Morning Roundup (9/28/2023) — Pending Sales Reverse Course

Good Morning! Today is Thursday, September 28. House Republicans will hold their first public hearing about impeaching President Biden today. Senator Robert Menendez pleaded not guilty to federal corruption charges and refused to resign. A NASA astronaut returned to Earth after spending 371 days in space.

The Mortgage Note Reports

No Matter The Cost: The Federal Reserve will likely hike rates one more time this year and average American homebuyers and sellers are being impacted by their decisions. Writer Chuck Green has the story.

Pending Sales: Pending home sales shrank by more than 7% in August, reversing a two-month trend of increases and reflecting worsening affordability.

Last Year’s Struggles: As affordability sank in 2022, potential buyers were increasingly denied loans because of insufficient income while facing higher fees and rates.

In other mortgage and housing news…

GDP: The economy grew at a solid 2.1% annual pace in the second quarter, revised figures show, but consumer spending turned out to be weaker than originally reported.

Policy Consequences: If the National Flood Insurance Program is not renewed in the next five days, mortgage lenders could face serious problems and losses.

Closing The Gap: HUD awarded nearly $1 million in grants for research geared towards closing mortgage access and homeownership gaps.

Bigger Costs: Major homeownership expenses now account for 35% of average wages across the country, reaching another high over the past decade

Payments Up: …while affordability declined in August, with the national median payment applied for by purchase applicants increasing to $2,170.

Delinquencies Stable: Overall mortgage delinquencies crept up again from June to July but remained near an all-time low of 2.7%, while foreclosures held steady.