Renters now outnumber homeowners in previously owner-dominated suburbs, and more communities are set to flip soon, according to a report from RentCafe. Over the past ten years, 103 suburbs have flipped their majorities from homeowners to renters. Many of the communities are in suburbs around Miami, Washington, D.C., and Los Angeles. Suburbs in the U.S.’s 50 largest metros gained 4.7 million people in that time, of which 79% are renters. About 21 million people rent suburban homes in those metros, 3.7 million more than in 2010. The number of renters grew 22% between 2010 and 2019, while the number of suburban homeowners grew by only 3%. Fifty-five percent of renters are under 45 years old with median household earnings around…
A new report from the U.S. Census Bureau and the Department of Housing and Urban Development showed August housing starts up 3.9% from July and 17.4% year-over-year, despite labor and supply shortages. Homebuilders started 1.615 million homes in August. Nationally, 1.727 million building permits were pulled, 6% higher than July and higher than the expected 1.6 million. The number of homes finished in August was 1.33 million, down 4.5% from July but up 9.4% from the same time last year. Multi-family starts drove the gains completely, with single-family starts falling 2.8%. Multi-unit starts are up to 52.7% year-over-year, while single-family starts have only risen 5.2%. Permits for single-family units are also down 0.1% while multi-family permits increased 44.3%. Starts fell…
August new home purchase applications fell 17% year-over-year, according to the Mortgage Bankers Association’s Builder Application Survey. However, applications were up 9% compared to July. The report shows new home sales rose 12% in August, the fastest pace of sales since January. MBA estimated that new single-family home sales made up 874,000 units with seasonal adjustments. Unadjusted, MBA estimated there were 71,000 new home sales, up 10.9% from July. “Mortgage applications to purchase new homes were down in August compared to 2020’s late-summer surge, but both mortgage applications and MBA’s estimate of new home sales jumped last month compared to July,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “While the new home construction market is…
Forbearances fell again this week, continuing to trend down as relief plans expire, according to the Mortgage Bankers Association’s (MBA) latest survey. Forbearances made up 3.00% of servicers’ portfolio volume, down from 3.08%. That puts the estimated number of homeowners in forbearance plans at around 1.5 million. That’s a significant change from last year. In May 2020, the use of the forbearance provision peaked at about 3.4 million mortgages, representing about 7% of all single-family housing loans. For Fannie Mae and Freddie Mac loans, the August 2021 number was down five basis points to 1.47%. Ginnie Mae loans held at 3.39%. Portfolio loans and private-label securities shares fell 32 basis points, from 7.27% to 6.95%. Independent mortgage bank servicers saw…
Despite continuing supply chain issues and labor shortages, builder confidence rose in September thanks to falling lumber prices and high demand, the National Association of Home Builders (NAHB)/ Wells Fargo Housing Market Index (HMI) reported. Builder sentiment in the market for newly-built single-family homes increased to 76, one point higher than last month. The data broke a three-month streak of downward expectations. “Builder sentiment has been gradually cooling since the HMI hit an all-time high reading of 90 last November,” said NAHB Chairman Chuck Fowke. Fowke builds custom homes in Tampa, Fla. “The September data show stability as some building material cost challenges ease, particularly for softwood lumber. However, delivery times remain extended and the chronic construction labor shortage is…
Rent price growth topped home price growth in August, rising by over 10% year-over-year for the first time on record, a Realtor.com report found. The average national rent is now $1,633, up $169 and 11.5% year-over-year. Home prices in the same month grew 8.6%. Rents reached their highest levels ever in 35 of the 50 largest U.S. metros. All but 4 of the 50 hit record highs between June and August. Two-bedroom units saw the most significant median national growth, up 12.3% to $1,828 year-over-year. Compared to August 2019, it’s even higher: up 16.7%. One-bedrooms rose 11.6% from the same time last year and 14.3% since August 2019. Both broke the record for highest levels in Realtor.com’s data history. Rents…
Home sales dropped 6% year-over-year in August, down 1.4% from July, a Redfin report found. It’s the first annual decline in home sales in 15 months. But prices are still high, up 16% year-to-year. Median prices increased in almost all of the largest metros tracked by Redfin, though Milwaukee, WI, and Bridgeport, CT both declined. The median price nationally for homes sold was $380,271. Austin, Phoenix, and Salt Lake City saw the largest spikes in their median prices, up 36%, 25%, and 24%, respectively. “When it comes to home prices in this market, what goes up stays up. That’s especially true in the Sun Belt; home prices are up more than 20% from last year in Austin and Phoenix,” Redfin…
Freddie Mac’s Primary Mortgage Market Survey (PMMS) showed rates stayed basically flat for yet another week, with 30-year fixed-rate mortgage averaging 2.86%. It was 2.87% this week a year ago. Last week it inched up 0.1% to 2.88%. This week it dropped 0.2%. Overall, it’s been months since it moved significantly. Rates on 15-year fixed-rate mortgages dropped to 2.12%, down from 2.19% last week. Fifteen-year rates averaged 2.35% a year earlier. Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 2.51%, increasing from last week’s 2.42%. Last year it was 2.96%. “It’s Groundhog Day for mortgage rates, as they have remained virtually flat for over two months. The holding pattern in rates reflects the markets’ view that the prospects for the economy…
Fitch Ratings’ Q2 RMBS Servicer Metric Report found late-stage non-prime delinquencies down year-over-year (YOY) for both bank and non-bank mortgage servicers. Bank servicers reported a drop in 90+ day delinquencies, from 13% to 10% YOY, down 12% last quarter. Non-bank servicers saw a drop from 8% to 4% YOY, with a 2% fall from Q1. The numbers suggest that holders with loans in forbearance might be financially recovering and exiting policies before many expire. “Bank servicers showed the most significant loss mitigation results over the past year with forbearance plans now down to 38% from 93% of all loan workout plans while repayment plans and loan modifications have seen significant increases as borrowers exit forbearance plans,” said Director Richard Koch. “Non-bank servicers are…
After eight years of examining its impact, the National Association of Realtors (NAR) says that student loan debt is one of the most significant barriers for potential homebuyers. A poll by NAR found that more than half of non-homeowners say their student loan debt has delayed their ability to buy a home. Of 1,995 respondents, 51% said their student loan debt delayed them from buying a home, with 47% saying it prevents them from saving for a down payment. For millennials, that number jumps to 60%. Forty-six percent of debt holders say they would use their additional funds to buy a home if their loans weren’t an issue. “Housing affordability is worsening, leaving future home buyers with student debt at…
