Nearly 5.5 million more households are priced out of the housing market today than a year ago, NAR data shows.
The 30-year fixed-rate mortgage rose again this week, averaging 6.79% and forcing more home buyers to recalculate their budget. Mortgage applications for home purchases are falling—down 31% year over year, according to the Mortgage Bankers Association. But economists say mortgage rates are likely to drop in upcoming weeks, which could help alleviate some of the affordability pressure on home buyers.
The jump in rates this week was due to a “buoyant economy” that has “prompted the market to price in the likelihood of another Federal Reserve rate hike,” says Sam Khater, Freddie Mac’s chief economist. “Although there has been a steady flow of purchase demand when rates are in the low- to mid-6% range, that demand is likely to weaken as rates approach 7%.”
Nearly 5.5 million more households are priced out of the housing market today than a year ago, says Nadia Evangelou, senior economist and director of real estate research at the National Association of REALTORS®. “Although there are fewer buyers, more than one-third of properties are sold above their list price due to limited inventory—especially [in price points] that first-time buyers can afford,” Evangelou says.
She adds that she’s hopeful mortgage rates will reverse course in the coming weeks. NAR has been predicting rates to stabilize near 6% in the second half of the year.
Evangelou notes two factors that would help rates fall: positive progress with the debt ceiling deal and a pause on the Federal Reserve’s rate hikes. “Although these two factors do not directly affect mortgage rates, they affect the economy—and eventually mortgage rates,” she says.
Freddie Mac reports the following national averages with mortgage rates for the week ending June 1:
30-year fixed-rate mortgages: averaged 6.79%, rising from last week’s 6.57% average. Last year at this time, 30-year rates averaged 5.09%.
15-year fixed-rate mortgages: averaged 6.18%, up from last week’s 5.97% average. A year ago, 15-year rates averaged 4.32%.
Copyright NATIONAL ASSOCIATION OF REALTORS®. Reprinted with permission.
Smart Home Tech That Enhances Home Efficiency
Homeowners want energy efficient homes. Whether it’s to save money or reduce their carbon footprint, smart home tech can help.
As we find ourselves more deeply embedded in the digital age, it’s exciting to see how technology is reshaping the way we interact with our homes. As home efficiency and green living continue to trend upward, smart home features meet the demand homeowners seek. These five technology advancements make a home more convenient and more efficient, speaking loud and clear to those who want to optimize the comfort of their home while reducing their carbon footprint:
Smart Thermostats
Let’s start with one of the most-adopted components: the smart thermostat. This device is the peak of intuitive design, offering a level of control and efficiency that goes far beyond what we thought possible when central heat and air was invented. Smart thermostats adjust the temperature based on our daily habits, ensuring comfort while minimizing energy use.
Further, their remote control aspect means homeowners can access them from anywhere in the world. Savings on energy bills are often substantial, and the positive environmental impact is a win-win result.
Smart Lighting
The intelligence of our homes doesn’t stop at temperature control. Smart lighting gives homeowners power over ambiance and energy consumption. These systems, which use smartphone apps or voice commands, let homeowners easily adjust lighting to suit their mood, the time of day, or specific tasks. More importantly, they significantly reduce energy waste, as lights can be automatically turned off when no one is in the room. Plus, smart lighting systems often utilize LED bulbs, which consume far less energy than their traditional counterparts.
Smart Shades
These nifty installations offer a seamless blend of comfort, efficiency and style. Some automatically adjust throughout the day, tracking the sun to optimize natural light and heat gain in a room or home. Others have the option to set a timer to lower shades at specific times, which also helps keep a home at a comfortable and efficient temperature. These shades are particularly advantageous for hard-to-reach windows, since they can be controlled remotely.
Smart Irrigation
Efficiency in smart home tech isn’t important only inside the home. Smart irrigation systems ensure the yard gets the attention it needs. These systems are far superior to traditional sprinkler timers, taking into account real-time weather conditions to avoid unnecessary watering. Sensors that come with complete systems or that can be added to existing systems also reduce water use by watering based on plants’ needs rather than a set timer. These key features not only save a significant amount of water but also ensure optimal plant health.
Smart Energy Meters
Innovative products like the Sense energy monitor are the unsung heroes of home efficiency. These devices provide real-time insights into your home’s energy usage by monitoring electricity consumption at the appliance level. With this knowledge, homeowners can identify energy-hogging appliances or unusual power consumption patterns. These insights help homeowners make informed decisions about energy usage, leading to potentially significant savings and a smaller carbon footprint.
Copyright NATIONAL ASSOCIATION OF REALTORS®. Reprinted with permission.
Food & Drink – BHGRE Summer at Home
Cook up some fun this summer! Take cooking classes with famous chefs or enjoy a virtual wine tasting. Now is a great time to learn new recipes.
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