Perception doesn't always match reality but, when it comes to financial markets, that doesn't necessarily matter. For example, if you've ever invested in the stock market, you know that a company's stock can rise or fall based on the day's news, even if the company's fundamentals and outlook remain the same as the day before. In short, perception matters. And, in today's housing market, there's a perception that there are few affordable homes available to prospective buyers. In fact, according to a recent analysis from Fannie Mae, though only 8 percent of homeowners consider their current mortgage unaffordable, 45 percent said that affordable housing is difficult to find in their area. Which provides a snapshot of what is going on in many markets across the country. Homeowners that want to sell may be waiting because they don't feel they'll find an affordable house to move into. The flip side of this, however, is that as long as current homeowners aren't selling their homes, inventory shortages will continue, which is the primary factor behind recent price increases. More here.

In recent years, there's been a lot of discussion about millennial home buying preferences. Mostly, this is due to the fact that first-time home buyers have historically made up about 40 percent of the home sales in any given year. And, because they account for a large number of the homes sold each year, any fluctuation in those numbers is notable. That's why Freddie Mac recently took a look at why the homeownership rate among young adults has dropped 8 percent since hitting its peak in 2004. As you might imagine, there are a variety of reasons for this. Among them, affordability, not surprisingly, ranks highest. Concern about being able to afford homeownership is always an issue for younger buyers. But there are many other factors that have played a role in suppressing buyer demand among first-time buyers. Some of the other common reasons named included lower marriage and fertility rates, student-loan debt, borrowing constraints, and a preference for urban living, which tends to be more expensive. In short, young Americans – in addition to affordability challenges – have more debt and are starting families later in life. But, though lifestyle and demographic changes have influenced buying activity, Freddie Mac predicts homeownership rates will rebound, if the economy and wages continue to improve. More here.

When debating whether to rent or buy your next place, the argument in favor of renting usually includes the fact that it'll be cheaper – especially since you don't have to pay for closing costs or save for a down payment. However, renting a place isn't all that cheap these days and, depending on what you're looking for, prices may be rising even faster than expected. According to recently released data, rental rates are increasing and particularly among two and three-bedroom homes. In fact, rental homes, generally, are climbing in price faster than apartments. Nationally, a typical two-bedroom now costs $1,310 per month and the cost for a typical three-bedroom is up to $1,445. And, depending on your local market, it could be even higher. So why is rent rising faster for homes than it is for apartments? Well, for some of the same reasons home prices are climbing. For one, new, and smaller, apartments are the focus of most rental unit construction, while the supply of single-family homes to rent is mostly fixed. More here.

The National Association Of Realtors' most recent Pending Home Sales Index shows that the hot summer housing market has not deterred hopeful home buyers from looking for a house to buy. But though there is a high level of demand from buyers, supply issues continue to hold back sales numbers. In fact, the index found that the number of contracts to buy homes signed in May was essentially flat from the month before. Lawrence Yun, NAR's chief economist, says sales are being hurt by low inventory but recent news that new home construction hit a 10-year high should be encouraging to prospective buyers. “Several would-be buyers this spring were kept out of the market because of supply and affordability constraints,” Yun said. “The healthy economy and job market should keep many of them actively looking to buy, and any rise in inventory would certainly help them find a home.” Regionally, results were mixed, with the Midwest, Northeast, and West all seeing modest increases, while the South saw a 3.5 percent drop. Pending home sales numbers are an important indicator, as they cover contract signings and not closings, which means they often foreshadow upcoming sales data. More here.

According to the Mortgage Bankers Association's Weekly Applications survey, average mortgage rates were up-and-down last week, with rates for 30-year fixed-rate mortgages with conforming loan balances relatively flat and mortgage rates for jumbo loans and those backed by the Federal Housing Administration down from the previous week. Joel Kan, an MBA economist, told CNBC rates are reacting to concerns over trade policy. “Concerns over trade between the US and China persisted last week,” Kan said. “And, these concerns outweighed positive news on housing starts and a generally bullish view on second quarter US growth.” In short, rates didn't move much last week because positive economic news was balanced by concerns about future changes to trade policy. But despite unchanged rates, buyers retreated from the market, with the MBA's survey finding a 6 percent decline in the number of Americans requesting applications for loans to buy homes. This could be due to affordability challenges or low inventory in some markets. Whatever the case, applications for loans to buy homes are now just 1 percent higher than they were at the same time last year. More here.

Home prices have been climbing for the past few years. And while that has presented affordability challenges for buyers in some markets, it's also produced big gains for homeowners who've sold a home recently. Take, for example, new estimates showing that, nationally, the typical home seller, after living somewhere for eight years, made nearly $40,000 on their home sale. That's good news for homeowners. And, in some markets, the sales gain is even higher. Homeowners in the Dallas-Fort Worth area saw a median sales gain of $56,297 after just 7.4 years and, in San Jose, sellers' median price gain was nearly $300,000. But while that may be encouraging for anyone who hopes to sell soon, there is a flip side. Because many home sellers hope to use any money they make on their home sale as a down payment for their next home, the amount gained on a sale may not seem as significant, especially if you're buying a home in the same market and price range. More here.

A new home sales spike in the South drove overall sales 6.7 percent higher than the month before, according to new numbers from the U.S. Census Bureau and the Department of Housing and Urban Development. Sales were down or flat in the West, Northeast, and Midwest, but, in the South, were up nearly 18 percent from the previous month. Because of the surge, new home sales are now 14 percent higher than they were at the same time last year. Part of the reason for the improvement is the fact that there are fewer existing homes available for sale than is typical. With previously owned home inventory low, buyers are looking to new homes for additional choices. Fortunately for those buyers, the May report also showed that new home prices fell last month. In fact, the median sales price of new houses sold in May dropped 3.3 percent from one year earlier to $313,000. The average sales price was $368,500. Though still higher than prices for existing homes, new home prices are now at their lowest level in a year. More here.

The housing market is about supply and demand. When there are a lot of buyers and too few homes, prices and competition rise, making it a good time for homeowners who want to sell. When there are more homes than buyers, prices fall and bargains abound. In short, the market will usually favor either buyers or sellers. But, naturally, conditions that are good for buyers will lead to more buyers and vice versa. In other words, the pendulum swings back and forth. Which is why, a recent survey holds hope for buyers concerned about higher prices and increasing competition. The National Association of Realtors' Housing Opportunities and Market Experience survey found that 75 percent of Americans think now is a good time to sell a home. And, if the perception that it's a good time to sell leads to more homes being listed for sale, that will soon begin to moderate prices, making buying a more affordable proposition for the almost equal number of Americans who say they think now is a good time to buy. More here.

Available homes continue to sell quickly with the typical property going under contract in less than a month, according to new numbers from the National Association of Realtors. The newly released data shows the average property sold in 26 days, which was unchanged from the month before. Lawrence Yun, NAR's chief economist, says there are not enough homes to meet buyer demand and it's causing available homes to sell quickly. “Inventory coming onto the market during this year's spring buying season – as evidenced again by last month's weak reading – was not even close to being enough to satisfy demand,” Yun said. “That is why home prices keep outpacing incomes and listings are going under contract in less than a month – and much faster – in many parts of the country.” Still, though there weren't enough new listings last month to bring immediate relief, it's an encouraging sign that total housing inventory was up nearly 3 percent in May. The improvement means there was a 4.1-month supply of available homes for sale at the current sales pace – a 6-month supply represents a healthy market. More here.

If ever a picture summed up the pressure of a nation on a player's shoulders, this was it.

Argentina's Lionel Messi carries the hopes of 44 million people and it showed as he lined up before kick-off in their crucial World Cup match against Croatia on Thursday, with the captain rubbing his forehead with his eyes closed.

The Barcelona forward has watched on as rival Cristiano Ronaldo has scored four goals in two matches for Portugal, including a hat-trick against Spain.

But the 3-0 defeat by Croatia means Argentina's fate in Group D is now out of their hands; they need results to go their way to stay in the competition.

So, why has Messi been so poor? Is he trying too hard? Is it his fault?

'I cannot remember a performance like that'

There were reports during the week that Messi has been feeling so down after last Saturday's 1-1 draw with Iceland that he refused to attend a barbecue organised by Argentine staff, instead staying alone in his hotel room.

If Messi's pre-match actions on Thursday suggested a headache, it will have got worse by seeing Chelsea goalkeeper Willy Caballero's howler, which led to Ante Rebic's first goal in Nizhny Novgorod and contributed to Argentina's heaviest World Cup group-stage defeat since 1958.

Former Barcelona team-mate Cesc Fabregas, providing analysis on BBC One, called Argentina a "broken team" and questioned their team spirit, saying they were "playing against each other, not for each other".

He said: "It is difficult for Messi. He does not have the quality in behind him and is really missing Ever Banega or Giovani lo Celso.

"He needs someone who can help him build up the play. You want your best player to be on the ball the most as you can."

Former Manchester City full-back Pablo Zabaleta - who played in the 2014 World Cup final for Argentina - said the side's failure to "play quicker" has left Messi "isolated" in the final third.

Reflecting on the defeat, Zabaleta said: "I cannot remember a performance like that. The team looks so poor. They were predictable and did not create anything."

Former England captain Alan Shearer added: "Argentina had no plan and were a complete shambles."

Find the original and full article here.