Good Morning! Today is Monday, June 27. The Supreme Court struck down Roe v. Wade, expanded concealed carry laws, and ruled that school districts cannot prohibit high school football coach’s prayers on field. It is expected to rule on gerrymandering and Congressional regulation of corporations soon. The Mortgage Note Reports Pending Home Sales: Pending home sales finally rose in May after six consecutive months of decreases, ticking up a small but significant 0.7%. CMS CTO: Kendrew Peacey has been named chief technology officer of Constellation Mortgage Solutions. Lumber’s Impact?: Year-to-date lumber prices are down around 50%, but will home prices fall alongside them? Chuck Green reports. And in other mortgage and housing news… Investor Influence: Some analysts hesitate to say investors had an outsized influence on home…
Pending home sales finally rose in May after six consecutive months of decreases, ticking up a small but significant 0.7%. The National Association of Realtors’ (NAR) Pending Home Sales Index (PHSI) posted a reading 99.9 last month. A reading of 100 is equal to the level of contract activity in 2001. The PSHI is a forward-looking indicator of home sales based on contract signings. However, year-over-year transactions are down 13.6%. “Despite the small gain in pending sales from the prior month, the housing market is clearly undergoing a transition,” said NAR Chief Economist Lawrence Yun. “Contract signings are down sizably from a year ago because of much higher mortgage rates.” All four regions saw YOY declines but were split down…
By CHUCK GREEN With lumber prices toppling, it might be the ideal time to knock on wood. Gently, though. It just might be a bit fragile at the moment. Year to date, prices have sagged around 50%, according to 7seasgroupusa.com. They recently sunk to their lowest point in nine months as they traded under the $600-per-thousand-board-feet mark. Conversely, a year ago, prices, fueled by pent-up demand for construction and home upgrades in the aftermath of COVID on the heels of a frenzy of speculation, reached $1,733, which was unprecedented.But as the housing market backed down in light of escalating interest rates, lumber prices have borne the brunt, receding more than 60% from their March highs, according to Business Insider. In May,…
Kendrew Peacey has been named chief technology officer of Constellation Mortgage Solutions (CMS), the company announced in a press release. With three decades of experience in the tech development and implementation fields, Peacey brings a proven record of success with him. “I’m excited to join Constellation Mortgage Solutions as CTO and help fill technology gaps the mortgage industry experiences today,” said Peacey. “Bringing a product to market that has not yet been seen, and doing it successfully, is fulfilling. New technology not only adds to the growth of CMS but also the lenders we support by providing a single point of entry and complete functionality for them to efficiently perform their job.” Peacy is the founder of Ascension Technologies, a…
Good Morning! Today is Friday, June 24. The Supreme Court struck down a New York law that required people who wanted to carry a concealed handgun in public to demonstrate a need to do so. The Senate passed the gun safety bill with 15 Republican votes. Ukraine is now a candidate for E.U. membership. The Mortgage Note Reports Cost-Burdened: Mortgage rates increased again this week to 5.81%, with fixed mortgage rates now up 2 full percentage points from the beginning of the year. Demand Plummets: Soaring interest rates pushed homebuyer demand down 16% YOY in its largest annual decline in more than two years. And in other mortgage and housing news… New Home Sales: May’s new home sales were at a seasonally adjusted annual rate…
Soaring interest rates pushed homebuyer demand down in its largest annual decline in more than two years, Redfin reported. Redfin’s Homebuyer Demand Index was down 16% YOY, its largest drop since April 2020, in response to lagging inventory and skyrocketing mortgage rates. Last week, rates jumped a full half-point in the largest one-week increase in the history of Freddie Mac’s weekly rate survey, which dates back to 1987. This week they’re up to 5.81%. At the same time, pending home sales were down 10% YOY, the largest decline since May 2020. Home prices are moderating slightly, but still elevated. The average size of a purchase loan application was $420,000, down from a peak of $460,000. In 2019, the average loan…
Mortgage rates increased again this week, averaging 5.81%, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 5.81%, up from last week’s 5.78%. A year ago at this time, the 30-year FRM averaged 3.02%. “Fixed mortgage rates have increased by more than two full percentage points since the beginning of the year,” said Sam Khater, Freddie Mac’s Chief Economist. “The combination of rising rates and high home prices is the likely driver of recent declines in existing home sales. However, in reality many potential homebuyers are still interested in purchasing a home, keeping the market competitive but leveling off the last two years of red-hot activity.” Rising rates have priced some…
Good Morning! Today is Thursday, June 23. Biden asked Congress to lift the federal gas tax through September. At least 1,000 people are dead and another 1,600 are injured after an earthquake in southern Afghanistan. The Uvalde school district placed its police chief on leave amid criticism of his response to last month’s shooting. The Mortgage Note Reports Cost-Burdened: Housing payments have surpassed the dreaded 30% cost-burdened threshold as affordability sinks to its lowest point in more than 35 years. Morrow Named President: Travis Morrow has been named president of 7 Mortgage. And in other mortgage and housing news… Storm Risk: Nearly 7.8 million homes with more than $2.3 trillion in RCV are at risk of hurricane-related damages, with NYC and Miami in the most trouble. Ishbia’s Michigan Donations: The…
Travis Morrow has been appointed president of credit union 7 Mortgage, the company announced in a press release. Morrow takes the place of Wendy Robinson, who retired this year. He officially took over the title on May 29th, 2022. “Travis has worked in the financial and mortgage industry for over 10 years and has the experience and knowledge needed to successfully transition into his new role as President of 7 Mortgage,” said Chris Boler, President & CEO of 7, LLC. “He is familiar with our culture and understands our mission to empower credit unions of all sizes to offer much-needed mortgage solutions to their members.” Give a wonderful welcome to Travis Morrow, our new President of 7 Mortgage! 🎉 Travis…
Housing payments have surpassed the dreaded 30% cost-burdened threshold thanks to the 30-year fixed rate’s recent half-point jump. Black Knight reports that it now costs $2,103 to make the principal and interest (P&I) payment on an average-priced home with a 20% downpayment. That equates to 36.2% of the median household income and sinks affordability to its lowest level in more than 35 years. Payments as a percentage of income are now higher than the previous record of 34.1% in July 2006, and significantly up from the long-term average of 25.1%. The Department of Housing and Urban Development defines cost-burdened families as those “who pay more than 30% of their income for housing” and “may have difficulty affording necessities such as…
