Mortgage applications for new home purchases fell 12.5% year-over-year in January 2022, according to the Mortgage Bankers Association’s (MBA) Builder Application Survey (BAS). However, applications rose by 10% from December 2021, as MBA estimates 66,000 new homes were sold in January compared to December’s 60,000. MBA estimated that new single-family sales were running at a rate of 821,000 units, down 7.4% from December’s 887,000 unit pace. “Purchase applications for new homes fell on an annual basis in January, but the 10% monthly gain is a positive sign to start the year. While homebuyer demand remains strong, purchase activity is being constrained by higher prices and building delays due to supply-chain pressures and building materials shortages,” said Joel Kan, MBA’s Associate…
Good Morning! Today is Thursday, February 17. The Education Department will cancel loans for students defrauded by DeVry University. Ukraine accused Russian-backed separatists of shelling a Kindergarten, calling it “a big provocation.” Retail sales rose by a seasonally adjusted 3.8% in January. The Mortgage Note Reports Office Spaces Are Not A Thing Of The Past: Despite many employees working from home and companies adopting hybrid work models, investors are still attracted to the land of cubicles. “Stronger Than Ever”: Real estate investors bought a record 18.4% of all homes sold in Q4 2021, nearly three-quarters of which were all-cash purchases. Climate Damage: More than 14.5 million single- and multifamily homes were impacted by natural disasters in 2021, causing an estimated…
Good Morning! Today is Thursday, February 10. Chuck Schumer and Nancy Pelosi suggested that they were open to banning members of Congress from trading stocks. Officials have delayed the medal ceremony for team figure skating amid reports that a Russian skater failed a drug test. A former casino executive was sentenced to a year and a day in prison for a bribery scheme to get his daughter into U.S.C. The Mortgage Note Reports Impact Of Labor Numbers On Housing Market Remains Unclear: Despite an uptick in job numbers and an increase in personal incomes, there is still uncertainty about how the latest Labor Statistics Report will impact the housing market. Second Home Demand: Second home demand outpaced primary residence demand…
Builder confidence dropped slightly in January, disrupting a four-month trend of rising builder sentiment despite high consumer demand, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). Builder confidence in the markets for newly-built, single-family homes dropped one point to 83. Any number over 50 indicates that more builders view conditions as good than poor. Notably, the HMI has remained at 83 or 84 for the past three months, the same level as the spring of 2021. The drop was attributed to inflation concerns and ongoing supply chain disruptions. “Higher material costs and lack of availability are adding weeks to typical single-family construction times,” said NAHB Chairman Chuck Fowke, a custom home builder from Tampa,…
Pending home sales dropped 2.2% in November, a 2.7% decrease year-over-year (YOY), according to the National Association of Realtors’ (NAR) Pending Home Sales Index (PHSI). The PSHI, which predicts home sales based on contract signings for existing homes, fell to 122.4. An index of 100 is equal to signing activity in 2001. “There was less pending home sales action this time around, which I would ascribe to low housing supply, but also to buyers being hesitant about home prices,” said Lawrence Yun, NAR’s chief economist. “While I expect neither a price reduction, nor another year of record-pace price gains, the market will see more inventory in 2022 and that will help some consumers with affordability.” Signings declined in all four…
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…
As potential homebuyers struggle to find affordable houses, new construction may not be a reliable fix. Prices for newly-constructed homes outpaced median income, pricing out most Americans, according to a study from real estate tech firm Knock. Knock reported that prices for newly-constructed homes are unseasonably high, with August’s median new home price staying the same from July at $390,900. That price outpaces the national median household income, which has dropped 2.9% to $67,521 from 2019 to 2020. It is the first decline since 2011, and early forecasts show only small rebounds in 2021. “To put things in perspective, the minimum total household income for a mortgage on a $390,900, with a 6% down payment, typically falls just under $80,000,”…
Housing stakeholders gathered at the nation’s capitol to call for the budget reconciliation package being negotiated in Congress to substantially support housing. The group included National Association of Realtors (NAR) CEO Bob Goldberg, members of the National Housing Conference (NHC), Mortgage Bankers Association (MBA), Habitat for Humanity, National Association of Homebuilders, and others. Representative Sherrod Brown (D-OH), chairman of the Senate Banking, Housing, and Urban Affairs Committee, and Representative Maxine Waters (D-CA), chairman of the House Financial Services Committee, also attended. “Housing is fundamental to an economy that works for all. Democrats and President Biden understand this,” Chairman Brown said in his speech. “Robust housing investments support families and kids, improve health outcomes, and address climate change – while creating…
Despite continuing supply chain issues and labor shortages, builder confidence rose in September thanks to falling lumber prices and high demand, the National Association of Home Builders (NAHB)/ Wells Fargo Housing Market Index (HMI) reported. Builder sentiment in the market for newly-built single-family homes increased to 76, one point higher than last month. The data broke a three-month streak of downward expectations. “Builder sentiment has been gradually cooling since the HMI hit an all-time high reading of 90 last November,” said NAHB Chairman Chuck Fowke. Fowke builds custom homes in Tampa, Fla. “The September data show stability as some building material cost challenges ease, particularly for softwood lumber. However, delivery times remain extended and the chronic construction labor shortage is…
The National Association of Home Builders has filed suit in federal court challenging the Centers for Disease Control and Prevention’s order that bans residential evictions through the end of the year to prevent the spread of Covid-19. The CDC order, issued in September under the Public Health Service Act, covers renters of apartments or residential properties – but does not include a ban on foreclosures on home mortgages. It requires renters to certify to landlords that they would become homeless or forced to live with others “in close quarters” if they were to be evicted. NAHB objects to the order because it provides “no relief for landlords who must continue to pay bills, maintain the units and pay their employees…
