American Equity Shoots Up In Q1 2022

Just under half of all mortgaged residential properties in the U.S. were considered equity-rich in Q1 2022, up to 44.9% from 41.9% in Q4 2021 and 31.9% in Q1 2021, according to a new report from ATTOM. ATTOM’s U.S. Home Equity and Underwater Report shows that only one in 31 homes (3.2%) were considered seriously underwater in Q1 2022, about the same from last quarter but down significantly from 4.7% the year prior. “Homeowners continue to benefit from rising home prices,” said Rick Sharga, Executive Vice President of Market Intelligence for ATTOM.  “Record levels of home equity provide financial security for millions of families, and minimize the chance of another housing market crash like the one we saw in 2008.…

Real House Prices Up 31% YOY, Fastest Growth On Record

First American Financial’s Real House Price Index increased by 30.6% YOY in February, its fastest growth in the more than 30-year history of the series, the company reported. The RHPI measures the price changes of single-family properties throughout the U.S. adjusted for the impact of income and interest rate changes on consumer house-buying power over time at national, state, and metropolitan area levels. Because the RHPI adjusts for house-buying power, it also serves as a measure of housing affordability. February’s numbers show a rapid month-over-month decline in affordability. Real house prices rose by 5.6% from January, and nearly 31% YOY. Consumer house-buying power fell 3.6% between January and February, and 6.8% YOY. First American attributes the numbers to rising home…

Morning Roundup (4/14/2022)– Tech-Based Solutions For Racial Discrimination

Good Morning! Today is Thursday, April 14. The U.S. will send another $800 million in military aid to Ukraine, and it will share intelligence on Russian troop positions. Two Omicron subvariants may be driving rising cases in New York State. The Centers for Disease Control and Prevention extended the federal mask mandate on planes and other forms of transit for two weeks. The Mortgage Note Reports Loan Apps Fall: Mortgage loan application volume fell another 1.3% last week as rates hit 5.13%, their highest level since November 2018. PCR Model: Commercial price growth may continue rising as property values may not yet have reached their cyclical peak, according to First American’s PCR Model. Opinion: Kevin B. Kimble, founder and CEO…

Refi Applications Down 60% YOY As Rates Rise

Mortgage loan application volume fell by 6.8% last week, the Mortgage Bankers Association’s (MBA) weekly survey shows. The adjusted Market Composite Index, a measure of mortgage loan application volume, dropped by 6.8%. The adjusted purchase index rose by 1%, while the unadjusted purchase index rose 1% and was 10% lower YOY. The refinance index fell 15% and was down 60% YOY. Refinances made up just 40.6% of total applications, down from 44.8%. Mortgage rates hit a three-year high at 4.80%, putting further pressure on dwindling refinances. “Not surprisingly, refinance application volume declined further, as fewer borrowers have an incentive to apply at rates that are significantly higher than a year ago,” said Mike Fratantoni, MBA Senior Vice President and Chief…

Morning Roundup (3/30/2022)– Home Prices In Perspective

Good Morning! Today is Wednesday, March 30. US job openings totaled 11.3 million in February, barely budging from January. The F.D.A. authorized a second booster shot for anyone 50 or older. Russian missile strikes destroyed a government building in Mykolaiv, a port city in the south of Ukraine. The Mortgage Note Reports Home Prices In Perspective: Homes are less affordable than they were a year ago, but they largely remain more affordable than at the peak of the 2006 housing boom. Corcoran CIO: Jason Crawford has been appointed Chief Innovation Officer (CIO) of Corcoran Global Living, the company announced. And in other mortgage and housing news… Home Price Appreciation: The S&P Corelogic Case-Shiller Index shows home price appreciation up 19.2% in…

Rates Break 4% For The First Time Since 2019

Mortgage rates broke 4% for the first time since May 2019, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 4.16%. A year ago at this time, the 30-year FRM averaged 3.09%. “The 30-year fixed-rate mortgage exceeded four percent for the first time since May of 2019,” said Sam Khater, Freddie Mac’s Chief Economist.  “The Federal Reserve raising short-term rates and signaling further increases means mortgage rates should continue to rise over the course of the year. While home purchase demand has moderated, it remains competitive due to low existing inventory, suggesting high house price pressures will continue during the spring homebuying season.” The Federal Reserve raised interest rates by a…

Morning Roundup (1/25/2022)– Emerging Markets, Mortgage Scheme Victims Can Apply For Compensation

Good Morning! Today is Tuesday, January 25. President Biden was caught cursing about a Fox News reporter on a hot mic. Stocks continued a selloff at the opening bell this morning as investors worry over Fed policies and global politics. The Supreme Court will hear cases challenging affirmative action, focused on Harvard and the University of North Carolina. In mortgage and housing news… The Mortgage Note Reports Victims of Mortgage Ponzi Scheme Can Seek Compensation: People who were victimized by what investigators have called the biggest Ponzi scheme in New Hampshire history can apply for compensation. Big Cities Making A Comeback: More expensive, populated housing markets appeared on the quarterly Wall Street Journal/Realtor.com® Emerging Housing Markets Index, which could signal…

Rents And Mortgage Payments See Record Growth

Both rent and mortgage payment price growth reached record highs in December, according to a new report from Redfin. Rents jumped to $1,877, 14.1% year-over-year (YOY) and the largest annual jump since at least February 2019, the earliest month in Redfin’s data. The national monthly mortgage payment rose 21.6% YOY, also the largest increase in Redfin’s data history. “The growth in mortgage payments has been driven by both climbing prices and climbing mortgage rates,” said Redfin Chief Economist Daryl Fairweather.  “And those rising mortgage costs push more potential homebuyers into renting instead, which pushes up demand and prices for rentals. Mortgage rate increases are accelerating, which will cause both mortgage payments and rent to grow throughout 2022.” The 30-year fixed-rate…

Rates Rise To 3.56%

Mortgage rates continue to rise, up to an average of 3.56% from 3.45%, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 3.56%. A year ago at this time, the 30-year FRM averaged 2.77%. “Mortgage rates moved up again as the 10-year U.S. Treasury yield rose and financial markets adjusted to anticipated changes in monetary policy that will combat inflation,” said Sam Khater, Freddie Mac’s Chief Economist.  “As a result of higher mortgage rates, purchase demand has modestly waned in advance of the spring homebuying season. However, supply remains near historically tight levels and home prices remain high, keeping the market competitive.” Inventory reached a record low in December, down 19.5%…

Morning Roundup (11/23/2021)– Powell Renominated, Delinquencies Improve

Good Morning! Today is Tuesday, November 23. The Justice Department will pay $130 million to the survivors and families of victims of the Parkland, FL shooting, settling a lawsuit that alleged the FBI failed to investigate tips in advance of the tragedy. A defense attorney in the Ahmaud Arbery case is under scrutiny after making comments in court about the toes of the deceased. An Airbus A340 plane has landed on Antarctica for the first time. And in mortgage and housing news… Powell Renominated: President Biden renominated Jerome Powell to chair the Fed. Here’s what industry analysts think about the move. Black Knight First Look: The national delinquency rate continued to improve at a slow but steady pace last month, with especially impactful declines for loans…