Morning Roundup (5/20/2022) – Interest Rates And Existing-Home Sales Down
Good Morning! Today is Friday, May 20. The S&P 500 fell 0.6%, coming close to bear-market territory. Biden met with the leaders of Finland and Sweden, pledging “strong support” for the countries’ bids to join NATO. The Senate unanimously passed a bill to expand what kind of baby formula Americans can buy with federal benefits.
The Mortgage Note Reports
Rates Fall: Mortgage rates dropped slightly to an average of 5.25% last week.
Existing-Home Sales: Existing-home sales fell 2.4% to a seasonally adjusted annual rate of 5.61 million in April, the third consecutive month of declines.
In Case You Missed It: This week, Chuck Green reported that commercial and office spaces are doing well, Tyrone Townsend took a look at the housing market, and Editor Kimberley Haas reported on a sexual harassment lawsuit involving a landlord.
And in other mortgage and housing news…
“A Matter Of Time”: The housing market boom is on borrowed time and may nearing its end, Justin Lahart argues in the WSJ.
ARM Risks: The typical homebuyer could save an estimated $15,582 over five years, or roughly $260 per month, by taking out an ARM, but it comes with risks.
Fannie CIRT: Fannie Mae’s 5th CIRT of 2022 transferred $733.3 million of mortgage credit risk to private insurers and reinsurers.
Pessimistic Predictions: In a survey of 422 bank executives, 46% of respondents predict the economic conditions for banks will worsen over the next 12 months, a significant jump of 32 points from a year earlier.
Listen In: In a new podcast episode, FirstAm execs explain why the neutral rate of interest is an important metric in the Fed’s fight against inflation and what it means for the housing market.
Fighting Dirty: CrossCountry Mortgage has been accused of systematically raiding multiple lending companies by poaching their employees, misappropriating trade secrets, and diverting thousands of mortgage loan customers.
CoreLogic: Profit margins on 3-bedroom single-family home rentals are falling, and are slightly more likely to decline in areas that already have lower yields.
Flipping The Switch: One of the world’s hottest housing markets is flipping from a seller’s market to a buyer’s market with “dizzying speed.”