By SCOTT KIMBLER
It’s a mixed bag when it comes to predictions for the mortgage market as the economy continues to balance out after the pandemic.
ATTOM recently held a conference where research performed by their company, Altos Research, and others were compiled to provide a more complete picture of what the remainder of 2023 may look like in terms of new home construction, home sales, and mortgage rates. Inflation, the job market, supply and demand, as well as the steady rising of rates by the Federal Reserve, along with other factors, were taken into account.
Unlike some predictions of 2023 that paint a picture of a distraught housing market, this research shows the year as having mortgage challenges, but…
By PATRICK LAVERY
Interest rates are rising as the spring homebuying season starts in many parts of the country.
Federal Reserve Chair Jerome Powell indicated in his testimony before U.S. lawmakers this week that although the central bank’s policymakers have yet to decide how large their next rate hike will be, “the ultimate level of interest rates is likely to be higher than previously anticipated” based on the latest economic data. They will be meeting on March 21 and 22.
“As I have mentioned in my testimony, the data we have seen so far this year suggests that the ultimate level of rates will need to be higher. We still have some more data to come in between now and…
By CHUCK GREEN Next time you run into someone in the local Starbucks who happens to have their home on the market, be a sport and plop an extra scone into their bag, huh? A little butter and jam, too? After all, sellers probably aren’t riding the wave of a sugar high induced by whatever they will pocket in their real estate transactions as experts say the price of an average home in the United States is decreasing. The cities expected to be the most heavily hit include: San Francisco: -10.36% Seattle: -9.55% San Diego: -7.24% Los Angeles: -5.61% Denver: -5.60% Dallas: -4.34% Portland: -4.25% Las Vegas: -3.69% What is contributing to the drop in housing prices? B. George Ratiu,…
By CHUCK GREEN According to experts, not only is the housing market expected to continue cooling this year, the forecast remains chilly entering 2023. Real house prices jumped 10.5% in September and logged a 60.6% YOY increase, according to First American’s Real House Price Index. But prices fell in 15 out of the top 50 markets they analyze. Mortgage originations saw their largest annual decline in 21 years this fall, further evidence that the housing boom is coming to an end. Originations fell 47% YOY in Q3, according to ATTOM Data’s Q3 2022 U.S. Residential Property Mortgage Origination Report. Quarter-over-quarter they were down 19%, the sixth consecutive drop. So, what in the name of the cranky barometer’s up? For one thing, surprise, surprise,…
By KIMBERLEY HAAS Analysts say that being located near certain grocery stores can have an impact on a home’s value. Average houses near Trader Joe’s are $987,923, compared to $891,416 near Whole Foods and $321,116 near ALDI, according to an analysis released last week by ATTOM, a curator of real estate data. Rick Sharga, Executive Vice President of Market Intelligence at ATTOM, said homebuyers consider where they will do their grocery shopping when looking at houses. “It turns out that being located near grocery stores isn’t only a matter of convenience for homeowners but can have a significant impact on equity and home values as well. And that impact can vary pretty widely depending on which grocery store is in…
Foreclosures have now risen more than 50% YOY as filings edge closer to pre-pandemic levels, according to ATTOM’s October 2022 U.S. Foreclosure Market Report. A total of 32,376 properties had foreclosure filings in October, up 57% from a year ago. But month-to-month, foreclosures only rose by 2%. Foreclosures continue to climb steadily toward pre-pandemic levels after the foreclosure moratorium, pushing YOY data artificially to scary highs. Activity is still below what ATTOM considers normal levels. “October foreclosure activity was about 59% of pre-pandemic numbers, and at its current pace, foreclosures probably won’t be back to historically normal levels until sometime around mid-2023,” said Rick Sharga, executive vice president of market intelligence at ATTOM. Illinois, Delaware, and New Jersey were the…
Even as the housing market is rapidly cooling, homeowner equity rose again in Q3, according to ATTOM Data’s Q3 2022 Home Equity & Underwater Report. The report found that 48.5% of mortgaged residential properties were considered equity-rich, up from 48.1% in Q2 and from 39.5% a year earlier. This is a slower increase than previous quarters, but still the 10th quarter of gains. “Even though home price appreciation has slowed down dramatically in recent months, homeowners have continued to build equity,” said Rick Sharga, executive vice president of market intelligence at ATTOM. At least half of mortgagees in twenty states are now equity-rich, compared to only seven states at the same time last year. In total, 94.3% of all mortgage…
By KIMBERLEY HAAS Leaders at an online marketplace that connects property investors to homeowners selling as-is say their platform gives both parties more certainty during the process. People who have houses that are vacant, damaged from natural disasters, or have structural issues can be sold on the Sundae marketplace, but any number of potential sellers may benefit from the company’s services, according to Shaun Greer. Greer is the Senior Vice President of Revenue at Sundae. He recently sat down for an interview with The Mortgage Note. Greer said they have about 22,000 investors who are interested in purchasing “homes that need love.” “What Sundae does is partners with the homeowner and says, ‘Hey, we are going to get you the…
Mortgage rates skyrocketed again this week, nearing 7% as the affordability crisis escalates, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey found that the 30-year fixed-rate mortgage averaged 6.70%, up from 6.29% just last week. A year ago at this time, the 30-year FRM averaged 3.01%. “The uncertainty and volatility in financial markets is heavily impacting mortgage rates. Our survey indicates that the range of weekly rate quotes for the 30-year fixed-rate mortgage has more than doubled over the last year. This means that for the typical mortgage amount, a borrower who locked in at the higher end of the range would pay several hundred dollars more than a borrower who locked in at the lower end of the…
As the housing cooldown continues, New Jersey, Illinois, and inland California have the highest concentration of at-risk markets, according to a new report from ATTOM. The Special Housing Risk Report spotlights county-level housing markets that are more or less vulnerable to declines, based on affordability, unemployment, and other measures from Q2 2022. The largest clusters of at-risk markets are around the NYC and Chicago metros, while Southern and midwestern starts have the least at-risk markets. The top 50 at-risk markets include nine in and around New York City, six in the Chicago metro area, and 13 throughout the entirety of California. The rest are spread throughout the country, with three around Philadelphia. These counties have elevated levels of unaffordable housing,…
