By KIMBERLEY HAAS Monthly asking rates for rentals increased an estimated 15.2% year-over-year in January, and some economists say this is accounting for a significant portion of recent inflation. Redfin is reporting that last month the average asking rent was $1,891, which is the largest annual jump since at least February of 2020. The national median monthly mortgage payment for homebuyers climbed by 25% year-over-year to $1,595. That is also the biggest increase in Redfin’s records. Redfin Chief Economist Daryl Fairweather noted that rising mortgage rates are shrinking more Americans out of the for-sale market, which will likely put increasing pressure on rents this year. “Moving right now is expensive, whether you’re renting or buying,” Fairweather said. “One of the only…
By DOUG OHLEMEIER Despite many employees working from home and companies adopting hybrid work models, investors are still attracted to the land of cubicles. While office suites aren’t as packed with workers as before the pandemic, the commercial market remains strong. “There is investor interest in office properties,” said Stephen Newbold, National Director in the U.S. office of research for Colliers International, a Toronto, Ontario-based global real estate services and investment management company. “We are at a stage where we can fairly confidently say that we’re not going back to those (2020) levels. It may fluctuate a little, but my overarching view is we are stabilizing on vacancies and space on the market.” Observers aren’t sure how the new work…
By DARIA BACHMANN United Wholesale Mortgage is facing more public scrutiny as court battles — and backlash from brokers — mount. The second-largest mortgage lender in the nation, UWM has come under criticism over how it treats both its employees and its customers. UWM announced in April it would force brokers to sign an agreement that they will not work with Rocket Mortgage or Fairway Independent Mortgage – or else be banned from work with UWM, the largest wholesale mortgage lender. Mortgage industry leaders called the ban “unethical and uncompetitive.” Bob Broeksmit, head of the Mortgage Bankers Association, said at the time, “MBA does not condone activities designed to thwart competition in the mortgage market and limit loan options available to borrowers.” UWM,…
“Million-dollar cities” skyrocketed in 2021, with typical home values reaching at least $1 million in a record 146 new U.S. cities. Zillow found there are now 481 cities where the average home is worth $1 million or more, and an additional 49 cities could make the list by mid-2022 if home appreciation continues at its current rate. Typical home values jumped 19.6% in 2021 as homebuyers faced severe stock shortages, causing bidding wars that pushed prices up. Homeowners gained $2.6 trillion in tappable equity in 2021, up by 35% YOY for an aggregate total of almost $10 trillion. In Q4 2021 alone, tappable equity rose by nearly half a billion dollars. “Home price appreciation over the course of 2021 was…
Commercial and multifamily mortgage loan originations jumped in 2021 and are expected to continue booming in 2022, the Mortgage Bankers Association (MBA) reported at its 2022 Commercial/Multifamily Finance Convention and Expo. Originations rose 79% YOY in Q4 2021 and 44% from Q3. A preliminary measure of commercial and multifamily mortgage bankers’ originations volumes found 2021 activity to be 67% higher than 2020’s. “The fourth quarter of 2021 was a record end to a record year of borrowing and lending backed by commercial and multifamily properties,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “Part of the growth from 2020 was a bounce-back from the worst of the recession. However, rebounding property fundamentals and strong valuations, record sales…
By KIMBERLEY HAAS It’s Super Bowl weekend and The Mortgage Note is taking a look at which city would win if Los Angeles and Cincinnati’s housing markets were pitted against each other. With sports commentators picking the Rams over the Bengals and the notoriously high-priced homes in the Los Angeles market, such as “The One” on sale now for $295 million, people might assume the California city would be the automatic winner. But that depends on how the two markets are lined up. As Tyler Sullivan says in his recent predictions for CBS Sports, both teams are worthy champions in their respective conferences and the Bengals have been a fantastic Cinderella story with their line-up of young faces. Is the same true for Cincinnati? Let’s look…
Despite an uptick in job numbers and an increase in personal incomes, there is still uncertainty about how the latest Labor Statistics Report will impact the housing market. The latest jobs report from the U.S. Bureau of Labor Statistics shows payroll employment growth as 467,000 in January and an increase of job growth at 1.8 million in the last three months of 2021. The report also shows an income increase of 5.7% since this time last year. In short, more people have jobs and nearly everyone is at least making a little more money. Elizabeth Rose is a Financial Planner and Lender with Mortgage 300 based in Dallas, Texas. She says the numbers show a lot of positive growth, but maybe not…
Shawn Nevin, CEO of California-based America’s MoneyLine (AML), is the target of a $2.8 million lawsuit from lending giant United Wholesale Mortgage, and he has one word to describe it: “Anti-American.” At issue is UWM’s controversial “All In” policy, implemented by CEO Mat Ishbia last year. “If you work and send loans and send business to Fairway Independent or Rocket Mortgage … you can’t work with UWM anymore, effective immediately,” Ishbia said in a Facebook Live message last March. His policy sparked a lawsuit from mortgage brokers that is still working its way through the legal system. UWM claims in its lawsuit that AML has sent 560 loans to Fairway and Rocket, in violation of the “All In” agreement. Nevin responded…
Fannie Mae’s Home Purchase Sentiment Index (HPSI) fell 2.4 points to 71.8 in January, its lowest level since May 2020, the GSE reported. The full index is down 5.9 points year-over-year. Affordability concerns drove sentiment down, with four of the index’s six components falling month-over-month. Only 25% of respondents said they believed it’s a good time to buy a home, an all-time low for the survey, while 69% said it’s a good time to sell. “Consumer sentiment toward housing softened further in January – the HPSI fell 2.4 points to 71.8 – as affordability and supply constraints continue to limit home purchase opportunities, particularly among younger households,” said Doug Duncan, Fannie Mae Senior Vice President and Chief Economist. Younger consumers…
In a public statement on LinkedIn, Jason Vondrak of Prospect Home Finance announced he has laid off 50 employees from his California-based company, and he laid the blame at the feet of United Wholesale Mortgage and its CEO, Mat Ishbia. “This was one of the hardest decisions of my life, and my heart goes out to all of our team members and their families that this affected,” Vondrak wrote. At issue is UWM’s decision last year to force brokers to sign an agreement that they will not work with Rocket Mortgage or Fairway Independent Mortgage – or else be banned from working with UWM, the largest wholesale mortgage lender. At the time, David Stevens, the former CEO of the Mortgage Bankers…
