By KIMBERLEY HAAS
Leaders at United Wholesale Mortgage are lashing out after a bombshell report that was followed up with a consumer class action lawsuit filed on behalf of borrowers.
Hunterbrook Media published the report on Tuesday, which claimed that $39 billion in mortgages were referred to UWM by independent brokers who sent more than 99% of their business to the lender.
These brokers were supposed to represent homebuyers and shop around for the best deal on their behalf. Instead, they became “loyalists” to UWM, according to the report.
Hunterbrook estimated that borrowers paid “between hundreds of millions and billions more in closing costs than people whose brokers found them typical loans.”
UWM CEO Mat Ishbia‘s “All In” ultimatum helped…
By CHUCK GREEN
Luxury home prices are at an all-time high as a record share of buyers pay cash for homes in the country’s most exclusive areas.
According to a recent report by data journalist Dana Anderson at Redfin, the prices of luxury homes rose at twice the pace of non-luxury homes at the end of last year. The typical luxury home sold for $1.17 million in Q4 2023, up 8.8% year-over-year.
Like the non-luxury market, low inventory has been pushing prices up, but new listings are increasing as more homeowners jump at the chance to snag rich buyers offering cash for their purchases.
“A lot of luxury buyers are coming in with cash, snapping up expensive homes,” Heather Mahmood-Corley,…
Americans are making sacrifices ranging from fewer vacations to skipping meals to afford housing costs.
Just under 50% of U.S. homeowners and renters say they regularly or greatly struggle to make their housing payments, and many are giving up other things to pay in full, according to a new survey from Redfin.
Of the 3,000 American homeowners and renters surveyed, a third of respondents said they are taking fewer or no vacations in order to make their payments, the most common response by far. But others are forced to take more serious action.
An equal share of others said they skipped meals, worked extra hours at their job, or sold belongings (approximately 20% for each category.)
One of every six…
Mortgage rates were basically stagnant last week, staying put in the upper-6% range yet again.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.82%, up just slightly from the week prior’s 6.79%. A year ago at this time, the 30-year FRM averaged 6.28%.
The 15-year fixed rate also fell from 6.11% to 6.06%. A year ago, it averaged 5.64%.
This week’s data reinforces that rates have stabilized in the 6%’s for the moment.
“Since the start of 2024, the 30-year fixed-rate mortgage has not reached 7% but has not dropped below 6.6% either,” said Sam Khater, Freddie Mac’s Chief Economist.
“While incoming economic signals indicate lower rates of inflation, we do not expect rates will decrease…
First-time homebuyers will find the best mix of affordability, low competition, and young homeowners in Midwestern metros, a new report says.
Zillow named the best markets for first-timers in 2024, with St. Louis taking the number one spot. Detroit, Minneapolis, Indianapolis, and Austin rounded out the top five.
These cities offer reasonable prices and a relatively full arsenal of starter homes to choose from. Low-priced properties have been hard to come by due to rate lock-in keeping many families from moving up and a tendency for builders to produce big homes.
That trend is changing, with builders now prioritizing smaller homes with fewer amenities, but until the construction wave is complete, first-time buyers need to prioritize metros that offer affordable…
Mortgage applications slipped again as rates stayed put in the high 6%s, keeping affordability at the forefront of buyers’ minds.
The Mortgage Bankers Association’s weekly survey shows that the adjusted Market Composite Index — a measure of mortgage loan application volume — decreased by 0.6%, following the week prior’s 0.7% slip.
Adjusted purchase applications slipped by 0.1%, while the unadjusted index was up 1% and 13% lower YOY.
Rates pulled back slightly, clocking in at 6.91% and the 15-year fixed rate fell to its lowest level in two months, 6.35%. But both are high enough to deter borrowers, according to MBA Vice President and Deputy Chief Economist Joel Kan.
“Elevated mortgage rates continued to weigh down on home buying. Purchase…
United Wholesale Mortgage and its CEO Mat Ishbia are under fire with accusations that the company’s independent brokers aren’t independent after all.
A report from Hunterbrook Media makes the claim that at least $39 billion in mortgages were referred to UWM by brokers who refer more than 99% of their business to UWM, throwing these brokers’ relationships with the lender into question.
The claims call UWM’s basic setup into question: the idea that it works with independent brokers who shop around for the best deal for homebuyers. Instead, UWM turns its brokers into “loyalists” who choose UWM regardless of price.
Hunterbrook estimates that borrowers paid “between hundreds of millions and billions more in closing costs than people whose brokers found…
“Million-Dollar Cities” took even more share in the U.S. as inventory keeps home prices moving up.
There are 550 cities where the typical home value is $1 million or more, up from 491 last year, according to a new Zillow report.
Home prices were depressed some last year as Americans adjusted to rising rates but have rebounded since the beginning of the year, with many metros clocking new record highs.
Most of these affluent areas are in California, which boasts 210 cities, more than the next five states combined.
New York and New Jersey took second and third place, but the NYC metro area – which includes parts of Jersey and Pennsylvania – would take first for most additions. There…
Inventory and rate pressures are creating conditions for a “quieter” spring homebuying season.
That’s according to HouseCanary’s March Market Pulse Report, which found that while inventory is up 12.6% YOY, total stock remains historically low.
In March, net new listings slipped 4.4% YOY. For the entire last 52 weeks, net new listings were down 12.4%.
HouseCanary says the decrease in net new listings was driven by a 2.5% drop in new listing volume, plus a 7% increase in removals compared to March 2023.
“Over the past month, net new listings and contract volumes have continued to trend at multi-year seasonal lows. The interest rate shock is the biggest factor responsible for sustaining inventory scarcity,” said Jeremy Sicklick, Co-Founder and CEO…
With home prices soaring out of reach and rates hot, Americans are doing whatever they can to lower their monthly payments, according to a series of new reports from Redfin.
The typical monthly housing payment hit a record high of $2,721 in the four weeks ending March 24, up 10% YOY.
A combination of prices and rates is keeping homeownership unaffordable for the average family, which earns $30,000 less per year than necessary to comfortably purchase a house.
First-time buyers have it even worse thanks to boiling competition for low-priced homes. To afford a starter home, they need to earn almost twice as much as before the pandemic.
With these pressures on Americans’ wallets, buyers are looking for other ways…
