By KIMBERLEY HAAS A U.S. Congressman serving the 8th district of Texas says housing inflation is crushing the American dream for families. During a hearing, Ways and Means Republican Leader Rep. Kevin Brady said American families and workers are finding that President Joe Biden’s economy is “cruel.” “Working women haven’t had it this bad in decades. The dangerous baby formula shortage, rising crime, and inflation, and now housing they can barely afford to live in. Just as with crushing gas prices, Democrats in Washington are blaming everyone under the sun for the cruel rise in housing costs: builders, local investors and developers who make the construction of new homes and neighborhoods a reality,” Brady said. He added, “Republicans have held…
As the housing market starts to cool off, last year’s buying trends are being upended. Western metros that topped charts last year for popularity and home prices have taken a back seat to more affordable, cooler areas in the East, according to a new report from Realtor.com. For the first time in the history of Realtor.com’s data, Western locations are completely gone from June’s list of hottest real estate markets. Topping the list for the first time ever, Concord, NH, is now the U.S.’s hottest housing market, based on the number of individual home listing views on Realtor.com and how quickly homes are selling there. The top five metros were Concord; Manchester, NH; Burlington, VT; Portland, ME; and Burlington, NC.…
Annual single-family home prices rose by 19.4% in Q2 2022. This is down from Q1’s upwardly revised 20.5% but still close to a record high, according to Fannie Mae’s latest Home Price Index. On a quarterly basis, home prices increased by 4.3% between Q1 and Q2. “Home prices maintained a near-historic pace of appreciation in the second quarter, as low levels of housing inventory continued to support price growth,” said Doug Duncan, Fannie Mae Senior Vice President and Chief Economist. “At the end of 2021 and extending into 2022, we believe many homebuyers pulled forward their purchase plans to avoid expected increases in mortgage rates, contributing to demand for homes and strong price appreciation. Given the sharp rise in mortgage…
Mortgage loan application volume fell by 1.7% last week, the Mortgage Bankers Association’s (MBA) weekly survey shows. The adjusted Market Composite Index, a measure of mortgage loan application volume, decreased by 1.7%. The adjusted purchase index dropped 4%, while the unadjusted purchase index increased by 14% and was 18% lower YOY. The refinance index rose by 2% and made up 30.8% of total applications, down 80% from the same time last year. The overall refinance index was 5% lower than the average level reported in June, and refinances are expected to stay low. ARM activity rose to 9.6% of total applications. “Mortgage rates were mostly unchanged, but applications declined for the second straight week. Purchase applications for both conventional and…
Delinquencies fell for the thirteen consecutive month in April, down 1.8% YOY and unchanged from the month prior, according to CoreLogic’s latest Loan Performance Insights Report. Only 2.9% of mortgages across the nation were in some stage of delinquency in April. Serious delinquencies, those which are 90 days or more past due, have seen the most change in the last year. They account for 1.4% of all mortgages, down from 3.3% at the same time last year, and have fallen from a high of 4.3% in August 2020. All states saw annual declines in their overall delinquency rate in April. The states with the largest declines were Nevada (-3.2%), Hawaii (-3%), and New Jersey (-2.7%). Early-stage delinquencies are up 1%…
By TYRONE TOWNSEND The Federal Reserve has indicated that the central bank views inflation as a national emergency, with markets expecting a 0.75 percent interest rate rise. However, the Fed’s policy measures could come at a high cost, notably in the housing market. Low mortgage rates and a lack of housing inventory during COVID-19 lockdowns sent home prices skyrocketing during the last two years. The housing market is cooling as mortgage rates have gone up and even surpassed 6 percent. Although this may be an acceptable short-term price to pay in the fight against inflation, it will cause future supply-chain issues after inflation is under control. Before the pandemic, a six-month supply of homes for sale was considered a sign…
Housing affordability fell across the country in May, with the monthly mortgage payment up 6.2% month-over-month and 51% year-over-year. The National Association of Realtor’s (NAR) Housing Affordability Index showed that in contrast to rapidly rising prices, the median family increase rose only 0.7% from April and 4.5% YOY. Housing affordability fell the most in the South, which saw a 33.8% decline, followed by the West (30%), the Midwest (27.6%), and the Northeast (25%). All of NAR’s Indices but the West posted readings above 100, meaning a family with the median income had more than the income required to afford a median-priced home. The Midwest was the most affordable region, with a reading of 140.5. The South was the second most…
Total mortgage lock volumes fell 11% in May across all types of loans as rising rates kept buyers out of the market, according to Black Knight’s June Originations Market Monitor. Locks volumes fell across the spectrum, with rate/term and cash-out refinances down 9% and 13%, respectively, while purchase loan locks fell 11%. “This continues to be a challenging environment for mortgage originators,” said Scott Happ, president of Optimal Blue, a division of Black Knight. “Rate lock activity was down for the third consecutive month in June, with declines seen across all loan purpose types. Purchase mortgages – which currently account for 82% of all lock activity – fell 11% by volume from May and are now down nearly 16% from…
By TYRONE TOWNSEND Rising mortgage rates may not have brought the housing market to a halt just yet, but experts are predicting a cooldown that will come in waves and hit different areas of the country at different times. As home prices begin to level off, the 30-year mortgage rate is moving between 5% and 6%. At the same time, consumer confidence is dwindling, and economic statistics indicate the housing industry is cooling after its frenzied surge during the Covid-19 pandemic. As a result, several Wall Street analysts are revising their outlooks for the homebuilding sector and downgrading some equities. “The housing market faces both demand-side and supply-side challenges,” Robert Dietz, chief economist at the NAHB, said in a statement.…
Mortgage rates tanked last week, dropping from an average 5.70% to 5.30%, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 5.30%. A year ago at this time, the 30-year FRM averaged 2.90%. “Over the last two weeks, the 30-year fixed-rate mortgage dropped by half a percent, as concerns about a potential recession continue to rise,” said Sam Khater, Freddie Mac’s Chief Economist. “While the drop provides minor relief to buyers, the housing market will continue to normalize if home price growth materially slows due to the combination of low housing affordability and an expected economic slowdown.” Potential buyers are backing away from the market due to the soaring cost of purchasing…
