Good Morning! Today is Tuesday, November 16. President Biden signed the $1 trillion infrastructure bill into law. Steve Bannon turned himself in after defying a subpoena from the congressional investigation into the Capitol riot. The jury in the Kyle Rittenhouse trial will begin deliberations today. And in mortgage and housing news… Why Wait Until Spring To Sell Your Home?: People are typically reluctant to put their homes on the market during the holiday season, but sellers can expect plenty of buyers this winter. Mortgage Applications Up: Mortgage applications for new home purchases fell 15.2% year-over-year in October but increased 6% month-over-month, setting their fastest pace since January 2021. Investors Break Records: Investors bought a record 90,000 homes in Q3 2021,…
Mortgage applications for new home purchases fell 15.2% year-over-year (YOY) in October but increased 6% month-over-month (MOM), according to the Mortgage Bankers Association’s (MBA) latest Builder Application Survey. The increase from September puts MBA’s estimate of new home sales at its strongest pace since January 2021. “Purchase activity continues to be dominated by higher loan balance transactions, which pushed the average new home loan size up to over $412,000, another new record in the survey,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “Recent U.S. Census data show an increasing share of new sales are for homes yet to be built or still under construction, and a shrinking share of completed homes. Housing demand remains strong,…
Investors banking on growing home and rental prices for high returns bought 18.2% of all homes purchased in Q3 2021, up from 16.1% in Q2 and 11.2% year-over-year (YOY), according to a new Redfin report. Real-estate investors purchased a record 90,215 homes, totaling nearly $64 billion and up 80.2% YOY, the second-largest increase on record. Single-family homes made up nearly three-quarters of those purchases, an all-time high, while low-priced properties accounted for only 36%. The typical home purchased by investors cost $438,770. More than 75% of homes purchased by investors were paid for completely in cash. “Increasing home prices fueled by an intense housing shortage have created opportunities for investors to reap big profits,” said Redfin Senior Economist Sheharyar Bokhari.…
Good Morning! Today is Monday, November 15. The Glasgow climate summit ended with an agreement by nearly 200 countries to cut their carbon emissions in half this decade. An appeals court barred President Biden’s vaccine mandate for large employers. A New York Times report revealed the US hid an airstrike that killed civilians in Syria. And in mortgage and housing news… Forbearances Drop Below 2%: Forbearance exits jumped week-over-week, with nearly 300,000 borrowers leaving their plans, Black Knight reported. Airbnb Will Majorly Impact 2022 Market: Analysts predict Airbnb will expand its inventory 25% in 2022, suggesting it will have a significant impact on the housing market next year. AEI Response: The AEI Housing Center published a response to FHFA’s proposed…
Airbnb is predicted to increase its inventory by 25% in 2022, giving it huge leverage to impact the residential real estate market next year, according to analyst Chris Linsell. During a presentation at the 2021 REALTORS® Conference & Expo, Linsell, senior real estate writer for TheClose.com, said Airbnb’s expansion will likely negatively impact housing affordability and inventory. “Airbnb (is) not just selling their product to consumers, they are selling to the providers of the product. They are selling twice without holding their own inventory. This unique model opens up an incredible level of scalability,” he said. “Many of those housing units are going to come from the residential real estate market.” He noted that the impact on residential housing could…
The number of loans in forbearance dropped below 2% for the first time since early in the pandemic, according to Black Knight’s blog, Vision. November brought a surge of forbearance exits, with the number of loans in active forbearance falling by over 100,000 week-over-week, 10.8%. Bank portfolio and PLS loans had the strongest results, down by 15.9% or 59,000. FHA/VA plans saw a decrease of 11.3% (48,000) and GSE loans by 4.8% (16,000). Almost 300,000 borrowers left their plans over the last two weeks. Of all active mortgages, forborne loans now account for 1.9%, including 1.2% of GSE, 3.1% of FHA/VA, and 2.4% of portfolio/PLS loans. November’s numbers so far mimic October’s, which also saw a huge jump in exits…
A typical home spent just one week on the market before going under contract, according to a new report from the National Association of Realtors. Their annual Profile of Home Buyers and Sellers — “real estate’s definitive guide on home buyer and seller trends” — reported on the pace of home sales between July 2020 and June 2021. By comparison, the average in 2012 was eleven weeks. “Buyers moving quickly during the pandemic, coupled with all-time-low inventory, led to a decline in time on market to the shortest ever recorded, which was just one week,” said Jessica Lautz, vice president of demographics and behavioral insights at NAR. “Only a quarter of home sellers offered incentives to entice potential buyers, down from…
Delinquencies dropped for mortgages on one-to-four-unit residential properties in Q3 2021, according to the Mortgage Bankers Association’s (MBA) National Delinquency Survey. The seasonally adjusted rate fell to 4.88% of all outstanding loans, down 59 basis points for Q2 and 277 basis points year-over-year (YOY). The survey asked servicers to report loans in forbearance as delinquent if the payment was not made based on the original terms of the mortgage. “For the fifth consecutive quarter, the mortgage delinquency rate declined, commensurate with a decline in the U.S. unemployment rate over the same time period,” said Marina Walsh, CMB, MBA’s Vice President of Industry Analysis. “The improvement was driven entirely by a decline in later-stage delinquent loans – those loans that are…
Amrock, a title insurance and property valuations provider, announced its CEO Brian Hughes will retire at the end of this month. Nicole Beattie, Executive VP of Mortgage Servicing at Rocket Mortgage will assume the role on November 19. “I would like to congratulate Brian on Amrock’s success. His leadership has solidified the company’s position at the top of the industry and paved a clear path of innovation for years to come,” said Beattie. “I’m excited to build on the company’s momentum, continuing to create technology solutions that improve the mortgage closing experience for our lender partners and the clients they serve.” Beattie spent 18 years with Rocket Companies, the last four as EVP of Rocket Mortgage’s servicing team, managing a…
Good Morning! Today is Wednesday, November 10. Moderna is locked in a patent dispute after excluding three government researchers who worked on the vaccine from its application. General Electric will split into three companies focused on aviation, energy, and healthcare. A federal court denied Donald Trump’s attempt to withhold records from the committee investigating the January 6 riot. And in mortgage and housing news… HUD Awards $36M For Affordable Housing: HUD announced $36 million in “capacity-building” grants to boost affordable housing programs across 250 communities. Mortgage Credit Up: Mortgage credit availability rose slightly in October but remains tight overall, posing “significant” problems for first-time buyers. Applications Rise Alongside Rate Drop: Mortgage loan application volume rose 5.5% last week, responding to…
