Second-home destinations saw YOY price surges in April, with four of the five most popular areas seeing more than 25% growth, Redin reported. While average rental prices increased 10% in areas not considered second-home destinations by Redfin, prices rose by 17.1% in vacation hotspots to $1,893. Redfin found a similar trend in the for-sale market, with the typical home in second-home markets selling for $516,423 in April, up 19.9% YOY and a new record. Prices in non-second-home markets increased by 14.8%. Phoenix, Cape Coral, FL, Naples, FL, Myrtle Beach, SC, and Las Vegas– the top five destinations for second homes– saw significant increases in both rental and home-sale prices. All but Myrtle Beach experienced rent growth above 25% YOY, and…
Good Morning! Today is Wednesday, June 8. The EU will require new phones, tablets, and laptops to use the same charger by 2026. The trade gap in goods and services fell 19.1% in April from the prior month. Six members of a Haitian Special Olympics contingent are missing. The Mortgage Note Reports Metaverse Real Estate: Heads are turning after a $5 million virtual commercial real estate deal was announced. Editor Kimberley Haas and Writer Tyrone Townsend report on the current state of the Metaverse and how companies are using the space to profit from people’s avatars. Loan Applications Plummet: Mortgage loan application volume fell by 6.5%, pushing MBA’s market index down to its lowest level in 22 years. Single-Family Building: Construction of single-family homes fell across several market types…
Mortgage loan application volume dropped by 6.5%, the fifth decrease in six weeks, the Mortgage Bankers Association’s (MBA) weekly survey shows. The adjusted Market Composite Index, a measure of mortgage loan application volume, fell by 6.5%. The adjusted purchase index fell 7%, while the unadjusted purchase index fell by 18% and was 21% lower YOY. The refinance index fell 6% and was down 75% YOY, though refinances made up a higher share of total applications (32.2%, up from 31.5%) as purchase applications dwindle. ARM activity fell to 8.2% of total applications. “Weakness in both purchase and refinance applications pushed the market index down to its lowest level in 22 years. The 30-year fixed-rate increased to 5.4% after three consecutive declines.…
Construction of single-family homes fell across several market types in Q1 2022, with an especially large dip in large suburban markets, according to the National Association of Home Builder’s (NAHB) Home Building Geography Index (HBGI). Four-quarter moving average single-family growth rates in large metro suburban counties fell from 18.7% in Q1 2021 to 5.2% in Q1 2022. At the same time, multifamily construction in large metros has jumped after falling during the pandemic. Large metro core counties recovered from a negative 3.6% growth rate to a 17.4% rate. Multifamily construction was largely centered in large metro core areas (36.9% of development), followed by large metro suburbs (25.8%), small metro core areas (23.5%), and other submarkets (13.7%). “Single-family growth rates have…
Good Morning! Today is Tuesday, June 7. The U.S. Securities and Exchange Commission is preparing to propose rule changes that could reshape how the stock market operates. Johnson & Johnson is terminating its vaccine supply deal with Emergent BioSolutions, as each accused the other of breaching the contract. Prime Minister of the United Kingdom Boris Johnson survived a no-confidence vote over reports that he attended parties during lockdown. The Mortgage Note Reports Bad Time To Buy: Only 17% of consumers believe it’s a good time to buy a home as rising interest rates and high home prices push many buyers out of the market. Opendoor Roll-Out: Opendoor launched a new financing app that the company claims allows consumers to get pre-approved for a mortgage in under two minutes. And…
Only 17% of consumers believe it’s a good time to purchase a home as rising interest rates and high home prices push many buyers out of the market, according to Fannie Mae’s Home Purchase Sentiment Index. The May HPSI fell by 0.3 points, remaining relatively steady, but continues to move closer to its 10-year low of 63, recorded in April 2020. The full index is down 11.8 points YOY. Affordability was the main concern of the consumers surveyed. The “Good Time to Buy” indicator dropped to a new low, with 79% of respondents saying it’s a bad time to buy a home. The majority of respondents also said they expect mortgage rates to continue rising in the next twelve months. A…
Good Morning! Today is Monday, June 6. Russian missiles struck Kyiv, the first attack on the capital in more than a month. A street brawl in Philadelphia this weekend turned into a mass shooting, killing three people. Rafael Nadal beat Casper Ruud in the men’s French Open final. The Mortgage Note Reports 40-Year Mortgages Making A Comeback? Writer Scott Kimbler reports that they are popular again, but experts warn the risk may not be worth the reward. Another Equity High: Home prices have risen 42% since the beginning of the pandemic and have gained 9% in value just since the first of the year, with equity reaching another all-time high. MacArthur Promoted: Salisbury Bank and Trust Company has promoted Andrea MacArthur to Vice President, Mortgage Advisor. And in other mortgage…
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…
Good Morning! Today is Friday, June 3. Russian forces now occupy one-fifth of Ukraine’s territory. Ford Motor plans to invest billions in facilities in the Midwest, creating more than 6,000 union jobs. The Boston Celtics beat the Golden State Warriors, 120-108, in Game 1 of the N.B.A. Finals. The Mortgage Note Reports Suit Settled: United Wholesale Mortgage has ended one of its ongoing legal battles by paying $2.7 million to settle a lawsuit. Work From Home Debate: The CEO of a reverse mortgage company is claiming that Elon Musk’s message to Tesla employees unfairly bashes the benefits of remote work. Rates Hovering: Mortgage rates stayed relatively flat last week, falling just slightly to an average of 5.09% from 5.10%. Inventory Finally Increases: Inventory increased for the first time since June…
Inventory increased for the first time since June 2019, with active listings up 8% YOY, according to Realtor.com’s May housing data. An inventory increase is a good sign for the market, which is facing pressure as rising rates and soaring home prices are causing potential buyers to back off. The national median listing price in May was $447,000, up 17.6% YOY and 35.4% from May 2020. Purchase loan applications are down 14% YOY, reaching their lowest level since December 2018. However, active listings were still down 48.5% from May 2020, meaning inventory is still half of what it once was. And while active listings grew, the total inventory of unsold homes, including pending listings, fell by 3.9% thanks to a…
