Improved Home Listing Availability in April

In April, the housing market saw a significant uptick in the number of homes available for sale, with a 30.4% increase compared to last year. This marks the sixth consecutive month of annual inventory growth and the highest level of inventory since 2020 for the first four months of the year. Despite this improvement, inventory levels are still notably lower, down 35.9% compared to the typical levels seen from 2017 to 2019, albeit showing a slight improvement from the previous month’s 37.9% gap. The surge in available homes, particularly in the $200,000 to $350,000 price range, has been notable, outpacing growth in other price categories and primarily driven by increased availability of smaller, more affordable homes in the South.

Additionally, the total number of homes for sale, including pending listings, increased by 20.0% compared to the previous year, marking the fifth consecutive month of annual growth in total listings. However, the number of pending listings increased by a slightly lower rate of 6.3% compared to the previous month, suggesting a stabilization in demand. This inventory growth comes amidst rising mortgage rates in April, driven by expectations of the Federal Reserve’s delayed first cut to the primary policy rate, responding to persistent inflation reports.

The Fed’s Impact on Mortgage Rates: What Homebuyers Should Know.

Mortgage rate hopes for spring homebuyers have been dashed as the Federal Reserve maintains its current stance, signaling no immediate rate cuts. This decision is expected to sustain elevated mortgage rates, with experts predicting rates to hover between 6.5% and 7% for the remainder of the year, significantly higher than the pre-hike levels from 2022 to 2023.

Forecasts from various institutions, including Fannie Mae, the Mortgage Bankers Association, the National Association of Realtors, and Wells Fargo, have all adjusted their predictions upward, expecting rates to remain high throughout the year. For instance, Fannie Mae now anticipates the average 30-year fixed rate to reach 6.4% by year-end, up from its earlier forecast of 5.9% in February. These projections suggest that the cost of borrowing will continue to be a significant factor for homebuyers, impacting monthly payments and overall affordability.

Why Single Women Outpace Single Men in Homeownership

Single women in the U.S. are leading in homeownership compared to single men, with data from the Pew Research Center and LendingTree highlighting this trend. While the exact reasons for this gap remain unclear, experts suggest factors like women’s longer life expectancy, caregiving responsibilities, and a narrowing gender wage gap could contribute to the disparity. Older women, in particular, often outlive their partners, leading to higher rates of homeownership among this demographic. Additionally, women’s roles as caregivers, both for children and elderly family members, may influence their decisions to purchase homes.

Despite ongoing efforts to address the homeownership gender gap, recent data from the National Association of Realtors (NAR) continues to show that single women are outpacing single men in home buying. This trend, driven by factors such as women’s increasing earnings and a growing interest in homeownership among single women, is not a fleeting one. The gender gap in homeownership among unmarried Americans has indeed decreased over time, but the NAR data reveals that single women consistently maintain higher rates of homeownership compared to single men, indicating a persistent preference for homeownership among women.