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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 76 June 2024 J O U R N A L » All-cash sales accounted for 28% of transactions in April, identical to March and one year ago. Individual investors or second-home buyers, who make up many cash sales, purchased 16% of homes in April, up from 15% in March but down from 17% in April 2023. » Distressed sales—foreclosures and short sales—represented 2% of sales in April, virtually unchanged from last month and the prior year. Will Home Prices Moderate? "Home sales changed little overall, but the upper-end market is experiencing a sizable gain due to more supply coming onto the market," NAR Chief Economist Lawrence Yun said. "Home prices reaching a record high for the month of April is very good news for homeowners. However, the pace of price increases should taper off since more housing inventory is becoming available." Total housing inventory at the end of April was 1.21 million units, up 9% from March and 16.3% from the previous year (1.04 million). At the current sales pace, unsold inventory stands at 3.5 months, up from 3.2 months in March and 3.0 months in April 2023. Inventory and sales of homes priced at $1 million or more climbed by 34% and 40%, respectively, compared to the previous year. "Mortgage rates tumbled from late October through mid-January and held through early February at some of the lowest rates since May 2023," Hale said. "By mid-February, however, a pick-up in inflation reset expectations and put mortgage rates back on an upward trend. There were ups and downs in mortgage rates throughout March, before another inflation-driven mid-month surge in April. More recent inflation data showed a reversal of this trend and has driven some mortgage-rate relief, but buyers who closed on homes in April, and likely locked mortgage rates in March, faced a fair amount of mortgage rate uncertainty and generally higher rates. These condi- tions were likely a drag on overall home sales. Nevertheless, first-time buyers con- tinue to find opportunities, and account- ed for 33% of sales in April, up from 32% in March and 29% in April 2023." According to Hale, joint research con- ducted by Realtor.com and the National Association of Realtors, markets with low affordability, such as Spokane-Spokane Valley, Washington; Lakeland-Winter Haven, Florida; and Salt Lake City will see the greatest increase in affordability, while currently affordable markets, such as Pittsburgh and Detroit-Warren-Dear- born, Michigan, are expected to see smaller affordability improvements. YOU BETTER SHOP AROUND: MANY HOMEBUYERS LEAVING MONEY ON THE TABLE A ccording to a new LendingTree report, some 45% of home- buyers with mortgages who shopped around received a lesser offer than their first. However, more than half (54%) of individuals with a mortgage for their most recent property received only one mortgage offer. "Different lenders can offer different rates to the exact same borrower," said Jacob Channel, LendingTree Senior Economist. "With that in mind, the first rate you're offered may not be the lowest one you can get. The more offers you can look at, the better." Key Findings: » Most homebuyers still aren't shopping around for their mortgage despite the potential savings. Over half (54%) of those who took out a mortgage for their most recent home purchase only got one loan offer. Meanwhile, 22% got two offers and 17% got three or more. By generation, baby boomers are the least likely to comparison shop, with just 28% doing so. That compares with 62% of millennials. » Homebuyers are likely leaving money on the table when not shopping around. Among those who compared more than one mortgage offer, 45% say the lowest offer didn't come from "Home sales changed little overall, but the upper-end market is experiencing a sizable gain due to more supply coming onto the market." —Lawrence Yun, Chief Economist, NAR