In another sign that the red-hot housing market may be returning to earth, the number of houses caught up in buyers’ bidding wars has fallen to a 2021 low. According to a Redfin analysis, 58.8% of home offers generated a competition among buyers. That’s down from April’s peak of 74.3 percent. Redfin found that more than half of its agents still face challenges from other bidders on home offers, but that number is inching down. In July, 62.1% of offers written had competition for the home. Though it’s down, the number remains high, rivaling August 2020’s 59.4% bidding-war rate. Home prices are cooling as potential buyers back away from soaring prices and more inventory arrives on the market. Forbearance expirations…
Good Morning! Today is Friday, September 10. Tomorrow is the 20th anniversary of the 9/11 terror attacks. US unemployment hit a new pandemic low as it continues to trend down. President Biden announced a new plan to require vaccinations in workplaces of 100 employees or more or face weekly testing. The Taliban allowed 113 Americans and other Western passport holders to leave Kabul. And in mortgage and housing news… Tap That: American homeowners gained a record $1 trillion in tappable equity in the second quarter of 2021, a single-quarter record according to Black Knight. Speeding Like A Bullet: The national median monthly mortgage payment for homebuyers rose 67% faster than rents year-over-year in August, but mortgage hikes are starting to…
The national median for monthly mortgage payments increased faster than rents in 25 out of 50 major U.S. metro areas, but rents are speeding up as mortgage hikes begin to slow, a Redfin report found. Average monthly rents increased 9% over the past year, reaching $1,836 in August, but median mortgage payments rose 67% faster. August’s numbers represent the seventh month in a row mortgages outpaced rents. But August also saw a dip in mortgage payment growth, dropping to $1,494, while rents continued to climb. Rent prices have exploded as would-be homeowners struggled to find affordable houses and battled cash-rich investors in bidding wars. “Record high home price growth has priced many renters out of buying, leaving many facing higher…
Good Morning! Today is Thursday, September 9. Elizabeth Holmes’ trial starts today; she’s accused of defrauding investors and patients through her blood-testing company Theranos. Job openings in the US have leveled off after breaking records over the summer. Eighty percent of gas and oil production on the Gulf coast is still down after Hurricane Ida. And in mortgage and housing news…Rates Don’t Budge: Freddie Mac’s latest Primary Mortgage Market Survey found that mortgage rates held steady another week, up just .01% from last week to 2.88%. Feminists, Former Employees Cry Foul Over Ishbia’s Big-Dollar MSU Player Stipends: UWM’s Mat Ishbia is paying $6,000/year in stipends to MSU football and basketball players — but only the men. Women’s advocates see sexism,…
A new study by LendingTree found that the average down payment on homes across 50 major U.S. metros has reached $46,283. As interest rates fell to historic lows and the housing market sizzled, high home prices led to larger down payments. Analysts at LendingTree calculated median down payments in the largest 50 U.S. metros and compared how expensive they were relative to their median annual household incomes. “An average down payment on a home costs at least $28,000 in each of the nation’s 50 largest metros,” they reported. In some markets it was almost four times that number. The most expensive cities peaked at over $100,000. San Jose had an average of $115,138 down, which amounts to 88% of the…
The number of loans in forbearance as of August 29 fell from 3.25% of portfolio volume to 3.23%, according to the Mortgage Bankers Association’s (MBA) latest survey. That puts the estimated number of homeowners in forbearance at 1.6 million. For Fannie Mae and Freddie Mac loans, the number fell 3 basis points to 1.63%. Ginnie Mae loans fell from 3.92% to 3.62%. But portfolio loans and private-label securities increased the number of homes in forbearance 34 basis points, from 7.18% to 7.52%. Independent mortgage bank servicers saw a drop of 1 basis point to 3.49%, and depository servicers saw a drop of 2 basis points to 3.33%. “The share of loans in forbearance decreased by two basis points last week, with…
Mortgage application volume fell again in the past week, dropping to its lowest point since Mid-July, the Mortgage Bankers Association’s (MBA) weekly survey found. Mortgage application volume fell by 1.9%. On an unadjusted basis, the index dropped 3% from last week. The data is driven largely by a 3% decline in refinancing. The refinance index was 4% lower year-over-year for the same week. The survey also showed a small 0.2% decline in the seasonally adjusted purchase index. “Mortgage application volume fell last week to its lowest level since mid-July, as mortgage rates have stayed just above 3% for several weeks. Refinance volume has been moderating, while purchase volume continues to be lower than expected given the lack of homes on…
Good Morning! Today is Tuesday, September 7. Federal pandemic unemployment aid expired yesterday, impacting seven million people. China’s exports unexpectedly expanded at a faster clip in August, shrugging off the impact of a global resurgence of the coronavirus pandemic.The U.S. has evacuated four Americans from Afghanistan into a bordering country, a State Department official said. Disney’s “Shang-Chi” set a box office record of $90 million over Labor Day weekend. And in mortgage and housing news… Light At The End Of The Tunnel: The Fannie Mae Home Purchase Sentiment Index stayed mostly the same in August, as homebuyers express more positivity about homebuying conditions. Wall Street Woes: Wall Street is bankrolling house flippers, but finding properties is a battle. “Investors like…
A U.S. District Court judge denied motions by the National Association of Realtors (NAR) and Zillow to dismiss an antitrust challenge from the real-estate tech company Real Estate Exchange (REX), saying that REX provided sufficient evidence that NAR and Zillow conspired to restrain trade and to harm consumers. REX sued on the grounds that a NAR segregation rule— a rule followed by Zillow that separates new technology listings on its site from traditional broker listings in a different tab, titled “Other Listings”– violates antitrust and consumer protection laws. They argued the policy privileges traditional broker models that include 5-6% commission fees for buyers. REX said the “Other Listings” tab was a “recessed, obscured, and deceptive tab that consumers do not…
Good Morning! Today is Friday, September 3. The U.S. economy added just 235,000 jobs in August, far below economists’ expectations. The remnants of Hurricane Ida caused flash flooding in the Northeast, resulting in at least 45 deaths. Democrat Sen. Joe Manchin (W.V.) says he won’t support Biden-backed $3.5 trillion spending plan.And in mortgage and housing news…Market Warming: The housing market is leveling out, with smaller, more affordable homes being listed and sellers pricing more competitively as 423,000 new homes go up for sale, according to Realtor.com’s August Housing Market Trends Report. Heading For Normal: Signs of softening housing market and a leveling of mortgage interest rates have some industry observers asking if America is heading back to a ‘normal’ home-buying market.SimpleNexus Approved: Fannie Mae and Freddie Mac have approved digital mortgage platform SimpleNexus as…
