By KIMBERLEY HAAS
Addressing affordability issues by allowing for creative living solutions may be the key to getting more Millennials into homeownership.
According to the 2023 Home Buyers and Sellers Generational Trends Report published by the National Association of Realtors, the share of Millennial buyers has declined. Millennials between 24 and 42 years old made up 28% of all buyers surveyed.
The share of Millennial buyers dropped because Baby Boomers between 58 and 76 years old were on the move in the last half of 2021 and the first half of 2022. They made up 39% of buyers and were the largest share of homebuyers, taking the top spot from Millennials, who had held the position for eight years.
Overall,…
By KIMBERLEY HAAS
Potential buyers patiently waiting for a surge in inventory before jumping into the housing market may be out of luck this fall.
Mike Simonsen, founder and president of Altos Research, said during a webinar on Thursday that there are no signs of such a thing happening anytime soon.
“There is no sign anywhere in the data of any surge in inventory,” Simonsen said. “So if you’ve got a buyer that’s like ‘I’m waiting for the big crash to come,’ the question is how long are you going to wait? Because it could come, maybe in 2025, but there’s no sign in the data right now of any of that coming.”
Simonsen has said that he expects 2023…
Mortgage rates increased for a third consecutive week, pushing averages closer to 7% and adding pressure to buyers.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.96%, up from 6.90%. A year ago at this time, the 30-year FRM averaged 5.22%.
The 15-year fixed-rate mortgage also increased, up to 6.34% from 6.25%. A year ago, it averaged 4.59%.
“There is no doubt continued high rates will prolong affordability challenges longer than expected, particularly with home prices on the rise again,” said Sam Khater, Freddie Mac’s Chief Economist.“However, upward pressure on rates is the product of a resilient economy with low unemployment and strong wage growth, which historically has kept purchase demand solid.”
Demand has been sluggish…
The country’s two largest mortgage lenders reported unexpected profits in the second quarter of 2023.
United Wholesale Mortgage and Rocket Companies both bounced back last quarter after dismal results at the beginning of the year.
UWM reported a net income of $228.8 million, making up for losses of $138.6 million in the first quarter of 2023 and $62.5 million in the fourth quarter of 2022.
It originated $31.8 billion in loans, up from $22.3 billion in Q1. The boost coincided with warm weather bolstering home sales, though this past spring buying season was tepid compared to historical norms.
“UWM continues to prove that regardless of the interest rate environment, our business model, coupled with the broker channel being the best…
Mortgage rates rose once again last week, elevated by economic news that took investors and analysts by surprise.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.90%, up from 6.81%. A year ago at this time, the 30-year FRM averaged 5.30%.
The 15-year fixed-rate mortgage also increased, up to 6.25% from 6.11%. A year ago, it averaged 4.26%.
“The combination of upbeat economic data and the U.S. government credit rating downgrade caused mortgage rates to rise this week,” said Sam Khater, Freddie Mac’s Chief Economist. “Despite higher rates and lower purchase demand, home prices have increased due to very low unsold inventory.”
On Tuesday, leaders at Fitch announced they had downgraded the United States of America’s…
By KIMBERLEY HAAS
Fannie Mae and Freddie Mac were affected this week after Fitch Ratings downgraded the country’s credit rating.
On Tuesday, leaders at Fitch issued a press release saying they had downgraded the United States of America’s Long-Term Foreign-Currency Issuer Default Rating from AAA to AA+.
Fitch is one of three nationally recognized statistical ratings organizations. The other two are Moody’s Investors Service and S&P Global Ratings.
Expected fiscal deterioration over the next three years, a high and growing general government debt burden, and the erosion of governance were cited as reasons for the downgrade.
“The repeated debt-limit political standoffs and last-minute resolutions have eroded confidence in fiscal management. In addition, the government lacks a medium-term fiscal framework, unlike…
By SCOTT KIMBLER
There are signs that Wells Fargo is recovering and will continue to be a key player in the banking industry.
Formerly the nation’s largest mortgage lender, leaders there announced in January strategic plans to create a more focused home lending business aimed at serving bank customers and minority communities. Those plans included exiting the correspondent business and reducing the size of the company’s servicing portfolio.
That news came just days before the company released their Q4 2022 results. Net earnings had fallen to $2.86 billion, or 67 cents a share. Leaders at Wells Fargo noted that the decline was driven by the fall-off in mortgage demand as home lending was down 57% from Q4 2021.
Now, Wells…
By KIMBERLEY HAAS
The woman who led Guild Mortgage as it grew into a national company with operations in 49 states says the key to success is to have confidence and ask questions.
Mary Ann McGarry retired as the CEO of Guild at the end of June after nearly 39 years with the company.
“I would just remind everyone to have confidence in what they can do and their abilities. They don’t have to know everything 100%, especially in this business, and it changes every day, so you have to be able to learn,” McGarry said in a recent interview with The Mortgage Note. “Learn everything and then you’ll earn it. Just keep voicing ideas and asking questions. Don’t be…
By NICOLE MURRAY
Successful malls are offering more than a little retail therapy these days.
Shopping malls across the country have been forced to pivot their business strategies as inflation rates spike, retail spaces become vacant, and e-commerce grows in popularity.
Experts say malls have performed differently depending on their class.
According to Kelly Mangold, principal at RCLCO Real Estate Consulting, class A malls with exclusive, high-end luxury retailers with few vacancies have continued to perform the best.
“Malls tend to be successful when they are transformed into a one-stop shop for high-end goods that people cannot get anywhere else nearby,” Mangold said.
Class B malls, whose success relies on their anchor retailers, have struggled because, “their level of business…
As technology improves, mortgage lenders are looking for ways to work more efficiently and the vice president of customer success at Snapdocs says the adoption of digital closings improves bottom lines and consumer satisfaction.
Snapdocs uses patented AI technology and research performed by the California-based company suggests mortgage lenders can save more than $400 per loan by using eClose technology, according to a press release.
Todd Maki recently sat down with editor Kimberley Haas to talk about their product and the role artificial intelligence plays in the process.
Haas: Tell me some of the things that pop up the most often, some of the challenges you face.
Maki: We’re focused on digital closings with the lender side where we focus…
