Real Estate Is Americans’ Preferred Long-Term Investment

From Florida Realtors

When asked about the best investment for 10-plus years, 31% picked real estate with millennials the top pro-real estate generation. Only 20% preferred stocks.

NEW YORK – When it comes to how Americans prefer to invest long-term, real estate is still the most favored investment option – 31% said it’s their preferred way to invest money they wouldn’t need for more than 10 years, according to a poll by Bankrate.com.

While real estate has been among the top choices in each of the seven years of Bankrate polling, 31% is the highest percentage to date. The stock market was a distant second, at 20%, while cash investments such as savings accounts or CDs was a close third at 19%. Of the rest, 11% pointed to gold or other precious metals, 7% to bonds, and 4% to Bitcoin or other cryptocurrency.

Generations

Contrary to the stereotype about millennials and their propensity to not buy homes, adults age 23-38 prefer real estate more than any other generation (36%), and the age group with the highest preference for cash has shifted to baby boomers.

Overall, however, real estate was the top choice of all generations, including Gen X (ages 39-54 at 31%), baby boomers (ages 55-73 at 30%) and the Silent Generation (ages 74+ at 23%).

“Millennials are higher on real estate than any other age group, have cooled a bit on cash, and still aren’t keen on the stock market when investing for more than 10 years,” says Greg McBride, CFA, chief financial analyst for Bankrate.com. “Millennials in particular should be turning to the stock market for long-term investing, such as retirement.”

Income groups

The preference for real estate was virtually the same among all income groups, while households with income of $50,000 per year or more were more than twice as likely to cite the stock market than households with income below $50,000 per year. Lower income households (below $50,000 per year), do have a higher preference for cash investments and gold or other precious metals than households.

Before Federal Reserve Chairman Jerome Powell announced a cut in interest rates last month, Bankrate asked whether that would change behaviors. A majority said that lower interest rates will not make them more likely to invest in the stock market, borrow money, or put money into savings accounts or CDs: 40% said they would be more likely to put money in savings accounts or CDs as a result of declining interest rates. Only 33% said they would be more likely to invest in the stock market. Just 26% said they would be more likely to borrow money.

“A Fed interest rate cut is unlikely to influence how consumers manage their finances. Only a minority of Americans say they would save more, invest more, or borrow more as a result,” added McBride. “A rate cut or two is certainly not a reason for consumers to panic. The Fed raised rates nine times in a three- year period. If they walk back one or two of those, savers are still far ahead of where they were for much of the past decade.”

© 2019 Florida Realtors®

Happy Floridians: July Consumer Sentiment Up 3.7 Points

Consumers felt better in both the short- and long-term measurements, suggesting optimism for the future and content in the present.

GAINESVILLE, Fla. – As the U.S. entered its longest economic expansion in its history, consumer sentiment among Floridians increased 3.7 points in July to 100.2 – an increase from June’s revised figure of 96.5.

All five components that make up the index increased.

Current conditions
Floridians’ opinions of their personal financial situation now compared with a year ago increased 3.6 points from 93.2 to 96.8, though opinions varied greatly by demographics; male respondents and those under age 60 reported less-favorable opinions. Similarly, opinions as to whether now is a good time to buy a major household item like an appliance increased 3.2 points from 100.3 to 103.5, though men reported less-favorable opinions.

“Overall, these two components showed that views regarding current economic conditions improved among Floridians in July,” says Hector H. Sandoval, director of the Economic Analysis Program at UF’s Bureau of Economic and Business Research.

Future expectations
The three components corresponding to Floridians’ expectations about future economic conditions also improved. Expectations of personal financial situations a year from now increased 4.5 points from 103.5 to 108.

The outlook of U.S. economic conditions over the next year showed the greatest increase in this month’s reading, up 5.1 points from 92.6 to 97.7.

Finally, expectations of U.S. economic conditions over the next five years increased 2.2 points from 92.7 to 94.9. These expectations are shared by almost all Floridians; however, men again reported less-favorable expectations.

“Despite the divided views by gender, Floridians are overall more optimistic in July,” says Sandoval. “The gain in July’s reading comes from consumers’ expectations about the national economy in the short run.”

Economic indicators have remained positive. July is the 121st consecutive month of gross domestic product growth since the Great Recession, breaking the record of 120 months of economic growth between March 1991 and March 2001. Starting in June 2009, the current growth trend is now the longest economic expansion in U.S. modern history. 

In Florida, unemployment peaked at 11.3% in January 2010 as a result of the Great Recession, but Florida’s labor market strengthened with solid job gains statewide and has led to an unemployment rate of 3.4% in June 2019. Compared with a year ago, the number of jobs increased by 218,800 in June, an increase of 2.5%.

Among all industries, education and health services gained the most jobs, followed by professional and business services, leisure and hospitality, and construction. The information industry was the only sector losing jobs. Moreover, according to the U.S. Bureau of Economic Analysis, in the first quarter of 2019, Florida’s gross state domestic product increased 2.9%.

“Looking ahead, in view of the labor market conditions and current economic outlook, we expect consumer sentiment in Florida to remain high in the coming months, continuing the economic expansion,” Sandoval said.

© 2019 Florida Realtors®

U.S. Consumer Confidence Surges in July

While confidence took a small hit in June (124.3), it rose 11.4 points this month to 135.7, and results should “continue to support robust spending in the near-term.”

BOSTON – The Conference Board Consumer Confidence Index rebounded 11.4 points in July following a decrease in June.

The Index now stands at 135.7, up from 124.3 in June. The Present Situation Index – based on consumers’ assessment of today’s business and labor market conditions – increased from 164.3 to 170.9. The Expectations Index – based on consumers’ short-term future outlook for income, business and labor market conditions – increased from 97.6 last month to 112.2 this month.

“After a sharp decline in June driven by an escalation in trade and tariff tensions, Consumer Confidence rebounded in July to its highest level this year,” says Lynn Franco, senior director of economic indicators at The Conference Board. “Consumers are once again optimistic about current and prospective business and labor market conditions. In addition, their expectations regarding their financial outlook also improved. These high levels of confidence should continue to support robust spending in the near-term despite slower growth in GDP.”

Current conditions
Consumers’ assessment of present-day conditions improved. Those claiming business conditions are “good” increased from 37.5% to 40.1%; however, those saying business conditions are “bad” also increased slightly, from 10.6% to 11.2%.

Consumers’ appraisal of the job market was also more favorable. Those saying jobs are “plentiful” increased from 44.0% to 46.2%, while those claiming jobs are “hard to get” declined from 15.8% to 12.8%.

Future expectations
Consumers were also more optimistic about the short-term outlook. The percentage expecting business conditions to be better six months from now increased from 19.1% to 24.0%, while those expecting business conditions to get worse declined from 12.6% to 8.7%.

Consumers’ outlook for the labor market was also more upbeat. The proportion expecting more jobs in the months ahead increased from 17.5% to 20.5%, while those anticipating fewer jobs decreased from 13.9% to 11.5%. Regarding short-term income prospects, the percentage of consumers expecting an improvement increased from 20.5% to 24.7%, while the proportion expecting a decrease declined from 7.5% to 6.3%.

The monthly Consumer Confidence Survey is based on a probability-design random sample conducted for The Conference Board by Nielsen. The cutoff date for the preliminary results was July 18.

© 2019 Florida Realtors®

NAR: Pending Home Sales Climb 2.8% in June

It’s the second consecutive month with the number of listings under contract increasing and the first pending-sale year-over-year increase after 17 months of declines.

WASHINGTON – Pending home sales continued to rise in June, marking two consecutive months of growth, according to the National Association of Realtors® (NAR). Each of the four major regions recorded a rise in contract activity, with the West seeing the highest surge.

The Pending Home Sales Index (PHSI) – a forward-looking indicator based on contract signings – moved up 2.8% to 108.3 in June, an increase from 105.4 in May. Year-over-year contract signings jumped 1.6%, snapping a 17-month streak of annual decreases.

The 2.8% increase is likely the start of a positive trend for home sales, predicts NAR Chief Economist Lawrence Yun. 

“Job growth is doing well, the stock market is near an all-time high and home values are consistently increasing,” says Yun. “When you combine that with the incredibly low mortgage rates, it is not surprising to now see two straight months of increases.”

The uptick in pending sales suggests that buyers are enthusiastic about the market and of the potential wealth gain via homeownership – but Yun says home builders still need to increase inventory. 

“Homes are selling at a breakneck pace, in less than a month, on average, for existing homes and three months for newly constructed homes,” he says. “Furthermore, homeowners’ equity in real estate has doubled over the past six years to now nearly $16 trillion – but the number of potential buyers exceeds the number of homes available. We need to see sizable growth in inventory, particularly of entry-level homes, to assure wider access to homeownership.”

June pending home sales regional breakdown

All regional indices are up from May and from one year ago. The PHSI in the Northeast rose 2.7% to 94.5 in June and is now 0.9% higher than a year ago. In the Midwest, the index grew 3.3% to 103.6 in June – 1.7% greater than June 2018. 

Pending home sales in the South increased 1.3% to an index of 125.7 in June – 1.4% higher than last June. The index in the West soared 5.4% in June to 96.8 and increased 2.5% year-over-year. 

© 2019 Florida Realtors®

High-Debt Home Borrowers May No Longer Qualify in 2021

From Florida Realtors

The “Qualified Mortgage Patch” helps Fannie- and Freddie-backed lenders qualify people with higher debt-to-income ratios, but it expires, at least for now, in Jan. 2021.

WASHINGTON – The Consumer Financial Protection Bureau (CFPB) issued an Advance Notice of Proposed Rulemaking (ANPR) relating to its QM Rule, commonly called the qualified mortgage patch. Should the QM Rule expire in January 2021, home borrowers with enough debt to exceed the QM debt-to-income test will likely be turned down for a loan.

The QM patch was designed as a temporary provision applicable to certain mortgage loans eligible for purchase or guarantee by the Government Sponsored Enterprises (GSEs), Fannie Mae and Freddie Mac. Fannie and Freddie back loans for more than 50% of all U.S. mortgages.

“On Thursday, members of NAR’s (National Association of Realtors®) policy staff, Joe Ventrone and Ken Fears, were briefed by Consumer Financial Protection Bureau (CFPB) Director Kathy Kraninger on the agency’s review of the Qualified Mortgage Patch,” says NAR President John Smaby.

“The QM patch was intended as a temporary measure to prevent turmoil in the mortgage and real estate market as the CFPB implemented the Ability to Repay rule,” Smaby explains. “Analysts estimate that as much as 30% of mortgages for home purchases fall into this market segment, and its disruption could result in higher costs and/or reduced access to mortgages for otherwise creditworthy homebuyers. This, in turn, could send ripples throughout the U.S. housing market.

Through the ANPR, the CFPB will solicit comments on possible amendments to the rule, including whether to revise Regulation Z’s definition of a qualified mortgage in light of the GSE Patch’s scheduled expiration. The ANPR seeks information and comment on whether the definition of qualified mortgage should retain a direct measure of a consumer’s personal finances (for example, debt-to-income ratio), and whether that definition should include an alternative method for assessing financial capacity. 

“The national mortgage market readjusting away from the patch can facilitate a more transparent, level playing field that ultimately benefits consumers through stronger consumer protection,” says CFPB Director Kathleen L. Kraninger. “We want to hear all perspectives on how to move beyond the GSE Patch, the impact on credit, the role of the private mortgage market, and possible modifications to the definition of qualified mortgages and the rules governing the documentation of debt and income. The Bureau is committed to ensuring a smooth and orderly mortgage market throughout its consideration of these issues and any resulting transition away from the GSE Patch.”

“Going forward, NAR will continue to advocate for an extension of the patch and a permanent solution that will prevent disruption as we work with CFPB to secure stability in the housing market,” says Smaby.

A copy of the ANPR with instructions on how to submit a comment are posted online.

© 2019 Florida Realtors®

NAR: U.S. Existing-Home Sales Falter 1.7% in June

“Imbalance persists for mid-to-lower priced homes with solid demand and insufficient supply, which is consequently pushing up home prices,” says NAR economist.

WASHINGTON – Existing-home sales weakened in June, and total sales saw a small decline after a previous month of gains, according to the National Association of Realtors® (NAR).

While two of the four major U.S. regions recorded minor sales jumps, the other two – the South and the West – experienced greater declines last month.

Total existing-home sales – completed transactions that include single-family homes, townhomes, condominiums and co-op – dropped 1.7% from May to a seasonally adjusted annual rate of 5.27 million in June. Sales as a whole are down 2.2% from a year ago (5.39 million in June 2018).

“Home sales are running at a pace similar to 2015 levels – even with exceptionally low mortgage rates, a record number of jobs and a record high net worth in the country,” says Lawrence Yun, NAR’s chief economist. Yun says the nation is in the midst of a housing shortage and much more inventory is needed.

“Imbalance persists for mid-to-lower priced homes with solid demand and insufficient supply, which is consequently pushing up home prices,” he adds.

Yun says other factors could also be contributing to the low number of sales.

“Either a strong pent-up demand will show in the upcoming months, or there is a lack of confidence that is keeping buyers from this major expenditure,” he says. “It’s too soon to know how much of a pullback is related to the reduction in the homeowner tax incentive.”

The median existing-home pricefor all housing types in June reached an all-time high of $285,700, up 4.3% from June 2018 ($273,800). June’s price increase marks the 88th straight month of year-over-year gains.

Total housing inventory at the end of June increased to 1.93 million, up from 1.91 million existing-homes available for sale in May, but unchanged from the level of one year ago. Unsold inventory is at a 4.4-month supply at the current sales pace, up from the 4.3-month supply recorded in both May and in June 2018.

Properties typically remained on the market for 27 days in June, up from 26 days in May and in June of 2018 – but 56% of homes sold in June were on the market for less than a month.

According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage decreased to 3.80% in June, down from 4.07% in May. The average commitment rate across all of 2018 was 4.54%.

“Historically, these rates are incredibly attractive,” says NAR President John Smaby. “Securing and locking in on a mortgage now – given the current, favorable conditions – is a decision that will pay off for years to come.”

First-time buyers were responsible for 35% of sales in June, up from 32% the month prior and up from the 31% recorded in June 2018. NAR’s 2018 Profile of Home Buyers and Sellers – released in late 20184 – revealed that the annual share of first-time buyers was 33%.

As the share of first-time buyers rose, individual investors, who account for many cash sales, purchased 10% of homes in June, down from 13% recorded in both May 2019 and June 2018. All-cash sales accounted for 16% of transactions in June, down from May and a year ago (19% and 22%, respectively).

Distressed sales – foreclosures and short sales – represented 2% of sales in June, unchanged from May but down from 3% in June 2018. Less than 1% of June 2019 sales were short sales.

Regional breakdown
Compared to May, June existing-home sales rose slightly in the Northeast and Midwest but decreased in the South and West regions. Sales in all regions were still lower compared to one year ago, with the most significant declines in the Northeast and West. Median home prices rose in all regions, with the highest gains in the Midwest and South.

June existing-home sale numbers in the Northeast increased 1.5% to an annual rate of 680,000, a 4.2% decline from a year ago. The median price in the Northeast was $321,200, up 4.8% from June 2018.

In the Midwest, existing-home sales inched up 1.6% to an annual rate of 1.25 million, which is a 1.6% decline from June 2018. The median price in the Midwest was $230,400, a 6.7% jump up from a year ago.

Existing-home sales in the South fell 3.4% to an annual rate of 2.25 million in June, down 0.4% from a year ago. The median price in the South was $248,600, up 4.9% from one year ago.

Existing-home sales in the West fell 3.5% to an annual rate of 1.09 million in June, 5.2% below a year ago. The median price in the West was $410,400, up 2.3% from June 2018.

Single-family and condo/co-op sales
Single-family home sales sat at a seasonally adjusted annual rate of 4.69 million in June, down from 4.76 million in May and down 1.7% from 4.77 million a year ago. The median existing single-family home price was $288,900 in June, up 4.5% from June 2018.

Existing condominium and co-op sales were recorded at a seasonally adjusted annual rate of 580,000 units in June, down 3.3% from the prior month and down 6.5% from a year ago. The median existing condo price was $260,100 in June, which is up 2.8% from a year ago.

“Condos are typically more affordable than a detached single-family home, but only a small fraction of condos are FHA-certified,” says Yun.

© 2019 Florida Realtors®

Fla.’s Housing Market: Median Prices, Inventory Up in June

Florida Realtors Pres. Sain: Fla.’s home sales cooled slightly in June though median prices rose. Year-over-year, single-family median prices up 3.8% to $270,000, sales were down 1.9%. Condo median prices up 2.6% to $194,900, sales were down 9.4%.

ORLANDO, Fla. – In June, Florida’s housing market reported rising median prices and increased inventory, including pending inventory and active listings inventory compared to a year ago, according to the latest housing data released by Florida Realtors®. Sales of single-family homes statewide totaled 27,283 last month, down 1.9% from June 2018.

“Sales cooled slightly in June, following what was a record-breaking month for home sales in Florida in May,”says 2019 Florida Realtors President Eric Sain, a Realtor and district sales manager with Illustrated Properties in Palm Beach.“However, inventory levels continued to improve in June, which helps ease the pressure of rising home prices and offers more options for potential homebuyers who may have been waiting to enter the market. Florida’s single-family inventory (active listings) last month rose 2% over June 2018, while condo-townhouse inventory increased 4.6%. Meanwhile, pending inventory for existing single-family homes was up 4.9% year-over-year, while pending inventory for existing condo-townhouse properties was up 2.5%.

“It may be difficult for a buyer or seller to stay on top of changing conditions in local housing markets, but a local Realtor will put his or her knowledge and expertise to work for you.”

Pending inventory is the number of listed properties that were under contract at the end of the month or data collection period.

June’s statewide median sales prices for both single-family homes and condo-townhouse properties rose year-over-year for 90 months in a row. The statewide median sales price for single-family existing homes was $270,000, up 3.8% from the previous year, according to data from Florida Realtors Research Department in partnership with local Realtor boards/associations. Last month’s statewide median price for condo-townhouse units was $194,900, up 2.6% over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.

According to the National Association of Realtors® (NAR), the national median sales price for existing single-family homes in May 2019 was $280,200, up 4.6% from the previous year; the national median existing condo price was $257,100.In California, the statewide median sales price for single-family existing homes in May was $611,190; in Massachusetts, it was $420,000; in Maryland, it was $312,500; and in New York, it was $273,200.

Looking at Florida’s condo-townhouse market in June, statewide closed sales totaled 10,094, down 9.4% compared to a year ago. Closed sales may occur from 30- to 90-plus days after sales contracts are written.

“Sales of existing homes in Florida eases a little in June,”said Florida Realtors Chief Economist Dr. Brad O’Connor. “Single-family home sales were down compared to last June in 14 of the state’s 22 metro areas, falling by slightly less than 2% on a statewide basis. Year-to-date, however, single family home sales are still up by 2.1%.

“The latest figures on inventory levels for June suggest that the recent reprieve in our longer-term single-family home shortage may be coming to an end. Year-over-year differences in inventory levels have been declining since the end of January, when there were almost 14% more homes listed than a year prior. As of the end of June, however, this gap narrowed to just 2%. It’s possible that at the end of July, in fact, we might just be back right where we started a year ago.”

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 3.80% in June 2019, down from the 4.57% averaged during the same month a year earlier.

To see the full statewide housing activity reports, go to Florida Realtors Research & Statistics section on floridarealtors.org. Realtors also have access to local market stats (password protected) on Florida Realtors’ website.

© 2019 Florida Realtors®

Realogy and Amazon Announce Co-Marketing Agreement

TurnKey, an “Amazon Move-In Benefit,” provides $1,000 to $5,000 of complimentary Amazon home services and fully-installed smart home products courtesy of Realogy.

MADISON, N.J. – Realogy Holdings Corp. announced a collaboration with Amazon to launch TurnKey, a new homebuying program. The program is currently available in 15 U.S. markets, including Orlando and Tampa.

It’s also offered in San Francisco, Chicago, Dallas/Fort Worth, Seattle, Phoenix, Houston, Atlanta, Denver, Minneapolis/St. Paul, Charlotte, Sacramento and Washington, D.C. Expansion is likely but not announced.

“The Amazon move-in benefit will enable homebuyers to adapt the offering to their needs – from help assembling furniture, to assisting with smart home device set up, to a deep clean and more,” says Pat Bigatel, director, Amazon home services.

Amazon calls TurnKey an “easier and more rewarding homebuying experience” that offers Amazon customers the following benefits:

• Real estate agent recommendations: It says that homebuyers will be connected to an agent “according to the homebuyer’s profile,” and that the recommended agent will be “affiliated with one of Realogy’s trusted residential real estate brands … based on their exceptional customer service record and local market expertise.”

• Free Amazon move-in benefit:After closing, Amazon will connect TurnKey buyers with services and experts in their area to perform upgrades, with the value of the upgrade based on the purchase price of the home. At the base level of homes valued from $150,000 to $399,000, buyers get a $450 credit toward moving expenses and three Amazon-brand smart-home products. Homes worth $400,000 to $699,000 get a package worth $2,500 ($1,000 for moving expenses and six various Amazon smart-home products). Homes valued over $700,000 get a $5,000 package ($1,500 toward moving expenses and 26 various smart-home products).

© 2019 Florida Realtors®

What Are You Willing to Do to Own a Home?

Survey: Almost half of Americans saving to buy or renovate a home took a side job; slightly more than a third have done other things, such as selling stuff online.

SAN FRANCISCO – According to a Wells Fargo survey, Americans are willing to do what it takes to make their homeownership goals a reality – such as taking on a side job, cutting expenses or considering a less-expensive location.

The Wells Fargo 2019 “How America Views Homeownership” survey was conducted by The Harris Poll April 17–29, 2019, among 1,004 U.S. adults 21 and older. Key findings include:

• Nearly half of Americans who are saving to buy or renovate a home (49%) have done work outside their primary job to supplement their income to pay for it, such as selling items online (37%), starting a small side business (21%), driving for a rideshare company (18%) and dog sitting/walking (16%).

• Nearly eight in 10 non-homeowners (78%) say they would be willing to accept their second choice of a city or town in order to afford their own home.

• Nearly three quarters of non-homeowners (74%) say they would be willing to buy a smaller home with fewer amenities.

• Over seven in 10 Americans (72%) say they would give up something to save for a down payment, including dining out (44%), going to events (43%) and vacations (38%).

• Millennials who don’t own homes are even more willing to make trade-offs, such as considering a second choice of city (85%), and millennials as a whole say they are more willing to take steps – such as side jobs (70%) or cutting expenses (83%) – in order to save.

Homeownership is still the goal

Even in the wake of the Great Recession and current affordability concerns, Americans see homeownership as a clear metaphor for adulthood and achieving the American Dream. For most Americans (70%), owning a home is seen as a sign that someone is a “successful adult,” on par with having a career (73%). In fact, homeownership is much more widely equated with being a successful adult (more than twice as much) than having children (34%) or getting married (32%).

Nearly nine in 10 adults (89%) say the benefits of homeownership outweigh any drawbacks. Although most current homeowners (69%) had to make hard sacrifices to afford their home, nearly all say buying their home was worth all the sacrifice to save for it (90%). If they had to do it over again, they say they still would choose to buy their home rather than rent (93%). In fact, nearly all homeowners (95%) say that, in the long run, owning a home provides more “bang for your buck” than renting.

Millennials share this commitment: 95% of millennial homeowners say it was worth the sacrifice, and 86% of millennials as a whole say the benefits of homeownership outweigh the drawbacks.

Downpayment is the big thing

The No. 1 hurdle to buying for Americans is saving for the downpayment. More than one in four (27%) say it’s the biggest barrier, and it’s even more pronounced for millennials at 38%.

Americans also have misperceptions about what it takes to increase their opportunity to get financing for a home, citing “perfect” credit (71%), being debt-free (65%), “having a lot of money in the bank” (59%) and having no student debt (38%). In fact, 31% of homeowners say they never thought they would be able to purchase their own home, and that number was even higher (54%) for millennial homeowners.

© 2019 Florida Realtors®

Mortgage Rates Head Up Again – 30-Year At 3.81%

By Florida Realtors

Freddie Mac economist: Continued improvement in consumer spending and optimism over an expected Fed cut of short-term interest rates helped spark the increase.  

MCLEAN, Va. – After three weeks of holding fairly steady, average mortgage rates ticked up this week, according to Freddie Mac’s weekly report.

“Mortgage rates moved higher after remaining at around the same level for about three weeks,” says Sam Khater, Freddie Mac’s chief economist. “The rise in rates was driven by continued improvement in consumer spending and partly due to optimism around a forthcoming cut in short term interest rates, which should provide support for business and investor sentiment.”

Even though rates moved slightly higher, “homebuyers are taking advantage of the multi-year low rates in droves, which is evident in the consistently higher refinance and purchase application volumes,” Khater adds. “The improvement in housing demand should provide sufficient momentum for the housing market and economy during the rest of the year.”  

Weekly mortgage rate changes

• The 30-year fixed-rate mortgage (FRM) averaged 3.81% with an average 0.6 point, up from last week when it averaged 3.75 percent. A year ago, the 30-year FRM averaged 4.52 percent. 

• The 15-year FRM averaged 3.23% with an average 0.5 point, up from last week when it averaged 3.22 percent. A year ago, the 15-year FRM averaged 4.0%. 

• The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.48% with an average 0.4 point, up from last week when it averaged 3.46 percent. A year ago, the 5-year ARM averaged 3.87%.

© 2019 Florida Realtors®