Good Morning! Today is Monday, April 18. Russia is headed toward a default on its foreign debt for the first time since 1918. The World Health Organization estimates that fifteen million people have died of Covid. Police arrested a suspect in connection with a shooting Saturday at a Columbia, S.C., shopping mall that left 14 people injured. The Mortgage Note Reports Job Cuts: Writer Chuck Green reports that empty desks are apparently not so uncommon these days in the mortgage industry. Record HPI Annual Pace: Fannie Mae’s HPI accelerated in Q1 2022 to its fastest annual pace in the 47-year history of the index, measuring 20% YOY. Eco-Friendly Homes:A Zillow analysis found that homes with eco-friendly features can sell faster…
By CHUCK GREEN An apparently not so uncommon sight these days in the mortgage industry: empty desks. Not that their occupants are taking five for a foam latte. Instead, they might well have either been steeped in the pink slip blues or were compelled to submit their resignation. Over the past three months in the industry, there have been more than 3,500 job cuts, according to globalsg.com. In February, Bloomberg reported U.S. home mortgage lenders might have no other choice during the coming months that to initiate layoffs. Similarly, earlier this month, wolfstreet.com reported that not only are layoffs among mortgage lenders taking place, but they will also continue. “Layoffs and forced resignations are certainly imminent in the mortgage banking…
Homes with eco-conscious features can sell faster and for more money than similar homes without them, a new analysis from Zillow found. Zillow looked at environment-related features mentioned in listing descriptions for 3.1 million home sales in 2020 and 2021. The analysis found that homes featuring electric vehicle chargers and drought-resistant landscaping can sell nine days faster than similar homes. Features that protect against climate-related disasters such as hurricane shutters can sell for as much as 2.4% more than expected. Energy-efficient features can also help homes sell for more money and sometimes faster, with listings that mention solar panels selling for 1.4% more and listings including smart sprinkler systems and smart lights selling up to six days faster than expected.…
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…
Good Morning! Today is Friday, April 15. A judge ordered the suspect in the Brooklyn subway shooting to be detained until his trial. Elon Musk made a bid to buy Twitter for about $43 billion. The company’s board is considering a plan to thwart him. A Russian warship sank in the Black Sea. The Mortgage Note Reports “Early Signs Of A Slowdown”: Home sales dropped by 4% last month and 8% YOY, closing out the hottest March ever with signs of a potential cooldown. Historic Rates: Mortgage rates averaged 5% for the first time in a decade last week. Spread The Word: Do you enjoy our newsletter? Share this email with a friend so they can visit our website and…
Home sales dropped by 4% last month and 8% YOY, closing out a fast-paced March with signs of a potential cooldown, Redfin reported. Homes sold at their fastest pace ever and for more above list price than any other March in history. The median home-sale price rose 6.2% to $412,700, a record high and the fastest month-over-month gain for this time of year since 2013. But seasonally adjusted home sales fell 4% thanks to severe inventory shortages, rising rates, and accelerating home prices. Seasonally adjusted active listings—the count of all homes that were for sale at any time during the month—fell 13% YOY to an all-time low. “Although pricey coastal markets began showing early signs of a slowdown in late…
Mortgage rates averaged 5% flat last week, up from 4.72%, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 5%. A year ago at this time, the 30-year FRM averaged 3.04%. “This week, mortgage rates averaged five percent for the first time in over a decade,” said Sam Khater, Freddie Mac’s Chief Economist. “As Americans contend with historically high inflation, the combination of rising mortgage rates, elevated home prices and tight inventory are making the pursuit of homeownership the most expensive in a generation.” Home prices continue growing despite hope for a cool down this year due to mortgage rate increases pricing many out of the market and reducing competition. For…
Good Morning! Today is Thursday, April 14. The U.S. will send another $800 million in military aid to Ukraine, and it will share intelligence on Russian troop positions. Two Omicron subvariants may be driving rising cases in New York State. The Centers for Disease Control and Prevention extended the federal mask mandate on planes and other forms of transit for two weeks. The Mortgage Note Reports Loan Apps Fall: Mortgage loan application volume fell another 1.3% last week as rates hit 5.13%, their highest level since November 2018. PCR Model: Commercial price growth may continue rising as property values may not yet have reached their cyclical peak, according to First American’s PCR Model. Opinion: Kevin B. Kimble, founder and CEO…
Commercial real estate (CRE) price growth may keep outpacing CRE income growth, suggesting property values may not have reached their cyclical peak, according to First American’s Potential Capitalization Rate (CPR) Model for Q4 2021. First American’s PCR estimates capitalization rates using historical data for interest rates, rental income, occupancy rates, debt, and recent property price trends. In Q4 2021, the actual cap rate hit a record low of 5.2% while the potential cap rate sank to 4.4%. When the actual cap rate is significantly above the potential cap rate, as was the case in the fourth quarter of 2021, the model suggests that the CRE market can support a lower cap rate. The National potential cap rate was 4.4%, down…
Mortgage loan application volume fell another 1.3% last week, the Mortgage Bankers Association’s (MBA) weekly survey shows. The adjusted Market Composite Index, a measure of mortgage loan application volume, dropped by 1.3%. The adjusted purchase index rose by 1%, while the unadjusted purchase index rose by 2% and was 6% lower YOY. The refinance index fell 5% and was down 62% YOY. Refinances made up 37.1% of total applications, down from 38.8%. The 30-year fixed-rate hit 5.13%, the highest since November 2018, resulting in refis falling to their slowest weekly pace since 2019. “Higher rates are increasing borrower interest in ARMs. Their share of applications last week was at 7.4%, which was the highest share since June 2019,” said Joel…
