Good Morning! Today is Friday, March 25. The U.S. imposed new sanctions on more than 300 members of Russia’s Parliament. Some journalists have quit jobs at Russian state media outlets, citing regret for promoting lies about the war. Arizona Republicans passed a bill banning most abortions after 15 weeks of pregnancy. The Mortgage Note Reports Rates Rise: Mortgage rates continued their upward march this week, averaging 4.42%. Forbearances Up: Forbearance plans rose for a second week, pushed up by plan re-starts, though new plan starts remained steady. And in other mortgage and housing news… Affordability Down: Homebuyer affordability decreased in February, with the national median payment applied for by applicants jumping 8.3% to $1,653. “We’re Concerned”: Liz Shuler, president of…
Average monthly asking rent in the U.S. leaped to new heights in February, up 15% year-over-year to a record high of $1,901, though mortgage growth outpaced it yet again, according to Redfin. Rent growth saw its largest annual increase since Redfin began tracking rental data in February 2019. Mortgage payments rose 31% YOY to $1,716, also the biggest increase recorded by Redfin. Mortgage payment increases outpaced rent increases in 44 of the 50 largest U.S. metros. “The cost of housing is going up for homebuyers and renters, but it’s going up more quickly for homebuyers,” said Redfin Chief Economist Daryl Fairweather. “That’s because mortgage rates have increased sharply, and will likely continue to do so. When the cost of homeownership…
Demand for vacation homes has cooled down after skyrocketing to near-record levels in January, Redfin reported. February saw second home demand reach its lowest level since May 2020 as mortgage rates continued climbing, only 35% above pre-pandemic levels. Rates declined for a few weeks due to uncertainty surrounding Russia’s invasion of Ukraine, but started inching up again last week, reaching 3.85%. While demand is still significantly elevated from two years ago, it’s nothing compared to January’s 87% increase. February was also the first month where primary residence demand beat out vacation home demand since the pandemic began, though only by 1%. “Rising mortgage rates, combined with rising home prices, are hitting the second-home market much harder than the primary-home market,”…
Good Morning! Today is Monday, March 14. Russian forces hit Kyiv with heavy artillery strikes this morning after days of fighting in the suburbs. Barack Obama tested positive for Covid-19. Less than two months after announcing his retirement, quarterback Tom Brady said he will return to the Tampa Bay Buccaneers and play again. The Mortgage Note Reports Help Us Highlight Those Who Are Supporting The People Of Ukraine: The people of the world are watching the horror unfolding in Ukraine, and we at The Mortgage Note want to highlight those in the housing industry who are stepping up to help. AIME Lobbying: AIME is teaming up with lobbying firm Forbes Tate Partners to represent brokers in government affairs. Cash Is…
Homebuyers who offered all cash won more bidding wars in 2021, making it the most effective strategy to beat out other buyers, according to a new Redfin report. Waiving the financing contingency and conducting a pre-inspection also increased potential buyers’ chances when facing off with other bidders, making them 31% and 25% more likely to win, respectively. Escalation clauses and waiving inspection contingencies are frequently seen strategies, but because they’re so common they’re also ineffective. They also do not benefit one buyer over their competition. Redfin also suggests offering more than asking price and waiving the appraisal contingency to set buyers apart from the crowd, as many can’t afford to pay all cash. Buyers planning to offer over asking may…
Good Morning! Today is Wednesday, March 9. Major U.S. businesses pulled out of Russia and President Biden banned Russian oil imports. Intelligence officials said Vladimir Putin showed no signs of changing course. A jury found Guy Reffitt, the first Jan. 6 defendant to go on trial, guilty of leading a mob against the police. The Mortgage Note Reports $1M Or More: A record 8.2% of U.S. homes (6 million) were valued at $1 million or more in February, with California leading the pack in share. Rate Slide Pushes Refis Up: Refinances bounced up last week due to a brief drop in interest rates, while overall mortgage loan application volume rose 8.5%. And in other mortgage and housing news… Above Asking:…
U.S. home prices have broken another record: 8% of homes (6 million) are now worth $1 million or more, according to a new report from Redfin. That is nearly double the share from before the pandemic when the share was only 4.8% (3.5 million). The Bay Area has the biggest share of million-dollar homes, with nearly nine out of 10 properties in San Francisco and San Jose making the list. This isn’t surprising given its long history of being the most expensive place to buy a home in the U.S. Anaheim, CA, saw the biggest increase, with its share of million-dollar homes jumping to 55% from 27% two years ago. California dominated the top five, following up with Oakland (55.1%),…
The average American has now lived 13.2 years in their home, up from 2012’s 10.1 years but down from 2020’s 13.5-year record, Redfin reported. The report notes that last year’s high migration rates contributed to the downturn from 2020’s peak, though Americans continue aging in place, keeping the average inflated. One-third of U.S. household heads were at least 65 years old in 2019. Housing analysts are already thinking about the changing face of the market as that number grows. Rising rents, stock shortages, and the number of homeowners who refinanced are also likely keeping people in their homes longer. “Homeowner tenure may have already peaked, or the decline in 2021 could be a blip before it climbs back up,” said…
Pending home sales continued a three-month streak of declines in January, the National Association of Realtors (NAR) reported. NAR’s Pending Home Sales Index (PHSI) found contract signings fell 5.7% to 109.5 in January, down 9.5% year-over-year (YOY). Only the West saw any increases, with contract signings rising 1.5% from December to January, but down 9.7% from a year earlier. The Northeast saw the largest annual drop in contract signings, 16.7%, plus a 12.1% drop in the month-to-month numbers, down to 84.3. The Midwest saw a 5.9% drop both monthly and annually, while signings in the South fell 6.3% from December and 8.7% YOY. “With inventory at an all-time low, buyers are still having a difficult time finding a home,” said…
Good Morning! Today is Thursday, February 24. Russian President Vladimir Putin announced a military operation in Ukraine. President Biden will address the nation with an update on the attacks at 12:30 p.m. The Mortgage Note Reports “Battling It Out”: A Redfin report found that 70% of homebuyers faced bidding wars in January, making it the most competitive month in Redfin’s data. Loan Applications Down: Mortgage loan application volume fell 13.1% last week to their lowest level since December 2019, MBA’s weekly survey shows. And in other mortgage and housing news… Seeking Comment: MISMO is seeking public comment on updates to Engineering Guideline 7 establishing class words that enable consistency in the naming and structure of data point names. Panel Market: …
