Market Studies

Asking prices are rising at an especially fast pace in the least affordable housing markets, according to Trulia. Nationally, asking prices increased 9.5 percent year-over-year in May, but in the ten least affordable metros, asking prices spiked 16.3 percent during the same time period. Among the least affordable markets, seven were in California. Honolulu was found to be the least affordable metro, where 74 percent of monthly household income is used to pay a mortgage.

The economy added 175,000 jobs in May, and the unemployment rate ticked up to 7.6.percent, the first month-over-month increase since January, the Bureau of Labor Statistics reported Friday. Economists had forecast payrolls would grow by 170,000, and that the unemployment rate would remain at 7.5 percent. The increase in the unemployment rate came from an increase in the labor force as more people looked for work. As a result, the number of persons meeting the government definition of unemployed went up.

According to Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 3.91 percent (0.7 point) for the week ending June 6, up 10 basis points over last week. Last year at this time, the 30-year FRM averaged 3.67 percent. Meanwhile, Bankrate's weekly national survey had the 30-year fixed rising to 4.1 percent, its highest level since April 2012. The 15-year fixed increased to 3.28 percent, while the 5/1 ARM rose 12 basis points to 2.93 percent.

Fixer-upper homes might be the solution for potential buyers who are having trouble with snagging a good deal in this low-inventory environment. According RealtyTrac's estimate, there are more than 51,000 of these discounted properties. To help buyers narrow down their search, RealtyTrac ranked the top 15 cities for fixer-uppers. Detroit, Michigan reigned as the best city to buy a fixer-upper. In the Motor City, RealtyTrac found there are 3,773 banked-owned properties built before 1960 that cost under $100,000.

Household net worth jumped by $3 trillion in the first quarter as real estate values grew $836 billion, the Federal Reserve reported Thursday in its quarterly Flow of Funds report. With a drop in mortgage debt, owners' equity in real estate increased a sharp 2.5 percentage points to its highest level since 2007. Owners' equity as a percentage of real estate value has been on a steady upward trajectory since dropping to 36.3 percent in the first quarter of 2009.

National foreclosure inventory fell to 3.2 percent in April, its lowest level in four years, according to Lender Processing Services' Mortgage Monitor report. The report also revealed a hike in foreclosure sales in judicial states, which stimulated the decline in the national foreclosure inventory. Foreclosure sales in judicial states jumped 17 percent over the month of April and reached their highest level since 2010 when foreclosure moratoria and process reviews brought the foreclosure process to a near halt across the nation, LPS stated.

First-time claims for unemployment insurance fell back to 346,000 for the holiday-shortened week ending June 1, dropping 11,000 after increasing 13,000 one week earlier, the Labor Department reported Thursday.

A recent industry survey found rising home prices are impacting investor activity in a few ways--most notably encouraging them to hold properties longer and to decrease their purchase activity. The survey, conducted by ORC International, revealed more than half of investors plan to keep their investment properties for five years or more. Investors in these categories ""realize the benefits of rising rents and low vacancy rates,"" according to Chris Clothier, a partner at MemphisInvest.com and Premier Property Management Group.

When it comes to homeownership, the three largest ethnic groups in the nation share similar visions and attitudes, according to a survey from Better Homes and Gardens Real Estate. The survey included three groups--Caucasians, African-Americans, and Hispanics--with 400 respondents represented for each group. When asked about location, the majority of respondents from each group showed a preference for suburbs, with 59 percent of African Americans in this category, 55 percent of Caucasians, and 50 percent of Hispanic Americans.

The nation's economy grew at a ""modest to moderate pace"" from early April through the end of May, the Federal Reserve said Wednesday in its periodic Beige Book. From late February through early April, the last Beige Book released described economic growth simply as ""moderate."" The sole bright spot in Wednesday's report was in the Dallas Federal Reserve District, which had ""strong economic growth."" The Beige Book reported slowdowns as a result of federal budget sequestration, which forced a mandatory cutback in spending.