By ERIN FLYNN JAY and KIMBERLEY HAAS
A recent report from Redfin shows that Baby Boomers with empty nests own double the amount of large homes compared to Millennials with kids. So what if Grandma and Grandpa moved into an accessory dwelling unit and the three generations lived together so everyone could have some space?
According to the report, Millennials with kids own 14% of the nation’s large homes, which are defined as having three or more bedrooms. Baby Boomers living by themselves or with one other person own 28% of these properties.
Partially to blame is affordability. 2023 was the least affordable year for homebuying on record, with median-priced homes costing about $410,000, according to Redfin. Additionally, 54% of…
Housing construction slid again in December to its lowest point since July, but an increase in single-family starts may signal improvement to come. Residential starts fell 1.4% from November to an annualized rate of 1.38 million, down 21.8% from the same time last year, according to data from the U.S. Census Bureau. This is the fourth consecutive decline for these data. It was driven largely by a dip in multifamily construction, which is volatile month to month. The picture for all of 2022 was fairly bleak. In the entire year, only 1 million homes were started, down 10.6% from 2021 and the largest drop since 2009. Permits for new homes fell 1.6% to a rate of 1.33 million. Single-family permits…
By KIMBERLEY HAAS The housing market traditionally cools during the holiday season as people focus on family and friends but industry leaders say it is a good time for potential sellers and buyers to weigh their options. After mortgage rates recently surged above 7%, real estate activity and consumer sentiment took a nosedive. Home delistings hit a record high in November as sellers and buyers pulled out of the market, according to journalists Lily Katz and Ben Walzer at Redfin. Markets where home prices skyrocketed during the pandemic are now cooling the fastest. In Sacramento, Calif., an average of 3.6% of active listings were delisted per week during the 12 weeks ending on November 27, up 1.6 percentage points from one year earlier.…
Mortgage Lenders lost money on every loan originated for the first time since 2018 in Q2, according to the Mortgage Bankers Association’s (MBA) Quarterly Mortgage Bankers Performance Report. Independent mortgage banks and mortgage subsidiaries of chartered banks lost an average of $82 on each loan they originated in the second quarter of 2022, down from gains of $223 per loan in Q1. The average pre-tax production loss was 5 bps, a complete turnaround from Q1’s average net production profit of 5 bps. Average production volume totaled $705 million per company, down from $808 million in Q1. Only three other quarters in the survey’s history saw net production losses: Q1 2014, Q1 2018, and Q4 2018. “The second quarter of 2022…
By CHUCK GREEN An apparently not so uncommon sight these days in the mortgage industry: empty desks. Not that their occupants are taking five for a foam latte. Instead, they might well have either been steeped in the pink slip blues or were compelled to submit their resignation. Over the past three months in the industry, there have been more than 3,500 job cuts, according to globalsg.com. In February, Bloomberg reported U.S. home mortgage lenders might have no other choice during the coming months that to initiate layoffs. Similarly, earlier this month, wolfstreet.com reported that not only are layoffs among mortgage lenders taking place, but they will also continue. “Layoffs and forced resignations are certainly imminent in the mortgage banking…
Average monthly asking rent in the U.S. leaped to new heights in February, up 15% year-over-year to a record high of $1,901, though mortgage growth outpaced it yet again, according to Redfin. Rent growth saw its largest annual increase since Redfin began tracking rental data in February 2019. Mortgage payments rose 31% YOY to $1,716, also the biggest increase recorded by Redfin. Mortgage payment increases outpaced rent increases in 44 of the 50 largest U.S. metros. “The cost of housing is going up for homebuyers and renters, but it’s going up more quickly for homebuyers,” said Redfin Chief Economist Daryl Fairweather. “That’s because mortgage rates have increased sharply, and will likely continue to do so. When the cost of homeownership…
By JARED WHITLEY The Neighborhood Assistance Corporation of America (NACA) has announced a lending program for minority-owned businesses it calls “Economic Justice Loans,” with the stated goal of helping historically underserved populations build generational wealth. The political-progressive organization’s action raises the question of whether people of color are still being denied access to credit in 2022. “This lending model provides the foundation for hundreds of millions of dollars in additional lending,” NACA’s founder and CEO Bruce Marks said in a press release. “We have learned that if you build it, they will come. NACA’s Best in America Mortgage targeting underserved communities started with a few million dollars in commitments and now has over $20 billion. We expect the same outcome with extraordinary terms…
Delinquencies on commercial and multifamily mortgages fell in Q3 2021, according to the Mortgage Bankers Association’s (MBA) Commercial/Multifamily Delinquency Report. Loans delinquent by more than 90 days or in non-accrual fell by 0.06 points in Q2 to 0.69% for banks and thrifts. Life company portfolios saw a decrease of 0.01 to 0.04% for loans 60 or more days late. Fannie Mae and Freddie Mac delinquencies of 60 or more days fell to 0.42% and 0.12%, respectively. For CMBS, the delinquency rate for 30 or more days or in REO fell 0.82 percentage points to 4.86%. “Commercial mortgage delinquency rates for every major capital source have come down since the early months of the pandemic,” said Jamie Woodwell, MBA’s Vice President…
