The Latest: Housing Market Trends, July 18, 2023

As the 2023 homebuying season continues to evolve, median home prices have been in the $400,000’s, while 30-year fixed rate mortgages have stayed near 6 or 7%. Whether you’re looking to buy or refinance, here are some of “the latest” housing market trends to watch, followed by some of our top tips to maximize them.

Homebuyers turning to builders as existing home supply remains low

Sales of new single-family homes jumped 12.2% in May, according to the National Association of Home Builders (NAHB). The median new single-family home sale price was $416,300, down 7.6% compared to May 2022. Builders are seeing added interest as buyers face a low existing-home inventory. To that point, the NAHB noted that:

• New homes represented 31% of all housing inventory in May but are typically 10–15%.
• Sales of new homes were up 20% from a year ago, while sales of existing homes were down 20%. Check out our tips on buying from a builder below.

Existing home prices down year-over-year in late spring, says NAR

The median price for an existing single-family home was $401,100 in May, according to the National Association of REALTORS. That was a decrease of 3.4% versus May 2022. Sellers are receiving about 3 offers per listing, their chief economist added, making bidding wars a possibility for buyers.

Median mortgage payment settled near $2,100 in May, higher for new homes

Budgeting for a mortgage payment? The national median homebuyers applied for in May was $2,165, according to the Mortgage Banker’s Association’s (MBA) Purchase Applications Payment Index. That was $268 more the year before.

• Median payments were lower for FHA loan applicants—$1,802—and higher for conventional loan applicants—$2,202.
• The MBA’s Builders’ Purchase Application Payment Index found a median mortgage payment of $2,515.

Some homebuyers are adjusting to 6-7% rates—here’s one strategy

Rates for 30-year fixed mortgages have stayed in the 6-7% range this year, and many buyers are moving forward with purchases. Freddie Mac’s chief economist said in late June that “homebuyers have adjusted and driven new home sales to its highest level in more than a year.” One mortgage option that’s helping some buyers adjust is buydowns. Buydowns allow a buyer to “buy down” their mortgage rate temporarily—usually for the first 1–2 years of a mortgage—for a fee. The fee is often paid by sellers and builders to help a sale go through. Some lenders, including Mr. Cooper, also offer them. Learn how our 1% Mortgage Markdown works.

Nearly 1 out of 2 mortgaged homes “equity-rich” in early 2023

A report from real estate data firm ATTOM found that 47.2% of mortgaged homes were “equity-rich” in the first quarter of 2023. That meant homeowners had a minimum of 50% of home equity built up. On a mortgaged home with a market value of $400,000, that was equal to at least $200,000 in equity.

• If you’re thinking about a cash-out refinance,* but don’t want to give up your current mortgage’s low rate, talk to us about our home equity loan options. Qualifying borrowers can create a second mortgage for the amount they cash out, leaving their first mortgage as is.

Related reads

• Mr. Cooper’s Rates
• 6 Tips for Buying from a Builder
• 5 Ways to Win a Bidding War on a House
• Mr. Cooper Home Equity Loan
• Mr. Cooper’s 1% Mortgage Markdown & Rate Swap offers

*A cash‐out refinance increases your mortgage debt and reduces the equity you may have in your home. Your monthly mortgage payments may be higher.

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