Market Matters

Bidding Wars Wane in U.S. Housing Markets on Supply Rise Source: Bloomberg  Higher mortgage rates and an increase in values are reducing affordability, while also encouraging more sellers to list their properties. This could mean price growth will slow after the biggest increases since 2006. The government shutdown may have weakened confidence as well. Read the full story

Young American adults aren't moving as much as they once did Source: The LA Times The lingering effects of the recession are evident in statistics from the Census Bureau, as young adults are stuck in place due to an inability to obtain sufficient credit and income to move to a new home or apartment. The share of moves fell back to 11.7 percent this year. Read the full story

Down Payments Continue to Decline in Third Quarter Source: DSNews.com Lenders appear to have more confidence to lend with less cash down from qualified borrowers, as down payment percentages for 30-year, fixed rate purchase mortgages continue to decline. A new report reveals that the average down payment has dropped 2.74 percent since Q2 2013, according to a study released by LendingTree. As home values improve, the risk of borrowers defaulting on loans has decreased, so lenders have adjusted minimum requirements to attract borrowers. Making sense of the story The average down payment on a 30-year, fixed-rate mortgage loan in the third quarter of this year was 15.73 percent. According to LendingTree, the national average loan amount for a mortgage loan originated in the third quarter was about $218,344. New Jersey (18.8 percent), California (18.6 percent), New York (18.0 percent), D.C. (17.9 percent), and Massachusetts (17.5%) top the list with the highest average down payment percentages. The lowest average down payment percentage in the third quarter took place in Nebraska, where down payments averaged 12.5 percent of loan values. South Dakota (12.8 percent), Arkansas (12.9 percent), and Alabama (12.9 percent) followed Nebraska in the next lowest down payments. They all average under 13 percent for the quarter. Missouri filled the No. 5 spot with an average down payment of 13.1 percent. D.C. ranked highest in loan amount with an average of $309,768 in the third quarter. Read the full story