If your home is temporarily uninhabitable after a natural disaster, a provision in your homeowners or renters insurance policy may help you with new lodging and other living expenses.

Insured wind and flood damage from Hurricane Helene is estimated to be up to $17.5 billion, according to CoreLogic, a real estate data site. Insured losses from Hurricane Milton could range from $30 billion to $60 billion, per Morningstar DBRS.

Homeowners and renters affected by a natural disaster can ask about so-called “loss of use” or “additional living expenses” coverage from their insurance providers, experts say.

The provision is meant to help cover reasonable living expenses if your home is not suitable to live in as a result of a covered peril such as a hurricane, fire or burst pipe.

“I don’t know of any homeowners policy that doesn’t have it already there,” said Karl Susman, president and principal insurance agent of Susman Insurance Services, Inc. in Los Angeles. 

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As you file a claim, it will be important to ask your insurance company about the loss of use coverage and how quickly can it kick in, said Shannon Martin, a licensed insurance agent and analyst at Bankrate.com.

“If you call your carrier, they might be able to expedite the loss of use claim filing for you and issue a check early so that you’re not stuck trying to figure out how to pay for separate housing,” she said.

Here’s what the coverage is and what to consider before you use it, according to experts.

Loss of use coverage is a provision that is typically included in your homeowners insurance policy. It’s usually about 20% of the dwelling coverage and is paid out in the event that the home becomes uninhabitable and a policyholder needs funds for living expenses while the home is repaired or rebuilt, experts say. Eligible expenses might include a hotel or rental home, food, pet boarding or storage fees, among others.

For example, if you’re ensuring a house for $100,000, and that’s what it costs to rebuild the house, that is considered the dwelling coverage, Susman said.

“Then the policy would automatically come with $20,000 in coverage for loss of use,” he said.

“That way you and your family can pay for your hotel and pay for food, because you might be separated from your home for an extended period of time,” Martin said.

Renters insurance typically has a similar provision, as would condominium policies, Susman said.

For renters and condo insurance, the primary coverage is not dwelling because you’re insuring personal property rather than the building, he said. You’ll typically get 20% of the personal property coverage for loss of use, he said.

Ask your insurer about any policy restrictions. There may be expense-specific dollar caps or time limits to claim loss of use coverage.

Loss of use coverage can help homeowners cover living expenses after a natural disaster. However, the money is meant to be a short-term solution, not a long-term fix, experts say.

“It’s generally not intended to be a long-term solution,” said Jeremy Porter, head of climate implications research at First Street Foundation, an organization focused on climate risk financial modeling in New York City. “It’s generally not enough money to carry people through an extended period of time.” 

That can be a problem because what it would cost to move out would be very different after a major disaster than during more typical times, Susman said, as there’s often less housing available and hotels may raise their prices amid demand.

While the coverage is meant to be temporary, repairs and broader financial recovery take a long time after major disasters, experts say.

“It takes a long time to recoup and recover,” said Loretta Worters, a spokeswoman for the Insurance Information Institute.

Remember you can make a claim on your policy and get assistance from the Federal Emergency Management Agency at the same time, said Susman.

You might be able to use funds from the government to help you stay in a hotel for a month, then get a place closer to your home and use your loss of use coverage to pay for the difference, Martin said. 

An abrupt turn higher for mortgage interest rates caused weekly demand from both potential homebuyers and current homeowners to drop. Total mortgage application volume fell 5.1% last week compared to the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, $766,550 or less, increased to 6.36% from 6.14%, with points increasing to 0.62 from 0.61, including the origination fee, for loans with a 20% down payment. That was the highest rate since August.

“In the wake of stronger economic data last week, including the September jobs report, mortgage rates moved higher,” said Mike Fratantoni, chief economist at the Mortgage Bankers Association.

Applications to refinance a home loan, which had been surging for several months, fell 9% for the week but were still 159% higher than the same week one year ago. Last year at this time, mortgage rates were 131 basis points higher.

“Conventional loan refinances, which tend to have larger balances than government loans and hence are more responsive for a given change in mortgage rates, fell to a greater extent over the week,” Fratantoni said.

Applications for a mortgage to purchase a home were essentially flat for the week, dropping 0.1% from the previous week. Purchase demand was 8% higher than the same week one year ago. While mortgage rates are lower than they were a year ago, home prices are higher. Inventory has improved, but there is still not enough for sale on the more affordable end of the market.

Mortgage rates moved sharply higher last Friday, following the release of the stronger-than-expected monthly employment report, according to a separate survey from Mortgage News Daily. It showed rates continuing higher Monday and now puts the average on the 30-year fixed-rate mortgage at 6.62%. Rates were flat on Tuesday.

“While the worst may be over in terms of the rapid, upward movement, it will take new data to put compelling downward pressure on rates,” said Matthew Graham, chief operating officer at Mortgage News Daily.

Home repairs and renovations are expensive. To lower costs, 1 in 3 homeowners are willing to hire a contractor with holes in their resume. 

About 33% of surveyed homeowners say they’d consider hiring a contractor with a questionable reputation to save money, according to a new report by Clever Real Estate, a housing data site. 

Generally, homeowners say reputation is the most important factor when hiring a contractor (25%), followed by experience (23%), cost (19%), personal recommendations (13%), availability (11%) and estimated project timeline (10%). Clever polled 1,000 U.S. homeowners mid-August regarding their choices when it comes to renovations. 

That contractor trade-off might end up being more expensive in the long run, experts say. A questionable contractor is “someone who isn’t exactly honest with the price, may be overestimating their skills, doesn’t do high quality work, or simply doesn’t show up for the project,” said Jamie Dunaway-Seale, author of the Clever report.

“That’s someone that you want to potentially avoid,” said Angie Hicks, co-founder of Angi, an online contractor marketplace. “I would rather take someone newer to the industry than someone that has a questionable reputation.”

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The risk of contractor fraud also increases in the aftermath of a natural disaster, said Loretta Worters, a spokeswoman of the Insurance Information Institute.

“A lot of times, these people swoop in, claim they’re going to do something for you, and they take your money and leave,” Worters said. 

The Justice Department and the Consumer Financial Protection Bureau issued a warning to consumers on Wednesday about potential fraud, price gouging and collusive schemes after natural disasters.

“You don’t want to turn a bad situation worse,” Hicks said.

Here’s what to consider when hiring a contractor.

Analysts anticipate that Hurricane Milton could be a “once-in-a-century” storm with the potential to generate record-breaking damage as it makes landfall along Florida’s west coast on Wednesday or early Thursday. 

As homeowners juggle insurance claims and recovery efforts from back-to-back storm aftermaths, one thing to keep in mind is who to hire as a contractor.

You “really need to be careful” about contractor fraud, as you could be “victimized twice by the storm and by the fraudulent person,” Worters said. 

Roofing is one of the more common trades that you would have to hire for after a hurricane, Hicks said. 

“A roof is something that’s going to last for 20 plus years,” Hicks said. “You want to make sure that you are working with a reputable local company who’s going to stand behind a warranty on that work as well.”

While it’s a really difficult time, it’s important to do the due diligence and make sure the person you’re hiring is certified, experts say.

Although most professional contractors are reliable, negative experiences contribute to bad reputations in consumers’ minds, noted Clever in the report.

“A lot of people do have bad experiences, and it makes it harder for the honest ones” in the field, said Dunaway-Seale.

While it can be hard to evaluate contractors, there are a few steps you can take to make sure you’re working with a reputable person, according to experts.

Here are three ways to get started: 

1. Ask for reviews and references

“The first thing you want to do is check [the contractor’s] reputation,” said Hicks. 

If possible, start with professionals who have good reviews: Ask for recommendations from friends and family who had good experiences with a contractor in the past, Dunaway-Seale said. 

From there, look for online reviews and ask for references, experts say. As you start to get estimates, check with references to see how that firm or professional has handled jobs in the past, Hicks said.

Asking a contractor if they’d put you in touch with a prior client can be a litmus test, said Dunaway-Seale. 

“If they’re unwilling to do that, that might be a red flag,” she said. “Maybe they don’t think anyone would recommend them positively.”

2. Check their credentials

Check a contractor’s credentials and licensing to understand if they have the necessary experience to tackle the job, said Hicks.

All professional contractors should be insured and able to show their certificate proving so, according to the National Association of Home Builders. While not all states require licensing, contractors located in states that do require a license should provide a copy, NAHB noted.

The FTC and CFPB offer resources for consumers on how to avoid scams, prepare and respond to natural disasters, and how to handle your finances in such events.

“Sometimes the state insurance department will have a list of different contractors on their website as well,” Worters said. 

3. Watch for warning signs

Early interactions can give you a sense of how the contractor operates, and help you decide if you feel confident giving them your business.

“Are they giving you estimates in writing? Are they detailed? Are payments outlined?” Hicks said. 

It’s really important payments on larger projects are outlined in your estimates and how they will be handled, she said. Typically, upfront payments should not be more than 10 or 20%; you should not be paying a large deposit up front, said Hicks. 

It’s also a good idea to get two or three estimates because it can tell you if you’re having outliers in your pricing, Hicks said. 

“If a deal seems too good to be true, it probably is,” she added.

It’s crucial to understand how to file a homeowners insurance claim after a natural disaster. 

Insured losses alone for Hurricane Helene are now estimated at more than $6 billion.

Meanwhile, analysts anticipate that Hurricane Milton could be a “once-in-a-century” storm with the potential to generate record-breaking damage when it makes landfall along Florida’s west coast on Wednesday.

Once you’re safely out of harm’s way, starting the insurance claim process is an important consideration. The sooner you report a claim, the sooner your insurance company can start the process and you can begin rebuilding, experts say. 

“Your adjuster is assigned on a first-come, first-serve basis,” said Shannon Martin, a licensed insurance agent and analyst for Bankrate.com. 

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The processing arm of your insurance company is going to have a “tremendous amount of paperwork and claims coming through,” said Jeremy Porter, head of climate implications research at First Street Foundation, an organization focused on climate risk financial modeling in New York City. 

“The longer you wait, you’re not only delaying the ability to have your claim approved and make its way to you, but you’re lengthening the time in which that claim will sit in the processing pipeline,” Porter said.

Here are three important steps to quickly file an insurance claim after a disaster, according to experts.

Experts recommend including copies of your insurance policies and contact numbers in a disaster preparedness kit, that goes with you if you evacuate and is securely stored, otherwise.

Once a disaster has passed, immediately contact your insurance company to let them know that your home has damage from a recent disaster and you’d like to start the claims process, said Porter. 

If you evacuated, “you can start the claim from anywhere,” Porter said. “You’ll eventually have to schedule with the insurance company to actually review and inspect the damage.” 

But if you decide to wait out the storm in your house, you need to first prevent further damage to the home before calling, said Bankrate.com’s Martin.

A typical home insurance policy has language requiring homeowners to lessen the impact and prevent further damage, she said. 

“Then you can call the insurance company, take pictures of the damage and [move] items into safer locations,” Martin said.

During your call, provide your insurance company with some initial details, like if your roof blew off or several windows broke, said Porter. 

“But they really won’t make their assessment until they come in and inspect the damage,” he said. 

While the insurer will make its own inspection, it’s always important to document your damages, including taking pictures, so that you can align that with the formal inspection record that comes out from the insurance company, Porter said. 

This way, you can dispute any claims if you have to later, he said. 

In the event of a loss, you have to give prompt notice to your insurer and you have a duty to protect the property, said Daniel Schwarcz, an insurance law professor at the University of Minnesota Law School. 

You have to protect the property from further damage after the storm, make reasonable repairs and have an accurate record of repair expenses, Schwarcz said. 

The receipts that you need to keep on file are for purchased materials used to prevent further damage on the property that’s already been damaged by a covered peril, said Schwarcz — meaning wind and trees, but not generally flooding unless you have a flood insurance policy. The insurer will generally reimburse you for reasonable expenses you incur. 

If you don’t take such measures after the storm, and that inaction results in further damage, the insurer is not obligated to cover the loss, he said.

Materials purchased to protect the home before the natural disaster — for example, plywood to cover windows — are oftentimes not covered. 

You also want to keep a record of receipts when you start working with contractors to rebuild from the damage, experts say. 

One of the reasons why you want to document the damage immediately with your insurer is so that you can attach it to the event itself, increasing the likelihood of the event being covered by your home insurance, said Porter. 

“Filing the claim immediately is the number one most important thing to do,” Porter said.

It’s important to keep track of where the damage came from, and having evidence can help avoid problems down the road, he said.

Port offers the hypothetical of of someone whose home sustained wind damage from Hurricane Debbie or Helene, but hasn’t filed a claim before the Milton makes landfall and causes flood damage. 

“All of a sudden, you have a problem where the National Flood Insurance Program, which covers flood, and your home insurance company, which covers wind, can potentially start to argue over what actually caused the damage to the property,” Porter said.

You want to make sure you file any claim within three to five days of when the incident occurred, said Martin. As long as you had submitted all of your information in a timely manner for the first incident, if something else arises, you’re able to show the adjuster that it happened from a second event, she said.

Older Americans make up the largest share of homeowners in the U.S. compared to other generations. However, many are renting in their retirement years. 

Most older adults, those at least 65 years old, own their homes, according to the Joint Center for Housing Studies at Harvard University. Yet, more than 1 in 5 older households — 7 million — rent instead of own, according to the 2023 Housing America’s Older Adults by the JCHS.

Renting in retirement years can be a positive because older people can avoid costly maintenance associated with the upkeep of a home. Renting also offers the flexibility to move vs. the complexity of selling a home, experts say.

“Renting often offers more amenities, less maintenance, more accessibility,” said Jennifer Molinsky, director of the housing an aging society program at the Joint Center for Housing Studies.

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However, older renters are subject to the same issue younger tenants face: rent price increases.

In 2022, half of all renter households, 22.4 million, were cost burdened, or spent more than 30% of their income on housing and utilities, the Center found in the 2024 State of the Nation’s Housing.

And unlike younger renters, adult renters in retirement years could be especially vulnerable to rent hikes because they are on fixed income, experts say.

“As a retired renter, you are faced each month with a housing expense for the rest of your life. It’s an expense that is not fixed, it is variable by market trends,” said certified financial planner Lazetta Rainey Braxton, CEO and president of The Real Wealth Coterie, a virtual wealth management and RIA firm.

 Braxton is also a member of the CNBC Financial Advisor Council.

In 2023, older baby boomers made up the largest share of home sellers at 45%, according to the National Association of Realtors. They were most likely to downsize their home. NAR defined younger baby boomers to have been 59 to 68 years old in 2023, and older boomers, are ages 69 to 77.

Meanwhile in 2022, the homeownership rate among households ages 65 and over was 79.1%, slightly lower from 79.5% in 2021, the Joint Center for Housing Studies found. The record high was 81.1% in both 2004 and 2012.

Similarly, homeownership for those between the ages of 50 and 64 dropped to 74.2% in 2022 from the two-decade high of 80.4% in 2004. This group was hit by the Great Recession and suffered a loss of homeownership, according to Molinsky.

To be sure, it can be hard to regain homeownership at the cusp of retirement age, she said. Their lower homeownership rate will likely foreshadow lower ownership rates in the future, the Center found.

Meanwhile, people who didn’t buy a home in their 40s and 50s are now aging, so “you’re now seeing people who have always been renters coming into their old age,” said Teresa Ghilarducci, a labor economist, retirement specialist and professor of economics at The New School for Social Research. 

Being a renter, however, doesn’t necessarily mean you’re worse off than homeowners, Ghilarducci explained.

The cost of maintaining your home will vary. Experts recommend budgeting between 1% and 4% of your home’s value annually to cover typical home maintenance costs, according to Homeguide.com. For example: If your house is valued at $450,000, expect to budget from $4,500 to $18,000 for costs to upkeep your home.

Even if you’ve paid for the upkeep of your home over the years, elements in your house don’t stop deteriorating in your retirement years, experts point out.

Capital improvements like fixing or replacing the roofs can be difficult, said Molinsky. Additionally, there are tasks you may not want to do yourself anymore, and it can be expensive to hire a professional, she added.

Homeowners spent an average $9,542 on home improvements in 2023, a 12% increase from a year prior, according to the State of Home Spending by Angi. At the same time, the amount of projects decreased to an average of 2.8 projects in 2023 from 3.2 in 2022. The survey polled 6,400 consumers between Oct. 22 and Oct. 23.

While a fair amount of attention is paid on affording a home in retirement, it’s important to also consider the care and services you might need in order to stay in that house, said Molinsky.

Real estate has been historically slow to modernize, but AI is changing that. The integration of artificial intelligence is transforming how buyers and sellers interact with agents, fundamentally altering competitive dynamics in the industry. 

With AI reshaping daily operations of a real estate agent’s business by automating tasks — from generating property listings to conducting neighborhood analyses — the agent’s focus in day-to-day activities will shift. 

Ryan Serhant, CEO of Serhant and reality TV star of “Owning Manhattan,” says AI is already making real estate less about access to information and more about the agent building deeper relationships. He predicts a mindset shift is on its way as agents leverage AI and at the same time are forced to find new ways to differentiate themselves in an increasingly competitive market. “If we are all using AI and have the same level of expertise, who wins? It’s the game of attention,” said Serhant at the CNBC Evolve AI Opportunity Summit in New York City this past week. 

Buying a home is the single largest investment most Americans make in their lives, which makes real estate a business where greater success can be achieved with greater personal touch on the part of the agent. Serhant says the big advantage he sees in use of AI is having more time for the real estate agent to provide personalized attention to their clients. 

“The product in sales is no longer just the skill set,” Serhant said. “It is the attention to the skill set.”

His own company, Serhant, has developed a service called “Simple” for sales automation to handle daily tasks in customer relationship management, which typically consumes over 60% of agents’ time. 

AI tools are being used to streamline lead generation, automate marketing campaigns, and provide predictive analytics to identify opportunities, but that is not replacing the critical role of the agent in providing top performance. Serhant says AI won’t virtualize relationships, but for the real estate agents who embrace the AI revolution — which he says is a necessary move to make — it will strengthen their relationships.

Making access to real-time market data and sales insights less onerous may allow agents from small boutique firms to compete on a more equal footing with larger real estate corporations. “There is a trust factor in sales. … It isn’t about who is the largest, but who is the most empowered,” Serhant said. 

That also stands to benefit homebuyers and sellers, Serhant said, with a wider selection of suitable agents with enhanced personalized services and greater focus on the client. 

The real estate industry is still in the initial stages of adopting AI and understanding remains low among real estate professionals, but the interest is there. Generative AI was ranked among the top three technologies expected to have the greatest impact on real estate over the next three years by investors, developers, and corporate occupiers, according to JLL Technologies’ 2023 Global Real Estate Technology Survey. But the survey also finds that real estate professionals have very low understanding of AI compared to other technologies.

According to Serhant, agents who understand how AI can empower their business are going to have huge opportunities over the next 20 years to take significant market share. 

No tech innovation comes without risks, and wire fraud remains a major challenge for the real estate industry, which will be exacerbated by AI. The FBI reported a big year-over-year increase in wire fraud cybercrime losses in 2023, driven significantly by real estate transactions. Improved artificial intelligence technology is facilitating real estate scammers. 

Fraud can’t be ignored, said Serhant, but he believes real estate will adapt to the risks inherent in new technology in the same way the business has in the past, such as with digital listings. “With every advancement in technology, greater rules get put into place that can help stop those fakes,” he said. 

The average rate on the 30-year-fixed mortgage jumped 27 basis points Friday morning following the release of the government’s monthly employment report. The rate is now 6.53%, according to Mortgage News Daily.

That is 42 basis points higher than Sept. 17, the day before the Federal Reserve cut its benchmark rate by half a percentage point. Mortgage rates do not follow the Fed, but they loosely follow the yield on the 10-year U.S. Treasury.

For mortgage rates, it is all about what the expectation is next for the Fed. As such, there was a lot of anticipation leading up to this particular monthly report, since the last two pointed to weaker labor market conditions.

“Indeed, the Fed’s decision to cut by 0.50 vs 0.25 last month had much to do with the fear/expectation that reports like today’s would be in shorter supply going forward,” wrote Matthew Graham, chief operating officer at Mortgage News Daily. ”The only salvation here would be the notion that this is just one jobs report in a recent run that’s been mostly weaker and that perhaps the next one won’t be so damning for bonds.”

However, the report does shift the outlook slightly for rates going forward, since most had assumed the trajectory would be lower.

“MBA’s forecast is for longer-term rates, including mortgage rates, to remain within a relatively narrow range over the next year,” the Mortgage Bankers Association’s chief economist, Michael Fratantoni, wrote after the jobs report was released. “This news will push mortgage rates to the top of that range, but we do expect that mortgage rates will stay close to 6% over the next 12 months.”

Today’s homebuyers are highly sensitive to rate moves, as house prices continue to rise from year-ago levels. There is also still very low inventory on the market, which has only served to keep prices higher. Rates are a full percentage point lower than they were a year ago, but the housing market has not seen much of a boost yet.

Insured losses for Hurricane Helene are now estimated at over $6 billion, but the uninsured losses are far higher. That’s because the vast majority of homes impacted by the storm, especially in hard-hit North Carolina, did not have flood insurance.

New risk-assessment technology is designed to help change that for the future.

Most homeowners in North Carolina do not have flood insurance, because they are not in flood zones designated by the Federal Emergency Management Agency. Government-backed mortgages require flood insurance in those designated areas.

Just 4% of North Carolina homes are in a FEMA flood zone. But climate risk firm First Street, which incorporates the effects of climate change into its property risk scores, shows nearly 12% of homes in the state at flood risk.

First Street just launched a suite of climate risk data for every for-sale property listed on Zillow.

“Climate risks are now a critical factor in home buying decisions,” said Skylar Olsen, chief economist at Zillow, in a release. “We’re providing buyers and sellers with clear, property-specific climate data so they can make informed decisions. As concerns about flooding, extreme temperatures, and wildfires grow, this tool also helps agents inform their clients in discussing climate risk, insurance, and long-term affordability.”

Each for-sale listing on Zillow now displays First Street risk scores for flood, fire, wind, air and heat. They also show those same risk percentages estimated 15 years and 30 years into the future — the standard lengths for fixed-rate mortgages.

On properties with some risk now, it often shows that risk rise over time, as First Street incorporates the effects of climate change. This is especially true for the flood risk, because climate change is already intensifying the severity of rainfall, even in minor storms.

The data also includes a recommendation as to whether the homeowner should have flood insurance and a link to the First Street site, which will help estimate insurance costs.

“A lot of people think that they are safe from flood if they’re not in a FEMA flood zone, and that’s decidedly not true. Heavy rainfall can affect many, many people across the country, and there’s no indication from the FEMA flood zone designation that that is a risk for you,” said Ed Kearns, chief science officer at First Street. “We’ve created these new flood maps that do bring that into account, that will allow consumers to make that informed choice about whether they need flood insurance.”

More than 80% of buyers now consider climate risk when purchasing a home, according to a survey by Zillow. Respondents ranked flood risk as their highest concern, followed by fire.

A Zillow analysis of August listings found that more homes nationwide had a major climate risk than did those listed for sale five years ago. That was true across all five climate risk categories, the analysis found. For new listings in August, 16.7% are at major wildfire risk and 12.8% show a major risk of flooding, according to Zillow and First Street data.

As more and more consumers consult these climate scores in their purchase decisions, the effect on home values will surely increase. The cost of insurance is already factored into home prices, and as both the cost and necessity of insurance rise, home values in the most affected areas will fall.

“I think that’s going to be the most direct impact of having scores on homes that quantify risk is that there may be some direct impact on real estate values, but a lot of that is going to go through the amount of insurance necessary to cover that home,” Kearns added.

LONDON — Lower mortgage rates are sparking an uptick in the U.K. housing market, following a surge in the pace of home sales last month, data showed.

Agreed home sales rose by 25% year-on-year in the four weeks to Sept. 22, marking the fastest pace of growth since spring 2021, “as households that have held off making moving decisions over the last 2 years return to the market,” according to research published Thursday by property portal Zoopla.

Home buyer inquiries also increased by 26% annually over the same period, the data shows.

Shares of U.K. homebuilders Taylor Wimpey and Barratt Developments both rose 1.4% following the data release.

It comes as house prices ticked up at their fastest pace in almost two years in September, according to Nationwide, rising 3.2% year-on-year from 2.4% in August, when lenders began slashing borrowing costs in response to the Bank of England’s first interest rate cut in over four years.

Mortgages rates have now fallen to an average of 4.57% for a five-year fixed term, down from 5.53% last year, according to the latest data compiled by property portal Rightmove. Some rates for such products have dipped to 3.7%, well below the BoE’s 5% key rate.

“Lower mortgage rates are delivering a much-needed confidence boost to homeowners, many of whom have sat on the sidelines over the past two years,” said Richard Donnell, executive director at Zoopla, said in the report.

Mortgage approvals rose in August to the highest level in two years in years, the Bank of England said Monday.

Market watchers are now awaiting the BOE’s Nov. 7 meeting for further movement on borrowing costs, with Governor Andrew Bailey telling the Guardian Thursday that the Bank could be a “bit more aggressive” on rate cuts if inflation data continued to be good.

House price growth was most pronounced in Northern Ireland (8.6%) and Scotland (4.3%) on an annual quarterly basis, while the north of England outpaced the south, according to Nationwide data. Nevertheless, London remained the best performing southern region, notching a 2% price growth.

Apartment sales continue to lag in the post-pandemic “race for space,” however, Nationwide’s Chief Economist Robert Gardner noticed.

More such stock has been coming to the market, as landlords look to sell their buy-to-let properties ahead of anticipated tax hikes in the Labour government’s upcoming Oct 30. Autumn budget.

Donnell said that was likely to keep price growth in check over the coming months, as more owners of second properties come to the market.

“Speculation over possible tax changes in the Budget and the impact of previous tax changes are continuing to add to the growth in the number of homes for sale. We remain in a buyers market and greater choice of homes for sale will keep house price inflation in check into 2025,” he noted.

Finance Minister Rachel Reeves has suggested that she will likely have to raise taxes after discovering a £22 billion ($29 billion) “black hole” in the public finances.

Having ruled out changes to income tax, National Insurance social security payments and value-added tax (a sales levy), increases to capital gains tax and inheritance tax — both of which impact property sales — remain on the table.

Meanwhile, possible changes to the country’s controversial non-dom tax status is also spurring seller activity at the top end of the market, as ultra-wealthy U.K. residents weigh moves to other lower tax locations.

Mortgage rates moved ever so slightly higher last week, but it was enough to take a little heat out of what had been a briefly red-hot refinance market. That caused total mortgage application volume to fall 1.3% for the week, according to the Mortgage Bankers Association’s seasonally adjusted index.  

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) increased to 6.14% from 6.13%, with points increasing to 0.61 from 0.57 (including the origination fee) for loans with a 20% down payment. The rate was 139 basis points higher the same week one year ago.

“Last week’s incoming data showed an economy that is still growing at a solid pace, even as inflation continues to decline. As a result, mortgage rates were up modestly,” said Mike Fratantoni, MBA’s SVP and chief economist in a release.

Applications to refinance a home loan fell 3% for the week but were still a striking 186% higher than the same week one year ago. The vast majority of borrowers today have mortgages with rates well below 5%, but those who may have purchased a home in the past year or two might be able to benefit from a refinance to today’s lower rates.

Applications for a mortgage to purchase a home rose 1% for the week and were 9% higher than the same week one year ago. The fall market does appear to be warming up a little bit, with real estate brokerages like Redfin reporting more home tours in the last few weeks. Some buyers, however, may be sitting on the sidelines, expecting rates to move even lower in the coming months.

“Inventories of both new and existing homes have been increasing over the course of 2024, meaning that potential buyers have properties to look at and now have somewhat lower mortgage rates leading to better affordability,” Fratantoni added.  

Mortgage rates moved very slightly lower again to start this week, as bond yields dipped following escalations in the bombing in the Middle East conflict. The next big move in interest rates could come Friday, with the release of the all-important monthly employment report.