Monthly home value appreciation accelerated for the first time since July as potential buyers continue to outnumber new listings, driving December inventory to an all-time low, according to Zillow’s latest market report. “Home shoppers picked the shelves clean this December, leaving fewer active listings than ever before in the U.S. housing market,” said Jeff Tucker, senior economist at Zillow. “Enough determined buyers kept up their house hunt to reignite monthly price appreciation. Rising mortgage rates could be the next potential headwind, but demand has proven persistent; neither high prices nor slim inventories have deterred buyers so far.” The typical home value is now $320,662, 19.6% above that of December 2020 and a record high for Zillow’s data, which dates back…
The total number of loans in forbearance fell from 1.67% of servicers’ portfolio volume to 1.41% in December 2021, according to the Mortgage Bankers Association’s (MBA) Loan Monitoring Survey. The pace of monthly forbearance exits is at its lowest point since MBA began tracking exits in June 2020. MBA estimates 705,000 homeowners are currently in forbearance plans. Independent mortgage banks saw a 0.28% decline from 1.94% to 1.66%, while depositories saw a 0.28% drop from 1.52% to 1.24%. The share of forborne Fannie and Freddie loans fell to 0.68%, down by 8 basis points, while Ginnie Mae loans fell from 2.10% to 1.63%, down 47 basis points. PLS and portfolio loans in forbearance dropped by 51 basis points to 3.43%.…
December was a hot month for homebuyers, but supply couldn’t keep up with demand. Monthly home sales saw their largest decline since the beginning of the pandemic, according to Redfin. Month-over-month sales fell 3.6%, the largest drop since May 2020, and were down 11% year-over-year (YOY), the largest annual decline since June 2020. The drop was the result of continuing stock shortages. Active listings declined 19% YOY, reaching a record low. New listings dropped 13%, down annually in 82 of the 88 metro areas Redfin tracks. In addition, home prices were up 15% YOY, marking the 17th straight month of double-digit price increases. “Home sales are slumping, but not for lack of demand,” said Redfin Chief Economist Daryl Fairweather. “There…
Delinquencies on commercial and multifamily mortgages fell in Q4 2021, according to the Mortgage Bankers Association’s (MBA) Commercial/Multifamily Delinquency Report. Outstanding loan balances that were current on their payments rose from 96.7% to 97%, with only 1.9% 90 or more days delinquent or in REO, down from 2.2%. Loans 60-90 and 30-60 days delinquent saw no change, at 0.2% and 0.3% respectively. Loans that were less than 30 days delinquent fell 0.1% to 0.7%. Lodging and retail properties continued to be the most delinquent but saw improvement in Q4. For lodging loans, delinquencies fell 3.5% to 10.5%, while delinquent retail loans fell from 8.2% to 7.6%. CMBS loans also saw improvement, with 5.7% of balances non-current, down from 7.2% in…
ATTOM Data Solution’s Year-End 2021 U.S. Foreclosure Market Report found foreclosure filings dropped 29% from 2020 and were down 95% from a peak of nearly 2.9 million in 2010. It is the lowest level since ATTOM began tracking filings in 2005. Properties with foreclosure filings–default notices, scheduled auctions, and bank repossessions– made up 0.11% of all U.S. housing units, down from 0.16% in 2020. “The COVID-19 foreclosure tsunami that some people had anticipated is clearly not happening,” said Rick Sharga, executive vice president at RealtyTrac, an ATTOM company. The report is heartening from a broad view of foreclosure filings in the US. However, it found that filings increased as protections expired, pushing rates closer to pre-pandemic levels. A total of…
Mortgage credit availability grew slightly in December 2021, increasing by 0.8% to 125.9, according to the Mortgage Banker Association’s (MBA) Mortgage Credit Availability Index (MCAI). The Conventional MCAI rose by 0.8%% while the Government MCAI rose by 0.7%. Within the Conventional MCAI, the Jumbo MCAI rose by 0.6% and the Conforming MCAI rose by 1.1%. A decline in the MCAI indicates that lending standards are tightening, while an increase indicates loosening credit. The index was benchmarked to 100 in March 2012. The overall credit index rose to its highest point since May 2021. However, it remains 30% below its pre-pandemic level. The increase puts mortgage credit availability back on a positive trajectory after a November decline that interrupted a four-month…
Mortgage lending is a hot target for fraudsters in the U.S., and the situation has grown worse since the pandemic began, according to a new report from LexisNexis. The LexisNexis True Cost of Fraud Study: Financial Services and Lending examines fraud trends in North American financial services and lending sectors. The 2021 edition is based on responses from August and September 2021. The report revealed that U.S. banks and mortgage lenders saw an increase in fraud costs and attack volumes compared to before the pandemic. Every $1 of fraud loss now costs financial service firms $4, compared to $3.25 in 2019 and $3.64 in 2020. For mortgage lenders, fraud costs $4.40 for every $1, 23.5% higher than before the pandemic…
By KIMBERLEY HAAS Analysts at Zillow have made their predictions for the hottest housing markets of 2022, and we are bringing you a look at the most expensive homes in the top five cities listed. On Tuesday, the Seattle-based company predicted Tampa, Florida, will be the hottest housing market of 2022. NFL Quarterback Tom Brady’s new city is followed by Jacksonville, Florida; Raleigh, North Carolina; San Antonio, Texas; and Charlotte, North Carolina. “Homebuyers are attracted to markets in the Sun Belt that offer relative affordability, fast-growing economies, and weather that allows them to enjoy the outdoors year-round,” Zillow economist Alexandra Lee said in a statement. Lee also predicts the seller’s market seen in 2021 will continue and buyers should be ready…
Michigan-based United Wholesale Mortgage is under scrutiny from both state and county health officials in the wake of complaints about the company’s handling of COVID-19, a Detroit TV station is reporting. The Michigan Occupational Safety and Health Administration (MIOSHA) Director Bart Pickelman confirmed to The Mortgage Note Wednesday that his agency has received 50 complaints against UWM since November 1, 2021. “MIOSHA currently has one open investigation and other investigations that are currently progressing through the appeals process. MIOSHA cannot provide information on an open investigation,” Pickelman said. And the Oakland County Health Department has also received numerous complaints about UWM, leaving health officials concerned amid the county’s soaring infection rate.“The test positivity rate in Oakland County is 25.5%. It’s the highest it’s ever…
By SCOTT KIMBLER Prices of single-family homes and rental costs continue to rise in the United States. But officials in China have been lowering interest rates and over the last few months, the Asian county has seen a drop in property price tags as well. Here in the U.S., many companies—including Bloomberg—are reacting by predicting a possible rally in 2022. Especially in the bond market. Bond prices have an inverse relationship with mortgage interest rates. As bond prices go up, mortgage interest rates go down and vice versa, according to an article on Rocket Mortgage’s website. “These sorts of events cause uncertainty,” said Elizabeth Rose of Mortgage 300 in Dallas, Texas. “Their (China) money is going to seek a better return, so we’ll potentially have more buying in the…
