Good Morning! Today is Thursday, April 28. New York State’s highest court threw out Democratic-drawn legislative maps as partisan gerrymanders. American and European officials say they are worried the war could escalate beyond Ukraine. The Mortgage Note Reports Applications Drop: Mortgage loan application volume plummeted by 8.3% last week, with overall application activity dropping to its lowest level since 2018. St. Mary’s Board: St. Mary’s Bank has elected Stephen Grzywacz as chairman and Elizabeth Hitchcock as vice-chairman. Do You Like Our Newsletter? Then share this email with a friend so they can go to our website and sign up to receive it every weekday, too! And in other mortgage and housing news… NAHB Asks For Action: Members of NAHB sent a letter calling on the White House to take action on the…
By KIMBERLEY HAAS Near one of the hottest housing markets in the country, a local builder says a shortage of electrical transformers is slowing down progress on 166 condo units. Joshua Manning, General Manager at Lewis Builders Development in Atkinson, NH, says they are trying to complete a new construction project in Epping, NH, where the median listing home price is $581,500, according to Realtor.com. When Manning ordered the 20 electrical transformers he needs last year, there was no indication there would be an issue. Now he wonders when the order will be completely filled. “It’s never taken this long to get electrical transformers for new houses,” Manning said in a recent interview with The Mortgage Note. Manning said he…
Mortgage loan application volume plummeted by 8.3% 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 8.3%. The adjusted purchase index fell by 8%, while the unadjusted purchase index fell by 7% and was 17% lower YOY. The refinance index fell 9% and was down 71% YOY. Refinances made up 35% of total applications, down from 35.7%. Mortgage rates reached their highest level since 2009 last week, and overall application activity dropped to its lowest level since 2018. “The drop in purchase applications was evident across all loan types. Prospective homebuyers have pulled back this spring, as they continue to face limited options of homes…
New home sales fell to a four-month low in March to a seasonally adjusted annual rate of 763,000, down 8.6%, according to data from the U.S. Census Bureau and the Department of Housing and Urban Development. The massive dropoff can be attributed to the rising cost of buying a home. Home price appreciation and increasing interest rates are pricing potential buyers out of the market. Between rates and prices, monthly mortgage payments are 19.5% higher than they were three months ago and 38% higher than a year ago. Meanwhile, some sellers are opting not to put their homes up for sale, exacerbating the stock shortage and driving up competition. The seasonally‐adjusted estimate of new houses for sale at the end…
Housing prices set a record in February, up 19.4% YOY and 2.1% from January 2022, according to the Federal Housing Finance Agency’s (FHFA) latest House Price Index (HPI). Seasonally adjusted monthly house price changes from January to February ranged from +1.3% in the East North Central division to +2.9% in the South Atlantic division. The 12-month changes ranged from +15.3 percent in the East North Central division to +24.3 percent in the Mountain division. “House prices rose to set a new historical record in February,” said Will Doerner, Ph.D., Supervisory Economist in FHFA’s Division of Research and Statistics. “Acceleration approached twice the monthly rate as seen a year ago. Housing prices continue to rise owing in part to supply constraints.”…
Good Morning! Today is Tuesday, April 26. The Biden administration established a program that allows Americans to sponsor Ukrainian refugees. A New York judge held Donald Trump in contempt for refusing to turn over documents. The Boston Celtics eliminated the Brooklyn Nets in the first round of the N.B.A. playoffs. The Mortgage Note Reports Housing Bubble: Clickbait Or Is There A Bumpy Ride Ahead? Chuck Green reports trouble could be percolating in the U.S. housing market. loanDepot Shakeup: loanDepot has named Anthony Hsieh as its new Executive Chairman, while industry leader Frank Martell joins as President and CEO. Builder Profits: Builder gross profit margins fell to 18.2% in 2020, while net profits slipped to 7%, the first profit margin decline since 2008. And in other mortgage and housing news… Set To Stall: …
Builder gross profit margins fell to 18.2% in 2020, while net profits slipped to 7%, according to NAHB Builders’ Cost of Doing Business Study. This is the first profit margin decline since 2008. The study surveyed single-family builders across the U.S. It found that builders averaged $13.7 million in revenue for the fiscal year of 2020, of which $11.2 million (81.8%) was spent on costs of sales, such as land costs and construction costs. An additional $1.5 million (11.2%) was spent on operating expenses, such as marketing, administrative expenses, and owner’s compensation. The study notes that shutdowns related to Covid-19 played a part in the results, as well as the need to navigate work-from-home models, supply-chain disruptions, and labor shortages.…
Good Morning! Today is Monday, April 25. Emmanuel Macron, the incumbent president of France, won re-election over Marine Le Pen. A man died after setting himself on fire in front of the Supreme Court to protest climate change. Wildfires in Arizona, Nebraska, and New Mexico have killed at least one person and destroyed hundreds of structures. The Mortgage Note Reports Rocket Mortgage Works to End Digital Divide In Detroit: Editor Kimberley Haas reports that leaders at the company have been working with local officials who say there is still much work to be done. Real House Prices: FirstAm’s Real House Price Index jumped up by nearly 31% in February, the fastest growth in the more than 30-year history of the series. Rate Hike Impact: Nathaniel Drake of Fannie’s…
In its Economic and Housing Weekly Note, Nathaniel Drake of Fannie’s Economic and Strategic Research Group said that the full effects of rising interest rates have “yet to be felt.” “Especially given that the full effects of the recent rise in mortgage rates have yet to be felt, we expect existing home sales to continue to decline through 2022,” the note reads. “However, we believe there is still a pool of prospective buyers who were previously outbid but still want to purchase a home, which should help support sales, thus limiting the pace of slowdown in the near term.” Though demand remains elevated, there are signs that the hot housing market is cooling down. Existing home sales fell for the…
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…
