Spanning April to June, the average U.S. home price increased by 3.5 percent when compared to the first quarter of this year. According to the latest FNC Residential Price Index (RPI), the second quarter of this year marks the strongest seasonal price momentum since spring 2005.
Although renting an apartment or home makes a lot of sense for some people, escalating rent prices are eating up a significant portion of renters’ income, according to a Zillow analysis of U.S. rental and mortgage affordability in the second quarter. Renters can expect to spend 30 percent of their income on rent — the highest percentage we have seen to date.
As mortgage applications for existing homes are flattening out, applications for newly built homes are decreasing, the Mortgage Bankers Association (MBA) reported this week. New-home applications fell by 4 percent from June to July and are in line with the overall slowdown we’re seeing in the purchase mortgage market, the association said as it released its monthly Builder Application Survey.