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…
Most consumers think the economy is on the “wrong track,” growing frustrated as they struggle against inflation and a slowing economy. Fannie Mae’s most recent Home Purchase Sentiment Index (HPSI) fell 3.4 points in June to its lowest reading in ten years, while a survey-high 81% of consumers reported they believe the economy is on “the wrong track.” The full index is down 14.9 points YOY. Four of its six components fell from the month prior. More Americans reported they are worried about losing their jobs in the next twelve months (+5%) and fewer reported their income has significantly increased in the past year (-1%.) For the first time in almost seven years, a plurality of respondents said they would…
Mortgage loan application volume fell by 5.4% last week, the Mortgage Bankers Association’s (MBA) weekly survey shows. The adjusted Market Composite Index, a measure of mortgage loan application volume, decreased by 5.4%. The adjusted purchase index dropped 4%, while the unadjusted purchase index increased by 7% and was 17% lower YOY. The refinance index fell by 8% and made up 29.6% of total applications, down 78% from the same time last year. ARM activity fell to 9.5% of total applications. “Mortgage rates decreased for the second week in a row, as growing concerns over an economic slowdown and increased recessionary risks kept Treasury yields lower. Mortgage rates have increased sharply thus far in 2022 but have fallen 24 basis points…
Home sellers are slashing prices at a record pace as buyer activity falls off, Redfin reported. The median asking price for newly-listed homes saw decreased acceleration, rising 15% YOY. It is down 1.5% from its all-time high, which it hit in May. At the same time, a record share of sellers cut their asking price in the four-week period ending June 26. Pending home sales saw their biggest drop since May 2020, as evidence emerges that buyer demand is beginning to cool. But Redfin Chief Economist Daryl Fairweather says buyers aren’t done yet. Instead, they’re noticing “the shift in power, and are no longer leaving the market in droves.” That is, buyers are seeing that sellers are losing the upper…
Mortgage rates reversed their upward trend this week, averaging 5.70%, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 5.70%, down from last week’s 5.81%. A year ago at this time, the 30-year FRM averaged 2.98%. “The rapid rise in mortgage rates has finally paused, largely due to the countervailing forces of high inflation and the increasing possibility of an economic recession,” said Sam Khater, Freddie Mac’s Chief Economist. “This pause in rate activity should help the housing market rebalance from the breakneck growth of a seller’s market to a more normal pace of home price appreciation.” Recession fears are rapidly growing, with 70% of economists expecting it by 2023. “It’s…
Angel Oak Home Loans, a full-service mortgage lender known for its non-QM offerings, has hired Steven Valladares, CMB, as vice president of correspondent sales. “I am excited to be part of the growing sales team at Angel Oak, where we will continue to provide excellent support to our lender partners, especially in this unique market environment,” he said. “Angel Oak’s leadership in the non-qualified mortgage market is indicative of what’s to come as we expand in the agency space as well. Angel Oak will act as a multifaceted correspondent capable of satisfying the needs of the massive agency market as well as non-QM.” Valladares brings three decades of experience to the company, with twenty years of direct sales experience focused…
Inventory jumped 18.7% YOY in June, with news listings beating out even typical pre-pandemic levels, Realtor.com reported in its June Housing Report. The number of homes for sale increased at its fastest yearly pace of all time at 18.7%, up 8% from the month prior. This is thanks in part to an influx of new sellers entering the market at a higher rate than in the years before the pandemic. Compared to June 2021, active inventory increased in 40 of the 50 metros analyzed by Redfin, led by Austin, Texas (+144.5%), Phoenix (+113.2%), and Raleigh, N.C. (+111.7%). However, prices have yet to come down as a result of new inventory. The national median listing price instead rose to a new…
Good Morning! Today is Wednesday, June 29. A former aide to the White House chief of staff testified that Trump knew some rally attendees on Jan. 6 were armed but still wanted security to let them in. She also said that the White House knew Proud Boys would be in attendance and that Mark Meadows told her on Jan. 2 that “things might get real, real bad on Jan. 6.” The Mortgage Note Reports Time To Buy: Two heavy hitters who recently joined the Guild Mortgage team in Kansas say although the market may be tough for potential buyers now, a home is still a great investment. Editor Kimberley Haas reports. Disappointing Loan App Growth: Mortgage loan application volume rose slightly by 0.7% last week, and the average purchase…
Americans are paying top dollar to live in areas prone to devastating environmental disasters, with home prices soaring in these locations. A new report from real estate publication Home Bay found that home prices are increasing at a higher rate than the national median in the areas most impacted by climate change. Home sales prices are up 167% in metros within states that have had at least 50 Federal Emergency Management Agency (FEMA) disaster declarations since 2012. By comparison, the national median increase is only 113%. FEMA ranks California, Texas, Florida, Louisiana, and North Carolina as the states with the highest risk for homeowners– that is, the states that are most likely to have disasters that threaten buildings, people, and…
Mortgage loan application volume rose slightly by 0.7% 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 0.7%. The adjusted purchase index rose 0.1%, while the unadjusted purchase index fell by 21% and was 24% lower YOY. The refinance index rose by 2% and made up 30.3% of total applications, down 80% from the same time last year. ARM activity fell to 10.1% of total applications. “Mortgage rates continue to experience large swings. After increasing 65 basis points during the past three weeks, the 30-year fixed rate declined 14 basis points last week to 5.84%,” said Joel Kan, MBA’s Associate Vice President of Economic and…
