Miami has once again topped the list of the most popular metros for movers.
A record 25% of Redfin.com users looked to move to another metro in January, with the most popular searches being Miami, Sacramento, and Las Vegas.
This is up from 24.5% in Q4 2022, 22.8% last year, and 18% before the pandemic.
Miami, which took first place back in August 2022, once again dominated with the highest net inflow of new migrants.
Interest in Miami may come as a surprise considering most movers are looking for affordable options in a high-rate environment. RealtyHop recently ranked Miami as the second most expensive place to live in the U.S., just below Los Angeles, and the typical Miami home sold…
By SCOTT KIMBLER
Since early 2022 officials at the Federal Reserve have been raising interest rates as a means of combatting inflation but the trickle-down effect is making life hard for the lending industry. More specifically for non-bank lenders.
This is according to financial experts and industry observers such as Dr. Rohan Ganduri of Emory University’s Goizueta Business School.
Ganduri says there are really only two types of lenders, bank and non-bank lenders. In the current mortgage climate the smaller, non-bank lenders have a landscape that is changing rapidly and not in the favor of those employed by such lenders, he told The Mortgage Note.
“A non-bank lender differs from a bank lender in several ways,” says Ganduri. “The biggest…
Despite the market correction, housing ended 2022 on a strong note, CoreLogic reports.
Delinquencies and foreclosures were historically low throughout 2022 and remained that way at year-end, with both seeing only minor upticks in December compared to the previous six months. Both hit their bottoms in early 2022 and have barely moved since.
Only 3% of all mortgages in the U.S. were in some stage of delinquency, including in foreclosure, with a 0.4% decrease YOY and less than a 0.1% increase month-over-month.
Serious delinquencies fell 0.7% YOY, accounting for 1.2% of mortgages compared to 1.9% in December 2021 and a high of 4.3% in August 2020. Adverse delinquencies also dropped, down 0.1% YOY to 0.3%.
Homeowners are beginning to feel…
Mortgage purchase demand fell for a second week as rates hit their highest point since last November.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – dropped by 13.3%.
The average interest rate for 30-year fixed loans rose 23 basis points to 6.62%.
Purchase demand dipped to its lowest level since 1995 as a result. Adjusted purchase applications decreased by 18%, while the unadjusted index was down 4% from the week before and was 41% lower YOY.
“This time of the year is typically when purchase activity ramps up, but over the past two weeks, rates have increased significantly as financial markets digest data on inflation cooling at…
Existing-home sales dropped for the twelfth straight month in January, down .07% from December and 36.9% YOY, though the declines are milder than in previous months.
Sales fell to a seasonally adjusted annual rate of 4.02 million from 4.00 million the month prior, according to the latest data from the National Association of Realtors. The South and West saw increased sales month-over-month, while the East and Midwest experienced declines.
All four regions saw annual declines.
“Home sales are bottoming out. Prices vary depending on a market’s affordability, with lower-priced regions witnessing modest growth and more expensive regions experiencing declines,” said NAR Chief Economist Lawrence Yun.
“Inventory remains low, but buyers are beginning to have better negotiating power. Homes sitting on…
Mortgage rates rose again this week, a second consecutive increase, pushing sub-6% rates further out of reach.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage rate averaged 6.32%, up from 6.12% the week prior.
A year ago at this time, the 30-year FRM averaged 3.92%.
The 15-year fixed-rate mortgage rose to 5.51% to 5.25%. A year ago, it averaged 3.15%.
“The economy is showing signs of resilience, mainly due to consumer spending, and rates are increasing. Overall housing costs are also increasing and therefore impacting inflation, which continues to persist,” said Sam Khater, Freddie Mac’s Chief Economist.
Shelter inflation in particular is on the rise.
A blog post by Christian Zimmermann, Assistant Vice President of Research Information…
Housing construction slid again in January but building permits rose slightly.
Residential starts fell 4.5% from December to an annualized rate of 1.309 million, down 21.4% from the same time last year, according to data from the U.S. Census Bureau. This is below estimates from economists surveyed by Bloomberg, who expected a pace of 1.36 million.
It is the fifth consecutive decline and the longest streak since 2009.
Permits for new homes ticked up by 0.1% to a rate of 1.34 million, though single-family permits were down 1.8% from December. Permits offer an indication of how many homes will be built in the coming months.
Builders are cautiously optimistic about the future.
The National Association of Homebuilders Builder Confidence Index…
Mortgage purchase demand declined after seeing a boost last week, triggered by an increase in rates.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – fell by 7.7%, wiping out last week’s 7.4% increase.
The average interest rate for 30-year fixed loans rose to 6.39% from 6.28%. A year ago that rate was 4.05%.
Bad inflation news this week pushed rates higher. Inflation rose 0.5% in January, more than expected. Shelter costs accounted for roughly half of the month-over-month increase.
Retail sales also jumped in January, adding to the Fed’s big inflation headache as it tries to steer the economy to a 2% inflation rate.
“Mortgage rates increased…
Investors are backing away from the home purchase market as price appreciation continues to cool.
Investor home purchases declined 45.8% YOY in Q4 2022, according to a new Redfin analysis of 40 U.S. metros. This is a record drop, besting 2008’s 45.1% dip during the subprime mortgage crisis.
Quarter-over-quarter, investment purchases fell 27%, the largest decline excluding the beginning of the pandemic.
Pandemic boomtowns in particular saw massive dips, with investor purchases in Las Vegas and Phoenix dropping by more than 60%.
High borrowing costs and declining home values have “made real estate investing less attractive,” Redfin said.
Home prices have risen less than 1% YOY, down significantly from 15% growth last year. Investors who bought homes at a premium…
By KIMBERLEY HAAS
Programs that support ownership of multifamily properties are estimated to make up almost 30% of homebuyer assistance offerings and that may present unique opportunities in markets strapped for inventory.
According to the Down Payment Resource’s Homeownership Program Index, 33 new programs supporting multifamily homebuyers and builders were added in Q4 2022.
Multifamily programs now make up 29.3% of all available assistance offerings, a 5.5% increase over Q3 2022, according to the index.
Sean Moss, executive vice president of product and operations at Down Payment Resource, told The Mortgage Note that even first-time homebuyers can qualify for down payment assistance and become both an owner and a landlord at the same time.
Moss said the buyer receiving the…
