Mortgage rates declined for the first time after a weeks-long upward streak, averaging 5% last week, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 5%, down from 5.11% last week. A year ago at this time, the 30-year FRM averaged 2.98%. “The combination of swift home price growth and the fastest mortgage rate increase in over forty years is finally affecting purchase demand,” said Sam Khater, Freddie Mac’s Chief Economist. “Homebuyers navigating the current environment are coping in a variety of ways, including switching to adjustable-rate mortgages, moving away from expensive coastal cities, and looking to more affordable suburbs. We expect the decline in demand to soften home price growth…
By KIMBERLEY HAAS Near one of the hottest housing markets in the country, a local builder says a shortage of electrical transformers is slowing down progress on 166 condo units. Joshua Manning, General Manager at Lewis Builders Development in Atkinson, NH, says they are trying to complete a new construction project in Epping, NH, where the median listing home price is $581,500, according to Realtor.com. When Manning ordered the 20 electrical transformers he needs last year, there was no indication there would be an issue. Now he wonders when the order will be completely filled. “It’s never taken this long to get electrical transformers for new houses,” Manning said in a recent interview with The Mortgage Note. Manning said he…
By CHUCK GREEN Trouble could be percolating in the U.S. housing market. In a blog post last month, researchers and economists from the Federal Reserve Bank of Dallas wrote of indications that real-time market monitoring is picking up signs of a “brewing U.S. housing bubble.” They added: “Our evidence points to abnormal U.S. housing market behavior for the first time since the boom of the early 2000s. Certain economic factors, especially including the price to rent ratio, and the price-to-income ratio—which show signs that 2021 house prices appear increasingly out of step with fundamentals, raise red flags.” Researchers and economists also cited growing concern that U.S. house prices are again becoming “unhinged from fundamentals.” Moe Zulfiqar, Editor of Lombardi Letter,…
By KIMBERLEY HAAS Leaders at Rocket Mortgage are working to end the digital divide in Detroit where it is estimated that one-quarter of residents do not have internet access. That number is down from nearly 40% in 2016, according to Dana Afana at Detroit Free Press, but those working on the issue say there is still a long way to go especially considering how important the internet is post-2020. The Changing the Course initiative was established in that year to end the digital divide in Detroit, where Rocket Mortgage is located. Money raised from The Rocket Mortgage Classic, which made history in 2019 as the first PGA TOUR ever held in the city, supports the campaign. The tour raised $1.35…
Foreclosure activity rose in all 50 states in Q1 2022, with foreclosure starts and bank repossessions reaching their highest numbers in two years, according to ATTOM’s Q1 2022 Foreclosure Market Report. A total of 78,271 U.S. properties had a foreclosure filing during Q1, up 39% from Q4 2021 and 132% YOY. March alone saw 33,333 properties with foreclosure filings, up 29% from February and 181% YOY. It was the 11th straight month of YOY increases in foreclosure activity. “Foreclosure activity has continued to gradually return to normal levels since the expiration of the government’s moratorium, and the CFPB’s enhanced mortgage servicing guidelines,” said Rick Sharga, executive vice president of market intelligence for ATTOM. “But even with the large year-over-year increase…
Monthly mortgage payments are up by 19.5% from three months ago, and 38% YOY, according to Zillow’s March Real Estate Market Report. Annual home value growth set a new record for the 12th consecutive month. The typical home is now worth $337,560, up 20.6% YOY. At the same time, mortgage rates have grown from 3.51% at the beginning of March to breach the 5% mark at the end of the month. The combo has pushed monthly payments up 38% YOY on a home with a 30-year mortgage and 20% down payment. Despite this, Zillow reports that the pace and volume of sales picked up, “showing the depth of the pool of homebuyers willing and able to meet current asking prices.”…
By KIMBERLEY HAAS Leaders at a California-based lender that generated $36.8 billion in origination volume last year say they are finding success because they focus on creating customers for life. Guild Mortgage, located in San Diego, has been originating and servicing residential loans since 1960. Their origination volume in 2021 was up about 5% from $35.2 billion in 2020. The company’s in-house servicing portfolio grew 18% year-over-year to $70.9 billion in the fourth quarter of 2021, with Guild retaining servicing rights for 80% of total loans sold. Last month, they earned their fifth consecutive Servicer Total Achievement and Rewards performer recognition from Fannie Mae. According to a press release, the STAR Performer recognition is reserved for top-performing servicers in one or…
By SCOTT KIMBLER With inflation at the highest rate in four decades, every facet of the economy is affected and that has put many people in the position of having to rethink their retirement plans. Professor Tom Smith of Emory University’s Goizueta School of Business says that people who are soon to retire and those just starting to plan for retirement can find themselves in quite a spot. “When you have these types of fluctuations, people have to reevaluate what they think retirement can purchase,” Smith said. “You’re going to be on a fixed income when you retire. You’ll either be on Social Security, drawing a pension, or whatever else. The higher the inflation is, the less buying power your…
By CHUCK GREEN An apparently not so uncommon sight these days in the mortgage industry: empty desks. Not that their occupants are taking five for a foam latte. Instead, they might well have either been steeped in the pink slip blues or were compelled to submit their resignation. Over the past three months in the industry, there have been more than 3,500 job cuts, according to globalsg.com. In February, Bloomberg reported U.S. home mortgage lenders might have no other choice during the coming months that to initiate layoffs. Similarly, earlier this month, wolfstreet.com reported that not only are layoffs among mortgage lenders taking place, but they will also continue. “Layoffs and forced resignations are certainly imminent in the mortgage banking…
Home sales dropped by 4% last month and 8% YOY, closing out a fast-paced March with signs of a potential cooldown, Redfin reported. Homes sold at their fastest pace ever and for more above list price than any other March in history. The median home-sale price rose 6.2% to $412,700, a record high and the fastest month-over-month gain for this time of year since 2013. But seasonally adjusted home sales fell 4% thanks to severe inventory shortages, rising rates, and accelerating home prices. Seasonally adjusted active listings—the count of all homes that were for sale at any time during the month—fell 13% YOY to an all-time low. “Although pricey coastal markets began showing early signs of a slowdown in late…
