Refis See A Boost As Rates Hit Three-Month Low

Mortgage loan application volume rose again, with refinances up 6% as interest rates hit a three-month low, according to the Mortgage Bankers Association’s weekly survey. Refinances remain 85% lower than the same time last year, however, comprising 31.3% of total applications. Purchases took a hit with the adjusted purchase and unadjusted purchase indices down by 0.1% and 3%, respectively. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances fell from 6.42% to 6.34%, its lowest point since September. Despite that, the adjusted Market Composite Index, a measure of mortgage loan application volume, increased by just 0.9%. “This is a particularly slow time of year for homebuying, so it is not surprising that purchase applications did not…

Starts, Permits Drop For Third Month Straight

Housing construction slid again in November as inflationary pressure and high rates kept demand down. Residential starts fell 0.5% from October to an annualized rate of 1.43 million, down 16.4% from the same time last year, according to data from the U.S. Census Bureau. This is the third consecutive decline for these data. Economists surveyed by the Wall Street Journal predicted starts would fall to 1.4 million from October’s initial estimate of 1.43 million. Single-family starts dropped 4.1% month-over-month to an annualized rate of 828,000. This is their lowest level since May 2020. Permits for new homes fell 11.2% to a rate of 1.34 million. Single-family permits tanked by 7.1% to their slowest pace since 2020. Permits offer an indication…

Homelessness Report Released By HUD Officials

By KIMBERLEY HAAS Homelessness has risen for individuals and people with disabilities, according to the 2022 Annual Homeless Assessment Report released on Monday by officials at the U.S. Department of Housing and Urban Development. Homelessness among single individuals increased by 3.1%. The number of people with disabilities experiencing homelessness for long periods of time increased by 16% between 2020 and 2022. The report found 582,462 people were experiencing homelessness on a single night in January 2022. States with the highest numbers of people who were homeless in 2022 include California (171,521), New York (74,178), Florida (25,959), Washington (25,211), and Texas (24,432). Officials say the Biden-Harris Administration is working to reverse the post-2016 trend of rising homelessness. Their goal is to…

Americans Looking For Homes With White Christmases May Have To Pay A Premium

Americans may idolize a white Christmas, but owning a home in the nation’s snowiest states costs a premium, according to a LendingTree analysis. Median-priced homes in the states that got the most snow in December 2021 cost $56,814 more on average than those in the states with the least snow. Alaska, Idaho, and Utah saw the most snowfall last December. Their median home values – $304,900, $369,300, and $421,700 – are 4.93 times higher than their median household incomes. Warmer states are typically less expensive than frigid Northern states, as evidenced by the flood of affordability-minded homebuyers to the Sun Belt. But this isn’t always the case. LendingTree noted that the median home value in Hawaii ($722,500) is at least…

Monthly Mortgage Costs Fell In November, But Are Still Up 66% YOY

Homebuyers are finally starting to see some moderation in prices as the market corrects.  The cost of a new mortgage fell 4.8% in November as mortgage rates plunged, according to Zillow’s latest Market Report. This is only the second time mortgage costs have declined in the past 19 months. Falling home values and shrinking mortgage rates forced prices to cool. Rates dropped 57 basis points in November alone.  The typical U.S. home saw its value shrink 0.2% from October to November, and is down 0.5% from a peak in June. Renters also reaped the benefits of declining values, with rents seeing their largest single-month drop in the seven-year history of Zillow’s data. Affordability remains a challenge. Monthly mortgage costs are…

Rates Dip Again

Mortgage interest rates dipped modestly again last week, the fifth consecutive week of decline, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey found that the 30-year fixed-rate mortgage averaged 6.31%, down from 6.33% the week prior. A year ago at this time, the 30-year FRM averaged 3.12 percent. The 15-year fixed-rate mortgage fell from 5.67% to 5.54%. A year ago, it averaged 2.34%. “Mortgage rates continued their downward trajectory this week, as softer inflation data and a modest shift in the Federal Reserve’s monetary policy reverberated through the economy,” said Sam Khater, Freddie Mac’s Chief Economist. “The good news for the housing market is that recent declines in rates have led to a stabilization in purchase demand. The bad…

Loan Apps Increase, Breaking Downward Streak

Mortgage loan application volume rebounded last week, breaking a weeks-long streak of declines, according to the Mortgage Bankers Association’s weekly survey. The adjusted Market Composite Index, a measure of mortgage loan application volume, increased by 3.2%.  The adjusted purchase index rose by 4%, though the unadjusted purchase index decreased by 1% and was 38% lower YOY.  “Mortgage rates increased slightly after a month of declines, as financial markets reacted to mixed signals regarding inflation and the Federal Reserve’s next policy moves. The 30-year fixed rate inched to 6.42%, which is still close to the lowest rate in a month,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist.  The Federal Reserve is expected to raise interest rates by half…

Pet Owners Would Pass On Their Dream Home If It Wasn’t Animal-Friendly

Most pet owners are willing to forgo their dream home if it doesn’t suit their furry friends, according to a new survey from Realtor and HarrisX. Of more than 3,000 American adults surveyed, 82% who owned pets and planned to buy a home in the next year reported that their pets’ needs are just as important as their own or their family’s needs. About three-quarters of homeowners own a pet, and 79% say they consider their animals when choosing a home or apartment. More than 60% of prospective buyers say they have passed on an otherwise perfect home because it didn’t accommodate their pets. Neighborhoods matter, too, as 87% of those with pets looking to buy a house within the next…

Purchase-Locks Fell 22% In November

Rate-lock volumes fell 21.5% in November despite 30-year rates dropping 48 bps over the course of the month, according to Optimal Blue’s Mortgage Market Indices from Black Knight. Rates are 3.3% higher YOY but have declined in recent weeks. But affordability struggle and continuing stock shortages have diminished buyer demand, pushing rate-locks down 39% in three months and 68% from the same time last year. Purchase locks fell 22%, while rate/term refis and cash-outs dropped 17% and 18%, respectively. Total refi locks accounted for only 15% of November’s activity. The Thanksgiving holiday and normal seasonal slowing also contributed to low lock volume, but Optimal Blue President Scott Happ noted that these cannot account for dwindling activity by themselves. “While we…

Inventory Sees Record Uptick As Homes Linger On Market

Inventory saw a record uptick in the four weeks ending December 4th as buyer demand dwindled and homes lingered on the market, according to new data from Redfin. The total number of homes for sale rose 15% YOY in that period, the largest increase recorded in Redfin’s Homebuyer Demand Index. New listings fell by 20%, however, suggesting the stock shortage will be ongoing. Demand has dwindled as many homebuyers were priced out of the market by sky-high prices and rates. Buyers who could afford a home when interest rates were at historical lows found that in 2022, they couldn’t afford anything. But homebuyer demand did rebound from an all-time low, up 5% from a week prior as rates continue to…