Homebuyer interest in new homes slowed in June, coinciding with a decline in builder activity. The Mortgage Bankers Association’s Builder Application Survey unadjusted data for June 2024 found that mortgage applications for new home purchases rose 0.7% YOY but slipped by 16% from the month prior. MBA VP and Deputy Chief Economist Joel Kan noted that…
New residential construction got a boost from multi-family units in June as builders continue to hesitate when it comes to investing in single-family homes. Housing starts were up 3% from May to a 1.35 million annual pace, according to new data from the U.S. Census Bureau. The increase came from a nearly 20% jump in…
By KIMBERLEY HAAS The CEO of Land Gorilla says advancements in technology are creating opportunities for more profitable construction lending. Sean Faries said since the California-based technology service provider for banks, credit unions, and mortgage bankers started in 2010, there has been a move from spreadsheets to digitization. Land Gorilla is now taking things a…
Rates at 20-year highs and other ongoing issues forced affordability to hover near a decade-low in Q4 2023, constraining the housing market. A new report from the National Association of Home Builders revealed that housing affordability stayed close to its lowest level in about a decade in the last quarter of 2023. Just 37.7% of…
By PATRICK LAVERY When the Federal Open Market Committee meets this week analysts will be looking for signs of what’s next and it may be anyone’s guess. At the Mortgage Bankers Association’s annual convention and expo in Philadelphia this month, MBA Chief Economist Michael Fratantoni told attendees that they expect the Feds will maintain the…
By KIMBERLEY HAAS The president and CEO of the Federal Reserve Bank of Philadelphia knew he was facing a tough crowd when he took the stage during a Monday morning session at the Mortgage Bankers Association’s annual convention and expo. “I stand here this morning fully aware of the mood in this room and I…
By CHUCK GREEN According to experts, not only is the housing market expected to continue cooling this year, the forecast remains chilly entering 2023. Real house prices jumped 10.5% in September and logged a 60.6% YOY increase, according to First American’s Real House Price Index. But prices fell in 15 out of the top 50 markets…
By KIMBERLEY HAAS The vice president of research at the National Multifamily Housing Council says 4.3 million new apartments will be needed by 2035 to meet demand. Caitlin Walter spoke at the National Association of Real Estate Editors conference on October 13. She is primarily responsible for conducting NMHC’s research on apartment industry trends, according…
By KIMBERLEY HAAS The executive director of the New Hampshire Home Builders Association says the biggest problem they are currently facing is unstable prices due to inflation. In a recent interview with The Mortgage Note, Matt Mayberry explained that contractors are trying to stay within their budgets on projects but it is difficult because prices…
Builder gross profit margins fell to 18.2% in 2020, while net profits slipped to 7%, according to NAHB Builders’ Cost of Doing Business Study. This is the first profit margin decline since 2008. The study surveyed single-family builders across the U.S. It found that builders averaged $13.7 million in revenue for the fiscal year of…
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