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…
Home construction slipped for the first time in four months in December, with single-family starts taking a hit.
Residential home construction fell 4.3% last month to a 1.46 million annualized rate, according to data from the U.S. Census Bureau. They were up 7.6% from December 2022’s rate of 1.36 million, however.
The dip comes on the heels of a surge in November that sent new construction to a 6-month high. Notably, the decline was driven by single-family construction. Multi-family starts actually rose to a 5-month high.
Permit applications also fared well after performing poorly the month prior. Single-family permits soared to their highest rate since May 2022, and multi-family also ticked up.
Permits offer an indication of future construction, suggesting…
Mortgage applications soared again as treasury yields pushed rates to their lowest level in three weeks.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – jumped 10.4% on the heels of the week prior’s 9.9% bump.
Adjusted purchase applications rose by 9%, while the unadjusted index increased by 28% and was 20% lower YOY.
Refis also saw an increase of 11% and accounted for 37.5% of total applications. In the past decade, they averaged 58% of all activity.
The rush comes as the 30-year fixed-rate fell to 6.75% from 6.81%. Americans seem to be taking advantage of cooling rates in the new year after little activity in the…
The generational real estate showdown is still underway, and the latest battleground is large homes.
A new report from Redfin found that Baby Boomers with empty nests own 28% of the nation’s large homes, while Millennials with kids own just 14%.
This a huge turnaround in the last ten years, as a decade ago, younger adults with children were just as likely to own large homes as their parents.
Redfin defined “empty nesters” as households headed by Baby Boomers that report only 1-2 adults living in the home, and based on the number of bedrooms, with three or more being considered large.
Part of the problem is the current state of the housing market. Many Baby Boomers own their homes…
First-time homebuyers have made a big splash in the last few years, accounting for fully half of all purchases. But as competition for limited inventory remains high, they still face big hurdles to homeownership.
With this in mind, Realtor.com ranked the top cities for first-time buyers in 2024. The company looked at everything from “culture and liveliness” to expected sales and price growth in the nation’s 100 largest metros to create a breakdown of the best cities for young buyers.
Irondequoit, NY, took the number one spot, followed by Benton, AR, and Winterset, IA.
Rounding out the top ten were Newington, CT; Council Bluffs, IA; Cheektowaga, NY; Grand Rapids, MI; Moore, OK; Mattydale, NY, and Riviera Beach, MD.
The survey…
By KIMBERLEY HAAS
The president of the National Association of Realtors has stepped down after allegedly receiving a threat to disclose a past personal matter.
Tracy Kasper reported the threat to law enforcement and informed NAR’s Leadership Team. The threat involved a non-financial matter, according to a press release.
“As president and a long-time member of NAR, I always have put the interests of NAR first. As a result of the recent threat and given the significance of this moment for myself, my family, and the organization, it is again time for me to put the interests of NAR first. So, it is with a mix of gratitude and a heavy heart that I submit my resignation as your president…
The mortgage rate cooldown is giving Americans a somewhat rosier view of 2024’s housing market, sparking some optimism despite overall dour views about the state of buying and selling.
That’s according to Fannie Mae’s Home Purchase Sentiment Index, which increased 2.9 points in December to a reading of 67.2.
Though Americans generally see homebuying in a negative light, cooling rates pushed the “good time to buy” component of Fannie’s index up slightly month-over-month to 17%. That’s up from 14% in November, a survey low.
The boost was the result of a record-high number of consumers saying they expect mortgage rates to fall in the next 12 months (31%).
“This significant shift in consumer expectations comes on the heels of the…
It’s time to shake off 2023 and move into 2024 with a fresh perspective. Editor Kimberley Haas spoke with industry leaders who have tips for finding success in the new year and insights into the latest technology.
If you would like to participate in future episodes, please email us at [email protected].
Read articles featuring the guests:
Overcoming Objections And Winning Business With Ron Vaimberg
Embracing Technology: One-On-One With Rocket Homes President Sam Vida
Sign up for our free newsletter.…
Mortgage rates remained basically unchanged last week as markets adjust to economic expectations for 2024.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.62%, inching up from the week prior’s 6.61%. A year ago at this time, the 30-year FRM averaged 6.48%.
This is the first increase since October. Rates have fallen more than a full percentage point since then, giving homebuyers more breathing room as they struggle against record-high unaffordability.
The 15-year fixed rate dropped, however, from 5.93% to 5.89%. A year ago, it averaged 5.73%.
Freddie Mac Chief Economist Sam Khater ascribed the news to the slow machinations of the market as it “digests incoming economic data.” He pointed out that rates stopped their…
Buffalo, NY, is slated to be the hottest market of 2024 as affordable metros gain popularity among money-minded Americans.
Cincinnati and Columbus took numbers two and three on Zillow’s Hottest Markets of 2024 list, driving home the importance of savings for homebuyers this year.
The list is made up of relatively low-cost cities, primarily in the Midwest and South. Indianapolis, IN; Providence, RI; Atlanta, GA; Charlotte, NC (2023’s hottest city, now in 7th place); Cleveland, OH; Orlando, FL, and Tampa, FL, rounded out the top ten.
Zillow’s analysis looks at the 50 most populous metros and measures local home value growth and the speed at which home sellers are entering contracts with buyers, as well as job growth per new…
