America’s home affordability problem was bad in 2020, before COVID-19 hit. In 2021, it got even worse. In Q4 2021, median-priced single-family homes were less affordable in 77% of U.S. counties analyzed by ATTOM Data Solutions, a 13-year high, the company found. In 440 out of the 575 counties analyzed, the gap between incomes and affordable home prices was larger than their historical averages. This is a dramatic increase from Q4 2020 when only 39% of counties were less affordable than in the past. “The average wage earner can still afford the typical home across the United States, but the financial comfort zone continues shrinking as home prices keep soaring and mortgage rates tick upward,” said Todd Teta, chief product…
Good Morning! Today is Wednesday, December 22. In yesterday’s speech, President Biden praised Donald Trump’s recent comments about boosters and promised to distribute 500 million free testing kits. The Kellogg strike ended, with workers ratifying a new contract. Southwest Alaska experienced a 5.9 magnitude earthquake. And in mortgage and housing news… MBA: Mortgage loan application volume dropped 0.6% last week, though the average purchase loan reached its second-highest amount ever, MBA reported. Homeowners Gain $9.1T: The value of U.S. homes soared 31% YOY to $38 trillion in November, outpacing last year’s 10% gain, according to a new Redfin report. Lifestyle Matters:Better Homes and Gardens Real Estate released a market trends report, examining how and why lifestyle is leading homebuyers’ decision-making. “The Biggest Opportunity Of Our Generation”: MetaSpace Real…
Mortgage loan application volume dropped 0.6% last week, though the average purchase loan reached its second-highest amount ever, the Mortgage Bankers Association’s (MBA) weekly survey reported. The seasonally adjusted Market Composite Index, a measure of mortgage loan application volume, fell 0.6%. The seasonally adjusted purchase index fell 3%, while the unadjusted purchase index fell 6% and was 9% lower YOY. The refinance index rose 2% and was down 42% YOY. Refinances made up 65.2% of total applications, driven by a rate decrease to 3.27%, its lowest in four weeks. Though applications fell, purchase loan size increased to an average of $416,200, the second-highest average amount on record. “The elevated loan size is an indication that activity is more on the…
Good Morning! Today is Friday, December 17. France is banning travel to and from Britain due to high levels of Omicron infection. A federal judge overturned Purdue Pharma’s opioid settlement, ruling that members of the Sackler family could not receive protection from civil lawsuits. Haiti announced that the last of the 17 kidnapped US missionaries have been freed. And in mortgage and housing news… Buying Houses With Friends: As the number of homes purchased by people with different last names increases, it is being reported that Millennials are choosing to buy single-family houses with their friends. Rates Up Slightly: Mortgage rates rose slightly over the last week, up from an average of 3.10% to 3.12%, Freddie Mac reported Thursday. Forbearances…
Mortgage loan application volume dropped 4% last week, overwhelming a 2% increase from the week prior, the Mortgage Bankers Association’s (MBA) weekly survey reported. The seasonally adjusted Market Composite Index, a measure of mortgage loan application volume, rose 4%. The seasonally adjusted purchase index rose 1%, while the unadjusted purchase index fell 4% and was 9% lower YOY. The refinance index fell 6% and was down 41% YOY. Refinances made up 63.3% of total applications. The report noted that refinances fell even though rates remained steady week to week. Interest rates are 40 basis points higher year-over-year, however, in line with the 41% drop in refinances from the same period in 2020. “Fewer homeowners have a strong incentive to refinance…
Good Morning! Today is Wednesday, December 8. The US will spend $400 million on vaccine distribution in Africa and elsewhere. The House passed a $768 billion defense policy bill, which now moves to the Senate. Chris Cuomo’s publisher canceled his planned book. And in mortgage and housing news… Mortgage Applications Up: Mortgage loan application volume rose 2% last week, MBA’s weekly survey reported. Missed Rent Payments: Renters were three times more likely to miss payments than homeowners during September and October, according to research from RIHA. Commercial/Multifamily Delinquencies: Delinquencies on commercial and multifamily mortgages fell in Q3 2021, according to MBA’s Commercial/Multifamily Delinquency Report. NAR Political Spending: NAR’s political spending is in opposition to its stated desire to support education…
Mortgage loan application volume rose 2% last week, the Mortgage Bankers Association’s (MBA) weekly survey reported. The seasonally adjusted Market Composite Index, a measure of mortgage loan application volume, rose 2%. The seasonally adjusted purchase index fell 5%, while the unadjusted purchase index rose 28% and was 8% lower YOY. The share of refinance applications rose 9% and was down 37% YOY. Refinances made up 53.9% of total applications, up from 59.4% the previous week. The report noted that mortgage rates fell after rising for several weeks, which resulted in the surge of refinances. “While the 30-year fixed mortgage rate and 15-year fixed mortgage rate both declined only one basis point, the FHA rate fell 7 basis points, driving the…
Mortgage lending declined in both Q2 and Q3 2021, the first consecutive decline in two years and the first time since 2000 that lending fell in Q2 and Q3, according to ATTOM’s Q3 2021 U.S. Residential Property Mortgage Origination Report. The report showed that 3.59 million mortgages secured by residential property originated in Q3, up 3% YOY but down 8% from Q2. It is the largest quarterly drop in more than a year, and a surprise considering the second and third quarters are usually peak buying season. Lenders overall issued $1.15 trillion in mortgages in Q3, up 11% YOY but down 6% from Q2, the first quarterly drop since early 2020. Both refinance and purchase lending fell, with refinancing taking…
Good Morning! Today is Wednesday, December 1. At least three students were killed in a high school shooting in Oxford, Michigan. The CDC is planning to require international travelers to show a negative test that is less than 24 hours old. The TV host Dr. Oz will run for Senate in Pennsylvania as a Republican. And in mortgage and housing news… A New Gold Rush For Lenders?: As the pandemic continues and workers reevaluate their commitment to metropolitan life, lenders in smaller cities stand to benefit from what is being termed the “Great Resignation.” Mortgage Applications Drop: Mortgage loan application volume fell 7.2% last week, with refis down 15% due to rising interest rates, according to the MBA. Insurance Hikes…
Mortgage loan application volume fell 7.2% last week, the Mortgage Bankers Association’s (MBA) weekly survey reports. The seasonally adjusted Market Composite Index, a measure of mortgage loan application volume, fell 7.2%. The seasonally adjusted purchase index rose 5%, while the unadjusted purchase index dropped 30% and was 8% lower YOY. The share of refinance applications dropped 15% and was 41% lower YOY. Refinances made up 59.4% of total applications, down from 63.1% the previous week. The report noted that mortgage rates– which rose to their highest point since April, hitting 3.31%– contributed to the significant decline in refinance applications. “Over the past three weeks, rates are up 15 basis points and refinance activity has declined over 18 percent,” said Joel…
