Applications Tick Up After Mortgage Rate Downturn

Mortgage loan application volume rose 1.2% last week when rates took a downward turn, the Mortgage Bankers Association’s weekly survey shows. The adjusted Market Composite Index, a measure of mortgage loan application volume, decreased by 1.2%. Both the adjusted and unadjusted purchase indices rose 1%. The unadjusted index was 16% lower YOY. The refinance index rose by 2% and made up 30.8% of total applications, down 82% from the same time last year.  ARM activity dropped from 9.1% to 8.4% of total applications. “Mortgage rates declined last week following another announcement of tighter monetary policy from the Federal Reserve, with the likelihood of more rate hikes to come. Treasury yields dropped as a result, as investors continue to expect a…

Home Price Growth Stalls As Inventory Rebounds

Home price growth saw the largest single-month slowdown on record since at least the 1970s in June, coinciding with a huge increase in inventory, according to Black Knight’s most recent Mortgage Monitor Report. Annual home price growth fell from 19.3% to 17.3% between May and June. “For context, during the 2006 downturn the strongest single-month slowing was 1.19 percentage points – about what we saw last month – and June topped that by 66%,” said Black Knight Data & Analytics President Ben Graboske. However, while the slowdown was historic, home price growth would need to fall at this pace for a while yet before annual price appreciation returned to 5%. “Still, while this was the sharpest cooling on record nationally,…

May Home Prices Saw Their Largest Single-Month Slowdown Since 2006

Home price growth saw its largest single-month slowdown since 2006 in May as inventory begins to correct, according to Black Knight’s May Mortgage Monitor Report. May was the second straight month of prices cooling across the country. Home price growth slowed in 97 of the U.S.’s 100 largest housing markets. The national appreciation rate fell by more than a whole point YOY. “[W]hile any talk of home values and 2006 might set off alarm bells for some, the truth is that price gains would need to see deceleration at this rate for more than 12 months just to get us back to a ‘normal’ 3-5% annual growth rate,” said Black Knight Data & Analytics President Ben Graboske. “That said, the…

Home Equity Reaches Another All-Time High

Home prices have risen 42% since the beginning of the pandemic and have gained 9% in value since the first of the year, with equity reaching another all-time high, according to Black Knight’s latest Mortgage Monitor Report. Black Knight reported that the annual rate of appreciation dropped slightly to 19.9% in April, down from an upwardly revised 20.4% for March. Despite this, rising prices and interest rates have brought about the worst affordability since July 2006. “While a downward shift from 20.4% to 19.9% annual growth is hardly cause for concern, it’s also likely we’ve not yet seen the full impact of recent rate increases. Rather, April’s decline is more likely a sign of deceleration caused by the modest rate…

“Million-Dollar Cities” Nearly Tripled In 2021

“Million-dollar cities” skyrocketed in 2021, with typical home values reaching at least $1 million in a record 146 new U.S. cities. Zillow found there are now 481 cities where the average home is worth $1 million or more, and an additional 49 cities could make the list by mid-2022 if home appreciation continues at its current rate. Typical home values jumped 19.6% in 2021 as homebuyers faced severe stock shortages, causing bidding wars that pushed prices up. Homeowners gained $2.6 trillion in tappable equity in 2021, up by 35% YOY for an aggregate total of almost $10 trillion. In Q4 2021 alone, tappable equity rose by nearly half a billion dollars. “Home price appreciation over the course of 2021 was…

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…

Black Knight: Equity Hit All-Time High In Q3

Tappable equity soared to a new all-time high in October 2021, increasing almost a quarter-trillion dollars in Q3, according to Black Knight’s October 2021 Mortgage Monitor Report. Black Knight reports that Q3 home price growth added more than $250 billion to Q2’s “history-making rate.” The average homeowner’s equity has risen by $53,000, working out to $178,000 available in tappable equity before reaching an 80% combined loan-to-value ratio. Homeowners tapped their equity in Q3 at the highest rate in 14 years, with cash-outs accounting for 54% of all refinances. The aggregate total of $9.4 trillion is up 32% YOY and almost 90% higher than the peak in 2006. “Data points like these inevitably, and understandably, lead to comparisons with the run-up…