millennial household formation fell short of demographic expectations by 1.6 million last year, due in large part to the lack of affordable housing. Although Trump's tariffs are the latest source of fresh anxiety, consumer concerns about the housing market likely stem mainly from longstanding factors: elevated mortgage rates, high home prices, and ongoing weak home sales figures. In January, total home sales were at an annual pace of just 4.7 million, only modestly above the weak rate seen after the Great Recession between 2008 and 2010, Wells Fargo economists wrote in a recent research note. 'The tepid pace of home sales can not be blamed on a recession,' the Wells Fargo economists wrote. 'Rather, the main factor weighing on residential activity continues to be adverse affordability conditions. In addition to high mortgage rates, home prices continue to rise.' Nationally, home prices continue to rise on an annual basis despite the lack of buyers, with the Case-Shiller home price index up 4.1% in January from a year earlier. Fannie Mae's latest monthly index of homebuying sentiment declined in February, driven largely by consumers' increased skepticism that mortgage rates will decline in the next year. The share of consumers who said it is a good time to buy a home inched up to a still-weak 24%, while the share who say it is a good time to sell dipped to 62%. The most troubling figure from the Fannie Mae survey was the share of respondents who expect their personal financial situation to get worse in the next 12 months, which jumped from 15% in January to 22% in February, the highest level in over a year. Mortgage rates remained persistently high after the Federal Reserve began cutting its policy rate last fall, dashing hopes that easier monetary policy would bring relief to the housing market. Mortgage rates have now stayed above 6% since September 2022, remaining mostly between 6% and 7% with a few peaks above that range, according to Freddie Mac. Average rates of 30-year fixed home loans last stood at 6.67% for the week ending March 20. A recent survey of consumer expectations from the Federal Reserve Bank of New York found that households expect mortgage rates to rise to 7% a year from now, and to remain that high in three years, both record-high expectations for the survey. The economic research team's 2025 forecast projected that mortgage rates would fall to the low-6% range by the end of the year, although Berner admits high-6% or low-7% rates 'are certainly not out of the realm of possibility.' 'Mortgage rates have seriously slowed the housing market as many would-be sellers are locked into the low rates they got a few years ago and are unwilling to move, and they constrain the budgets of would-be buyers,' says Berner. How to Find Temporary Housing—Your Home Between Homes Evade Eviction With These Tips on Tenant Law Need Cash? How to Rent Out a Room in Your House
