Mortgage loan application volume fell 2.8% last week, driven again by low refinance applications, the Mortgage Bankers Association’s (MBA) weekly survey reported. The Market Composite Index, which measures application volume, fell 2.8% on an adjusted basis. The Refinance Index dropped 5% and was 31% lower than a year ago, rebounding from last week’s drop to its lowest level since July 2021. The seasonally adjusted Purchase Index rose 2%, while the unadjusted Purchase Index fell 2% compared to the week before, down 6% from the previous year. “Refinance applications decreased for the seventh time in eight weeks, as mortgage rates moved higher after two weeks of declines,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. But the…
Strong demand and the labor market are fueling single-family rent price increases which remain at record highs. September data from CoreLogic’s Single-Family Rent Index shows rents increased 10.2% year-over-year (YOY), compared to a 2.6% YOY increase in September 2020. Rents increased across all four tiers of rental prices used by CoreLogic. Lower-priced rentals (less than 75% of the regional median) saw an increase of 8.3% YOY, while rents in the lower-middle price range (75%-100% of the regional median) rose 9.3% YOY, both more than doubling their growth from the same time in 2020. Rents for higher-priced properties broke 10%, with higher-middle priced (100%-125%) rents climbing 10.5%, compared to 2.4% in September 2020. Higher-priced rentals (125% or more of the regional…
By KIMBERLEY HAAS When the holiday season starts, people are typically reluctant to put their homes on the market due to a lack of potential buyers. But this could be the year when that changes. In a recent article at Realtor.com, the company’s Chief Economist Danielle Hale said sellers can expect to see plenty of buyers this winter. Lawrence Yun, Chief Economist at the National Association of Realtors, agreed. He expects there will be more home sales this winter than there were prior to the COVID-19 pandemic. That is good news for sellers, especially since CNN Business reported last week that the median price of single-family existing homes rose in 99% of the 183 markets tracked by employees at the…
Airbnb is predicted to increase its inventory by 25% in 2022, giving it huge leverage to impact the residential real estate market next year, according to analyst Chris Linsell. During a presentation at the 2021 REALTORS® Conference & Expo, Linsell, senior real estate writer for TheClose.com, said Airbnb’s expansion will likely negatively impact housing affordability and inventory. “Airbnb (is) not just selling their product to consumers, they are selling to the providers of the product. They are selling twice without holding their own inventory. This unique model opens up an incredible level of scalability,” he said. “Many of those housing units are going to come from the residential real estate market.” He noted that the impact on residential housing could…
A typical home spent just one week on the market before going under contract, according to a new report from the National Association of Realtors. Their annual Profile of Home Buyers and Sellers — “real estate’s definitive guide on home buyer and seller trends” — reported on the pace of home sales between July 2020 and June 2021. By comparison, the average in 2012 was eleven weeks. “Buyers moving quickly during the pandemic, coupled with all-time-low inventory, led to a decline in time on market to the shortest ever recorded, which was just one week,” said Jessica Lautz, vice president of demographics and behavioral insights at NAR. “Only a quarter of home sellers offered incentives to entice potential buyers, down from…
By Kimberley Haas Veterans throughout the country are being gifted homes or renovations to their existing houses as lenders and other business leaders come together to honor the service and sacrifices of the men and women who served in the U.S. military. On Wednesday, Veterans United Home Loans in Columbia, Mo., announced they are giving away 11 homes to 11 veterans to celebrate Veterans Day. Actor, comedian, and retired United States Marine Officer Rob Riggle has teamed up with Veterans United to be part of the project. “These veterans have continued to live the military value of ‘selfless service’ even after they’ve hung up their uniforms,” Riggle said in a statement. Veterans United is surprising 10 veterans with new houses…
By Kimberley Haas More than 250 rural, suburban and urban communities will benefit from $36 million earmarked to produce about 8,000 units of affordable housing throughout the country. U.S. Housing and Urban Development Deputy Secretary Adrianne Todman held a virtual press conference on Tuesday morning to announce the “capacity-building” awards, which are expected to stimulate nearly $150 million in total investments. “We are really focused on building strong and vibrant communities through grants like this and through the work of our local and state leaders,” Todman said. Todman said it has been thrilling to work with leaders at the White House and HUD to stand up these initiatives “that we know will pay dividends for our children and grandchildren in…
Consumers continued to feel pessimistic about the housing market in October, reporting mixed feelings about buying and selling homes and worries over the economy overall. Fannie Mae’s Home Purchase Sentiment Index stayed relatively flat, rising only one point in October to 75.5. The index’s six components increased month-over-month (MOM) but are down 6.2 points year-over-year (YOY.) A somewhat larger group of consumers from last month said it’s a good time to buy a home (30%, +2%) or sell a home (77%, +3%), and report they expect mortgages will increase over the next 12 months. The net share of respondents who say it’s a good time to buy a home rose 3% MOM. The share of respondents who expect home prices…
Some homeowners have opted to sell their houses rather than restart their active forbearance plans, leading to a 13% increase year-over-year in the nation’s supply of affordable homes. “The end of forbearance has forced many lower-income Americans to put their homes up for sale and become renters,” said Redfin Chief Economist Daryl Fairweather. “This has caused the number of affordable homes on the market to surge, helping replenish inventory amid an acute housing shortage. It’s a rainstorm after a long drought, but the drought isn’t over yet.” Forbearance exits picked up in the final week of October, according to Black Knight’s blog, Vision. The number of loans in active forbearance fell by 6.9%, with 85,000 homeowners exiting their plans. Forbearance…
Loan officer commission dropped 17% year-over-year (YOY) in Q3 2021, according to SimpleNexus’ Q3 mortgage loan compensation report. The report cites declining loan volume as the main factor in commission declines, while a roughly 15% rise in loan officer staffing contributed to a ⅓ drop in individual processor incentive compensation. Per-loan commission rates have started falling as well, dropping 2.44% YOY from 102.88 to 100.37 basis points. Declining refinance activity had the biggest impact. Monthly refi commission dropped 37%. Refis have been falling steadily as rates tick up, resulting in the slowest weekly pace of refinancing since January 2020. Interest rates reached 3.14% last week. “We continue to expect weakening refinance activity as rates move higher and borrowers see less…
