Market Studies

August's increase was driven by an increase in Conference Board's measure of current economic sentiment, which grew to 94.6 from 87.9 in July. Most of that was spurred by more promising reports over the spring and summer as business and labor market indicators improved.

The Federal Reserve's recent Senior Loan Officer Survey, which explored the topic of lending in the post-QM/ability-to-repay environment, led to various interpretations of the rules' ultimate impact on mortgage lending so far. The survey found lending for prime residential mortgages at large banks has not changed much since the new rules went into effect.

On a monthly basis, the Home Price Index edged up 0.8 percent, slowing down from increases of 0.9 percent in both April and May. As of the latest index, prices remain 10.4 percent off their national peak of $268,000 in June 2006. Out of the 20 largest states, all posted month-over-month increases, with Florida leading at 1.2 percent. New Jersey and Texas followed at 1.1 percent each, with New York (0.9 percent) and California (0.5 percent) rounding out the top five.

June sales received a slight upward revision to a rate of 422,000, while May sales were also bumped up in a second revision to 454,000—still far below the 504,000 originally reported by the government.

What this means for the future of the housing market could be trouble. The effects of rents high enough to keep prospective buyers away from houses is particularly hitting millennials, who are already saddled with uncertain job prospects and enormous student debt, according to Zillow Chief Economist Stan Humphries.

Nationwide sales of flipped homes dropped both quarter-over-quarter and year-over year in the second quarter of 2014, according to the Q2 2014 U.S. Home Flipping Report released by RealtyTrac on August 22.

A year ago, the 30-year FRM averaged 4.58 percent—its peak in 2013. The average interest rate for a 15-year FRM this week was 3.23 percent (0.6 point), down from 3.24 percent a week ago. Adjustable rates were mixed for the week. According to Freddie Mac, the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.95 percent (0.5 point) in the latest survey, down slightly from last week, while the 1-year ARM edged up to 2.38 percent (0.5 point).

Approximately 421,000 homeowners used various non-foreclosure solutions from mortgage servicers in the second quarter of 2014, according to recently released Q2 2014 data from HOPE NOW, a private sector alliance between various players in the mortgage industry. The number of non-foreclosure solutions in Q2 was almost quadruple the number of foreclosure sales for the same period (115,000), according to HOPE NOW.

For the first time since the start of the housing recovery in 2012, Realtor.com says the end of the annual peak buying season passed this year without any outside economic influences creeping in.

Almost half of single homebuyers aged 25 to 50 reported that it was "very important" to them to own a home, according to Century 21's Singles Homebuyer Survey released on August 20.