Price Growth Down To Slowest Pace Since 2011

The third quarter of 2022 brought the slowest quarterly price growth since Q4 2011, showing just how quickly home prices are changing as the market rebalances. Single-family home prices rose 13.8% YOY in Q3 2022, slowing from last quarter’s 19.1%, according to Fannie Mae’s Home Price Index. The Index measures average quarterly price change for all single-family U.S. properties except condos. Prices were up only 0.2% from Q2, their slowest quarter since 2011. “Year-over-year home price growth decelerated in the third quarter, as the sharp rise in mortgage rates – and declining housing affordability – appears to have weighed further on demand,” said Doug Duncan, Fannie Mae Senior Vice President and Chief Economist.  He added that many homeowners who might…

Children Want Their Parents To Age In Place, But It’s Hurting Housing

Most Americans want their parents to age comfortably in their own homes, but it can be a challenge for both families and the housing market. Three out of four adults want their parents to be able to age in their own homes, but more than half of Gen Xers don’t feel financially prepared to assist their parents in old age, according to a new study from American Advisors Group. AAG surveyed 1,500 adults aged 40-55 who have senior parents. “The retirement savings crisis is real, and many Gen X adult children are telling us that caring for their parents will be extremely difficult and potentially unattainable,” said Eddie Herda, AAG VP of Brand Strategy. Herda said there is interest in…

Manchester, Rochester Tie For Hottest Housing Market

With rates rising and home price appreciation still high, Americans are looking for cheap places to buy homes. September’s hottest housing markets are known for their affordability. Rochester, NY, and Manchester, NH, tied for the country’s hottest market, according to new data from Realtor.com. Manchester has been popular for over a year, partly because New Hampshire is known for low taxes and affordable property. Rochester may not benefit from incredibly low taxes, but the cost of housing speaks for itself: the median list price is $223,000, far less than the national average. “They’re equally hot, but for different reasons. Manchester properties see higher demand, but homes in Rochester spend five days less on the market,” Hannah Jones, an economic data…

Mortgage Rates Average 6.92%

After shrinking slightly the week prior, mortgage rates shot back up last week to a 20-year high, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey found that the 30-year fixed-rate mortgage averaged 6.92%, up from 6.66%. A year ago at this time, the 30-year FRM averaged 3.05%. “Rates resumed their record-setting climb this week, with the 30-year fixed-rate mortgage reaching its highest level since April of 2002,” said Sam Khater, Freddie Mac’s Chief Economist.  “We continue to see a tale of two economies in the data: strong job and wage growth are keeping consumers’ balance sheets positive, while lingering inflation, recession fears, and housing affordability are driving housing demand down precipitously. The next several months will undoubtedly be important…

Fannie’s ESR Group: “Growing Risk” Of Global Financial Crisis

Despite an upwardly revised Q3 GDP estimate, Fannie Mae’s Economic & Strategic Research Group has predicted a recession in 2023 and warned it could be worse than expected. The group estimates Q3 GDP will be 2.3% annualized, up from its earlier prediction of 1.3%. However, it says that the boost “is likely to prove temporary” and forecasts Q4 growth to be -0.7% annualized. The revision accounts for “partial normalization in global trade following a historically large trade deficit in the first half of 2022,” which will be overcome by Q4. Unemployment is expected to exceed 5% by the end of 2023 as a result of the recession. The group noted that labor market tightness– which typically contributes to inflationary pressure…

Loan Apps Continue Downward Spiral

Mortgage loan application volume fell another 2% last week, according to the Mortgage Bankers Association’s weekly survey. Interest rates rose to 6.81%, their highest point since 2006. The adjusted Market Composite Index, a measure of mortgage loan application volume, dropped by 2%. The adjusted purchase index fell 2%, while the unadjusted purchase index decreased 2% and was 39% lower YOY. The refinance index dropped by 2% and was 86% lower than the same time last year. Refis made up 29% of total applications. The ARM share of activity dipped slightly from last week as the 5/1 interest rate jumped 20 basis points from 5.36% to 5.56%. “The ARM share of applications remained quite high at 11.7%– just below last week’s…

Austin Ranked #1 City For Remote Workers

Austin, TX, has been ranked the best city for working from home, leading a list full of Southern and Western metros. A new SmartAsset study looked at factors such as the number of remote workers, housing costs, and income taxes to determine what U.S. cities offer the most to work-from-homers. Remote work has risen in prevalence from around 5% in 2016 to 17.9% in 2021. In 13 cities, more than a third of the workforce is remote. Some employers are even using remote work as a bargaining chip to offer lower salaries while inflation is high. This type of work is changing how Americans view moving and shifting their priorities when searching for a new home. And it’s not going…

Credit Availability Falls To Lowest Point Since 2013

Mortgage credit availability dropped to its lowest level since March 2013 in September, according to the Mortgage Bankers Association’s (MBA) Mortgage Credit Availability Index (MCAI). The MCAI fell by 5.4% to a reading of 102.5 last month. This is the seventh straight month of tightening lending standards. The Conventional MCAI fell 4.9%. Its component indices also declined, with the Jumbo down 5.8% and the Conforming down 3.6%. The Government MCAI also dropped by 5.8%. This index has fallen in seven of the last eight months, and is now its lowest point since April 2013. Most of these indices have fallen to their lowest levels in more than a year. “With the likelihood of a weakening economy, which would lead to…

Loan Lock Volumes Fall Below Pre-Pandemic Norms For 3rd Month Straight

Lock volumes dipped almost 10% from August, bringing them down 30% in the last three months and 60% YOY, according to Black Knight’s latest Originations Market Monitor. Purchase locks are 10.2% below pre-pandemic levels. This is the third straight month of lock activity below pandemic norms. The decline in locks coincides with interest rates rising 91 basis points in September to 6.72%, their highest point in 15 years. Refinances made up only 16% of September’s lock activity, a new low. Of that, most were cash-out refis, though they are also down 26.2% from August and 78% YOY.  Rate/term locks remained basically unchanged. They are down 93.3% YOY, suggesting they’ve hit a floor now. Purchase lending accounted for most of September’s…

CRA Note Exchange Helps Provide Vital Capital To Florida, South Carolina Habitat For Humanity Affiliates

Habitat for Humanity Affiliates in Florida and South Carolina will be able to build more affordable homes after the recent sale of mortgage notes on their behalf. Leaders at CBC Mortgage Agency, a nationally chartered housing finance agency and a source of down payment assistance for first-time homebuyers, announced its CRA Note Exchange platform had completed the sale on Sept. 12.   CRA Note Exchange enables the sale of Community Reinvestment Act-eligible loans through an online portal to free up capital for additional affordable home construction. Banks and other financial institutions can review, select and purchase loans in specific areas that support their CRA or other lending objectives. The exchange was launched in 2018. Habitat for Humanity is a global nonprofit housing organization…