Home price drops are up more than 95% from last year as the market cooldown continues into fall, according to HouseCanary’s latest Market Pulse report. The report compares data between August 2021 and August 2022 and is an ongoing review of insights from HouseCanary’s platform. The data shows that the monthly nationwide supply continues shrinking as interest rates increase. Combined with seasonal slowdown after the spring and summer buying seasons, net new listing volume and contract volume fell YOY across all price points. “The nationwide supply shortage accelerated by the Fed’s rate hikes and economic concerns persisted through the end of the summer despite a slight increase in inventory back in June,” said Jeremy Sicklick, Co-Founder and Chief Executive Officer…
Mortgage loan application volume fell last week, with both refis and purchase applications falling as interest rates hit their highest point since mid-June, the Mortgage Bankers Association’s weekly survey shows. The adjusted Market Composite Index, a measure of mortgage loan application volume, decreased by 0.8%. The adjusted purchase index fell 1%, while the unadjusted purchase index dropped 3% and was 23% lower YOY. The refinance index dropped by 1% and made up 30.7% of total applications, down 83% from the same time last year. “Mortgage rates moved higher over the course of last week as markets continued to re-assess the prospects for the economy and the path of monetary policy, with expectations for short-term rates to move and stay higher…
Truist Financial has named Mike Maguire its new chief financial officer starting September 15, the company announced in a press release. “Our teammates, clients, investors, and communities are excited by Truist’s purpose and potential, and I look forward to serving them as CFO,” Maguire said in a statement. In his new position, Maguire will oversee accounting, tax, treasury, financial planning and analysis, as well as investor relations, among other responsibilities. Maguire takes the position over following the service of Daryl Bible, who is retiring. Maguire is moving up from his previous position of chief consumer finance and payments officer, and will continue to report to Chairman and CEO Bill Rogers. “Mike is a strategic and purpose-driven leader with an exceptional…
Crypto-lender Milo Credit has launched the first-ever cryptocurrency refinance offering, according to a press release. The refinance product uses crypto assets and property as the basis of the loan, allowing currency-holders to pledge both to cash out up to 100% of their home equity value in U.S. dollars. It is geared towards homeowners who sold their crypto or took out a short-term crypto loan to buy a home in cash, allowing them to extend the repayment term to 30 years and access more financing. Milo says it also requires less collateral than other similar products, just 1x the loan amount or less compared to 2 or 3x. “Based on the success of our crypto mortgage offering, we are now able…
Mortgage rates continued rising last week, up from 5.55% to 5.66%, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 5.66%, continuing its trek towards 6% after a few weeks of reprieve in the low 5’s. A year ago at this time, the 30-year FRM averaged 2.87%. “The market’s renewed perception of a more aggressive monetary policy stance has driven mortgage rates up to almost double what they were a year ago,” said Sam Khater, Freddie Mac’s Chief Economist. “The increase in mortgage rates is coming at a particularly vulnerable time for the housing market as sellers are recalibrating their pricing due to lower purchase demand, likely resulting in continued price…
By KIMBERLEY HAAS This Labor Day weekend, some workers are wondering what happened to the American Dream of earning enough from a nine-to-five job to buy their own home — with or without the white picket fence. According to officials at the U.S. Census Bureau and the U.S. Department of Housing and Urban Development, the median sales price of a new home in July 2022 was $439,400. The thumbnail measurement for home affordability is a house that costs roughly 2.6 years of your household income, or a 2.6 “price-to-income ratio.” Using the 2.6 price-to-income ratio, your household’s earners would need to bring in $169,000 a year to be able to afford a new home. That is higher than most U.S.…
Mortgage lenders are constantly working to make the borrowing process painless for their customers. But one in five borrowers still encounters an issue with their transaction, according to new research from Snapdocs and STRATMOR Group. The “State of Borrower Experience” report surveyed 7,000 Americans who completed a mortgage transaction in the last nine months. The researchers found that borrowers are typically happy with the application process. Data suggests this is the result of dedicated efforts by mortgage lenders in the last decade, and that effort has paid off: 67% of respondents rated the experience of filling out a loan application an 8 or above on a 10-point scale, where 10 represents a “very easy” process. “Lenders have made significant strides…
The nephew of a New York real estate mogul has pleaded guilty to a misdemeanor charge in a mortgage fraud case involving $167 million. Kevin Morgan, former vice president of Morgan Management and Morgan Communities, pleaded guilty to bank larceny on Tuesday. Morgan admitted to submitting false documents to ESL Federal Credit Union for a construction loan. The charge carries a fine of $100,000 and one year in prison, though Morgan will serve no jail time due to his plea deal. It is expected he will be sentenced on Oct. 20. Morgan had previously pleaded guilty to felony conspiracy to commit bank fraud. The new plea is a lesser charge and supersedes his original admission. It is the result of…
Mortgage loan application volume fell 3.7% last week, continuing a downward spiral as mortgage rates hit their highest point since mid-July, the Mortgage Bankers Association’s weekly survey shows. The adjusted Market Composite Index, a measure of mortgage loan application volume, decreased by 3.7%. The adjusted purchase index fell 2%, while the unadjusted purchase index dropped 4% and was 23% lower YOY. The refinance index dropped by 8% and made up 30.3% of total applications, down 83% from the same time last year. “Mortgage rates and Treasury yields rose last week as Federal Reserve officials indicated that short-term rates would stay higher for longer. Mortgage rates have been volatile over the past month, bouncing between 5.4% and 5.8%,” said Joel Kan,…
Home prices decelerated in June as buyers left the market, driven by historically high prices and rising interest rates. Both the S&P CoreLogic Case-Shiller Indices and Federal Housing Finance Agency House Price Index (FHFA HPI) saw price growth moderate in June. The HPI saw prices rise only 0.1% from May, while Case-Shiller reported an 18% YOY gain in June, down from 19.9% in May. FHFA’s data suggests prices are just now beginning to moderate. From Q1 2022 to Q2, prices rose 17.7% YOY and 4% quarter-over-quarter, with the only deceleration appearing in June. “Housing prices grew quickly through most of the second quarter of 2022, but a deceleration has appeared in the June monthly data. The pace of growth has…
