Active Listings Rose At A Record-High Rate In July

Active listings posted a record-high growth rate in July, an indication that balance is returning to the housing market, Realtor.com reported. July’s Monthly Housing Trends Report found that the national inventory of active listings rose by 30.7% YOY, while the total inventory of unsold homes, including pending listings, increased for the first time since September 2019. This means there were 176,000 more homes actively for sale on a typical day in July than at the same time last year. However, the bump in total unsold inventory amounted to only a modest 3.5% due to a dip in pending inventory. And listings are still far behind their pre-pandemic and even early pandemic levels. Active listings were 15.7% below 2020 and 45.4%…

Affordability Improved Slightly In June

The national median payment applied for by mortgage applicants dropped slightly in June, down to $1,893 from May’s $1,897, the Mortgage Bankers Association’s (MBA) Purchase Applications Payment Index (PAPI) found. PAPI measures the variations in new monthly mortgage payments across time and relative to income. The national PAPI fell 0.2% to a read of 163.9 in June, indicating that new mortgages account for a smaller share of a typical person’s income. A decrease in PAPI shows affordability improving for borrowers due to loan application amounts or mortgage rates falling, or earnings rising. But affordability remains high compared to the same time last year, with the index up 37.4% YOY. “Median mortgage applications payments have held steady during the last two…

Brady: Housing Inflation Crushing American Dream

By KIMBERLEY HAAS A U.S. Congressman serving the 8th district of Texas says housing inflation is crushing the American dream for families. During a hearing, Ways and Means Republican Leader Rep. Kevin Brady said American families and workers are finding that President Joe Biden’s economy is “cruel.” “Working women haven’t had it this bad in decades. The dangerous baby formula shortage, rising crime, and inflation, and now housing they can barely afford to live in. Just as with crushing gas prices, Democrats in Washington are blaming everyone under the sun for the cruel rise in housing costs: builders, local investors and developers who make the construction of new homes and neighborhoods a reality,” Brady said. He added, “Republicans have held…

Delinquencies Fall Again, Hover Near Record Lows

Delinquencies fell for the thirteen consecutive month in April, down 1.8% YOY and unchanged from the month prior, according to CoreLogic’s latest Loan Performance Insights Report. Only 2.9% of mortgages across the nation were in some stage of delinquency in April. Serious delinquencies, those which are 90 days or more past due, have seen the most change in the last year. They account for 1.4% of all mortgages, down from 3.3% at the same time last year, and have fallen from a high of 4.3% in August 2020. All states saw annual declines in their overall delinquency rate in April. The states with the largest declines were Nevada (-3.2%), Hawaii (-3%), and New Jersey (-2.7%).  Early-stage delinquencies are up 1%…

Will Biden’s Housing Plan Make A Difference?

By CHUCK GREEN The President recently released a Housing Supply Action Plan designed to pull back the throttle on the challenges of housing costs over time by increasing the inventory of quality housing in every community. The plan bills itself as the most comprehensive effort to close the housing supply shortfall in history. It includes legislative and administrative actions that could help close America’s housing supply shortfall in five years. It will begin by creating and preserving scores of affordable housing units in the next three years. According to the National Low Income Housing Coalition, there’s a national shortage of seven million homes. There’s fewer than four affordable and available rental homes for every 10 extremely low-income renter households and…

Affordability Declining As Monthly Payments Eat Up The Typical Borrower’s Income

The national median payment applied for by homebuyers rose 8.8% to $1,889 in April, according to the Mortgage Bankers Association’s (MBA) Purchase Applications Payment Index (PAPI). PAPI measures changes in monthly mortgage payments relative to income across time. An increase shows the payment to income ratio is up due to increasing application loan amounts or mortgage rates, or a decline in earnings. The national PAPI was up 7.8% to 162.7 in April. This shows affordability declining as payments increase, accounting for a larger share of a typical person’s income. The index is up 27% YOY. Borrowers in the 25th percentile of prices saw their mortgage payment rise 9.6% to $1,236. “Rapid home-price growth, low inventory, and an 80-basis-point surge in…

Americans Report Highest Level Of Financial Well-Being Since 2013

Americans reported their highest level of financial well-being since 2013 in the Federal Reserve Board’s Economic Well-Being of U.S. Households in 2021 report. The data comes from the Board’s 9th annual Survey of Household Economics and Decisionmaking (SHED), which was conducted in October and November 2021. “The SHED results provide valuable insight into Americans’ financial conditions during the late fall of 2021. This important perspective helps the Federal Reserve better understand the economic challenges that existed during that phase of the pandemic recovery,” Federal Reserve Board Governor Michelle W. Bowman said. In Q4 2021, 78% of adults reported either doing okay or living comfortably financially, while financial well-being rose among all racial and ethnic groups measured. Hispanic adults saw a…

Builder Confidence Falls, Signaling A Market Slowdown

Builder confidence fell eight points in May, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). The HMI registered a reading of 69 in May, a significant drop from April. This is the fifth consecutive month of decline and the lowest reading since June 2020. The low reading suggests that the housing market is slowing thanks to affordability challenges. “The housing market is facing growing challenges. Building material costs are up 19% from a year ago, in less than three months mortgage rates have surged to a 12-year high and, based on current affordability conditions, less than 50% of new and existing home sales are affordable for a typical family,”  said NAHB Chief Economist Robert…

Fannie Mae Commits $5M To 2022 Sustainable Communities Innovation Challenge

Fannie Mae has committed $5 million to its second annual Sustainable Communities Innovation Challenge (IC22), the GSE announced. The challenge seeks to “attract innovative ideas that will help advance racial equity in housing,” according to the press release. Fannie Mae will receive proposals from the public, private, and non-profit sectors, as well as from individuals and teams.  Proposals should address supply, funding, and credit barriers. IC22 is part of the GSE’s Sustainable Communities Partnership and Innovation Initiative, which helps to develop collaborative, cross-sector approaches to advancing sustainable communities. “Fannie Mae is proud to launch the next iteration of the Innovation Challenge and support innovative projects that promote racial equity in housing in the United States,” said Maria Evans, Vice President…

Fannie Mae HPI Rises To Fastest Pace On Record

The Fannie Mae Home Price Index (FNM-HPI) rose to its fastest annual pace ever on record in Q1 2022, measuring 20% YOY, the company reported. This is up from an annualized rate of 19.1% in Q4 2021, the fastest pace in the index’s 47-year history. Seasonally adjusted home prices rose 4.8% from last quarter. The FNM-HPI is a national, repeat-transaction home price index that measures average quarterly price change on all single-family properties in the U.S., excluding condos. The FNM-HPI will now be publicly available as a quarterly series with a start date of Q1 1975. “We’re pleased to begin sharing the Fannie Mae Home Price Index with external audiences. We have long used this index within the company, including…