housing supply

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The Associated Press

Sales of previously occupied U.S. homes rose in January from the previous month to the strongest pace in a year with homebuyers encouraged by a modest pullback in mortgage rates and more properties on the market.

Existing home sales climbed 9.5% last month from January to a seasonally adjusted annual rate of 4.38 million, the National Association of Realtors® said Thursday.

The pickup in sales helped push up home prices compared with a year earlier for the eighth month in a row. The national median sales price climbed 5.7% from a year earlier to $384,500. That’s the highest median sales price for February on records going back to 1999.

At the end of last month, there were 1.07 million unsold homes on the market, a 5.9% increase from January and up 10.3% from a year earlier. That’s the highest inventory of homes for sale for February since 2020, the NAR said.

“Additional housing supply is helping to satisfy market demand,” said Lawrence Yun, the NAR’s chief economist.

Read the full article

Source: nar.realtor

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Mortgage rates surged closer to 7% this week, a blow to hopeful homebuyers this spring.

The rate on the 30-year fixed mortgage increased to 6.87% from 6.74% the week prior, according to Freddie Mac. Rates tilted higher as inflation remained hotter than expected, leading to the Fed putting off any potential rate cuts until summer.

The uptick in rates caused some rate-sensitive homebuyers to retreat from the market, as affordability remains a top concern for the entry-level pool. Those looking to refinance also backed away from their plans as the chances of grabbing a lower rate slipped away.

Still, housing experts remain hopeful about the direction of affordability as more inventory trickles into the market.

“The housing market continues to face elevated mortgage rates, high prices, and low for-sale inventory,” said Hannah Jones, senior economic research analyst at Realtor.com. “As the spring season approaches, many buyers and sellers are getting warmed up to enter the housing market.”

Demand falters as rates jump higher

As mortgage rates rebounded, both refinance and purchase activity faltered — a recurring theme this season.

The volume of applications to refinance a home fell 3% for the week ending March 15 and was 3% lower than the same week a year ago, according to the Mortgage Bankers Association (MBA).

Demand for refinance had gained surprising momentum in the weeks leading up to March 8, with applications up 12%. The sudden jump in activity was due to a larger 24% increase in the government refinance index, the MBA noted, as homeowners who purchased at top rates last year were closely attuned to any opportunity to snatch a lower rate.

But as rates rebounded this week, that window of opportunity closed.

Read more: Mortgage rates hover around 7% — is this a good time to buy a house?

Purchase applicants also retreated from the market, with the volume of applications to buy a home down 1% for the week and 14% lower than the same week a year ago.

“Most homebuyers are sensitive to interest rates, which is why we see mortgage applications increase when rates fall and decline with rates increase,” said Bright MLS chief economist Dr. Lisa Sturtevant.

“However, not all homebuyers are equally sensitive to interest rates,” she added. “The number of cash buyers has increased. In many markets, these cash buyers are not investors but regular home buyers who have accrued significant equity in an existing home that they can roll over into the purchase of a new home.”

Just getting into a home has become more expensive. Mortgage News Daily, which tracks rates daily, revealed that rates surpassed 7% last week and have remained above that threshold as of March 20.

People looking at houses for sale in a real estate agent’s window. (Credit: Mike Kemp/In Pictures via Getty Images) (Mike Kemp via Getty Images)

For first-time homebuyers, in particular, the fluctuation of rates has been a tough blow — especially as inventory of entry-level homes remains scarce and competition for homes within their price point is picking up.

According to the National Association of Realtors, the average price of a previously owned home increased to $384,500 in February, marking the eighth consecutive month of year-over-year price gains. The median price was also 5.7% higher than a year earlier.

“Additional housing supply is helping to satisfy market demand,” said NAR chief economist Lawrence Yun. “Housing demand has been on a steady rise due to population and job growth, though the actual timing of purchases will be determined by prevailing mortgage rates and wider inventory choices.”

Buyers and sellers need to adjust to ‘new normal’ in rates

Mortgage rates were elevated after data last week showed inflation and payroll numbers came in stronger than expected, which fueled concerns about the timing of the Fed’s plans to issue rate cuts this year.

Federal Reserve officials expect three interest rate cuts this year, which should help ease pressure on overall borrowing costs when they come to pass. However, when those rate cuts will happen remains to be seen.

“There is some uncertainty in the housing market as we head into spring,” said Sturtevant. “The Federal Reserve likely will put off rate cuts until the summer, which suggests that mortgage rates will not come down much in the first half of the year. Buyers and sellers seem to be adjusting to the ‘new normal’ of mortgage rates above 6.5%.”

A sign is posted in front of a home for sale on Feb. 5 in San Anselmo, Calif. (Credit: Justin Sullivan, Getty Images) (Justin Sullivan via Getty Images)

Still, there’s some hope that buyers will see mortgage rates start to ease sooner rather than later.

“As we enter the spring homebuying season, we still anticipate rates will decrease in the coming months,” said MBA president and CEO Bob Broeksmit.

Gabriella Cruz-Martinez is a personal finance and housing reporter at Yahoo Finance. Follow her on X @__gabriellacruz.

Click here for real estate and housing market news, reports, and analysis to inform your investing decisions.

Source: finance.yahoo.com

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Existing-home sales jumped unexpectedly in February to the highest monthly increase recorded in a year, according to the National Association of Realtors (NAR).

Total existing-home sales — which includes previously owned single-family homes, townhomes, condominiums and co-ops — increased 9.5% from January to a seasonally adjusted annual rate of 4.38 million in February. But sales are still down 3.3% from last year, when 4.53 million were recorded for February 2023, a NAR report released Thursday said.

“Additional housing supply is helping to satisfy market demand,” said NAR chief economist Lawrence Yun. “Housing demand has been on a steady rise due to population and job growth, though the actual timing of purchases will be determined by prevailing mortgage rates and wider inventory choices.”

Home prices have surged 25% since President Biden took office in January 2021.

While Americans may want to buy houses, scarce supply, inflated prices and high mortgage rates have made home ownership unaffordable for many. Housing inventory in 2022 dipped to its lowest point since the Federal Reserve began tracking the data in 2016, while housing costs reached record highs.

AMERICANS ARE MAKING A MASS EXODUS FROM BIG CITIES ACCORDING TO CENSUS BUREAU DATA

A data table showing existing home sales, prices, mortgage rates and mortgage payments in January and February for the years 2019-2024.

Home prices and associated costs have followed the same inflationary trend as the rest of the economy since President Biden assumed office in January 2021.

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Compared to three years ago, the median price for existing-home sales has increased 25%, from $307,400 in January 2021 to $384,500 in February 2024, according to NAR data.

Existing home sales were 6.6 million when Biden took office and have since fallen to 4.38 million, according to Thursday’s report — a 34% decrease.

Not only are house prices up and supply down — home loan costs have skyrocketed. As of February, the monthly mortgage payment on an existing home was $2,001, according to NAR. That compares to a January 2021 reading of $1,009 and represents a walloping 98% increase.

US HOMEBUILDER SENTIMENT UNEXPECTEDLY RISES TO HIGHEST LEVEL SINCE JULY

Mortgage rates, which were an average 2.79% in January 2021, are now 6.78%.

For those who can’t afford a home or don’t wish to purchase one, rent is also more expensive. The average monthly rent for a two-bedroom apartment in the U.S. was $1,132 in January 2021. Now the average rent for an apartment that size has climbed 20% to $1,363 per month, according to data from apartmentlist.com.

The median sales price for existing homes has increased from $307,400 in January 2021 to $384,500 in February 2024.

Housing costs are expected to keep rising so long as there is strong demand and limited supply.

“Home sales dipped in February compared to a year earlier because not enough homes were on the market to meet demand,” explained Holden Lewis, a home and mortgage expert with NerdWallet.

HOW IT STARTED … HOW IT’S GOING: INFLATION UNDER BIDEN DRIVES UP COSTS FOR BREAD, BUTTER, CHICKEN

The average monthly mortgage payment on a $400,000 home with a 20% down payment has increased from $1,349 in January 2021 to $2,129 in February 2024.

According to the NAR report, total housing inventory at the end of February — the number of homes listed for sale — was 1.07 million units, a 5.9% increase from January and 10.3% surge from 970,000 units one year ago.

“Just 1.07 million existing homes were for sale at the end of February. In the same month five years earlier, before the pandemic, there were 1.63 million homes on the market. Consequently, many more homes were sold back then,” Lewis said. “Because demand exceeds supply, buyers are competing with each other and driving up prices.”

Regional sales climbed in the West, South and Midwest, but remained unchanged in the Northeast, the report said. Year-over-year sales declined in all regions.

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Housing became more expensive in all major U.S. regions as well, according to NAR. The median existing-home price for all housing types in February was $384,500, an increase of 5.7% from February 2023, according to NAR.

“Due to inventory constraints, the Northeast was the regional under-performer in February home sales but the best performer in home prices,” Yun said. “More supply is clearly needed to help stabilize home prices and get more Americans moving to their next residences.”

Original article source: How it Started… How it’s Going: Home sales down, housing prices, mortgage rates up since Biden took office

Source: finance.yahoo.com

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Unstable borrowing conditions and a lack of affordable properties kept homeownership out of reach for many Americans in 2023. However, as the spring buying season approaches and signs that the market is recovering emerge, buyer sentiment is shifting. According to the National Association of Realtors®, national existing home sales in January 2024 were up year-over-year by 1.3%. Housing supply is also improving, with national inventory up by 3.1% year-over-year and 2% month-over-month. 

These positive changes are setting the stage for an active spring market in the US. But as competition increases, so do home prices. The national median price for a single-family home in the US increased by 5.1% year-over-year in January to $379,100. This begs the question: where can prospective homebuyers find the best deals this spring? 

To better understand where homebuyers can find pockets of affordability, Zoocasa analyzed home prices in 50 metropolitan statistical areas across the country to determine which are below the national median and where the most growth is happening. Median single-family home prices were sourced from the National Association of REALTORS® and are from Q4 2023, except the national median home price which is from January 2024. 

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It’s usually said that the further outside of an urban center you go, the more affordable the home price. But of the 33 metropolitan statistical areas with a median home price below the national median, 15 have populations above 2 million, and five have populations above 5 million. The largest urban center with a median home price below the national median is Chicago, IL with a median home price of $343,300 in Q4 of 2023. Despite the city experiencing year-over-year price growth of 6.2%, Chicago’s median home price is still $35,800 below the national median. 

Of the 50 markets we analyzed, Cleveland, OH came out on top for affordability. Cleveland’s median home price of $190,700 is an impressive $188,400 below the national median and is one of the few areas on our list where the median home price dropped from last year. Other markets where the median home price fell from last year include Myrtle Beach, SC, Houston, TX, San Antonio, TX, and Memphis, TN. Alabama’s capital, Montgomery, was the only other market on our list besides Cleveland with a median home price below $200,000. Homebuyers here can snag a home for approximately $185,700 below the national median. 

It’s worth noting that five out of the six markets that experienced year-over-year price growth of more than 9% have home prices below the national median. These markets include Rochester, NY, Hartford, CT, New Haven, CT, Oklahoma City, OK, and Cincinnati, OH. This means that homebuyers of all price ranges, including those purchasing lower-priced homes, can still expect to build a significant amount of equity. 

Markets that have experienced significant year-over-year price growth also present good investment opportunities. For instance, single-family homes in Philadelphia, PA have experienced year-over-year price growth of 7.2% and are still $20,100 below the national median price, making this sought-after city a good option for first-time investors. Kansas City, MO is an emerging market that would make a great first-time investment location. The city garnered a lot of media attention last year thanks to the city’s football team and frequent Taylor Swift visits, resulting in the median home price rising by 5.9% year-over-year. Despite its growing popularity, the median home price in Kansas City remains one of the lowest on our list at $315,800. 

Homebuyers with their hearts set on a particular destination, especially one of the largest and most sought-after cities in the US, would benefit from considering smaller markets relatively close to their dream location. While the Big Apple might be out of reach for the average buyer, with a median home price of $659,200, New York’s second and third-largest cities still maintain affordable prices. Buffalo and Rochester have median home prices of $243,500 and $230,500 respectively. This is nearly $150,000 less than the national median, compared to New York City, where the median home price is more than $280,000 above the national median. 

Though San Francisco, CA, and Los Angeles, CA have notoriously high home prices, at $1,251,000 and $884,400 respectively, California homebuyers still have affordable options. At just $26,600 above the national median, Fresno’s median home price is one of the more affordable options in California. But for savvy buyers looking for a deal in California, Bakersfield presents the best option with a median home price of $11,800 below the national median. 

In Florida, motivated buyers on the hunt for affordable prices will have to look outside of the vibrant Miami market, which has a median home price more than $200,000 above the national median. Tampa’s median home price exceeds the national median by just $30,900, while Daytona Beach and Tallahassee offer more affordable housing, with median prices $16,700 and $57,100 below the national median, respectively.

Planning to enter one of these markets this spring? It’s important to speak with a local realtor who is familiar with your local real estate market. Give us a call today to discuss your home-buying plans. 

Ready to join the spring market?

Our experienced agents can help!

Source: zoocasa.com

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The U.S. Department of Housing and Urban Development (HUD) on Monday announced that it would be bringing its Innovative Housing Showcase back to the National Mall in Washington, D.C., this June. The event is designed to highlights housing solutions and “advancements in housing design, technology and sustainability.”

Taking place on June 7-9, the event is open to the public and will offer an opportunity “to raise awareness of innovative and affordable housing designs and technologies that have the potential to increase housing supply, lower the cost of construction, increase energy efficiency and resilience, and reduce housing expenses for owners and renters,” HUD explained in a news release.

Coming on the heels of a new commitment to housing solutions as outlined by President Joe Biden during his State of the Union address earlier this month, the event is designed to highlight a wider effort by housing professionals and stakeholders to impact housing access, availability and sustainability. The event will also feature interactive exhibits, including full-sized prototype homes and other technology demonstrations.

HUD expects as many as 4,000 people, “including policymakers, housing industry representatives, media, and the public,” to attend the event across all three days.

“The Innovative Housing Showcase is a testament to our nation’s unwavering commitment to moving the housing sector forward,” HUD Secretary Marcia Fudge said in a statement. “The future of housing is innovative. The Showcase provides a unique opportunity to explore technologies that can make housing more affordable and more resilient, while bringing industry leaders and the public together on creative solutions to the challenges facing our communities.”

Technological advancement is key to improving housing across the country, which is why it’s important to highlight advancements in a public setting, according to Solomon Greene, principal deputy assistant secretary for policy development and research (PD&R) at HUD.

“HUD and its Office of [PD&R] have supported innovation in housing and building technologies since the beginning, and these investments have contributed to changes in building codes, improvements in industry practice, and most importantly, lower housing costs for American families,” Greene said. “The Showcase continues that tradition, featuring the latest technologies and designs that can help meet the nation’s growing housing affordability and climate resilience needs.”

HUD recently posted a notice in the Federal Register to solicit exhibitors for the event, with final applications due March 29. Exhibitors and other programming details are expected in May.

Source: housingwire.com

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MSR buyer, Hedging, Non-Agency, QC, Workflow, Servicing Products; Moving Stats; Oh Fudge!

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MSR buyer, Hedging, Non-Agency, QC, Workflow, Servicing Products; Moving Stats; Oh Fudge!

By:
Rob Chrisman

8 Hours, 4 Min ago

“I heard that 80 percent of car accidents occur within one mile of a person’s residence, so I moved.” But it turns out that moving doesn’t improve your driving, although it does improve lender’s volumes. Home Bay just published a survey that found 75 percent were happy with their decision to move. But 86 percent of Americans who moved in 2023 have regrets about moving, up from 75 percent in 2022. With many movers charging by size and weight, 24 percent of Americans wish they downsized their belongings before moving. Other common regrets include missing their old home (24 percent) and that moving was too expensive (20 percent). What’s more, nearly half (46 percent) of Americans shed tears and 42 percent fought with their loved ones during the moving process. The top reasons for moving in 2023 were to improve their quality of life (31 percent) and upsize their home (21 percent). If money were no object, the states Americans most want to move to are California (32 percent), New York (29 percent), and Florida (24 percent). However, migration data from Allied Van Lines shows more affordable states such as Montana, Vermont, Arkansas, and Idaho have the highest percentage of inbound moves. (Found here, this week’s podcast is sponsored by Lender Toolkit. With Lender Toolkit’s AI-powered AI Underwriter and Prism borrower income automation tools, you’ll be able to get loans approved in under two minutes. Hear an interview with Lender Price’s Dawar Alimi on specific ways that lenders are benefiting from seamless integrations.)

Lender and Broker Services, Products, and Software

ICE is making servicing simple with the next generation of MSP®, the industry’s best-in-class loan servicing system. The new experience will include a “conversational intuitive interface” that will modernize workflows, allowing back-office users to simply type in a description of a servicing task, using common business language, and the software will automatically curate the relevant information they need to perform their work. Not only will its new interface save time for existing users, but it will also help new employees get up to speed faster by making the system intuitive to pick up and easy to navigate. Learn more about the new MSP experience here, as Bonnie Sinnock, capital markets editor for National Mortgage News, previews the upcoming technology in an article that ICE has made available as a complimentary download.

In the wake of frequent breaches within our industry, we are reminded of the precarious position mortgage lenders and their customers’ data are currently in. These repeated security incidents emphasize an undeniable truth: robust cybersecurity defenses are not merely an option; they are imperative. A breach can mean the difference between a thriving business and a devastating collapse. There is a very real risk to mortgage companies right now; you’re not just guarding data, you’re safeguarding trust, livelihoods, and the very integrity of the financial system. It’s a responsibility to take seriously, and it’s time to double down on cybersecurity. Richey May’s cybersecurity team is here to help: Check out its latest post detailing the often-overlooked risks in the industry.

“When you partner with a subservicer, you’re entrusting them with your most valuable assets: your customers and your reputation. Knowing they are important to you, they must be important to your subservicer, and you must see it in their actions. They should provide the care to your customers that reflects your brand and deepens the positive relationship you created at origination. If they are falling short, then your best option is to partner with Servbank. Not only do we provide your customers with a best-in-class experience, but we do it with your branding and identity in all communications and interactions. It’s as if you’re the one providing service to them, and with 99 percent customer satisfaction rates, which will help make them your customers for life. It’s your business. Servbank believes it ought to be your branding, too. Learn more about Servbank.”

Heading to ICE Experience in Las Vegas this year? The Total Expert team will be at booth #513 to show you how to uncover more loan opportunities, streamline your workflows, and unlock your organization’s full potential with our enhanced Encompass integration. Supercharge loan officer productivity and drive unprecedented growth with new features and functionality that allow you to seamlessly share data between platforms, create loan files with one click, and more. Drop by our booth at Ice Experience or book a personalized demo to see firsthand how the Total Expert + Encompass integration will transform your day-to-day operations, drive growth, and help you close more loans in any market!

Webinar: How to Build a Comprehensive QC Plan! Learn how Credit Unions can enhance operational excellence while minimizing risk exposure by having a solid quality control plan in place. Former CUSO Quality Control manager, Brock Miler (CMQ/OE) and EVP at ACES, Kyle Kehoe will review industry requirements and best practices to ensure credit unions remain steadfast in their commitment to quality. Date: Wednesday, March 20th at 11:00AM PDT. Topics Covered: Importance of having a sound QC Plan, review each component of the QC plan, best practice on how best to succeed within each category, how to leverage technology to maintain operational excellence and lower risk exposure within your QC program. Register for the webinar.

TPO Product News

Do you want to expand your footprint into the Non-Agency space, but are apprehensive of the underwriting challenges? Lakeview is your solution. Within the Bayview Non-Agency Product Suite, you decide the best underwriting route by product: Delegated or Non-Delegated. Included, are live, comprehensive trainings empowering you with the expertise desired. Still unsure? Let us know, and we will help you step forward.

HUD Secretary Steps Down

HUD’s Marcia Fudge announced that she will step down as secretary of the Department of Housing and Urban Development, effective March 22. A Biden appointee, Fudge, 71, did not provide a specific reason, although that job can’t be without its challenges. I met her a few times, and was always impressed. Adrianne Todman becoming Acting HUD Secretary.

Accolades immediately flooded in.

MBA’s President and CEO Bob Broeksmit, CMB: “MBA thanks Marcia Fudge for being a trusted industry partner and champion of improving affordable homeownership and rental housing opportunities for all Americans during her three-year tenure as HUD Secretary. We commend Secretary Fudge and her staff for their contributions on numerous issues, including working with the industry to ensure struggling borrowers could remain in their homes through COVID-19 forbearance relief and other loss mitigation reforms, making homeownership more affordable by lowering mortgage insurance premiums, increasing multifamily large loan limits for the first time in nearly a decade, and implementing improvements to existing HUD programs to boost single-family and multifamily housing supply.”

The National Housing Conference’s (NHC) President and CEO David M. Dworkin: “Secretary Marcia Fudge’s tenure at HUD has surpassed all expectations, including her own, earning her recognition as a highly consequential HUD Secretary. Throughout her leadership, Secretary Fudge has been a steadfast advocate for equitable housing policies, championing initiatives aimed at alleviating homelessness, expanding access to affordable housing, and fostering sustainable communities.

FHFA Director Sandra Thompson: “​Secretary Marcia Fudge is an outstanding leader who is a strong advocate for affordable, equitable, and sustainable housing opportunities for all Americans. During her tenure as Secretary of HUD, the country faced numerous housing challenges including recovering from the COVID-19 pandemic, limited affordable housing supply, and the continuing effects of housing discrimination and homelessness. Secretary Fudge took decisive action to address these and other challenges.”

Ginnie Mae President Alanna McCargo: “For the last three years, Secretary Marcia L. Fudge has led the Department of Housing and Urban Development fearlessly and passionately as our 18th Secretary. It has been a great honor to serve under her leadership for her entire tenure, first as her Senior Advisor for Housing Finance, and since 2021, as the President of Ginnie Mae. Secretary Fudge has made history and changed the trajectory of HUD for the future.”

Capital Markets

Make no mistake: 101 courses aren’t just for college freshmen. In fact, mortgage lenders of all experience levels can benefit from Optimal Blue’s upcoming webinar, Hedging 101: The Benefits of Mandatory Delivery. This session will be back by popular demand on Thursday, March 14, at Noon CT. Pipeline hedging experts Jeff McCarty and Mark Teteris, CMB, will walk attendees through the theories behind hedging practices, various hedging instruments, best execution analysis and strategies to employ during market fluctuations. Whether you’re just entertaining the idea of transitioning to mandatory delivery, or you’re already a hedging veteran, you won’t want to miss this informative and directional webinar. Save your seat today.

“Looking to Sell Agency Servicing? Are you getting low, or even worse, no bids because of the size of your MSR portfolio? Want to establish a long-lasting selling relationship? We buy performing Agency Servicing starting at $25,000,000. While others turn down small pools we excel. Discover the value you have been missing. Send us an email or call Shane at 602-402-1599.”

This week opened with investors making last minute bets ahead of today’s highly anticipated February CPI inflation report. A report that could clue market participants in on the Fed’s rate timing. The CPI index likely ran hot in February due to higher gasoline prices, but core inflation was expected to slow further (read on for results!) as car prices fell and rent increases slowed. Americans still aren’t confident about the longer-term inflation outlook: After hitting a record-low in January, U.S. consumer expectations for inflation over the next three years climbed to 2.7 percent last month, according to a Federal Reserve Bank of New York survey. Five-year expectations climbed to 2.9 percent, while projected year-ahead inflation was unchanged from January at 3.0 percent.

With a week to go until the next FOMC meeting, economic data released over the last week reaffirmed there is still a long way to go until Fed officials will feel fully confident that inflation is on an assured path to two percent. For the fourth straight month, the economy added more jobs than the market was expecting. Nonfarm payrolls increased 275k, however the prior two months were revised down by a combined 167k. The unemployment rate increased to 3.9 percent from 3.7 percent, which is a two-year high. Job openings were 16 percent below their number from one year ago and there were 8.86 million openings in January. The share of workers quitting their jobs fell to its lowest rate in six years (excluding spring 2020) which should help slow wage growth later in the year. The labor markets’ continued resilience reinforces the Fed’s view of resilient economic expansion and potentially further delays rate cuts.

Today’s economic calendar is already under way with the February CPI report: hot at +.4 percent on headline and core (ex-food & energy). Headline and core were seen increasing about 0.3 percent month-over-month. Before CPI, we had the NFIB Small Business Optimism Index for February: it decreased in February, marking the 26th consecutive month below the 50-year average of 98. Twenty-three percent of small business owners reported that inflation was their single most important business problem and replacing labor quality at the top.

Later today brings Redbook same store sales for the week ending March 9, the February budget statement from the CBO, and Treasury auctions that will be headlined by $39 billion reopened 10-year notes. After the inflation data, we begin Tuesday with Agency MBS prices roughly unchanged from Monday afternoon and the 10-year yielding 4.10 after closing yesterday at 4.10 percent. The 2-year is at 4.56: not a lot of movement after the CPI data.

Employment

“Arc Home, a Top 10 Non-QM and Non-Agency Originator is on the lookout for an exceptional leader to become our next Vice President of Quality Control. At Arc Home, we pride ourselves on fostering a culture of innovation, integrity, and growth, offering an environment for professional development and work-life balance. This position is your chance to contribute to our mission of creating an optimal client experience and to shape the future Arc Home. If you’re an experienced mortgage pro with a passion for compliance and operational excellence, we want to hear from you. Apply on our careers page or connect with Jacki Renard for a deeper insight into how you can elevate your career and make a difference at Arc Home.”

Megastar Financial Corp. is thrilled to announce John Owens as EVP and Chief Strategy Officer! With over 20 years in the mortgage industry, Owens brings a wealth of knowledge and an impressive record of success to Megastar. In his new role, he will drive sales growth, foster industry relationships, and demonstrate how modern lending solutions are game changers for lending teams. Owens stated, “One of the many reasons I joined Megastar is because they have adopted agency technology along with AI that significantly lowers production costs, while increasing transaction speed and customer service. Pre-qualifications or approvals can be delivered at the time of application, a game-changer for any loan officer aiming to stand out. Additionally, Megastar’s unique program, powered by its financial strength, supplies qualified leads directly to loan officers. This holistic approach elevates service, making MegaStar a leader in customer satisfaction and efficiency.” Connect with John on LinkedIn.

Take your business to new heights with OceanFirst Bank. Steve Adamo, President of Residential and Consumer Lending continues to expand OceanFirst Bank’s Residential Lending division. As a result, top producing Loan Officers have joined the Bank. With the ability to blend the benefits of an independent mortgage company with the stability of a banking environment, OceanFirst Bank is growing exponentially. Loan Officers that join the team have the ability to grow their business and gain stability from a top financial institution. OceanFirst combines a leading-edge tech stack and the benefit of having great product and pricing with unique portfolio options, direct agency lending, and secondary market choices. OceanFirst’s National Association allows Loan Officers to lend nationally without dealing with individual state licensing. Contact John Costa, Senior Vice President and Head of Mortgage Sales or 609.444.6121 to learn more. FDIC | Equal Housing Lender | Equal Opportunity Employer.

“Did you know Movement Mortgage added more than 1,000 new products to its portfolio in 2023!? You read that correctly. And the list keeps growing. Introducing Movement’s HomeReady Very Low-Income Purchase Program! With the escalating costs of homeownership, many potential borrowers, particularly those with limited income, encounter significant hurdles in affording a down payment. This new addition to the HomeReady product, wherein qualifying borrowers can receive a $2,500 down payment credit, aims to enhance homeownership opportunities for individuals with qualifying income less than 50 percent of the area median income (AMI). For more information on this new offering and how Movement is making an impact in communities across the U.S., visit us.”

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Source: mortgagenewsdaily.com

Mortgage rates eased slightly this week, enough to reheat the homebuying momentum as the market heads into a traditionally busy season of the year, according to Freddie Mac. 

The average 30-year fixed-rate mortgage was 6.88% for the week ending March 7, according to Freddie Mac’s latest Primary Mortgage Market Survey. That’s a drop from the previous week when it averaged 6.94%. A year ago, the 30-year fixed-rate mortgage averaged 6.73%. 

The average rate for a 15-year mortgage was 6.22%, down from 6.26% last week and up from 5.95% last year.

The slight drop in borrowing costs led to a nearly 10% jump in mortgage applications, indicating that buyer interest is strong as the market heads into the spring homebuying season, according to the latest Mortgage Bankers Association Weekly Applications survey.

 “Evidence that purchase demand remains sensitive to interest rate changes was on display this week, as applications rose for the first time in six weeks in response to lower rates,” Freddie Mac Chief Economist Sam Khater said. “Mortgage rates continue to be one of the biggest hurdles for potential homebuyers looking to enter the market. It’s important to remember that rates can vary widely between mortgage lenders, so shopping around is essential.”

If you are looking to take advantage of the current mortgage rates by refinancing your mortgage loan or are ready to shop for the best rate on a new mortgage, consider visiting an online marketplace like Credible to compare rates and get preapproved with multiple lenders at once.

SOCIAL SECURITY: COLA INCREASING BUT MEDICARE COSTS RISING TOO IN 2024

Market waits for rates to drop 

While the Federal Reserve has said that the plan to reverse interest rate hikes is still in the works, the timeline for when those cuts will begin has been unclear. A reversal in interest rates is crucial in creating more affordability for buyers also dealing with record home price gains. 

However, housing supply is improving, according to a recent Redfin report. New listings rose 13% from a year earlier nationwide during the four weeks ending March 3, the most significant increase in nearly three years. And home prices have also lost some momentum. Roughly 5.5% of home sellers dropped their asking price, the highest share of any February since at least 2015, while the share of affordable homes on the market has increased, according to Realtor.com.

“Mortgage rates remain stubbornly high, and since there is no indication that the Fed will set interest rates meaningfully lower in the short term, it is unlikely that mortgage rates will fall much this year,” Voxtur Analytics Senior Vice President David Sober said in a statement. “If a potential homebuyer is waiting for a lower rate, with house prices still rising overall, they probably won’t get the deal they want anytime soon.”

If you’re looking to become a homeowner, you could still find the best mortgage rates by shopping around. Visit Credible to compare your options without affecting your credit score.

AMERICANS LIVING PAYCHECK TO PAYCHECK OWN 60% OF CREDIT CARD DEBT: SURVEY

Buyers should shop for the best rate

Despite the continued increase in rates, homebuyers could save on borrowing costs by shopping for the best rate with the right lender.

When mortgage rates are high, borrowers can save more by shopping around. Mortgage rate variability more than doubled in 2022 when rates exceeded 7%, according to Freddie Mac research. Borrowers who shopped for five different rate quotes could have saved more than $6,000 over the life of the loan, assuming the loan remains active for at least five years.

“The increase in rate dispersion means that consumers with similar borrower profiles are being offered a wide range of mortgage rates,” Genaro Villa, a macro and housing economics professional for Freddie Mac, said in the research brief. “In the context of today’s rate environment, although mortgage rates are averaging around 6%, many consumers that fit the same borrower profile could have received a better deal on one day and locked in a 5.5% rate, and on another day locked in a rate closer to 6.5%.”

If you are ready to shop for a mortgage loan or are looking to refinance an existing one, you can use the Credible marketplace to compare rates and lenders and get a mortgage preapproval letter in minutes.

SECURE 2.0: OPTIONAL PROVISIONS KICK IN TO HELP RETIREMENT SAVERS WITH EMERGENCIES AND STUDENT LOAN DEBT

Have a finance-related question, but don’t know who to ask? Email The Credible Money Expert at [email protected] and your question might be answered by Credible in our Money Expert column.

Source: foxbusiness.com

Apache is functioning normally

In our ongoing quest to address the disheartening homeownership rate of 44%, it becomes imperative to explore innovative solutions that can propel more individuals into home ownership. One promising avenue that deserves attention is the facilitation of small cap mortgages. However, to make a significant impact, it is crucial to incentivize banks, mortgage companies, and financial institutions to engage in this form of lending, while ensuring that loan officers are equally motivated. Property is not just a tangible asset; it is a symbol of power, economic stability, and wealth-building. As we navigate the complex landscape of homeownership, particularly for African Americans, the significance of mortgage loans cannot be overstated. Black homeowner buyers have found themselves either priced out of the housing market or compelled to seek homeownership elsewhere.

Bridging the Housing Gap

In the pursuit of more affordable housing the key to achieving this lies in increasing homeownership through mortgage lending at a diversity of price points. A recent report has identified small-dollar mortgages, ranging from $20,000 to $100,000, as a potential solution to provide relief to aspiring Black homeowners.

Challenges in the Current System

The need for small dollar mortgages is underscored by the fact that most financial institutions are reluctant to engage in loans for amounts less than $100,000. This reluctance creates a systemic barrier. The Urban Institute revealed that the availability of small mortgage loan financing is limited, posing a significant hindrance to affordable homeownership.

Limited Access to Affordable Housing

Affordable housing supply remains a major issue, and the lack of financing options for low-cost properties exacerbates the problem. By facilitating the purchase and improvement of these properties through small-dollar mortgages, access to the nation’s limited supply of affordable housing can be improved. Urban Institute’s previous findings indicate that fewer lenders are willing to provide small mortgages, and applicants are more likely to face denials for smaller loan amounts compared to larger ones. This is something that I have experienced many times.

Incentivizing Lenders:

To encourage financial institutions to delve into small cap mortgages, policymakers and regulatory bodies should consider offering targeted incentives. These incentives could take various forms, such as tax breaks, reduced regulatory burdens, or financial support for institutions engaging in a higher volume of small cap lending. By creating a favorable environment for lenders, we can foster increased participation in this critical sector.

Loan Officer Motivation:

Recognizing the crucial role loan officers play in the mortgage approval process, it is essential to ensure that they are motivated to actively promote small cap mortgages. Financial institutions can implement performance-based incentives, training programs, and career development opportunities specifically tailored to small cap lending. By aligning the goals of loan officers with the broader objective of increasing homeownership, we create a more sustainable and impactful lending ecosystem.

 

Collaborative Initiatives:

Government entities, along with industry stakeholders, should collaborate to establish initiatives that promote small cap mortgages. One possible avenue is the creation of funds or grants dedicated to supporting lenders who actively contribute to increasing homeownership through small cap loans. These collaborative efforts can serve as a catalyst for financial institutions to view small cap mortgages not just as a social responsibility but as a viable business opportunity.

Community Engagement:

Engaging local communities is pivotal in expanding access to small cap mortgages. Establishing partnerships between lenders and community organizations can create awareness, provide educational resources, and offer counseling services for potential homeowners. By fostering a sense of community ownership and responsibility, we can encourage financial institutions to prioritize small cap lending as a means of contributing to the prosperity of the communities they serve.

In Summary

The role of small cap mortgages is pivotal. Breaking down the barriers that limit access to affordable housing and empowering individuals with the means to purchase homes at various price points is crucial for building stable neighborhoods and fostering wealth in communities. In addressing the challenge of a 44% homeownership rate, the promotion of small cap mortgages emerges as a viable solution. By incentivizing banks, mortgage companies, and financial institutions, and ensuring loan officers are motivated… we can pave the way for a brighter future where more individuals can realize the dream of owning a home. Through collaborative efforts, community engagement, and targeted initiatives, we can collectively work towards a higher homeownership rate in the black community this not only strengthens the housing market but also enhances the overall well-being of our neighborhoods.

Dr. Anthony O. Kellum – CEO of Kellum Mortgage, LLC                                                                                       Advocate for Access to credit, Speaker, Author                                                                                                      NMLS # 1267030 NMLS #1567030                                                                                                                                       O: 313-263-6388 W: www.Kellumortgage.com.

Property is Power! is a movement to promote home and community ownership. Studies indicate,

homeownership leads to higher graduation rates, family wealth, and community involvement.

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Source: michiganchronicle.com