Following moderating mortgage rates, pending home sales slipped only slightly in July, down 1% from June. The National Association of Realtors’ Pending Home Sales Index posted a reading of 89.8 last month. A reading of 100 is equal to the level of contract activity in 2001. Pending sales were down 19.9% YOY, slipping from last month’s 20% YOY reading. It was the second consecutive month of decline and the eighth in the last nine months. “In terms of the current housing cycle, we may be at or close to the bottom in contract signings. This month’s very modest decline reflects the recent retreat in mortgage rates. Inventories are growing for homes in the upper price ranges, but limited supply at…
In a reversal of a pandemic trend, competition for low-priced homes has surpassed that for mid- and high-priced homes, according to a new Zillow analysis. July saw inventory rise 11% month-over-month and 19.3% YOY in the most expensive third of the housing market, while the middle third also saw a 12.7% MOM and 17.3% YOY increase. Inventory grew by only 11.2% MOM and 10.4% YOY in the lowest-priced tier. A year ago, the inventory of the lowest-priced homes was growing twice as fast as expensive homes, and the upper tiers saw the strongest competition, the reverse of this month’s trend. “Buyers are stretched thin when it comes to affordability, and they are flocking to the lowest-priced homes on the market…
Zillow is partnering with once-rival Opendoor in a multi-year deal, the company announced in a press release. Home sellers using Zillow will be able to request an Opendoor offer to sell their home while on the platform. Customers will be able to use it by itself or package it with other Zillow services such as financing, closing, and agent selection. Zillow will get a referral fee when a customer accepts an offer from Opendoor. “Zillow is the most visited brand in online real estate. As we bring the housing super app to life, we’re empowering our millions of visitors to understand all their options and transact in the way that best meets their housing needs,” said Zillow Chief Operating Officer,…
Dr. Skylar Olsen has returned to Zillow as Chief Economist, the company announced. “I’m honored to return to Zillow as chief economist and help home buyers, sellers, and renters across the country better understand their options and how to best navigate what has become an increasingly trying housing market,” Dr. Olsen said. “I truly revel in the opportunity to provide the tools and information to help people make some of the biggest, most impactful decisions of their lives.” Dr. Olsen worked at Zillow from 2012 to 2020, with her most recent position being Senior Principal Economist. She lefts two years ago to found her consultancy, Reimagine Economics, and to serve as head of economics at digital mortgage startup Tomo. She…
By KIMBERLEY HAAS At least four industry leaders will cover the travel expenses for employee abortions after the U.S. Supreme Court overturned Roe v. Wade on Friday. The New York Times named Bank of America, JPMorgan Chase, Wells Fargo, and Zillow in a Tweet on Monday. There were 4,307 Retweets, 705 Quote Tweets, and over 17,300 Likes as of Tuesday morning. The media relations departments at Bank of America and JPMorgan put out press releases about their stress test results on Monday. Bank of America announced plans to increase its quarterly common stock dividend beginning in the third quarter of 2022. “Our responsible growth strategy over the last decade has put us in a strong position to support our clients…
Housing payments have surpassed the dreaded 30% cost-burdened threshold thanks to the 30-year fixed rate’s recent half-point jump. Black Knight reports that it now costs $2,103 to make the principal and interest (P&I) payment on an average-priced home with a 20% downpayment. That equates to 36.2% of the median household income and sinks affordability to its lowest level in more than 35 years. Payments as a percentage of income are now higher than the previous record of 34.1% in July 2006, and significantly up from the long-term average of 25.1%. The Department of Housing and Urban Development defines cost-burdened families as those “who pay more than 30% of their income for housing” and “may have difficulty affording necessities such as…
Affordability is at a 15-year low, with mortgage payments up in 45 of the 50 largest U.S. metros, according to Zillow’s latest market report. Buying a typical U.S. home with interest rates of 5.78% would result in monthly payments of $2,127. That’s up 36% year to date, and 51% YOY. Those monthly payments would account for 28% of homeowners’ monthly income, inching closer to the 30% benchmark that means homeowners are cost-burdened. The report noted that since rates have risen above the April data it references, homeowners may already be at that 30% threshold. Rising interest rates and soaring home prices have pushed mortgages out of reach for many Americans, leading to diminishing demand that has economists worried that recession…
Opendoor has rolled out a new financing app in California that the company claims allows consumers to get pre-approved for a mortgage in under two minutes. The company announced the roll-out on its website, and the app went live Thursday, June 2. It is part of the company’s suit of products including Buy with Opendoor, Opendoor Backed Offers, and Opendoor Complete. “With this new financing app, Californians can better understand their loan options and the down payment they need to buy a home. They simply download the app and answer four short questions,” the release reads. “Our technology then identifies loan options that are available from over 1,000 programs based on the customer’s needs and criteria, such as the mortgage…
Home prices rose in Q1 2022 for the majority of Opportunity Zones, with the pace of gains in half of all zones besting quarterly and annual increases across the nation, ATTOM reported. Opportunity Zones are areas targeted for economic improvement, defined in the Tax Act legislation as census tracts in or alongside low-income neighborhoods that meet specific criteria for redevelopment. ATTOM analyzed 5,092 zones in the U.S. that had at least five home sales in Q1 2022. The report found that median single-family home and condo prices increased in 55% of zones between Q4 2021 and Q1 2022. In 50%, prices rose by at least 20%, despite the fact that the pace of increases slowed in Q1. “Home price trends…
By KIMBERLEY HAAS Guild Mortgage has partnered with The Home Depot to help buyers save on utility costs and manage multiple payments by bundling the cost of new energy-efficient appliances into their home loan. The GreenSmart Advantage program offers options to finance energy or water-efficient improvements up to 5% of a home’s appraised value by consolidating the costs into a mortgage. Refrigerators, dishwashers, smart thermostats, washing machines, and dryers are examples of what can be included. Primary FHA purchase transactions are eligible. A 3.5% down payment and a credit score above 580 are required to qualify. Mary Ann McGarry is CEO of Guild Mortgage, which is headquartered in San Diego. She said in a statement that the company is always…
