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This week’s news roundup has two trending stories that center on the great state of Texas.
Tiny homes are big news in the Loan Star, and the Washington Post has declared that the housing market recession is ending, and they point to Texas as a prime example of why.
Let’s look at what’s making headlines in the world of real estate news and mortgage rates.
Latest average U.S. Mortgage Rates 2023-07-13
- 30-year fixed: 6.96% (previous week: 6.81%)
- 15-year fixed: 6.30% (previous week: 6.24%)
- 30-year FHA index: 6.697% (previous week: 6.894%)
- 30-year fixed rate Jumbo index: 6.998% (previous week: 7.187%)
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Tiny homes gaining popularity in Austin communities
Apparently, not everything is bigger in Texas, as several Lone Star communities are experimenting with tiny home living.
Village Farm, Austin
The charming Village Farm community in Austin is a new type of neighborhood where tiny homes and agriculture coexist.
Residents can immerse themselves in the farm life by volunteering, shopping at the farmer’s market, or joining the produce share program in what is essentially a working farm at its core.
The community offers seven different floor plans, ranging from $165,995 to $187,995—quite a significant difference from the state average of $303,971 (at the time of publishing).
Each unit features an area of only about 399 square feet. Opting for a 30-year fixed-rate mortgage on the most affordable property would leave you with a monthly payment of approximately $461, excluding interest. There is also a monthly community fee of $750, which covers lot rental, farm access, landscaping, fitness centers, pools, and various other amenities.
Located about 20 miles away from Village Farm, Casata presents another option for those seeking a tiny home experience.
However, Casata sets itself apart by combining resort-style amenities with scaled-down living with something known as micro homes, also boasting around 400 square feet per unit. On-site, residents can enjoy an outdoor amphitheater, a swimming pool, and a co-working space, among other impressive conveniences.
These unique tiny home communities in Austin show that size doesn’t always determine the significance of living space.
The Washington Post predicts the housing market recession ending
According to a recent article by the Washington Post, the housing market recession appears to be ending, with positive signs of recovery.
Builders in Dallas, they say, are benefiting from improved supply chains, allowing faster construction.
Although mortgage rates have risen significantly, buyer demand remains strong for homes ranging from $250,000 to $850,000 in Texas. The market frenzy of the pandemic has subsided, resulting in more available homes and stabilizing prices.
If true, this is good news for the overall economic health of the country, of which the housing sector is a key driver of economic growth.
Housing shortage still persists
Despite the positive outlook, there is still a nationwide housing shortage estimated to be between 1.5 to 5 million homes.
Existing homeowners with low mortgage rates are hesitant to sell, causing supply constraints. However, there are promising signs of recovery, with an increase in sales of newly built single-family homes and a rise in home prices after a dip.
Some areas, like Boston and Charlotte, have experienced price growth, but others are struggling to adjust to the current market reality.
As the market recalibrates, sellers in certain locations, such as Boise and South Venice, are reluctant to lower their prices to reflect the current conditions.
The Federal Reserve’s actions have already played a significant role in the housing market’s future trajectory, and potential further rate hikes may further impact buyer affordability.
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That’s it for this week’s real estate news.
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