Builder Confidence In Multifamily Market Drops

Builder confidence in the market for new multifamily housing plummeted in the first quarter of 2020, according to a survey released Thursday by the National Association of Home Builders. The Mutlifamily Production Index – which measures builder and developer attitudes about the apartment and condo market – fell to 27, down 22 points from the previous quarter. The index is on a scale of 0 to 100, with a number below 50 indicating that more respondents believe conditions are getting worse than those reporting conditions are improving. The index is at its lowest level since the fourth quarter of 2009. “Like other sectors of the housing market, the multifamily market has been greatly affected by the effects of the pandemic,”…

Mortgage Delinquency Rate Nearly Doubles In April

The national delinquency rate on mortgages nearly doubled in the United States in April as the economic impacts of the coronavirus pandemic shutdowns fully took hold across the country, according to a report released Thursday by Black Knight. At the end of April, 3.6 million homeowners were past due on their mortgages – the largest number in more than five years. The delinquency rate was 6.45 percent for the month, up from 3.39 percent in March – the largest single-month increase ever recorded and nearly three times higher than the previous record set in 2008. Delinquency increases in Nevada (5.2 percent), New Jersey (5.1 percent) and New York (+4.9 percent) led the states, while Miami (7.2 percent), Las Vegas (6.2…

Home Purchase Mortgage Applications Rise Again

By Jim Perskie Applications for mortgages for home purchases increased for the fifth straight week as the housing market continues to make tentative steps forward amid the coronavirus pandemic, the Mortgage Bankers Association announced Wednesday. MBA’s Weekly Mortgage Applications Survey showed that the Purchase Index for the week ending May 15 increased 6 percent over a week earlier, though it was slightly lower than a year ago. “Applications for home purchases continue to recover from April’s sizeable drop and have now increased for five consecutive weeks. Purchase activity – which was 35 percent below year-ago levels six weeks ago – increased across all loan types and was only 1.5 percent lower than last year,” said Joel Kan, MBA’s Associate Vice…

Housing Starts Wayyyyyy Down In April

By Jim Perskie Another day, another housing report battered by the economic shutdown driven by the coronavirus pandemic. Residential housing starts in the United States in April dropped 30.2 percent from March and were 29.7 percent below April 19, according to a report released Tuesday by the Census Bureau and the Department of Housing and Urban Development. Single-family housing starts were 25.4 percent below March. Privately-owned housing starts in April were at a seasonally adjusted rate of 891,000, significantly below the 1.28 million in March. “This drop in new home construction is not surprising since most states were under stay-at-home orders in April, which included home builders,” said Bill Banfield, vice president of Capital Markets at Quicken Loans. “While it…

8.16% Of U.S. Mortgages In Forbearance

The share of mortgage loans in forbearance climbed slightly last week to 8.16 percent, a second straight week of relatively small increases in the number of borrowers who have paused their payments during the coronavirus pandemic. The Mortgage Bankers Association said the percentage of mortgages in forbearance increased from 7.91 percent the week before and 7.54 percent a week earlier. All told, the MBA estimates that 4.1 million homeowners are now in forbearance plans for the week ending May 10. “The pace of forbearance requests continued to slow in the second week of May, but the share of loans in forbearance increased,” said Mike Fratantoni, MBA’s Senior Vice President and Chief Economist. “There has been a pronounced flattening in loans…

Builder Confidence Bounces Back Somewhat In April

Builder confidence is rebounding as the nation slowly begins to emerge from economic shutdowns enacted in response to the coronavirus pandemic. The National Association of Home Builders/Wells Fargo Housing Market Index (HMI) released Monday showed that builder confidence for newly built single-family homes jumped seven points to 37 in May. The HMI – which measures builder sentiment – had dropped 42 points to 30 in April, the largest single-month decline in history. By comparison, the HMI sat at 76 at the end of 2019. “The fact that most states classified housing as an essential business during this crisis helped to keep many residential construction workers on the job, and this is reflected in our latest builder survey,” said NAHB Chairman…

Home Sales, Listings Plummet In April

The coronavirus pandemic slammed the brakes on a once-roaring housing market. A new report released Monday by Redfin found that sales and listings experienced historic declines from a year ago – with home sales dropping 22.5 percent in April from a year ago, while the number of homes newly listed for sale plunged 42.4 percent. “The supply of homes for sale declined even more dramatically than homebuyer demand in April,” Redfin lead economist Taylor Marr said. “While home sales fell the most in more expensive markets, in more affordable areas prices continued to increase. Even during the depths of the slowdown last month, the market was still faster and more competitive than it was a year earlier.” The report also found:…

Zillow Resumes Home Buying In Four Markets

Nearly two months after shutting down its iBuyer program across the country due to the coronavirus pandemic, Zillow announced Monday it is resuming home purchases in four markets. Zillow’s purchase program – known as Zillow Offers – is restarting in Phoenix; Tucson, Ariz.; Raleigh, N.C.; and Charlotte, N.C. Purchases in the other 20 Zillow Offers markets remain on pause, as they have been since March 23. “We are excited to begin purchasing homes again and making it even easier for home sellers to move — with new cleaning protocols and more virtual tools and services,” Zillow President Jeremy Wacksman said. “These past two months have confirmed our belief that real estate is resilient. In fact, we’ve seen that people – despite these…

Survey: Online Home Searches Revving Up

As states across the country slowly begin to reopen for business, realtor.com released a survey Monday that may suggest that homebuyers are ready to jumpstart shopping for a new house in the coming weeks and months. The survey found increased activity on realtor.com, with listing visits, saves and shares “all up significantly since the first wave of shelter-in-place orders took effect on March 16.” “Data suggests that home shoppers who had paused their search are now picking it back up, and the spring homebuying season won’t be lost, but merely pushed into the summer months,” said Danielle Hale, Chief Economist, realtor.com®. “Tools such as virtual tours and livestream open houses are enabling consumers to safely continue their home search while maintaining social distancing…

Sellers Slowly Returning To Housing Market

A pair of housing reports released Thursday show mortgage applications and new home listings are down amid the coronavirus pandemic, though sellers are slowly beginning to return to the market. Mortgage applications for new home purchases dropped 12 percent in April from a year ago and 25 percent from March, according to the Mortgage Bankers Association’s Builder Application Survey. A realtor.com survey found that for the week ending May 9 there were 29 percent fewer new listings than a year ago, but that decline is significantly lower than the declines of nearly 40 percent in previous weeks. “New home purchase applications severely weakened in April, which coincided with the peak of the social distancing efforts and restrictions on non-essential activities…