Rents posted another double-digit gain in February, rising 13.1% YOY, according to CoreLogic’s Single-Family Rent Index. They are now at their highest level in the history of the index. The largest price increases were in warm areas of the country as Americans keep moving to Sun Belt states. Miami saw a spike of 39.5% from February 2021, outpacing the second and third places, Orlando (22.2%) and Phoenix (18.9%). Washington, D.C., and St. Louis had the lowest annual increases, both at 6.5%. Lower-priced rentals (75% or less than the regional median) saw increases of 12.7%, up from 3% in February 2021. Lower-middle priced rentals (75% to 100%) were up 13.8%, from 3.2% the year prior. Higher-middle priced rentals (100%-125%) were up…
Mortgage loan application volume plummeted by 5% last week, the Mortgage Bankers Association’s (MBA) weekly survey shows. The adjusted Market Composite Index, a measure of mortgage loan application volume, dropped by 5%. The adjusted purchase index fell by 3%, while the unadjusted purchase index fell by 2% and was 14% lower YOY. The refinance index fell 8% and was down 68% YOY. Refinances made up 35.7% of total applications, down from 37.1%. Mortgage rates reached 5.20%, the highest level since 2010. “Ongoing concerns about rapid inflation and tighter US monetary policy continued to push Treasury yields higher, driving mortgage rates to their highest level in over a decade,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. …
The Community Home Lenders Association (CHLA) sent a letter to the Federal Housing Finance Agency (FHFA) commenting on its proposed increases in financial requirements for Fannie and Freddie. In February, the FHFA proposed updated standards that mortgage lenders would have to meet in order to sell loans to or service loans on behalf of Fannie Mae and Freddie Mac. The standards were set in 2015 and have remained with little modification since then. The update is meant to strengthen required capital and liquidity for seller/servicers with different business models, as well as provide for more transparency and consistency, “by incorporating cost and risk assumptions that were not previously considered and re-evaluating modeling assumptions and inputs, given changes in the servicing…
By CHUCK GREEN An apparently not so uncommon sight these days in the mortgage industry: empty desks. Not that their occupants are taking five for a foam latte. Instead, they might well have either been steeped in the pink slip blues or were compelled to submit their resignation. Over the past three months in the industry, there have been more than 3,500 job cuts, according to globalsg.com. In February, Bloomberg reported U.S. home mortgage lenders might have no other choice during the coming months that to initiate layoffs. Similarly, earlier this month, wolfstreet.com reported that not only are layoffs among mortgage lenders taking place, but they will also continue. “Layoffs and forced resignations are certainly imminent in the mortgage banking…
Homes with eco-conscious features can sell faster and for more money than similar homes without them, a new analysis from Zillow found. Zillow looked at environment-related features mentioned in listing descriptions for 3.1 million home sales in 2020 and 2021. The analysis found that homes featuring electric vehicle chargers and drought-resistant landscaping can sell nine days faster than similar homes. Features that protect against climate-related disasters such as hurricane shutters can sell for as much as 2.4% more than expected. Energy-efficient features can also help homes sell for more money and sometimes faster, with listings that mention solar panels selling for 1.4% more and listings including smart sprinkler systems and smart lights selling up to six days faster than expected.…
The Fannie Mae Home Price Index (FNM-HPI) rose to its fastest annual pace ever on record in Q1 2022, measuring 20% YOY, the company reported. This is up from an annualized rate of 19.1% in Q4 2021, the fastest pace in the index’s 47-year history. Seasonally adjusted home prices rose 4.8% from last quarter. The FNM-HPI is a national, repeat-transaction home price index that measures average quarterly price change on all single-family properties in the U.S., excluding condos. The FNM-HPI will now be publicly available as a quarterly series with a start date of Q1 1975. “We’re pleased to begin sharing the Fannie Mae Home Price Index with external audiences. We have long used this index within the company, including…
Home sales dropped by 4% last month and 8% YOY, closing out a fast-paced March with signs of a potential cooldown, Redfin reported. Homes sold at their fastest pace ever and for more above list price than any other March in history. The median home-sale price rose 6.2% to $412,700, a record high and the fastest month-over-month gain for this time of year since 2013. But seasonally adjusted home sales fell 4% thanks to severe inventory shortages, rising rates, and accelerating home prices. Seasonally adjusted active listings—the count of all homes that were for sale at any time during the month—fell 13% YOY to an all-time low. “Although pricey coastal markets began showing early signs of a slowdown in late…
Mortgage rates averaged 5% flat last week, up from 4.72%, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 5%. A year ago at this time, the 30-year FRM averaged 3.04%. “This week, mortgage rates averaged five percent for the first time in over a decade,” said Sam Khater, Freddie Mac’s Chief Economist. “As Americans contend with historically high inflation, the combination of rising mortgage rates, elevated home prices and tight inventory are making the pursuit of homeownership the most expensive in a generation.” Home prices continue growing despite hope for a cool down this year due to mortgage rate increases pricing many out of the market and reducing competition. For…
Commercial real estate (CRE) price growth may keep outpacing CRE income growth, suggesting property values may not have reached their cyclical peak, according to First American’s Potential Capitalization Rate (CPR) Model for Q4 2021. First American’s PCR estimates capitalization rates using historical data for interest rates, rental income, occupancy rates, debt, and recent property price trends. In Q4 2021, the actual cap rate hit a record low of 5.2% while the potential cap rate sank to 4.4%. When the actual cap rate is significantly above the potential cap rate, as was the case in the fourth quarter of 2021, the model suggests that the CRE market can support a lower cap rate. The National potential cap rate was 4.4%, down…
Mortgage loan application volume fell another 1.3% last week, the Mortgage Bankers Association’s (MBA) weekly survey shows. The adjusted Market Composite Index, a measure of mortgage loan application volume, dropped by 1.3%. The adjusted purchase index rose by 1%, while the unadjusted purchase index rose by 2% and was 6% lower YOY. The refinance index fell 5% and was down 62% YOY. Refinances made up 37.1% of total applications, down from 38.8%. The 30-year fixed-rate hit 5.13%, the highest since November 2018, resulting in refis falling to their slowest weekly pace since 2019. “Higher rates are increasing borrower interest in ARMs. Their share of applications last week was at 7.4%, which was the highest share since June 2019,” said Joel…
