In its Economic and Housing Weekly Note, Nathaniel Drake of Fannie’s Economic and Strategic Research Group said that the full effects of rising interest rates have “yet to be felt.” “Especially given that the full effects of the recent rise in mortgage rates have yet to be felt, we expect existing home sales to continue to decline through 2022,” the note reads. “However, we believe there is still a pool of prospective buyers who were previously outbid but still want to purchase a home, which should help support sales, thus limiting the pace of slowdown in the near term.” Though demand remains elevated, there are signs that the hot housing market is cooling down. Existing home sales fell for the…
First American Financial’s Real House Price Index increased by 30.6% YOY in February, its fastest growth in the more than 30-year history of the series, the company reported. The RHPI measures the price changes of single-family properties throughout the U.S. adjusted for the impact of income and interest rate changes on consumer house-buying power over time at national, state, and metropolitan area levels. Because the RHPI adjusts for house-buying power, it also serves as a measure of housing affordability. February’s numbers show a rapid month-over-month decline in affordability. Real house prices rose by 5.6% from January, and nearly 31% YOY. Consumer house-buying power fell 3.6% between January and February, and 6.8% YOY. First American attributes the numbers to rising home…
Good Morning! Today is Friday, April 22. Philadelphia is ending its mask mandate, four days after reinstating it. The U.S. pledged more military aid to Ukraine, including drones that explode on impact. Palestinians and Israeli police clashed at one of Jerusalem’s holiest sites. The Mortgage Note Reports Weekly Rates: Mortgage rates averaged 5.11% last week, rising for the seventh consecutive week and causing “volatility in demand.” Q1 Foreclosures: Q1 2022 set a new post-pandemic high for foreclosure activity — the 11th consecutive month with a YOY increase in foreclosure activity. In Case You Missed It: This week Chuck Green reported that job cuts are hitting the mortgage industry, while Scott Kimbler wrote about how inflation is affecting retirements. And in other mortgage and housing news… Black Knight: Forbearance plan volumes ticked up…
Mortgage rates averaged 5.11% last week, up from 5%, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 5.11%. A year ago at this time, the 30-year FRM averaged 2.97%. “Mortgage rates increased for the seventh consecutive week, as Treasury yields continued to rise,” said Sam Khater, Freddie Mac’s Chief Economist. “While springtime is typically the busiest homebuying season, the upswing in rates has caused some volatility in demand. It continues to be a seller’s market, but buyers who remain interested in purchasing a home may find that competition has moderately softened.” Mortgage rates have grown from 3.51% at the beginning of March while home prices remain elevated. The combo has…
Good Morning! Today is Thursday, April 21. Russia test-launched a new intercontinental missile that it said could carry several nuclear warheads. The federal government charged 21 people in Medicare fraud schemes, including selling fake vaccine cards and test results. The Mortgage Note Reports “Plenty Of Fuel In The Tank”: Monthly mortgage payments on the typical U.S. home are 19.5% higher than they were three months ago, but demand just keeps growing. Existing Home Sales: Existing-home sales fell for the second straight month in March, down 2.7% from the prior month and 4.5% from a year ago. And in other mortgage and housing news… Blend Layoffs: Mortgage tech company Blend has laid off 10% of its workforce. BOA Settlement: HUD signed a Conciliation Agreement with Bank of America to resolve…
Monthly mortgage payments are up by 19.5% from three months ago, and 38% YOY, according to Zillow’s March Real Estate Market Report. Annual home value growth set a new record for the 12th consecutive month. The typical home is now worth $337,560, up 20.6% YOY. At the same time, mortgage rates have grown from 3.51% at the beginning of March to breach the 5% mark at the end of the month. The combo has pushed monthly payments up 38% YOY on a home with a 30-year mortgage and 20% down payment. Despite this, Zillow reports that the pace and volume of sales picked up, “showing the depth of the pool of homebuyers willing and able to meet current asking prices.”…
Mortgage loan application volume plummeted by 5% 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 5%. The adjusted purchase index fell by 3%, while the unadjusted purchase index fell by 2% and was 14% lower YOY. The refinance index fell 8% and was down 68% YOY. Refinances made up 35.7% of total applications, down from 37.1%. Mortgage rates reached 5.20%, the highest level since 2010. “Ongoing concerns about rapid inflation and tighter US monetary policy continued to push Treasury yields higher, driving mortgage rates to their highest level in over a decade,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. …
Good Morning! Today is Tuesday, April 19. A federal judge struck down the mask mandate on public transit, although the ruling may not be final. Florida rejected more than 40 math textbooks that contained social and emotional concepts. The F.D.A. is investigating reports that thousands of people became ill after eating Lucky Charms. The Mortgage Note Reports Retirees Affected By Inflation, High Housing Costs: Scott Kimbler reports that every facet of the economy is affected and that has put many people in the position of having to rethink their retirement plans. CHLA Letter: CHLA sent a letter to the FHFA asking it to amend its proposed updated seller and servicer standards, citing the risk of “significant negative real-world consequences to consumers.” Zabusky Joins Houwzer: Former GrubHub President…
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…
