By PATRICK LAVERY
Saying the economy has surprised even the experts since the start of the COVID-19 pandemic nearly four years ago, Federal Reserve Board Chairman Jerome Powell on Wednesday announced that the Fed would hold its ground for now and keep its policy interest rate unchanged at its current range of 5.25% to 5.5%.
“We believe that our policy rate is likely at its peak for this tightening cycle and that, if the economy evolves broadly as expected, it will likely be appropriate to begin dialing back policy restraint at some point this year,” Powell said in prepared remarks following the first two-day Federal Open Market Committee meeting of 2024.
The decision by the FOMC was not unexpected, and…
By ERIN FLYNN JAY and KIMBERLEY HAAS
A recent report from Redfin shows that Baby Boomers with empty nests own double the amount of large homes compared to Millennials with kids. So what if Grandma and Grandpa moved into an accessory dwelling unit and the three generations lived together so everyone could have some space?
According to the report, Millennials with kids own 14% of the nation’s large homes, which are defined as having three or more bedrooms. Baby Boomers living by themselves or with one other person own 28% of these properties.
Partially to blame is affordability. 2023 was the least affordable year for homebuying on record, with median-priced homes costing about $410,000, according to Redfin. Additionally, 54% of…
United Wholesale Mortgage is suing Atlantic Trust Mortgage Corporation for submitting loans to Rocket Mortgage or Fairway Independent Mortgage, an alleged breach of its “All In” ultimatum.
Lawyers for UWM claim that Atlantic Trust submitted at least 71 mortgages to rivals Rocket or Fairway, causing about $355,000 in damages. If the company wanted to work with other lenders, they argue, it needed to submit written notice that it was terminating its business with UWM.
This is the second legal action by UWM regarding their ultimatum since December. A similar case was filed against Madison Atrina LLC, which operates as District Lending.
The ultimatum has been controversial since it was introduced by UWM CEO Mat Ishbia in March 2021.
“If you…
By PATRICK LAVERY
Seven weeks ago, the 2023 slate of policy meetings for the Federal Open Market Committee concluded with members voting to leave the key interest rate unchanged for a third straight time. However, anyone hoping that 2024 will begin with some movement in a downward direction is likely to be disappointed this week.
Despite a seemingly positive economic outlook that has the stock market soaring to record highs, the experts seem to agree that there will be no change made when Federal Reserve Board Chairman Jerome Powell emerges from the FOMC meeting on Wednesday.
The stability, so to speak, of the Fed’s policy interest rate has been mirrored somewhat in the housing market recently. According to Freddie Mac,…
By CHUCK GREEN
Where should you stow at least some of your hard-earned cash this year?
Under the mattress? Hmm…. you might want to consult your financial advisor first.
Of course, there are lots of options. Despite a landscape rife with unpredictability, perhaps real estate’s your cup of Java. Or maybe the stock market, for all its maddening ups and downs, floats your boat.
The choice isn’t exactly as simple as deciding on one or two Splendas with your Latte, so The Mortgage Note set out to find out where experts expect to see the most returns in 2024.
Taylor Kovar, CEO and founder of Kovar Wealth Management in Lufkin, Texas, doesn’t think people can go wrong investing in both. …
By ERIN FLYNN JAY
Foreclosure numbers are up by double-digit numbers and industry leaders say they will continue to rise this year.
Earlier this month, ATTOM, a curator of land, property, and real estate data, released its Year-End 2023 U.S. Foreclosure Market Report, which shows foreclosure filings — default notices, scheduled auctions, and bank repossessions — were reported on 357,062 U.S. properties in 2023, up 10% from 2022 and 136% from 2021.
CEO Rob Barber told The Mortgage Note several elements may be contributing to the rise in foreclosures.
“Key among them is the increase in interest rates, especially for adjustable-rate mortgages, leading to higher monthly payments for homeowners. Additionally, escalating unemployment rates are a concern,” Barber said.
Barber said…
By ERIN FLYNN JAY and KIMBERLEY HAAS
As business models continue to change in the post-Covid economy, some market experts are predicting a commercial real estate crash while others are saying there could be a revival in investment opportunities.
Desmond Lachman, an American Enterprise Institute senior fellow, recently wrote that high vacancy rates have already caused commercial property prices to decline. At the same time, property owners need to roll over around $500 billion in maturing loans at higher interest rates.
Lachman said this spells trouble for the banking sector in general and the regional banks in particular. He predicted commercial real estate troubles could lead to the failure of 385 regional banks.
“With as much as 18% of their…
By NICOLE MURRAY
As more people consider jumping into the housing market this year, what do they need to know?
The Mortgage Note set out to answer this question, talking to industry leaders and three people who recently purchased a home to get their opinions.
Kevin Wu, who bought his first home in 2020, started looking at potential properties with his fiancé just as the real estate market started to transform. The couple looked at almost 15 houses and found their forever home when interest rates were 3.3% in a rather unique experience.
“The home we bought was under contract with an approved offer but for whatever reason, they allowed us to look and even place an offer,” said Wu.…
By KIMBERLEY HAAS
Motivated millennials and the power of technology will shape the mortgage market in 2024, according to industry leaders who gathered this week to reflect on 2023 and strategize for the year ahead.
During a “2024 Lender Strategies: What (Another) Unprecedented Year in Mortgage Taught Us” webinar hosted by Snapdocs, Michael Fratantoni, chief economist and senior vice president of research and industry technology at the Mortgage Bankers Association, said volume is predicted to increase by loan count to over five million this year.
At the same time, total mortgage origination volume is expected to increase from $1.6 trillion to more than $2 trillion.
Demographics will help contribute to a market rebound after a tough year in 2023. That’s…
By NICOLE MURRAY
A number of real estate industry professionals experienced a painfully slow 2023 and it is predicted this trend will continue in 2024. With high interest rates and low inventory expected, people are encouraged to use this year to prepare for an explosive 2025.
The Mortgage Note spoke with industry professionals to see what they expect and what tactics they plan on utilizing to be successful until the inevitable market boom everyone eagerly awaits.
“2024 is going to be another stubborn year for originators,” says Jason Perkins, president of CRM company Bonzo. “We might get some relief with rates, but tight inventory and rising home prices will continue to be a burden for potential homebuyers for quite some…
