Dutch-Style Mortgages: Could They Work In America?

By ERIN FLYNN JAY The Dutch offer home mortgages with interest rates that go down automatically as the loan gets paid off. The premise is that as the loan amount reduces and the property’s value increases, the risk associated with the loan decreases. Dutch-style mortgages recently arrived in the United Kingdom and have been making headlines here in the United States as people ask whether these types of mortgages could be a solution to the housing market’s woes. Nathan Hartseil, branch manager for Main Street Home Loans in Hingham, Mass., doesn’t think so due to the fact our mortgages are based on a secondary market. “Most of our loans are transferred or sold to a secondary market, and that’s what…

Applications Down As Treasury Yields Push Rates Higher

Mortgage applications slipped again last week as treasury yields swelled to new highs. The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – decreased by 1%, a more moderate decline than the week prior’s 6.9% dip. Adjusted purchase applications slipped by 2%, while the unadjusted index fell by 2% from the week before and was 22% lower YOY. Another spike in rates drove the decline. The 30-year fixed mortgage rate rose to 7.90%, the highest level since 2000 and a 20 bps jump from last week. Rates have risen nearly 70 bps in the last seven weeks. “Ten-year Treasury yields climbed higher last week, as global investors remained concerned…

Net New Listings Down By Double Digits As Homeowners Stay In The Same Place

New listings continue to trend down as rate lock-in and affordability concerns keep homeowners stuck in their current living situation. HouseCanary’s latest Market Pulse report found that net new listings fell by double digits for the tenth straight month in February. The report, which analyzed twenty-two metrics pulled from listing information between February 2022 and February 2023, found that 157,967 net new listings went up last month, down 43.6% YOY. Properties that went under contract also fell, totaling only 247,294, a 17% decrease YOY. New listings drove net volume down, falling 31.7%, combined with a 72.6% rise in removals. Median days on the market were up 48.3% YOY to 43 days. However, days on the market fell month-over-month by nearly…

Home Sales Fall Nearly 20% YOY

Buyers are still fleeing the market in droves despite signs of cooling, driven out by rising mortgage rates and economic uncertainty. Home sales fell by 19.3% YOY in July, hitting their lowest level since the pandemic started, Redfin reported. It’s the biggest annual decline in U.S. home sales in more than a year. Sales also fell 4.1% from June. Redfin noted that while affordability challenges pushed some buyers out, others were concerned about the potential for home-value declines. Home price appreciation rose at its slowest pace since June 2020, up only 7.7%, and talk of price correction is everywhere. Fewer homeowners put their homes on the market, too. New listings fell 13.5% YOY, the biggest decline in more than a…