Applications Reverse Downward Spiral, Up 6.6%

Mortgage loan application volume reversed course after five straight weeks of decreases, rising 6.6% last week, the Mortgage Bankers Association’s (MBA) weekly survey shows. The adjusted Market Composite Index, a measure of mortgage loan application volume, increased by 6.6%. The adjusted purchase index rose 8%, while the unadjusted purchase index was up by 18% and was 16% lower YOY. The refinance index rose 4% and was down 76% YOY and made up 31.7% of total applications. ARM activity fell to 8.1% of total applications.  Joel Kan, MBA Association Vice President of Economic and Industry, noted that applications rose despite an interest rate explosion last week. The 30-year fixed-rate hit 5.65% last week, up 25 basis points and the highest level…

Zombie Foreclosures Tick Up As Overall Foreclosure Activity Accelerates

Zombie foreclosures rose 3% from Q1 to Q2 2022, the first increase in a year, as overall foreclosure activity jumped 13%, ATTOM reported. Zombie properties– homes that sit vacant– account for 1.3 million properties in the U.S. That is one in every 76 homes. Among pre-foreclosure properties, 7,569 sit vacant in Q2, meaning that the number of zombie-foreclosure properties rose quarterly by 2.8%. Foreclosures are up 12.7% from Q1 2022 and 15.9% YOY, with 259,166 properties in the process of foreclosure in Q2 2022. This is the third consecutive quarter of increases since the national foreclosure moratorium was lifted in July 2021. “The incidence of zombie-foreclosures tends to be higher in cases where the foreclosure process has dragged on for…

Prices Are Up In Distressed Neighborhoods Due To Soaring HPI And Low Inventory Elsewhere

Home prices rose in Q1 2022 for the majority of Opportunity Zones, with the pace of gains in half of all zones besting quarterly and annual increases across the nation, ATTOM reported. Opportunity Zones are areas targeted for economic improvement, defined in the Tax Act legislation as census tracts in or alongside low-income neighborhoods that meet specific criteria for redevelopment. ATTOM analyzed 5,092 zones in the U.S. that had at least five home sales in Q1 2022. The report found that median single-family home and condo prices increased in 55% of zones between Q4 2021 and Q1 2022. In 50%, prices rose by at least 20%, despite the fact that the pace of increases slowed in Q1. “Home price trends…

May Is The Best Time Of The Year To Sell A Home For Maximum Profit, CoreLogic Says

Selling a home in May, June, or July brings premiums of 10% or more above market value, according to a new analysis by ATTOM Data Solutions. ATTOM looked at home sales over the past eleven years to determine the best month to sell a home. It found that spring and summer are the most popular times for homebuying, giving sellers the best opportunity to make money on their homes. “April showers may bring May flowers, but May brings home sellers the best opportunities to watch their profits grow,” said Rick Sharga, Executive Vice President of Market Intelligence at ATTOM.  “Homeowners looking to maximize the price premium they can claim on their homes should sell their properties in May, June, and…

Q1 2022 Sets New Foreclosure High

Foreclosure activity rose in all 50 states in Q1 2022, with foreclosure starts and bank repossessions reaching their highest numbers in two years, according to ATTOM’s Q1 2022 Foreclosure Market Report. A total of 78,271 U.S. properties had a foreclosure filing during Q1, up 39% from Q4 2021 and 132% YOY. March alone saw 33,333 properties with foreclosure filings, up 29% from February and 181% YOY. It was the 11th straight month of YOY increases in foreclosure activity. “Foreclosure activity has continued to gradually return to normal levels since the expiration of the government’s moratorium, and the CFPB’s enhanced mortgage servicing guidelines,” said Rick Sharga, executive vice president of market intelligence for ATTOM.  “But even with the large year-over-year increase…

Home Flip Profits Declined In 2021 Despite Surge In Numbers

Home flipping profits fell across the country in 2021 despite a surge in the number of houses flipped, according to ATTOM Data Solution’s 2021 U.S. Home Flipping Report. The number of single-family homes and condos flipped in 2021 was 323,465, up from 257,091 in 2020 (+26%). This is the largest number of flips since nearly 334,000 homes were flipped by investors in 2006. In Q4 2021, there were 96,773 homes flipped, a rate of 6.8%. But flips accounted for only 5.5% of all home sales last year, falling in 53% of the markets analyzed by ATTOM. They are down from 5.5% in 2020 and 6.1% in 2019. The Northeast and West saw the biggest declines in number of homes flipped.…

Foreclosures Jumping By Double Digits As Pre-Pandemic Activity Returns

Overall foreclosure rates were up 11% month-over-month in February as foreclosure starts soared, according to ATTOM’s February 2022 U.S. Foreclosure Market Report. A total of 25,8333 properties had foreclosure filings (default notices, scheduled auctions, or bank repossessions). This is a 129% increase from the same time last year. Rick Sharga, executive vice president at RealtyTrac, an ATTOM company, said foreclosure activity this year will mimic February’s growth. “This isn’t an indication of economic turmoil, or of weakness in the housing market; it’s simply the gradual return to normal levels of foreclosure activity after two years of artificially low numbers due to government and industry efforts to protect financially-impacted homeowners from defaulting,” he said. Foreclosures hit their lowest level ever recorded…

Morning Roundup (2/4/2022)– Forbearances Drop, Rates Stay The Same

Good Morning! Today is Friday, February 4. Islamic State’s leader died during a nighttime raid by U.S. special forces in northwestern Syria. The US is short on blood due to below-average donations amid Covid-19. The House is set to approve a $350 billion initiative to boost U.S. competitiveness with China and others, but the Senate may fight it. The Mortgage Note Reports Standing Up For Independent Mortgage Bankers In 2022 And Beyond:The executive director of Community Home Lenders Association is working to educate policymakers in Washington, D.C., while articulating the perspective of independent mortgage bankers. Forbearances Drop: Active forbearance plans fell by 45,000 plans (-5%) last week, according to Black Knight’s blog, Vision. More than 90% of homeowners who entered Covid-related forbearance…

Foreclosures Activity Hits Record Low

ATTOM Data Solution’s Year-End 2021 U.S. Foreclosure Market Report found foreclosure filings dropped 29% from 2020 and were down 95% from a peak of nearly 2.9 million in 2010. It is the lowest level since ATTOM began tracking filings in 2005. Properties with foreclosure filings–default notices, scheduled auctions, and bank repossessions– made up 0.11% of all U.S. housing units, down from 0.16% in 2020. “The COVID-19 foreclosure tsunami that some people had anticipated is clearly not happening,” said Rick Sharga, executive vice president at RealtyTrac, an ATTOM company.  The report is heartening from a broad view of foreclosure filings in the US. However, it found that filings increased as protections expired, pushing rates closer to pre-pandemic levels. A total of…

Housing Affordability Dropped In 77% Of US Counties

America’s home affordability problem was bad in 2020, before COVID-19 hit. In 2021, it got even worse. In Q4 2021, median-priced single-family homes were less affordable in 77% of U.S. counties analyzed by ATTOM Data Solutions, a 13-year high, the company found. In 440 out of the 575 counties analyzed, the gap between incomes and affordable home prices was larger than their historical averages. This is a dramatic increase from Q4 2020 when only 39% of counties were less affordable than in the past. “The average wage earner can still afford the typical home across the United States, but the financial comfort zone continues shrinking as home prices keep soaring and mortgage rates tick upward,” said Todd Teta, chief product…