Purchase Locks Rose At The Start Of Spring Buying Season

Mortgage purchase locks increased at the start of the spring homebuying season despite ongoing challenges, setting the stage for more activity.

Rate lock volume increased by 5% from January to February despite rising rates, leading to a net rise in origination activity, according to Optimal Blue’s latest Originations Market Monitor report.

Purchase activity drove the surge, climbing 8.3% from January and buoying the numbers even as refinances tanked. Purchase lock counts were up 7% from the month prior but decreased 7% YOY. It is the smallest such decrease since the Federal Reserve began its inflation fight in March 2022.

Read more from The Mortgage Note.

New Listings Rose to the Highest Level in 17 Months in February

New listings jumped 3.8% month over month on a seasonally adjusted basis in February—the biggest increase in six months—to the highest level since September 2022. They were up 14.8% year over year, the largest annual gain since May 2021.

Active listings, or the total supply of homes for sale, hit the highest level in a year. They climbed 0.8% from a month earlier on a seasonally adjusted basis, and were little changed (-0.1%) from a year earlier—the smallest annual decline in months.

Read more from Redfin.

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Homes Listed for Sale in Early June Sell for $7,700 More

New Zillow research suggests the spring home shopping season may see a second wave this summer if mortgage rates fall

• A Zillow analysis of 2023 home sales finds homes listed in the first two weeks of June sold for 2.3% more. 
• The best time to list a home for sale is a month later than it was in 2019, likely driven by mortgage rates.
• The best time to list can be as early as the second half of February in San Francisco, and as late as the first half of July in New York and Philadelphia. 

Spring home sellers looking to maximize their sale price may want to wait it out and list their home for sale in the first half of June. A new Zillow® analysis of 2023 sales found that homes listed in the first two weeks of June sold for 2.3% more, a $7,700 boost on a typical U.S. home.  

Read more from Zillow.

Share of Cash Buyers Surges to Decade High

More buyers are leveraging equity from a previous home sale and dodging higher mortgage rates.

Home buyers who paid cash accounted for 32% of home sales in January, marking the highest rate since 2014, the National Association of REALTORS® reports. Many leveraged the equity from a prior home sale.

Vacation-home buyers and real estate investors made up the bulk of all-cash buyers over the last six months, according to NAR. However, in the last two years, more buyers purchasing a primary residence are using cash as we;;, NAR Deputy Chief Economist Jessica Lautz says on the association’s Economists’ Outlook blog.

Read more from NAR's Realtor Magazine.

13 Features New-Home Buyers Say Are Essential, Desirable

New research shows that house hunters are willing to accept a smaller property as long as it has these key amenities.

Home buyers appear willing to sacrifice property size to afford homeownership, as the average size of a newly constructed house drops to its lowest level in 13 years—2,479 square feet, according to new research from the National Association of Home Builders. Twenty-six percent of builders say they plan to build even smaller in 2024, the research shows.

Read more from NAR's Realtor Magazine.

What Size Yards Do Americans Want in 2024?

For many Americans, having yard space is a must, and about 66% want a big (over a half-acre) yard, according to a recent survey conducted by LawnStarter.

Demographically, the survey found that the desire for a large yard decreases with age, as people 18-24 are over twice as likely to want a big yard than people older than 65. Additionally, non-Hispanic white respondents had the biggest preference for smaller-than-average yards, followed by Asian respondents.

Of those surveyed, 75.5% reported having a yard currently and 24.5% said they did not. For those with a yard, the large majority (51.5%) had one that was a quarter-acre or less, 21.6% had half an acre, 13.0% had one acre, 4.2% had two acres, 5.6% had three to five acres, 1.2% had six to 10 acres and 1.4% had over 10 acres.

Read more from the PA Association of Realtors.

Seven Things That May Bestow Luck Upon Your Home

St. Patrick’s Day might be a holiday for luck, but here are seven things that may make your home lucky all year round.

1. Elephant Statues or Figurines

These giants are a symbol of strength, longevity and wisdom in Hindu, Thai and Buddhist cultures. Some believe facing elephants north is the best way to bring about good luck and positive energy, while others say facing them towards the outside will help protect the home from negative energy.

2. Horseshoes Above Doors

These are popular symbols of luck, but there are varying beliefs about which way the shoe should be placed. Many believe hanging the horseshoe open-end up will catch good luck, while hanging it open-end down will let it spill.

Read more from the PA Association of Realtors.

We hope you enjoyed this week's Market News. For more information about how we can help you, please contact us.

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Information and analysis is obtained through third parties and is deemed accurate but not guaranteed. Philadelphia Mortgage Advisors is a licensed mortgage lender by the PA Dept. of Banking and Securities, NJ Dept. of Banking & Insurance, the State of DE, the Florida Office of Financial Regulation and MD Mortgage Lender #23004. NMLS #128570.