Redfin’s Homebuyer Demand Index hit an all-time high since at least 2017 as the number of listed homes remains seasonally elevated compared to past years. The report shows the market speeding up, with an increasing number of homes selling in two weeks or less and demand increasing even as listings trend down. “The economy is recovering strongly and mortgage rates are still near all-time lows. Those two forces combined have caused homebuying demand to hit a record high,” said Redfin Chief Economist Daryl Fairweather. For homes sold in the four-week period ending November 14, the median sale price rose 13% year-over-year (YOY) to $357,881, up 30% from 2019 and 2.1% from October. Asking prices were also up 13% YOY, and…
Mortgage loan application volume fell 2.8% last week, driven again by low refinance applications, the Mortgage Bankers Association’s (MBA) weekly survey reported. The Market Composite Index, which measures application volume, fell 2.8% on an adjusted basis. The Refinance Index dropped 5% and was 31% lower than a year ago, rebounding from last week’s drop to its lowest level since July 2021. The seasonally adjusted Purchase Index rose 2%, while the unadjusted Purchase Index fell 2% compared to the week before, down 6% from the previous year. “Refinance applications decreased for the seventh time in eight weeks, as mortgage rates moved higher after two weeks of declines,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. But the…
Good Morning! Today is Wednesday, November 17. A violent clash erupted when migrants attempted to cross the border between Poland and Belarus yesterday. The House will vote today on censuring Paul Gosar, who tweeted a video depicting violence against President Biden. LA’s Staples Center will be renamed Crypto.com Arena. And in mortgage and housing news… Double-Digit Rent Growth: Rent prices rose 10.2.% YOY in September as growth remains at record highs, according to CoreLogic’s Single-Family Rent Index. nCino Acquires SimpleNexus: Fintech nCino is expanding its mortgage market reach by acquiring SimpleNexus for $1.2 billion in stocks and cash. Homes At Auction: More than 60% of US consumers would buy a home at auction, including 75% of Millennials, a ServiceLink survey…
Fintech company nCino, Inc. is expanding its mortgage market reach by acquiring SimpleNexus for $1.2 billion in stocks and cash. SimpleNexus, a digital mortgage platform, was involved in more than one in seven mortgage originations in the US during the first nine months of 2021. It provides services for more than 300 mortgage companies and 41,000 loan originators across the country. “Just as nCino has transformed the process for commercial, small business and retail lending, treasury management and account opening, SimpleNexus has streamlined the many stages of the homeownership process into a single, seamless journey,” said Pierre Naudé, Chief Executive Officer of nCino. “Their innovative solution and deep subject matter expertise in consumer front-end technology will extend our capabilities to…
Good Morning! Today is Tuesday, November 16. President Biden signed the $1 trillion infrastructure bill into law. Steve Bannon turned himself in after defying a subpoena from the congressional investigation into the Capitol riot. The jury in the Kyle Rittenhouse trial will begin deliberations today. And in mortgage and housing news… Why Wait Until Spring To Sell Your Home?: People are typically reluctant to put their homes on the market during the holiday season, but sellers can expect plenty of buyers this winter. Mortgage Applications Up: Mortgage applications for new home purchases fell 15.2% year-over-year in October but increased 6% month-over-month, setting their fastest pace since January 2021. Investors Break Records: Investors bought a record 90,000 homes in Q3 2021,…
Mortgage applications for new home purchases fell 15.2% year-over-year (YOY) in October but increased 6% month-over-month (MOM), according to the Mortgage Bankers Association’s (MBA) latest Builder Application Survey. The increase from September puts MBA’s estimate of new home sales at its strongest pace since January 2021. “Purchase activity continues to be dominated by higher loan balance transactions, which pushed the average new home loan size up to over $412,000, another new record in the survey,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “Recent U.S. Census data show an increasing share of new sales are for homes yet to be built or still under construction, and a shrinking share of completed homes. Housing demand remains strong,…
Investors banking on growing home and rental prices for high returns bought 18.2% of all homes purchased in Q3 2021, up from 16.1% in Q2 and 11.2% year-over-year (YOY), according to a new Redfin report. Real-estate investors purchased a record 90,215 homes, totaling nearly $64 billion and up 80.2% YOY, the second-largest increase on record. Single-family homes made up nearly three-quarters of those purchases, an all-time high, while low-priced properties accounted for only 36%. The typical home purchased by investors cost $438,770. More than 75% of homes purchased by investors were paid for completely in cash. “Increasing home prices fueled by an intense housing shortage have created opportunities for investors to reap big profits,” said Redfin Senior Economist Sheharyar Bokhari.…
By KIMBERLEY HAAS When the holiday season starts, people are typically reluctant to put their homes on the market due to a lack of potential buyers. But this could be the year when that changes. In a recent article at Realtor.com, the company’s Chief Economist Danielle Hale said sellers can expect to see plenty of buyers this winter. Lawrence Yun, Chief Economist at the National Association of Realtors, agreed. He expects there will be more home sales this winter than there were prior to the COVID-19 pandemic. That is good news for sellers, especially since CNN Business reported last week that the median price of single-family existing homes rose in 99% of the 183 markets tracked by employees at the…
Good Morning! Today is Monday, November 15. The Glasgow climate summit ended with an agreement by nearly 200 countries to cut their carbon emissions in half this decade. An appeals court barred President Biden’s vaccine mandate for large employers. A New York Times report revealed the US hid an airstrike that killed civilians in Syria. And in mortgage and housing news… Forbearances Drop Below 2%: Forbearance exits jumped week-over-week, with nearly 300,000 borrowers leaving their plans, Black Knight reported. Airbnb Will Majorly Impact 2022 Market: Analysts predict Airbnb will expand its inventory 25% in 2022, suggesting it will have a significant impact on the housing market next year. AEI Response: The AEI Housing Center published a response to FHFA’s proposed…
The number of loans in forbearance dropped below 2% for the first time since early in the pandemic, according to Black Knight’s blog, Vision. November brought a surge of forbearance exits, with the number of loans in active forbearance falling by over 100,000 week-over-week, 10.8%. Bank portfolio and PLS loans had the strongest results, down by 15.9% or 59,000. FHA/VA plans saw a decrease of 11.3% (48,000) and GSE loans by 4.8% (16,000). Almost 300,000 borrowers left their plans over the last two weeks. Of all active mortgages, forborne loans now account for 1.9%, including 1.2% of GSE, 3.1% of FHA/VA, and 2.4% of portfolio/PLS loans. November’s numbers so far mimic October’s, which also saw a huge jump in exits…
