Just when the housing market was starting to fall into a seasonal pattern, mortgage demand takes off. Mortgage applications to purchase a home—a gauge of the housing market—rose 7% last week compared to the previous week, the Mortgage Bankers Association reported Wednesday. That marks the highest level since April of this year.

Housing inventories have increased slightly, which may be opening up more possibilities to home buyers who had felt shut out. Also, a new report shows that bidding wars are easing, which also may be an incentive for buyers to come back in the hopes they’re facing less competition.

Bidding Wars Reach Their Lowest Level This Year

Still, mortgage applications for home purchases are 11% lower than the same week one year ago. But that does represent the smallest annual decline in 14 weeks, MBA reports.

Home prices continue to climb, which is reflected in mortgage applications too, MBA economist Joel Kan notes. “Both conventional and government purchase applications increased,” he says. The average loan size for a purchase application rose to $396,800.

“The very competitive purchase market continues to put upward pressure on sales prices,” he says.

Mortgage rates remain historically low, offering home buyers some savings from the higher prices. The average contract interest rate for a 30-year fixed-rate mortgage with conforming loan balances was 3.03% last week, MBA reports.

Real estate firms saw business activity increase over the past year as the housing market surged across the country. In 2020, single-office firms had a median brokerage sales volume of $4.5 million and 19 real estate transaction sides, up from $4.2 million and 18 in 2018, according to the National Association of REALTORS®’ newly released 2021 Profile of Real Estate Firms. The biennial survey reflects responses from more than 6,000 REALTOR® executives and senior managers about business activity.

Firms with four or more offices posted a median brokerage sales volume of $146.2 million and 571 transaction sides in 2020, an increase from $100 million and 478 sides two years ago, according to the report.

Nearly three out of five real estate firms expect profitability or net income from all real estate activities to increase this year too, the survey shows.

But they do expect headwinds could undercut some of that growth over the next year. Real estate firms noted the biggest challenges over the next two years that has them most concerned are:

• Maintaining sufficient housing inventory
• Housing affordability constraints
• Competition from nontraditional market participants

Real estate firms also had some generational concerns over housing’s future outlook, such as young adults’ ability to buy a home (58%); young adults’ view of homeownership (33%); and baby boomers retiring from real estate (26%), according to the NAR survey.

Characteristics of Real Estate Firms

The report also revealed several common characteristics among real estate firms. For example, the majority of real estate firms—80%—operated from a single office and usually had three full-time real estate licensees, according to the NAR study. Nearly nine out of 10 were independent and non-franchised.

“Most REALTORS® are small businesses and work closely with small-business clients in their communities,” says NAR President Charlie Oppler. “The ingenuity, perseverance, and tireless efforts of our members are the lifeblood of local economies, and this has been especially evident during the many challenges brought forth by the COVID-19 pandemic.”

Real estate firms tended to generate about 30% of their sales volume from past client referrals; 30% from repeat business from past clients; 10% from their website; and 10% through social media, according to the report.

The top benefits real estate firms provide to agents and staff, according to the survey: errors and omissions/liability insurance; e-signature platform; comparative market analysis; electronic contracts/forms; and multiple listing. Further, a quarter of all firms offered a virtual office space for their agents and staff and 7% offered a virtual assistant.

Home maintenance can be stressful and it can be a source of tension among couples. Many couples who live together admit to fighting over household repairs—some even breaking up over them, according to a new survey from Cinch Home Services, a home warranty company.

Nearly 52% of about 1,000 respondents said they fought with their partner over home repairs. Millennials were the most likely generation to admit to fighting over household repairs with their partner.

The survey also found that more than 30% of respondents had experienced a breakup over home repairs.

“Only a few couples opted to hire outside help—but maybe more should follow suit, considering that over half of our respondents said they fought with their significant other over home repair needs,” the survey found. “Bringing in a professional would likely eliminate tension between couples when it comes to DIY tasks. It’s also more convenient, safe, and can save both time and money.”

Between Sept. 12 and Oct. 17, the majority of housing markets nationwide will reach their “sweet spot” with a higher number of homes for sale, lower prices, and less buyer competition compared with the average week of the year, according to realtor.com®’s Best Time to Buy Report.

This week kicks off the best time of year particularly for home shoppers in New York City, Los Angeles, Boston, Denver, Detroit, Minneapolis, and Portland, Ore., the survey found.

Overall, house hunters who purchase a home between Sept. 12 and Oct. 17 will see, on average, 31% more listings than a more typical week of the year. They’ll have more than 100,000 new listings to choose from nationwide, realtor.com® said. They are also likely to face less competition. They also could see prices recede somewhat, by as much as $10,000 below their seasonal highs.

“Home prices peaked in the summer, and new listings continue to come on the market helping slow the pace of sales—which is good news for home buyers,” said Danielle Hale, realtor.com®’s chief economist. “As families across the country focus on getting back into school routines, there are fewer buyers in the market, creating a great opportunity especially for first-time home buyers to make a purchase with somewhat less competition.”

A recent decline in lumber prices is helping to mitigate building costs, but that effect is being offset by numerous increases in other building materials that are surpassing records. Home building materials have climbed by up to 19% over the past year, according to the Bureau of Labor Statistics Producer Price Index.

The building materials that have seen the largest increases so far in 2021, according to the National Association of Home Builders’ Eye on Housing blog, include:

• Steel mill products
• Building paper and building board mill products
• Asphalt
• Plastic water pipe
• Fertilizer materials
• Laminated veneer lumber
• Thermoplastic resins and plastics materials
• Structural metal joists and concrete reinforcing bars
• Wood window and door frames
• Copper pipe and tube

Source: National Association of Home Builders

The price change in steel mill products has been most notable, climbing 81% year over year. That follows an 11% increase in 2020.

Drop in Lumber Prices Could Save $40K Per Home, But…

The median sales price of a new home in July was $390,500, an 18.4% increase compared to a year earlier, according to the Commerce Department. Builders say the higher prices are due to the increases in development costs, including materials, that are being passed along to home buyers.

Real estate brokerages and associations with 100 or more employees are likely to be affected under the new emergency order requiring employees to be fully vaccinated against the coronavirus. President Joe Biden on Thursday announced a mandate for COVID-19 vaccines said to affect more than 80 million in the workforce.

Under the mandate, employers with 100 or more employees must ensure their workforce is fully vaccinated or require any workers who remain unvaccinated to produce a negative test result on at least a weekly basis before coming to work. The mandate will also require employers to provide paid time off to allow workers to get vaccinated and to recover from any side effects after the shot.

Biden is issuing the new orders through the Department of Labor’s Occupational Safety and Health Administration under an “emergency temporary standard.” OSHA has the power to issue standards when “workers are in grave danger” from dangerous hazards, which some are saying will face legal challenges, according to a report in USA Today.

Some real estate–related companies already have vaccine mandates in place. For example, the brokerage Redfin announced last month that it would require all employees returning to the office to be fully vaccinated. Those who haven’t been fully vaccinated will be required to work from home until infection rates subside. Related Cos., a New York–based real estate firm, is requiring its 4,000 employees to get vaccinated—with at least one shot by Aug. 31—or face the possibility of termination.

Biden also issued a vaccine mandate for most federal government workers as well as workers at nursing home facilities and hospitals who receive Medicare and Medicaid funds. He also called for COVID-19 vaccines to be required to attend sports arenas, large concert halls, and other venues holding large gatherings.

OSHA is expected to issue the rule for the vaccine mandates in the coming weeks, according to the White House. Once the rule is implemented, businesses that don’t comply will face “substantial fines” of up to $14,000, according to a senior administration official quoted by USA Today.

Businesses with fewer than 100 employees are not included in the vaccine mandate.

Read more from the National Association of REALTORS®: COVID-19 Guidance for Workplace Vaccination Policies.

With higher home prices, home buyers also are bringing higher down payments. On average, buyers in the country’s 50 largest metro areas brought $46,283 to closing, according to a new study from LendingTree.

In some areas, average down payments are much higher. For example, in San Jose, Calif., and San Francisco, the average down payment is more than $100,000—the highest in the country. In San Jose, home buyers bring an average of $115,138 or 88% of the median annual household income in the area; in San Francisco, buyers bring an average of $103,016 or 90% of the area’s median household income.

On the other hand, Oklahoma City, New Orleans, and St. Louis have the lowest down payments in the country at $28,267, $29,371, and $29,958, respectively.

Nationwide, down payments on a home amount to about 62% of a given area’s median yearly household income, according to LendingTree.

View the chart below for a breakdown of the average down payments on homes across the 50 largest metros.