Single Women Are Building Wealth Through Homeownership

Homeownership remains the most significant way single women can build wealth, and more women than ever are taking advantage. First American Financial reports that the number of single, female-headed households (including windowed, separated, or divorced) has risen by 1.4 million since 2019. Of that group, one million are homeowners. Female homeownership has helped the overall homeownership rate rebound since the Great Recession, with women-headed households surpassing 52% in 2022. That’s up from a post-Great Recession low point in 2016 of 50%. Single women’s homeownership rate has outstripped men’s by about two percentage points, FirstAm says, putting them in a better long-term financial position. Homeowners have 40 times as much household wealth compared to renters, most of which is held in…

Lock Dollar Volumes Up As Non-Conforming Loans Surge

Non-conforming loans pushed rate lock dollar volumes up in February as homebuyers struggle to handle high rates. While conforming, FHA, and VA loans all lost some share of the market last month, non-conforming loans increased across the spectrum, snagging 12.2% of the market, Black Knight reported in its latest Originations Market Monitor report. Jumbo loans saw a boost last month as high interest rates made GSE products less attractive. Dollar volume flew up as a result, though locks fell. The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances was 6.49% last week, while the conforming rate was 6.79%. Conforming rates finished the month 52 basis points above January’s levels. Adjustable rate mortgages saw gains, accounting for…

Rates Move Closer To 7% After Bleak Powell Comments

Mortgage rates moved closer to 7% after bleak news from Federal Reserve Chair Jerome Powell this week. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage rate averaged 6.73%, up from 6.65% the week prior. A year ago at this time, the 30-year FRM averaged 3.85%. The 15-year fixed-rate mortgage rose from 5.89% to 5.95%. A year ago, it averaged 3.09%. “Mortgage rates continue their upward trajectory as the Federal Reserve signals a more aggressive stance on monetary policy,” said Sam Khater, Freddie Mac’s Chief Economist.  “Overall, consumers are spending in sectors that are not interest rate sensitive, such as travel and dining out. However, rate-sensitive sectors, such as housing, continue to be adversely affected. As a result,…

Research Provides Mixed Projections For Mortgage Market

By SCOTT KIMBLER It’s a mixed bag when it comes to predictions for the mortgage market as the economy continues to balance out after the pandemic. ATTOM recently held a conference where research performed by their company, Altos Research, and others were compiled to provide a more complete picture of what the remainder of 2023 may look like in terms of new home construction, home sales, and mortgage rates. Inflation, the job market, supply and demand, as well as the steady rising of rates by the Federal Reserve, along with other factors, were taken into account. Unlike some predictions of 2023 that paint a picture of a distraught housing market, this research shows the year as having mortgage challenges, but…

Purchase Demand Sees A Boost, But It Doesn’t Mean The Market Is Improving

Mortgage purchase demand increased last week but that doesn’t signal a change in the mortgage market. The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – rose by 7.4%, balancing out last week’s 5.4% dip. The average interest rate for 30-year fixed loans rose from 6.71% to 6.79%. Rates have jumped by 50 basis points just in the last month, driving applications down. Adjusted purchase applications increased by 7%, while the unadjusted index was up 9% from the week before and was 42% lower YOY. But MBA Vice President and Deputy Chief Economist noted that the bump was the result of purchase applications resettling after sinking in weeks prior,…

Housing Sentiment Sinks Closer To All-Time Low

Homebuyers and sellers were feeling pessimistic about the market last month due to affordability and job security concerns. Leaders at Fannie Mae said the Home Purchase Sentiment Index fell by 3.6 points in February, breaking three straight months of increases and pushing the index closer to a record low recorded last October. “The decline was partly driven by a substantial decrease in consumers’ sense of home-selling conditions, with most respondents who indicated it’s a ‘bad time to sell’ citing unfavorable economic conditions and mortgage rates as the primary reasons for that belief,” said Doug Duncan, Fannie Mae Senior Vice President and Chief Economist. “With home-selling sentiment now lower than it was pre-pandemic – and homebuying sentiment remaining near its all-time…

Million-Dollar Homes Are Disappearing In Some American Metros

The number of million-dollar U.S. homes has dropped dramatically from a record high last year. They now account for 7% of all U.S. houses, down from 8.6% in June 2022, according to an analysis by Dana Anderson at Redfin. This could signal a reversal in the housing market, at least on the luxury side. Prices soared so high and so fast that Fannie Mae and Freddie Mac raised their lending limits to $1 million in some metros back in 2021. The 18% hike was the highest single jump since at least 1970, outpacing the 15.9% increase seen in 2006. The exception to the current trend is Florida, which now has more homes worth $1 million than it did last year…

Rates Jump Again As Inflation Threatens To Stick Longer Than Expected

Mortgage rates have increased again as new data suggests inflation is sticking harder than previously thought. Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage rate averaged 6.65%, up from 6.50% the week prior. A year ago at this time, the 30-year FRM averaged 3.76%. The 15-year fixed-rate mortgage rose from 5.76% to 5.89%. A year ago, it averaged 3.01%. “As we started the year, the 30-year fixed-rate mortgage decreased with expectations of lower economic growth, inflation, and a loosening of monetary policy. However, given sustained economic growth and continued inflation, mortgage rates boomeranged and are inching up toward seven percent,” said Sam Khater, Freddie Mac’s Chief Economist.  “Lower mortgage rates back in January brought buyers back into…

Net New Listings Down By Double Digits As Homeowners Stay In The Same Place

New listings continue to trend down as rate lock-in and affordability concerns keep homeowners stuck in their current living situation. HouseCanary’s latest Market Pulse report found that net new listings fell by double digits for the tenth straight month in February. The report, which analyzed twenty-two metrics pulled from listing information between February 2022 and February 2023, found that 157,967 net new listings went up last month, down 43.6% YOY. Properties that went under contract also fell, totaling only 247,294, a 17% decrease YOY. New listings drove net volume down, falling 31.7%, combined with a 72.6% rise in removals. Median days on the market were up 48.3% YOY to 43 days. However, days on the market fell month-over-month by nearly…

Mortgage Applications Fall For Third Week

Mortgage purchase demand fell for a third week as rates hit their highest point since November.  The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – dropped by 5.7%, a slight improvement on last week’s 13.3% dip. The average interest rate for 30-year fixed loans rose from 6.62% to 6.71%. Rates have jumped by 50 basis points just in the last month, driving applications down. Adjusted purchase applications decreased by 6%, while the unadjusted index was down 3% from the week before and was 44% lower YOY. “Data on inflation, employment, and economic activity have signaled that inflation may not be cooling as quickly as anticipated, which continues to…