Forbearances Plans Drop In First Week Of 2022

Active forbearance plans dropped by 73,000 (-8%) in the first week of January, according to Black Knight’s blog, Vision.  The number of loans in forbearance fell across all categories, led by a 30,000 plan decrease in FHA/VA loans (-10%). Forbearances on loans held by portfolios and PSLs fell by 17,000 (-8%) and GSE loans fell by 27,000 (-19%). The number of active plans is down 123,000 (-13%) from last month. Additional declines are expected with 61,000 plans still listed as extension/removal in December 2021, of which 25,000 are expected to expire. An additional 186,000 plans are up for extension or removal in January, though less a third are expected to expire. Forbearance plan starts ticked up once again, continuing a…

Rates Rise To Highest Level Since May 2020

Mortgage rates rose to their highest level since May 2020, up to an average of 3.22%, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 3.22%, significantly higher than last week’s 3.11%. It disrupts a trend of rates hovering around 3.10% or 3.11%. A year ago at this time, the 30-year FRM averaged 2.65%. “Mortgage rates increased during the first week of 2022 to the highest level since May 2020 and are more than half a percent higher than January 2021,” said Sam Khater, Freddie Mac’s Chief Economist.  “With higher inflation, promising economic growth, and a tight labor market, we expect rates will continue to rise. The impact of higher rates…

Second Home Demand Remains High Heading Into 2022

December demand for vacation homes topped pre-pandemic levels by 77%, a little down from November’s 80% but still elevated, Redfin reported. “The wealthy are still flush with cash and have access to cheap debt, which is why second-home purchases remain far above pre-pandemic levels,” said Redfin Chief Economist Daryl Fairweather. “While interest in second homes is stabilizing after the big boom in the second half of 2020 and the beginning of 2021, I expect demand to remain high well into this year. Remote work isn’t going anywhere and mortgage rates are still quite low.”  Redfin’s index defines “pre-pandemic” as January and February 2020, set to 100, and looks at mortgage-rate lock. Rate lock on second homes increased steadily between 2015…

Look At The Most Expensive Homes In 2022’s Hottest Housing Markets

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…

MBA: Mortgage Applications Down 2.7%

Mortgage loan application volume dropped 2.7% from the week ending December 31, the Mortgage Bankers Association’s (MBA) weekly survey reported. MBA adjusted the results to account for the holidays. The adjusted Market Composite Index, a measure of mortgage loan application volume, fell 2.7%. The adjusted purchase index fell 4%, while the unadjusted purchase index fell 32% and was 12% lower YOY. The refinance index fell 2% and was down 40% YOY. Refinances made up 65.4% of total applications. The survey attributed the drop in refinances to an increase in the 30-year fixed rate, which rose to 3.33%, its highest point since April. “The higher rates to close 2021 caused refinance activity to decrease 2.2%. Refinance demand continues to dwindle, as…

Home Prices Hit New Record In November 2021 But Expected To Slow In 2022

Home prices across the country climbed 18.1% year-over-year (YOY) in November 2021, according to CoreLogic’s Home Price Index (HPI) Report. This is the highest annual growth since at least 1976 when the HPI began. For comparison, the annual growth in November 2020 was 8.1%. Home price growth, which is calculated against the median national home sale price, was up in all four price tiers measured by CoreLogic. The lowest price tier rose 19.8% YOY, while the low- to middle-priced tier rose 19%. Middle- to moderately-priced homes saw an increase of 19.1%, while high-priced homes saw prices rise 18.6%. Arizona saw the highest YOY appreciation (+28.6%), followed by Florida (+25.8%) and Idaho (+25.5%). Washington, D.C., and Alaska were at the bottom…

Study: Americans Moving To Be Closer To Family

A new study from United Van Lines found Americans moved to lower-density areas to be closer to their families in 2021. The study, which uses data from the migration patterns of United Van Lines customers, found Vermont and South Dakota had the highest inbound migration, at 74% and 69%, respectively. South Carolina (63%), West Virginia (63%), and Florida (62%) also had high inbound migration rates. New Jersey had the highest number of people moving out of the state, at 71%, for the fourth year in a row. Illinois (67%), New York (63%), Connecticut (60%), and California (59%) also saw high outbound migration. Kentucky and Wyoming were among several “balanced” states that saw similar numbers of people moving in and out.…

Pending Home Sales Fell In November

Pending home sales dropped 2.2% in November, a 2.7% decrease year-over-year (YOY), according to the National Association of Realtors’ (NAR) Pending Home Sales Index (PHSI). The PSHI, which predicts home sales based on contract signings for existing homes, fell to 122.4. An index of 100 is equal to signing activity in 2001. “There was less pending home sales action this time around, which I would ascribe to low housing supply, but also to buyers being hesitant about home prices,” said Lawrence Yun, NAR’s chief economist.  “While I expect neither a price reduction, nor another year of record-pace price gains, the market will see more inventory in 2022 and that will help some consumers with affordability.” Signings declined in all four…

Housing Affordability Dropped In 77% Of US Counties

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…

MBA: Average Loan Size Reaches Its Second-Highest Amount Ever

Mortgage loan application volume dropped 0.6% last week, though the average purchase loan reached its second-highest amount ever, the Mortgage Bankers Association’s (MBA) weekly survey reported. The seasonally adjusted Market Composite Index, a measure of mortgage loan application volume, fell 0.6%. The seasonally adjusted purchase index fell 3%, while the unadjusted purchase index fell 6% and was 9% lower YOY. The refinance index rose 2% and was down 42% YOY. Refinances made up 65.2% of total applications, driven by a rate decrease to 3.27%, its lowest in four weeks. Though applications fell, purchase loan size increased to an average of $416,200, the second-highest average amount on record. “The elevated loan size is an indication that activity is more on the…