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…
America’s home affordability problem was bad in 2020, before COVID-19 hit. In 2021, it got even worse. In Q4 2021, median-priced single-family homes were less affordable in 77% of U.S. counties analyzed by ATTOM Data Solutions, a 13-year high, the company found. In 440 out of the 575 counties analyzed, the gap between incomes and affordable home prices was larger than their historical averages. This is a dramatic increase from Q4 2020 when only 39% of counties were less affordable than in the past. “The average wage earner can still afford the typical home across the United States, but the financial comfort zone continues shrinking as home prices keep soaring and mortgage rates tick upward,” said Todd Teta, chief product…
Across the country, mortgage professionals step up to help those in need every holiday season so we at The Mortgage Note decided to celebrate organizations and their employees who recognize the importance of giving back to their communities. On November 30, we started a contest asking members of the mortgage industry to submit photos and a brief description of the charity work they’re doing this year. The winner would earn a $1,000 donation from TMN to their highlighted charity. Valerie Pesonen, a senior manager in public relations at Rock Central, sent in a submission for Rocket Mortgage in Detroit, Michigan that warmed our hearts. Pesonen highlighted three community outreach programs the company participates in, including the Rocket Mortgage Cause Campaign…
By KIMBERLEY HAAS It may be the week before Christmas, but that doesn’t mean potential homebuyers aren’t out searching for their perfect piece of real estate. Lewis Esposito, a licensed real estate professional at RE/MAX Preferred in West Chester, Pennsylvania, says buyers don’t want to wait until the new year and when asked if realtors are showing houses this week, he said if clients see a home they like then showings are being offered. “If you have a buyer, they’ll tend not to want to wait until after the new year. If they see something, they’ll jump on it,” Esposito said. Esposito, who works in the suburbs of Philadelphia, said he has a few clients who are holding off until…
Homeowners gained $9.1 trillion in housing value between November 2020 and November 2021, a new report from Redfin found. U.S. home prices rose 31.4% year-over-year (YOY) to $38.3 trillion in November, with a $2.6 trillion annual increase a year earlier. The surge in value was propelled by continuing home price appreciation. November was the 16th consecutive month of double-digit price increases. The number of homes for sales reached a record low, adding fuel to the fire. “The surge in housing values during the pandemic has widened the gap between homeowners and renters in America. Homeowners have seen their wealth increase significantly over the past year, while renters have missed out on those gains and are now grappling with rent inflation,”…
The Fannie Mae Economic and Strategic Research (ESR) Group boosted its expectation for full-year 2021 economic growth to 5.5% in its December commentary, up 0.7% from November’s projection. The group cited “stronger-than-anticipated consumer spending and inventory investment data” as the reason for its revised projection. Total home sales are now expected to increase 7.1% in 2021 rather than 5.3%. Total mortgage originations are expected to be $4.5 trillion, up from $4.4 trillion. But it also revised its 2022 expectations, downgrading its 2022 growth forecast from 3.7% to 3.2%. Though recent data appears strong, the group noted it “likely reflects a pull-forward of activity from the first half of 2022 and is unlikely to be sustained.” Inflation is the primary reason…
Bidding wars on home offers from Redfin fell to 59.5% in November, their lowest level in eleven months, the company reported. It’s the first time it’s fallen below 60% since December 2020. Month-over-month, bidding wars fell 2.3%, dropping from 61.8% in October. However, they were up slightly year-over-year, from 57.3% in November 2020. They reached a pandemic peak in April when 74.6% of home offers written by Redfin agents faced competition. The top three cities for bidding wars were Richmond, VA, at 80%, Salt Lake City at 73.8%, and San Diego at 72%. Honolulu followed up at 71.1% and Dallas just made the top five at 70.6%. “Bidding wars are still happening, but buyers are starting to get more breathing…
By KIMBERLEY HAAS As the number of homes purchased by people with different last names increases, it is being reported that Millennials are choosing to buy single-family houses with their friends. In an article written by Zinhle Essamuah for NBC News, three women talked about their decision to buy a house together. Amanda Scheider, 30, told Essamuah that it’s like having a permanent sleepover. Scheider lives with Kathy Keel, 30, and Stephanie Vandergrift, 28, in Gallatin, Tennessee. They signed for a 30-year, $315,000 mortgage in May of 2020 after renting a house together. Essamuah used analytics from Attom Data Solutions which shows the number of homes purchased by people with different last names increased by nearly 772% between 2010 and…
By KIMBERLEY HAAS It may be a harsh reality to face, but the data is clear: There will be more houses on the market in 2022 because of the number of people who have died due to COVID-19 and its variants. This sobering fact was highlighted during the National Association of Real Estate Editors conference in Miami, Fla., last week. As of Monday, the U.S. Centers for Disease Control and Prevention reported 793,937 COVID deaths of Americans. More of those deaths have occurred since the first vaccines became available than before. Approximately 77% of people over the age of five have had at least one vaccination, according to their website. Community transmission is high in many parts of the country…
By KIMBERLEY HAAS Millennials keeping the market hot, racial bias affecting home appraisals, and automated valuation technology were discussed on Tuesday during a webinar designed to address what mortgage professionals should expect in 2022 and beyond. Jeremy Sicklick, CEO and Co-Founder of HouseCanary, Inc., predicted millennials would generate demand in the housing market over the next ten years. “Effectively, demand will continue to exceed supply,” Sicklick said. “As we look forward, really over the decade, I mean, we are very bullish on housing, and that comes back to just the sheer number of Millennials and household formation that’s going to occur. There’s just a massive amount of demand out there.” Founded in 2013, HouseCanary in San Francisco, Calif., is a…
