Inventory grew and prices fell in August according to a new report from RE/MAX, the latest sign the current red hot housing market may be cooling. Home sales dropped 3.5% and the Median Sale Price fell 1.2% to $335,000, according to RE/MAX’s National Housing Report for August. With fall just around the corner, August’s numbers suggest there won’t be any more record-breaking high points this year. August saw homes sitting on the market for only an average of 24 days. Month’s Supply of Inventory fell from 1.5 in July to 1.3 in August. Last August it was 1.9. A six months supply indicates a market balanced equally between buyers and sellers. Of the 51 metro areas surveyed in August, zero…
Good Morning! Today is Friday, September 17. Elizabeth Warren sent letters to 12 regional Fed presidents asking them to ban ownership of individual stocks among top officials at their banks. The World Bank canceled their “Doing Business” report after an investigation found that management tried to alter data. The Justice Department is fighting against a settlement that would prevent citizens from suing the Sackler family. And in mortgage and housing news… No Bias in Mortgage Biz?: Researchers from the American Enterprise Institute Housing Institute claim studies alleging racial bias in mortgage ignore outcomes that undermine their arguments. Rent Growth Tops Home Prices: Rent growth overtook home price growth in August, a Realtor.com report found. Sales Down In August: Redfin reported…
Rent price growth topped home price growth in August, rising by over 10% year-over-year for the first time on record, a Realtor.com report found. The average national rent is now $1,633, up $169 and 11.5% year-over-year. Home prices in the same month grew 8.6%. Rents reached their highest levels ever in 35 of the 50 largest U.S. metros. All but 4 of the 50 hit record highs between June and August. Two-bedroom units saw the most significant median national growth, up 12.3% to $1,828 year-over-year. Compared to August 2019, it’s even higher: up 16.7%. One-bedrooms rose 11.6% from the same time last year and 14.3% since August 2019. Both broke the record for highest levels in Realtor.com’s data history. Rents…
Home sales dropped 6% year-over-year in August, down 1.4% from July, a Redfin report found. It’s the first annual decline in home sales in 15 months. But prices are still high, up 16% year-to-year. Median prices increased in almost all of the largest metros tracked by Redfin, though Milwaukee, WI, and Bridgeport, CT both declined. The median price nationally for homes sold was $380,271. Austin, Phoenix, and Salt Lake City saw the largest spikes in their median prices, up 36%, 25%, and 24%, respectively. “When it comes to home prices in this market, what goes up stays up. That’s especially true in the Sun Belt; home prices are up more than 20% from last year in Austin and Phoenix,” Redfin…
By Randall Bloomquist In the mortgage public-policy cosmos, studies alleging racial bias in lending are like comets. They blaze across the industry skyline on a regular basis, drawing attention from the media and outrage from fair housing activists. The latest flare came from a report alleging Black applicants are nearly twice as likely to be denied a conventional mortgage as compared to White applicants with similar financial profiles. The study, which claims to advance the case for widespread lending discrimination through the analysis of newly available data about loan applicants, was generated by the non-profit investigative website The Mark-Up in partnership with the Associated Press. But according to some industry analysts, The Mark-Up’s j’accuse! moment comes up short. Those data crunchers say the…
Good Morning! Today is Thursday, September 16. The FDA found that an additional shot of Pfizer boosts immune response, but the typical two-shot regimen is still effective. The U.S., Britain, and Australia are teaming up to launch nuclear-powered submarines to patrol the South China Sea. Olympic gymnasts abused by Larry Nasser blamed the F.BI., USA Gymnastics, and the U.S. Olympic & Paralympic Committee for not responding to accusations in 2015. And in mortgage and housing news… Interest Rates Flat Again: Freddie Mac’s PMMS showed interest rates barely moved for another week, with 30-year fixed-rates averaging 2.86%. “Middlemen”: Mat Ishbia says UWM’s in-house appraisal program will speed things up by removing AMCs, which needlessly hinder closing times. Non-banks Non-primes Down: Fitch…
Fitch Ratings’ Q2 RMBS Servicer Metric Report found late-stage non-prime delinquencies down year-over-year (YOY) for both bank and non-bank mortgage servicers. Bank servicers reported a drop in 90+ day delinquencies, from 13% to 10% YOY, down 12% last quarter. Non-bank servicers saw a drop from 8% to 4% YOY, with a 2% fall from Q1. The numbers suggest that holders with loans in forbearance might be financially recovering and exiting policies before many expire. “Bank servicers showed the most significant loss mitigation results over the past year with forbearance plans now down to 38% from 93% of all loan workout plans while repayment plans and loan modifications have seen significant increases as borrowers exit forbearance plans,” said Director Richard Koch. “Non-bank servicers are…
Good Morning! Today is Wednesday, September 15. Californians voted not to recall Gov. Gavin Newsom. Senate Democrats proposed a compromise voting rights bill that includes voter ID requirements. Facebook documents reportedly show Instagram is harmful to teenage girls. North Korea violated U.N. resolutions by testing two ballistic missiles. And in mortgage and housing news… Purchase Applications Up: MBA’s weekly survey showed mortgage applications bouncing back from last week’s low, driven by purchase applications. Debt Burdens: More than half of non-homeowners say their student debt delayed them from buying a home, a NAR poll found. PSPA Provisions Suspended: FHFA and the Department of the Treasury suspended certain provisions from the Preferred Stock Purchase Agreements, FHFA announced in a press release. Delinquencies…
After eight years of examining its impact, the National Association of Realtors (NAR) says that student loan debt is one of the most significant barriers for potential homebuyers. A poll by NAR found that more than half of non-homeowners say their student loan debt has delayed their ability to buy a home. Of 1,995 respondents, 51% said their student loan debt delayed them from buying a home, with 47% saying it prevents them from saving for a down payment. For millennials, that number jumps to 60%. Forty-six percent of debt holders say they would use their additional funds to buy a home if their loans weren’t an issue. “Housing affordability is worsening, leaving future home buyers with student debt at…
Good Morning! Today is Tuesday, September 14. Californians vote on whether to recall Governor Gavin Newsom today. Chevron pledged to spend $10 billion in its new low-carbon unit, focusing on biofuels and hydrogen production. A Wall Street Journal investigation found that Facebook exempts high-profile users from its content rules. And in mortgage and housing news… Good News For Struggling Borrowers: The total number of loans in forbearance took a nosedive this week, with numbers down in every category. Cash-Outs Soar: Black Knight’s latest Originations Market Monitor report showed cash-out refinancing rose 41% in the last three months, while overall rate locks for mortgage originations increased in August. MHCs: Freddie Mac rolled out new tenant protections for manufactured home owners who rent the land they live on. Breathing Room: Ginnie Mae is…
