The Department of Housing and Urban Development announced a new program to help remedy the nation’s housing supply shortage by boosting affordable housing. HUD’s “Our Way Home” initiative sets out to increase housing supply by helping local communities preserve and add affordable housing in their area for rentals and homeownership. This may include several initiatives, like advocating for zoning changes, holding roundtables to engage local and state leadership for solutions, and more.

Some homeowners may need to reset their price expectations. Signs of a slowing real estate market are growing across the country—existing-home sales and new-home sales are falling as well as pending home sales. Pending home sales fell for the sixth consecutive month in April and are now at the slowest pace in nearly 10 years, the National Association of REALTORS® reported last week.

“Mortgage rates decreased for the second week in a row due to multiple headwinds that the economy is facing,” says Sam Khater, Freddie Mac’s chief economist. “Despite the recent moderation in rates, the housing market has clearly slowed, and the deceleration is spreading to other segments of the economy, such as consumer spending on durable goods.”

Freddie Mac reports the following national averages with rates for the week ending May 26:

Facing low inventories of homes for sale, some buyers will turning to homes with “good bones” or lots they can use to make into their dream home.

Housing inventories are low and continue to drop. Total housing inventory at the end of April was down 10.4% from a year ago, according to the National Association of REALTORS®’ latest housing report.

Freddie Mac reports the following national averages with mortgage rates for the week ending May 19:

30-year fixed-rate mortgages: averaged 5.25%, with an average 0.9 point, dropping from last week’s 5.30% average. Last year at this time, 30-year rates averaged 3%.

15-year fixed-rate mortgages: averaged 4.43%, with an average 0.9 point, falling from last week’s 4.48% average. A year ago, 15-year rates averaged 2.29%.

Many home sellers are making a profit on their sale. But if that profit is high enough, they may be on the hook for capital gains taxes.

Capital gains taxes kick in when profits exceed $250,000 for single sellers or $500,000 for married couples who file together.

As home prices have soared, longtime homeowners may be more likely to see a tax bill.

Many rules affect the rate. For example, sellers must own and use the home as their primary residence for two of the five years preceding the sale, but those two years don’t have to be consecutive.

The nation faces a shortage of 5.5 million homes, a gap so large it would take more than a decade to close, even if new-home construction accelerates, according to research from the National Association of REALTORS®.

The Biden administration on Monday unveiled a plan that calls for legislative and administrative actions to try to close America’s housing shortfall within five years.

Bidding wars have grown common in home sales, but now they’re part of the process of renting an apartment as well. As demand outstrips supply, renters are trying to outbid others to get the property they want.

Some tenants will offer over the listed price to get their application ahead in the stack. Property owners may even return to applicants and ask them to submit their “highest and best offer” in such cases. Some owners are specifying in ads for their rental units that prospects should be ready for a bidding war and should submit their very highest offer.

“Mortgage rates resumed their climb this week as the 30-year fixed reached its highest point since 2009,” said Sam Khater, Freddie Mac’s chief economist. “While housing affordability and inflationary pressures pose challenges for potential buyers, house price growth will continue but is expected to decelerate in the coming months.”

Freddie Mac reported the following national averages for the week ending May 5: