Equity Soars To Record $11 Trillion

The recent surge in home prices pushed U.S. homeowners’ tappable equity to a record $11 trillion. Prices were on a run in March, according to the ICE Home Price Index, up 1.2% and more than 25% above the 25-year average increase. This is the third straight month of above-average gains as stock shortages keep competition for limited homes high. As a result, mortgage holders’ equity shot to a record $16.9T in Q1, $11T of which can be leveraged while retaining a 20% equity cushion, both of which are all-time highs. “We’re still very much in a hole from an inventory perspective, but that deficit has fallen from 50% a year ago to 38% in March. Today, with 3.3 months of…

Purchase Activity Hits 28-YR Low

Mortgage applications slipped again last week as purchase activity fell to its lowest level since 1995. The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – declined by 1.3%, down from the week prior’s 5.4% increase. Adjusted purchase applications sank by 2%, while the unadjusted index fell by 2% from the week before and was 27% lower YOY. Declines can be attributed to the average interest rate for a 30-year fixed loan increasing 12 bps to 7.53%, the highest rate since 2000. A recent boost in Treasury yields forced rates higher for the fourth straight week. The jumbo rate also set another record, jumping 17 bps from 7.34% to…

Motto Mortgage Luxe Group Debuts In Houston, TX

Another Motto Mortgage franchise has opened, this one in Houston, TX. Motto Mortgage Luxe Group is a Black-owned, full-service mortgage brokerage headed by Angela Martin and Toi Parnell. Martin and Parnell bring a combined forty years of mortgage industry experience to the branch. Parnell most recently worked as a branch manager and senior loan officer at Nexa Mortgage and has also managed branches for LeaderOne Financial and Geneva Financial. Both will originate mortgages in the new office. “Motto Mortgage Luxe Group offers an advantageous alternative to the traditional mortgage bankers currently operating in Houston,” said Martin. “We provide the scope, scale and support of a large retail lender, while offering the flexibility, autonomy and exceptional service of a local mortgage…

Existing Home Sales Dipped Again In March After February Rebound

Existing-home sales dipped in March after rising the month prior as the housing market remains rate sensitive. Sales declined by 2.4% to a seasonally adjusted annual rate of 4.44 million from 4.48 million the month prior, according to the latest data from the National Association of Realtors. Year-over-year, sales are down 22%. All four major regions saw sales decline year-over-year and three of the four tanked month-over-month. Only the Northeast’s sales were unchanged from February. The median price for an existing home slid YOY alongside rates, down 0.9% to $375,700. This is just the second YOY decline in years– last month’s dip broke the longest streak on record, 131 consecutive months of price gains. “Home sales are trying to recover…

Here’s What’s Scaring Mortgage Brokers This Halloween

This Halloween, mortgage brokers have more to fear than your typical ghosts and ghouls. Some economists say the market is rebalancing, while others say the housing slowdown is more severe than a correction. “Last year, sellers could seemingly list their home at any price and see multiple offers roll in above list price within days,” said Senior Economist Nicole Bachaud of Zillow. “Now, buyers have some negotiating power, and sellers are under pressure. Buyers are still out there and willing to buy when they find the right home at the right price, which will provide a floor for the price declines we are currently seeing.” Either way, mortgage brokers are facing a seriously spooky situation: dwindling home sales, decades-high interest rates,…

Existing-Home Sales Slip For 3rd Month Straight

April’s existing-home sales slipped for the third consecutive month, falling 2.4% from March to a seasonally adjusted rate of  5.61 million, the National Association of Realtors (NAR) reported. Sales were down 5.9% year-over-year, with each of the four major regions seeing declines. The median price for existing homes of all types was $391,200, up 14.8% YOY. This is the 122nd consecutive month of YOY price growth, the longest-running streak on record. “Higher home prices and sharply higher mortgage rates have reduced buyer activity. It looks like more declines are imminent in the upcoming months, and we’ll likely return to the pre-pandemic home sales activity after the remarkable surge over the past two years,” said Lawrence Yun, NAR’s chief economist. Housing…

Andrea MacArthur Promoted To Salisbury VP, Mortgage Advisor

Salisbury Bank and Trust Company has promoted Andrea MacArthur to Vice President, Mortgage Advisor, the company announced. MacArthur has worked at Salisbury since 2002, beginning in the mortgage department with no prior experience. She is a graduate of the Connecticut School of Finance and Management. Her intelligence and willingness to learn allowed her to move up the ladder in the company to positions including Loan Processor, Closer, Closing Manager, and Retail Department Manager. Her most recent role was Mortgage Advisor in the Berkshire County market. “Your mortgage experience should be as painless as possible.  I will work hard to ensure that all of your mortgage needs are met throughout the entire process and beyond the closing,” her Salisbury page reads.…

Commercial/Multifamily Delinquencies Still Low

Commercial and multifamily delinquencies fell in Q1 2022, according to the Mortgage Bankers Association’s (MBA) Commercial/Multifamily Delinquency Report. MBA looked at commercial/multifamily delinquency rates for five of the largest investor groups: commercial banks and thrifts, commercial mortgage-backed securities (CMBS), life insurance companies, and Fannie Mae and Freddie Mac. These groups hold more than 80% of outstanding debt in these categories. The number of banks and thrifts overdue by 90 or more days fell to 0.56% from Q4 2021. The number of life company portfolios 60 or more days late rose slightly to 0.05%, while Fannie Mae fell to 0.38%. Freddie Mac remained unchanged at 0.08%. CMBS that were 30 or more days delinquent or in REO dropped to 3.36%. “Commercial…

Americans Report Highest Level Of Financial Well-Being Since 2013

Americans reported their highest level of financial well-being since 2013 in the Federal Reserve Board’s Economic Well-Being of U.S. Households in 2021 report. The data comes from the Board’s 9th annual Survey of Household Economics and Decisionmaking (SHED), which was conducted in October and November 2021. “The SHED results provide valuable insight into Americans’ financial conditions during the late fall of 2021. This important perspective helps the Federal Reserve better understand the economic challenges that existed during that phase of the pandemic recovery,” Federal Reserve Board Governor Michelle W. Bowman said. In Q4 2021, 78% of adults reported either doing okay or living comfortably financially, while financial well-being rose among all racial and ethnic groups measured. Hispanic adults saw a…

Morning Roundup (4/14/2022)– Tech-Based Solutions For Racial Discrimination

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…