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The average U.S. mortgage rate for a 30-year fixed loan rose this week to 2.84%, Freddie Mac said in a report on Thursday – up 6 basis points from the previous all-time record low set last week.

The average fixed rate for a 15-year mortgage also gained slightly by 2 basis points to 2.34%.

Despite this week’s rise, there have still been 16 consecutive weeks when average mortgage rates have been below 3%. However, this week’s slight gain was most likely a result of positive news about a COVID-19 vaccine, said Sam Khater, Freddie Mac’s chief economist.

“Despite this rise, mortgage rates remain about a percentage point below a year ago and the low rate environment is supportive of both purchase and refinance demand. Heading into late fall, the housing market continues to grow and buttress the economy,” Khater said.

In an effort to buffer economic blows, the Federal Reserve began buying bonds in March to make borrowing cheaper – eight months later and those rates are still feeding a frenzied market despite upward pressure on home prices.

Low mortgage rates fuel the demand for valuation and settlement services  

VRM Mortgage Services CEO shares how the company is navigating a difficult year, and how its services are impacted by the different national, state and local directives on foreclosure.

Presented by: VRM Mortgage Services

How long these low rates will last is still up for debate, but in September, 13 members of the Federal Reserve’s Federal Open Market Committee said they expect to keep the central bank’s benchmark rate near zero through 2023.

Fannie Mae’s Home Purchase Sentiment Index, a composite index designed to track the housing market and consumers’ desire to sell or buy a home, also revealed consumers and the industry alike are confident that a low rate environment will hold. Those who believe they will rise in the coming 12 months dropped to 32%, and 49% now believe they will stay the same – up from 44% in September.

Doug Duncan, Fannie Mae’s senior vice president and chief economist, noted much like the 2016 election, the 2020 election may have lasting and unexpected impacts on the market over the coming months. However, observers from across the housing and mortgage space said interest rates will continue to hover near historic lows for the next several years, regardless of who occupies the White House.

Source: housingwire.com

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The Producer Price Index (PPI) has a sub-par record as a market mover for bonds when compared to CPI and other inflation metrics.  But markets have been more willing to react to many reports with traditionally poor track records.  PPI is no exception, but today’s example has arguably had an unjustifiably big impact.  Core PPI remained at 2.4% y/y.  The monthly reading was 0.1% higher than forecast, but last month was revised 0.2% lower.  Should be sort of a wash, but bonds took it as a selling cue.

Source: mortgagenewsdaily.com

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Living in West Virginia means enjoying access to all the scenic landscapes John Denver sings about in his famous song about this Mid-Atlantic state, “Country Roads, Take Me Home.” Located in the Appalachian region of the southeastern United States, West Virginia is known as the Mountain State due to its mountainous and hilly terrain. This makes it a popular state for lovers of nature and outdoor adventure. From hiking in the Appalachian Mountains to boating on meandering rivers, opportunities for outdoor recreation abound.

West Virginia is also notable for its friendly residents and low cost of living. For the most part, things like housing and groceries cost less than the national average. For people seeking an outdoorsy lifestyle at an affordable price, West Virginia fits the bill. But some costs can vary widely between cities, which is why it’s important to examine how the cost of living changes throughout the state. That way, you can figure out the best place to live for your budget. Here’s what the cost of living in West Virginia is like in different cities around the state.

West Virginia housing prices

One benefit of living in West Virginia is that housing costs are extremely affordable. In most major West Virginia cities, the cost of housing falls well below the national average. If you make a good living, it’s easy to afford bigger-sized apartments and rental units here without stretching your budget too much. You could even use an extra bedroom to store all the gear you’ll accumulate for your various outdoorsy pursuits.

Here’s what the average rent looks like in two major West Virginia cities.

Charleston

Located in the southwestern part of the state, Charleston is West Virginia’s capital city. It’s also the most populous city in the state with 48,018 residents. Situated at the confluence of the Kanawha and Elk rivers, this pretty riverfront city has happening events and festival scenes, great dining and shopping and close-knit neighborhoods. While there are plenty of parks and urban green areas around town, West Virginia’s rugged wilderness is just a short drive away. It ranks well as one of the best state capitals to call home.

Housing costs here are also extremely affordable, falling 40.5 percent below the national average. One-bedroom apartments cost $650 a month on average and two-bedrooms go for $750 a month. Both categories have remained stable over the past year. Data about average rent prices aren’t available. The median sale price for buying a home in the area isn’t available, either. But to give you a ballpark figure, the U.S. census lists the median value for owner-occupied housing units as $156,900.

Considering these rough figures, both renting and homeowning in Charleston are affordable compared to the national average. The national median sale price for a home is $430,982, while the average rent nationwide sits at $1,722 for a one-bedroom apartment.

Morgantown

Morgantown is West Virginia’s third-most-populous city, located in the northeastern part of the state close to the Pennsylvania border. With a charming city center and youthful population, this lively small city is best known for being the home of West Virginia University. Residents can tailgate and cheer on the West Virginia Mountaineers sports teams and enjoy the bustling downtown area. Nearby Cheat Canyon offers great white-water rafting and area lakes provide quiet getaways to fish and boat. Hiking and birding are also extremely popular here.

The cost of housing here is also 17.2 percent below the national average. Everyone from students to families loves the low housing prices. The average monthly rent for a one-bedroom apartment is $589, up 3 percent from last year. Two-bedroom apartments cost around $741 per month, also up 3 percent from last year. While there has been some growth, the small increase indicates that prices are staying relatively the same even in this volatile time for renting.

The median value for owner-occupied housing units as $215,000, according to the U.S. Census.

West Virginia food prices

From multicultural dishes with rich, local histories to bountiful yields of native Golden Delicious apples and maple syrup, West Virginia’s unique food culture and cuisine is one of the best parts of living here. Food is deeply tied to the area’s history and culture and big part of the cost of living in West Virginia. A great example of this is the pepperoni roll, the official state food of West Virginia. These beloved rolls of bread, cheese and pepperoni were originally created as a convenient lunch for coal miners. Many recipes use the incredible bounty of apples, fruits and other ingredients that grow here.

Perhaps because many types of food are grown and sourced locally, food costs in West Virginia are reasonable. Average grocery costs here are 2.1 percent below the national average. The average West Virginian spends between $233 and $266 per month on food, which comes out to between $2,801 and $3,200 annually. That’s about the same food spending as more expensive states like California and New York.

As an affordable college town, Morgantown is the least expensive city in West Virginia for food spending. Here’s how other West Virginia cities compare to the national average for food costs:

  • Charleston is 1.4 percent above the national average
  • Morgantown is 4.5 percent below the national average

In general, food items cost more in Charleston. A half-gallon of milk costs $2.24 in Charleston compared to $1.92 in Morgantown. A dozen eggs in Charleston come with a price tag of $1.80, but only cost $1.39 in Morgantown.

However, Morgantown is the more expensive city when it comes to dining out. The bill for a three-course meal for two at a decent restaurant in Morgantown comes out to around $70. But in Charleston, it’s only $42 which is a difference of 40 percent.

West Virginia utility prices

Overall, the cost of living in West Virginia for utilities, like electricity, water and internet, is less than the national average. If you care about getting your energy from sustainable sources, West Virginia is currently not the best place to live. The state’s deep history with coal mining means that the majority of its energy comes from coal-powered plants. However, renewable energy from hydroelectric and wind sources is on the rise. Looking at all utilities combined, here’s how the cost of utilities in these West Virginia cities compares to the national average:

  • Charleston is 2.4 percent below the national average
  • Morgantown is 9.9 percent below the national average

Morgantown is the least expensive city for utilities. Total energy bills for the month come out to around $148.01 compared to $176.91 in Charleston. For water, West Virginians pay an average of $72 for their water bills. To put that in perspective, the average water bill nationally is $68.

The price of internet is more expensive in some West Virginia cities. While the average internet bill around the U.S. is $56, you’ll be paying $70 in Charleston and $75.40 in Morgantown for 60 megabits-per-second.

West Virginia transportation prices

Most cities around West Virginia have access to public transportation, which is a great way to save money on gas and vehicle expenses. It also helps reduce traffic, cuts down on commuting times and is a more environmentally-friendly method of travel. In towns and rural areas, mass transit is an essential link between communities.

For the most part, public transportation in West Virginia is affordable, costing less than the national average. But there are exceptions, as you’ll see when we compare transportation costs in these two cities to the national average:

  • Charleston is 28.5 percent above the national average
  • Morgantown is 8.6 percent below the national average

Charleston is the most expensive city for public transportation in West Virginia. Let’s take a closer look at mass transit services in these cities and what they cost.

KRT in Charleston

The Kanawha Valley Regional Transportation Authority, or KRT for short, provides mass transit services to Charleston’s metro area. Consisting of a fleet of buses and vans, it operates 20 fixed routes. All rides are a flat fare of $1.50. Day passes are available for $2.50 and a 31-day pass costs $60. Discounted fares are available for senior citizens and those with disabilities.

Charleston is also one end of the 88-mile West Virginia Turnpike that connects Charleston to Princeton on Interstate 77. Toll fees vary depending on what class of vehicle you’re driving, the distance you’ve traveled on the turnpike and whether you’re paying in cash or have an E-ZPass. For 2-axle passenger vehicles, fees range from $2.73 to $4.25.

In addition to taking the bus or having your own car, Charleston is also a decent city to navigate on foot. With a walk score of 48 and a bike score of 39, certain neighborhoods and parts of town are both pedestrian- and cyclist-friendly.

Mountain Line Transit Authority in Morgantown

Residents of Morgantown have several different forms of mass transit to choose from. The biggest is Mountain Line Transit Authority, which operates 20 different routes with its bus fleet. Its routes connect the different WVU campuses, the city of Morgantown and surrounding Monongalia County. The Grey line also provides direct service to Pittsburgh for $15.

There’s a reason the cost of transportation in Morgantown falls well below the national average. Mountain Line Transit is publicly supported and funded, allowing riders to use the service for very low costs. One-way fares are between 75 cents and $1, and an unlimited monthly Monster Pass costs $125. Transfers cost an extra 75 cents to $1. All students, staff and faculty of the university get to ride for free, as well.

Morgantown also has the Personal Rapid Transit, an efficient, innovative people-mover that connects the different WVU campuses to downtown. This all-electric mode of transit not only makes life easier for students, faculty and staff of the university but also offers a more sustainable way to get around. A recent study found that the PRT saves 2,200 tons of carbon emissions each year. Use of the PRT, which has five different stops, is free for WVU personnel and students and the general public pays $0.50 a ride.

Between buses and the PRT, it’s easy to get around Morgantown using mass transit. The city also has a good walk score of 50. Certain areas, like downtown and the university campuses, are very walk-friendly. Morgantown isn’t quite as bike-friendly, though, with a lower score of 34.

West Virginia healthcare prices

Healthcare costs in West Virginia are slightly higher than the national average. One of the reasons for this is that the general population struggles with a variety of health issues like heart disease and cancer. West Virginia doesn’t rank well nationally for the general health of its residents, which could be one reason the cost of living in West Virginia for healthcare is higher. However, it’s important to note that because healthcare costs can vary widely on a person-by-person basis due to factors like pre-existing conditions or the cost of prescribed medicines, it’s difficult to determine accurate healthcare averages.

Healthcare costs in most major West Virginia cities are roughly the same. For example, here’s how much a doctor’s visit costs in these different cities:

  • Charleston: $153
  • Morgantown: $141.23

Going to the dentist costs almost the same in both cities, at $102.30 in Morgantown and $103 in Charleston. This is how healthcare costs in these cities compare to the national average:

  • Charleston is 1.4 percent above the national average
  • Morgantown is 2.5 percent above the national average

While similar, Charleston does have slightly more expensive healthcare costs. Since WVU in Morgantown has several university-affiliated hospitals, that could contribute to lower costs and higher quality care. Morgantown is also one of the 50 cheapest cities for healthcare costs.

West Virginia goods and services prices

You’ll also be paying less than the national average for miscellaneous goods and services in West Virginia. This includes everything from getting a haircut to buying toothpaste, as well as leisure activities like going to the movies. Here’s a look at how those costs compare nationally:

  • Charleston is 0.1 percent below the national average
  • Morgantown is 3.7 percent below the national average

While Morgantown is the less expensive city, some costs in both cities are pretty neck and neck. It costs $30 to get a haircut in Morgantown and is only $0.50 more expensive in Charleston at $30.50. Movie tickets only cost three cents more in Morgantown at $11.16 compared to $11.13 in Charleston. Buying a pizza costs $10.64 in Morgantown and $10.39 in Charleston.

From the friendly neighbors to the abundance of things to do outdoors, West Virginia is a very family-friendly state. So, if you’re planning on raising a family here, you’ll also need to factor the cost of childcare into your monthly budget. Paying for a month of private preschool or kindergarten for one child is more expensive in the state capital, costing $900. In Morgantown, it’s $300 cheaper at $600.

Taxes in West Virginia

West Virginia’s statewide sales tax is 6 percent. For every $1,000 you spend in West Virginia, you’ll be paying $60 on top of that in sales tax.

Many municipalities around the state tack an additional 1 percent sales tax on the statewide rate. This includes Charleston and Morgantown:

  • Charleston has a combined tax of 7 percent
  • Morgantown has a combined tax of 7 percent

That brings the amount you pay in taxes for every $1,000 spent up to $70. While expensive, 7 percent is the maximum you’ll pay in sales tax throughout the state.

How much do I need to earn to live in West Virginia?

To figure out if you can afford to live in a particular state or area, first, you need to know what you can afford to pay for rent or housing. The cost of housing is usually the biggest expense in a monthly budget. Experts recommend that you only spend 30 percent of your gross monthly income on housing. This helps ensure a balanced budget, with enough left over for other essentials like groceries, as well as fun activities like going out.

Data isn’t available on West Virginia’s statewide average rent. We’ll use the average rent in Morgantown for this example. The average rent for a one-bedroom apartment in Morgantown is $589. To only spend 30 percent of your monthly income on rent, you’ll need to make $1,963 a month or $23,556 annually.

West Virginia’s median household income is $48,037, so most people living in West Virginia can follow the 30 percent rule and comfortably afford housing. This example is only specific to Morgantown, so you may need to make more per month elsewhere in the state to afford rent.

This rent calculator can help you determine what you can afford to pay in rent each month based on monthly income, expenses and where you want to live.

Living in West Virginia

Like John Denver, you too may soon be singing West Virginia’s praises while living here. Not only is the state incredibly beautiful and fun to explore, but the cost of living West Virginia is also very affordable for most budgets. If friendly small cities, endless hiking and water sports and cheap housing sound like your cup of tea, those country roads will be the ones taking you home, too.

The Cost of Living Index comes from coli.org.
The rent information included in this summary is based on a calculation of multifamily rental property inventory on Rent. as of July 2022.
Rent prices are for illustrative purposes only. This information does not constitute a pricing guarantee or financial advice related to the rental market.

Source: rent.com

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Manufactured, HELOC, Automation, Home Insurance Products; Wholesaler Earnings and News; Inflation and Rates

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Manufactured, HELOC, Automation, Home Insurance Products; Wholesaler Earnings and News; Inflation and Rates

By:
Rob Chrisman

Thu, Aug 10 2023, 10:02 AM

A general discussion topic of those here at the MMLA conference in Michigan is the ups and downs we’re all facing. While mortgage applications drift down, and industry headcounts go down, and towns on Maui like Lahaina burn down, here’s something that isn’t going down: credit card debt. Talk to any underwriter or loan officer and they will tell you that loans have become more difficult, in part because of borrower debt loads, and sure enough credit card balances hit $1.03 trillion in the second quarter. And it ain’t going down. The number is up 4.6 percent from $986 billion in the preceding three-month period. For some good economist’s perspectives and interest rates in general, and one capital markets guy’s, tune in to “Unparalleled Insights into Trends and Bold Predictions” with Selma Hepp (CoreLogic’s Chief Economist), Michael Fratantoni (MBA’s chief economist), and Rob Chrisman” on Wednesday August 16th at 1PM ET/10AM PT, sponsored by TrustEngine. (Today’s podcast can be found here and is sponsored by SimpleNexus, an nCino Company, developer of mortgage technology uniting the people, systems, and stages of the mortgage process into one seamless, end-to-end solution. Hear an interview SimpleNexus’ Jay Arneja on closing technology initiatives, standardization, and digital transformation impacting the industry at the moment.)

Lender and Broker Software, Products, and Services

Mortgage leaders: The home insurance market is facing unprecedented volatility with carriers declining new business and increasing premiums to an all-time high. This can delay closings and even lead to DTI exceeding acceptable limits once accurate insurance costs are factored in. Matic, a home insurance marketplace built for the mortgage industry, helps borrowers save time by shopping multiple A-rated carriers at once and providing transparent pricing and coverage options. With flexible integration options for your company, Matic adds visibility and control, allowing lenders to foresee potential issues that could result in delayed closings. To learn how mortgage enterprises can gain efficiencies and add a new source of revenue with Matic, book a demo today. For more strategies on how to navigate the next phase of the housing market, get Matic’s latest report.

While free origination tools are tempting, they can come with hidden costs, including slowing down the mortgage process, increasing turn times, and halting productivity. Blend’s robust, comprehensive features, intuitive personalization, and automated workflows have proven results: 37% increase in transaction speed, 7 days cut from the loan lifecycle and 34% increase in pull-through. Click here to find out how Blend’s Mortgage Suite helps deliver value during every step of the process.

Problem! Your employees are wasting valuable time on tasks that aren’t generating your business revenue! Solution! Automate the time-consuming parts of the mortgage origination process with Velma Connector! Connector is an easy-to-use, rules-based automation tool that enhances your LOS! Need to put your ECOA process on autopilot? Connector takes the human element out of it. Want to know which loans need attention before it’s too late? Connector will send you the report. Want to automate borrower communications and info collection? Connector hits the send button for you. Stop wasting time and money on manual processes! Get Velma Connector today!

“Turn fixed costs into variable costs on a dime. When the market zigs, lenders need the flexibility to zag. Richey May Advisory brings the mortgage industry expertise and agility you need to convert fixed costs into variable costs. Our difference maker is your ability to outsource services to highly trained experts in a model that fits your needs. Whether that means loan-level accounting, advisory, business intelligence, compliance support, cyber services, internal audits, or underwriting automation, we have the tools, knowledge, and experience to deliver value and improve your financial performance unlike any competitor, anywhere. You’ll feel it almost immediately in your day-to-day operations. Even better, you’ll notice the difference in your bottom line. Reach out or visit our website to learn more about how we can help your operation.”

TPO Programs for Brokers and Correspondents

“Going to California MBA’s 2023 Western Secondary conference? Let’s get together and innovate! Deepen your product lineup with Planet’s Renovation and Manufactured Housing loan programs. Help your clients address today’s housing challenges by adding buydowns and USDA loans to your product mix. We make it easy and profitable to offer niche products. Reach out to Regional Sales Managers Tiffany Ta / 714-376-3214 or Jennifer Salsbury Caldwell / 909-225-8444 to explore new products to build your sales.”

Looking to gain a competitive advantage in today’s tough market? Lenders across the industry are catching wind of HELOC benefits and leveraging this tool to increase their book of business. Let us help you get a leg-up on the growing competition. Symmetry’s Piggyback, Post-close, and Stand-alone HELOCs are unlike any other HELOCs on the market, offering service, speed, simplicity, and pricing that stands up against the competition. Here are just five of the ways Symmetry’s HELOC solutions can help you win and keep more borrower business: cash for borrowers, jumbo avoidance, more second home business, increased condo business and client retention. Symmetry is ready to help you build a strong, resilient growth strategy: Contact your area manager or email us to get started!

Wholesaler Earnings and TPO News

Someone in residential lending is making some coin besides Freddie Mac and Fannie Mae ($2.9 and $5.0 billion respectively in the 2nd quarter).

Last week we learned that Rocket Companies (which, as the name implies, contains several companies) generated total revenue, net of $1.236 billion and net income of $139 million. “Generated total adjusted revenue of $1.002 billion and adjusted net loss of $33 million, or an adjusted loss of $0.02 cents per diluted share.”

Focusing on mortgage banking, “Rocket Mortgage generated $22 billion in mortgage origination closed loan volume with a gain on sale margin of 2.67 percent. Rocket gained purchase market share in the quarter, both year-over-year and quarter-over-quarter. Servicing book unpaid principal balance, which includes subserviced loans, was $504 billion on June 30, 2023. As of June 30, 2023, our servicing portfolio includes 2.4 million loans serviced. The portfolio generates approximately $1.4 billion of recurring servicing fee income on an annualized basis.”

Yesterday United Wholesale reported second quarter earnings with origination volume climbing to $31.8 billion, was up 43% compared to the first quarter and up 6.4% compared to a year ago. “Gain on sale margin compressed to 88 basis points in Q2 compared to 92 in Q1 and 99 a year ago. Purchase volume was 88% of total volume. UWM is guiding for third quarter volume to come in between $26 and $33 billion, and gain on sale to range between 75 and 100 basis points. Adjusted earnings per share came in at $0.11, which covers the $0.10 dividend. At current levels, the stock has a dividend yield of 6%.”

Speaking of UWM, “spec pools” are indeed a thing as certain investors pay up for certain loan attributes that the investor desires. In this case, UWM announced “sharper pricing on loans under $200,000, in addition to major enhancements to its Control Your Price program on non-agency Jumbo loans… UWM has removed loan-size pricing adjustments on loans under $100K and will be paying up premiums for market-based pay-ups on 30-year fixed conventional loans $200K and below.”

“UWM also announced it has increased the number of Control Your Price basis points brokers can apply to Jumbo loans, up to 40 basis points. UWM will also double or triple the Control Your Price basis points brokers apply on all non-agency Jumbo loans, up to 120 basis points.”

The FHFA, which is the conservator of Freddie and Fannie? FHFA Working Paper 23-04: How Do Students Value an Elite Education? Evidence on Residential Location and Applications to NYC Specialized Schools.

Pennymac is aligning with the adoption of Fannie Mae/Freddie Mac Form 1103, Supplemental Consumer Information Form (SCIF) as announced in FHA ML 2023-13. Use of the form is effective with FHA loan applications dated on or after 8/28/2023. View Pennymac Announcement 23-51 – FHA Mortgagee Letter 2023-13 SCIF for details.

CBC Mortgage Agency (CBCMA), a Native American wholly owned and federally chartered housing finance agency, has been approved by the U.S. Department of Agriculture to provide 30-year mortgage loans for borrowers outside of urban and suburban areas. Because the USDA loan program offers 100% financing, CBCMA enables correspondent lenders to help low- to moderate-income families in rural areas achieve homeownership. USDA loans provide low- and moderate-income borrowers with “the opportunity to own adequate, modest, decent, safe and sanitary dwellings as their primary residence in eligible rural areas,” according to the agency. Up to 90% of the original principal amount of USDA-based 30-year notes are guaranteed by the agency.

AmeriHome Mortgage Announcement 20230707-CL summarizes previously published changes made during July, additional changes made with this announcement, and recent Agency and regulatory news.

Recently, the GSEs announced updated policies addressing critical repairs, deferred maintenance, and special assessments in projects with five or more attached units effective for loan applications dated on or after September 18, 2023. View AmeriHome Correspondent Product Announcement 20230801-CL for additional information.

PRMG Product Update 23-36 includes clarifications regarding FHA Standard and High Balance cash out transactions on Manufactured Homes, borrowers living rent free requirements on Investor Solution, self-employment verifications requirements of Ruby Jumbo and Express Jumbo. Additional updates and clarifications for Ruby Express and Onyx Jumbo.

Capital Markets

A slide in big tech equities yesterday due to President Biden’s Executive Order announcement prohibiting investment in certain Chinese technologies, as well as higher energy prices, helped mortgage-backed security “sentiment” and further flattened the yield curve, which at this point is to say it increased in inversion: “bear flattening.” Fortunately, MBS prices were not very reactive to the initial selloff in Treasuries which tightened spreads further. Investors squared positions ahead of today’s Consumer Price Index inflation data that will help shape the outlook for the Fed’s next steps.

What was the result of all this noise? The U.S. 10-year note and the 30-year bond prices, along with them MBS, pushed to fresh highs in the afternoon after the completion of the day’s solid $38 billion 10-year note offering while 5-year notes and shorter tenor prices slipped to fresh lows as the market prepared for July CPI. Some movement was driven by European equities rebounding after Italy walked back Tuesday’s windfall tax announcement, saying the tax would be capped at 0.1 percent of assets.

Today brings the CPI report for July, as expected. Headline CPI increased .2 month-over-month and () year-over-year when it was expected to increase 0.2 percent month-over-month and 3.3 percent year-over-year compared with 0.2 percent and 3.0 percent in June. The core reading, ex-food and energy, was .2, as expected, and 4.7 percent year over year versus 4.8 percent previously. Weekly jobless claims have also been released: 248k, higher than expected, 1.684 million continuing claims. Later today brings a Treasury auction of $23 billion 30-year bonds, and remarks from Atlanta Fed President Bostic and Philadelphia Fed President Harker. We begin the day with Agency MBS prices better by .125-.250 and the 10-year yielding 3.96 after closing yesterday at 4.01 percent after the inflation data.

Employment and Transitions

“Attention homebuilders and other potential joint venture partners! In today’s volatile market, a reliable lending partner is non-negotiable. Enter PrimeLending, backed by the strength of Hilltop Holdings and PlainsCapital Bank. We’re not just surviving; we’re thriving. With over 37 years in the mortgage industry, we bring more than stability and experience. We bring game-changing insight to boost your revenue. Join us at PrimeLending Ventures Management, LLC. Our proven track record, streamlined operations, and cutting-edge technology speak for themselves. Imagine this: together, we’re not just about making profits, but about evolving your brand. What are you waiting for? Reach out to Mike Matthews today to talk about a partnership built on shared success.”

Mortgage Capital Trading, Inc. (MCT®), the de facto leader in innovative mortgage capital markets technology, today announced the appointment of Steve Pawlowski as Managing Director, Head of Technology Solutions. Mr. Pawlowski will be responsible for expanding upon MCT’s proven record of driving efficiency and liquidity in the secondary market. “MCT was the fastest and most comprehensive technology partner I worked with on API development while at Fannie Mae,” said Steve Pawlowski, Managing Director, Head of Technology Solutions at MCT. “I couldn’t be more excited to apply my institutional expertise to this agile and committed technology development team.” Mr. Pawlowski will provide leadership on all MCT technology development. He brings extensive industry experience to MCT, including 30+ years with Fannie Mae’s Capital Markets and Single-Family Digital Products and Services organizations. Read the full press release or join MCT’s newsletter to stay up to date on recent news and educational content.

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Source: mortgagenewsdaily.com

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Broker Pricing and Non-QM Products; Seminars and Conferences; Rates Higher on Producer Prices

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Broker Pricing and Non-QM Products; Seminars and Conferences; Rates Higher on Producer Prices

By:
Rob Chrisman

Fri, Aug 11 2023, 10:22 AM

As the MMLA conference wraps up (congratulations to Dan Grzywacz, CMB, and nearly 40-year industry vet, who was this year’s James T. Barnes Award winner), the conversations still involve some seemingly endless topics. One of which is W2 versus 1099. There’s been a lot of “quacking:” about whether originators can be paid as independent contractors (1099) or need to be employees (W-2). Mortgage Muser and attorney Brian Levy has some new thoughts on this topic that are worthwhile even if he “ducks” providing legal advice in his entertaining and insightful mortgage blog. View past editions of the Mortgage Musings and subscribe to get emailed about new postings for free here. Another is sticky higher interest rates, and today at 3PM ET, Skylar Olsen, Zillow’s Chief Economist, will be co-hosting The Mortgage Collaborative’s Rundown, covering current events in the economy and mortgage market for 30-45 minutes. And there’s volume. According to Curinos, July 2023 funded mortgage volume decreased 30% YoY and 13% MoM. Curinos sources a statistically significant data set directly from lenders to produce these benchmark figures. (Today’s podcast can be found here and is sponsored by SimpleNexus, an nCino Company, developer of mortgage technology uniting the people, systems, and stages of the mortgage process into one seamless, end-to-end solution. Hear an interview with Equifax’s Joel Rickman on leveraging income and employment verifications during the home equity line of credit (HELOC) origination process.)

Lender and Broker Software, Products, and Services

“Brokers can now shop, lock, and deliver on one platform that seamlessly connects brokers, lenders, and originators. In this market, hustle is everything. You can’t afford to waste a single deal… Or a single minute. That’s why ReadyPrice has launched its innovative new Shop, Lock & Deliver loan exchange platform, designed to help independent mortgage brokers like you save time and money. Now you can shop competitive loan offerings from multiple lenders, get rate lock guarantees in real time, receive underwriting findings, and deliver the borrower’s complete loan file to lenders, and all on a single platform, at no cost to brokers. It’s the industry’s most powerful universal delivery portal, and it’s already helping thousands of brokers around the country thrive and compete in even the toughest market environments. Multiple lenders. One platform. Zero b.s. Come check us out today.”

Mega Capital Funding is proud to be a 25 yr. partner to the broker community. The team at Mega Capital continues to grow and expand across the US. Mega has recently added another 10 outside AEs across the country to further support the broker community. The team at Mega is also expanding our products this month with additions to our Non QM suite. ITIN is new and improved along with our Expanded DSCR options which also includes a No Ratio DSCR. We at Mega are looking to continue to be a destination for brokers and bankers to find all their lending needs under one roof. Conv, FHA, VA, USDA, Jumbo and Non QM. Mega Capital is also excited to be at NAMB this year. Please come by and see us in Vegas.

Looking Ahead to Conferences and Training

A good place to start is here, and click on “events.”

The Mississippi Mortgage Bankers Association is holding its fall conference September 7-8 in Jackson. Our theme for this year is “Building a Strong MS” We are focusing on building relationships, strategies, and opportunities for the real estate housing industry in MS. Our fall conference is open to loan originators, realtors, and other industry affiliates. Realtors will receive Continuing ED (CE) credits for attending the Fall Conference.

Save the dates of September 10-12 and join lending professionals from the Pacific Northwest at the Riverhouse in Bend, Oregon, for the Pacific Northwest Lenders Conference. This event promises to be a catalyst for professional growth, offering a unique platform to expand knowledge, build valuable connections, and elevate lending businesses in the region.

Prepare to be amazed and delighted when you swing by the Plaza Home Mortgage® booth at the NAMB National Conference, September 8-11, at Caesars Palace in Las Vegas.

Register for free with the code PLAZAFREE and pop by Plaza’s booth #607 or schedule a meeting with us at [email protected].

Zelman’s Virtual Housing Summit is September 18-21, though not exactly in person.

Network and collaborate with your industry colleagues while learning the latest updates on mortgage industry standards at MISMO’s Fall Summit, September 18 – 21 in Washington, DC

New To MISMO? Check out this 20-minute presentation “Intro to the MISMO Summit Experience” to learn what to expect and how to best prepare so that you get the most out of the Summit.

AzAMP Annual EXPO, Luncheon, and 8-Hour NMLS CE Class, September 27–28, at the We-Ko-Pa Resort and Casino. Begin your experience on Wednesday, Sept. 27 with Part 1 of NMLS CE class. Full day of events begins on Thursday, September 28 including NMLS CE class Part 2, Luncheon with Keynote Speakers Allen Beydoun, UWM Executive Vice President and Rob Chrisman, The Chrisman Commentary Daily Mortgage News, followed by the AzAMP Expo.

Watch on demand, at your leisure: Millennials and Gen Zers represent the largest group of first-time homebuyers. In less than 10 years, 3.1 million will have entered the market. Of these buyers, roughly 75 percent of them report checking social media daily. Making social media a necessary strategy for loan officers. Join Homebot’s VP of Marketing, Ashley Remstad and Mortgage Advisor Sosi Avila as they discuss key strategies and tactics for using social media to your advantage. Register for the webinar here.

It’s time to register for the New England Mortgage Bankers two-day Conference, September 13-14 in Portsmouth NH. Multiple venues all within walking distance for a new NEMBC experience.

Register for the AzAMP Annual EXPO, Luncheon, and 8-Hour NMLS CE Class on September 27th and 28th at the We-Ko-Pa Resort and Casino. Don’t miss Luncheon Speakers Allen Beydoun, UWM EVP, and Rob Chrisman, The Chrisman Commentary Daily Mortgage News. Stay the night at the resort and attend all the events.

Registration for the NCEO 2023 Fall Forum in Houston, September 26-28 is now open. Featuring top industry experts and thought leaders, the forum will update you on the latest trends and best practices in employee ownership. Network with other employee owners and industry professionals from across the country, sharing ideas, challenges, and successes.

Secure early-bird pricing through June 23rd. From close-knit conversations to invigorating keynotes, the forum is the place to rocket your company into the stratosphere.

MBAC 67th Annual Convention Oct 1-4, 2023 at the Francis Marion Hotel, Charleston, SC.

Sponsorship opportunities available, reserve your room at the Francis Marion Hotel use Promo Code MBAC2023 for special rate, Last Day to reserve at this rate, September 11, 2023.

Mark your calendars and make plans for ACUMA’s 2023 Annual Conference! Registration is now open for the biggest event tailored for the credit union mortgage professional. This year’s theme, Make Your Mark, is the largest and most comprehensive event on ACUMA’s education calendar and is scheduled for Oct. 1-4 at the Gaylord National Resort in National Harbor, Maryland, just down the Potomac River from Washington, D.C. Make plans now to attend this year’s largest gathering of mortgage lenders, and plan to continue to Make Your Mark in credit union mortgage lending! Here’s the link to register! ACUMA 2023 Annual Conference.

At Turning Stone Casino & Resort, Verona, NY., October 4th at 12:00 PM – October 6th at 12:00 PM (EDT), NYMBA 2023 Annual Convention & Golf Tournament, a premier event that brings together industry leaders, professionals, and innovators in the mortgage banking sector. This convention serves as a platform to foster collaboration, share knowledge, and explore emerging trends, ultimately shaping the future of the mortgage banking industry in New York and beyond.

As we celebrate America’s independence, we have many other reasons to celebrate as well. This October 15-18, we’re taking the original gathering of real estate finance professionals to the birthplace of our country, and we’re celebrating some of the reasons you’re going to love it: MBA’s Annual Convention & Expo 2023.The largest annual gathering of real estate finance professionals, this is the one event you need to gain access to the industry’s power players and innovators. Be inspired and get informed by engaging speakers on the Main Stage. Meet with dozens of exhibitors in THE HUB and get hands-on access to the latest products and services. Dive deep into Breakout Sessions to get the insight you need on all the facets of the business.

There’s only one venue where you can get timely updates on where the reverse mortgage industry is headed, the 2023 Annual Meeting & Expo, October 23-25 in Nashville, TN.

Get the latest news on the HECM program. Learn about proprietary product opportunities. Find out what other regulatory changes are forthcoming. Pre-sale registration, the lowest registration rate, expires at midnight (Eastern Time) on Tuesday, August 22.

The kind of news you want to know, VIBE 2023, a very important broker exchange, is here! What is VIBE 2023?* The biggest growth mindset event for Mortgage Brokers featuring a VIP lineup of some of the most influential speakers in the country! Join us at the Westin South Coast Plaza in Costa Mesa, CA on 10/24/2023. Register to attend using your UNIQUE CODE**, provided by your Kind Account Executive. Learn more by visiting here. *VIBE 2023 event is open to all licensed Mortgage Brokers in the United States. No commitments to establish a partnership with Kind Lending are required to attend. **Unique Codes are provided by your Kind Lending Account Executive. If you do not have an account executive or are not yet working with Kind TPO, email us to learn more.

TMBA is working through the summer planning outstanding events including the 6th Annual Mortgage Symposium, November 6-7 at the Westin Dallas Southlake Hotel in Southlake TX. The Texas Women Mortgage Bankers event will be held on November 6 at the Westin Dallas Southlake Hotel.

October Research, LLC is happy to bring back the Women’s Leadership Summit (WLS) for its second year. It will be held November 6-7 at the Naples Grande Beach Resort in Naples, FL. We are now accepting registrations and speaker nominations! Built around the four pillars (Develop, Grow, Support and Empower) WLS provides attendees with the tools for success in a fun and supportive environment. Attendees come from across the country to learn from our visiting experts and each other about how to meet their goals. Visit OctoberResearchWLS.com for more information.

Capital Markets

Not only do the earth’s temperatures keep going higher, but inflation does as well, but at a slower pace! It was revealed yesterday that the consumer price index rose a temperate 0.2 percent in July and 3.2 percent year-over-year, matching consensus expectations. That marked the smallest back-to-back gains in more than two years, adding to a steady wave of disinflation in recent months. Excluding the volatile food and energy components, the “core” index rose 4.7 percent year-over-year versus 4.8 percent in June. The index for shelter accounted for 90 percent of the increase, but is almost back to pre-pandemic levels and will continue to moderate after home price appreciation peaked last year.

While the recent trend is encouraging and confirms that inflation is headed in the direction the FOMC wants, it’s likely premature to get overly excited about a sustained return to the Fed’s 2 percent inflation target. The Fed’s fear is that a pause will reignite home price appreciation, exacerbate the affordability problem, and push inflation higher. Look for the Fed to leave interest rates unchanged at the next policy meeting in September, but add the caveat that the job isn’t done yet. Initial claims also moved in a direction last week to corroborate the thinking that there is some softening in the labor market, which is what the Fed expects and hopes to see. However, bond yields rose by the day’s close after the U.S. Treasury closed out this week’s auction slate with a weak $23 billion 30-year bond offering.

Today’s calendar kicked off with MBA reporting that the delinquency rate for mortgage loans on one-to-four-unit residential properties decreased to a seasonally adjusted rate of 3.37 percent of all loans outstanding at the end of the second quarter of 2023, down 19 basis points from the first quarter of 2023 and down 27 basis points from one year ago. The percentage of loans on which foreclosure actions were started in the second quarter fell by 3 basis points to 0.13 percent.

We’ve also received the July Producer Price Index, which increased .3 percent month-over-month and .8 percent years-over-year versus 0.2 percent month-over-month and 0.6 percent year-over-year expectations and both 0.1 percent month-over-month and year-over-year previously. Core PPI rose (), +2.7 year over year. The only other release scheduled for today is at 10AM ET with the preliminary August Michigan sentiment. We begin the day with Agency MBS prices worse .125-.250 from last night and the 10-year yielding 4.13 after closing yesterday at 4.08 percent.

Employment and Transitions

“Keith McKay, CEO of Prime Choice Funding, invites you to participate in reshaping the mortgage industry. Our mission for 2023 is to become the top mortgage broker in the nation. Join our team and expand your professional horizon with our diverse loan programs, flexible compensation plans, and a unique opportunity to earn extra by offering solar solutions to your clients. Backed by comprehensive marketing resources, cutting-edge platform, and robust operations support, your potential for growth is limitless. With a history dating back to 2007, Prime Choice represents stability and innovation in finance and sustainability. Register for our webinar today and explore these rewarding opportunities.”

The Maryland office of USA Mortgage has added nationally prominent Loan Officer, Sam Rosenblatt, to its roster. Rosenblatt joins William “Bill” Sohan in his venture to expand USA’s national footprint. Active in the mortgage industry since 1995, Rosenblatt was the #1 producer in units in Maryland in 2021, filing 978 closed loans valued at $338,087,603, and is among the top 50 originators in the nation. “I’m excited to join USA Mortgage because they have great loan options for my clients, state-of-the-art marketing, and cutting-edge technology that makes the mortgage process as efficient and smooth as possible”, he said. Founded in St. Louis in 2001, USA has offices in 34 states and is licensed in 49 states plus the District of Columbia. For a confidential conversation about joining USA, contact Brooke Anderson at 609-500-1520.

Switching gears, Michael Dresden, the President of Dart Appraisal, sent the sad news that Tim Laden, Dart’s Chief Appraiser, passed away. “Tim impacted so many appraisers across the country through his love for coaching and mentoring. Tim was such an asset to Dart and helped us elevate many areas of our business. We’re better because of Tim.”

 Download our mobile app to get alerts for Rob Chrisman’s Commentary.

Source: mortgagenewsdaily.com

Apache is functioning normally

Mortgage credit availability dropped to its lowest level since 2013 in July as receding  origination volumes led to lower profitability for many lenders.

Simultaneously, liquidity concerns persisted for some jumbo lenders. As a result, many companies tried to reduce their operational costs by narrowing their loan product offerings, according to Joel Kan, Mortgage Bankers Association’s vice president and deputy chief economist.

The trade group’s monthly Mortgage Credit Availability Index fell by 0.3% to 96.3 last month. A decline of the index, benchmarked to 100 in March 2012, indicates that lending standards are tightening while an increase suggests loosening credit.

“One key driver of this month’s decline was a drop in cash-out refinance loan programs,” said Kan. “The 30-year fixed mortgage rate averaged 6.94% in July, more than a percentage point higher than July 2022, and this has significantly discouraged cash-out refinance activity, as borrowers turn to home equity and consumer loans instead.”

He added that the jumbo index fell for the third straight month, as jumbo lenders further reduce the number of available loan programs.

Meanwhile, the Conventional MCAI, which does not include loans backed by the government, decreased 0.5% and the Government MCAI, which examines FHA, VA, and USDA loan programs, decreased by 0.1%.

Of the two component indices of the conventional index, the Jumbo MCAI decreased by 0.8%, and the Conforming MCAI rose by 0.2%.

Source: housingwire.com

Apache is functioning normally

Best known for its friendly, happy residents, unique geography and massive dairy and cheese industries, Wisconsin is a popular Midwestern state to call home. With a lush interior of farmland, forests and sandstone formations and coastlines on two of the Great Lakes, Wisconsin offers hiking, fishing, camping and boating.

Long overshadowed by coastal metropolises, its big cities are becoming trendy, fast-growing destinations for both work and fun. As centers for industry, culture, art and sports, Wisconsin cities like Madison are attracting more and more young professionals to live and work. Families also love living here thanks to the safe towns and fun family attractions like the Wisconsin Dells.

On top of all this, the cost of living in Wisconsin is also affordable. Many essentials like housing and groceries are cheaper than the national average. While some cost of living categories are above the national average, they’re not over-the-top expensive. Living in Wisconsin is attainable for a wide range of lifestyles and budgets, with different cities offering different quality of life and cost of living standards. Here’s how Wisconsin’s cost of living varies around the state.

Wisconsin housing prices

Overall, housing costs in Wisconsin are lower than the national average. The only exception is in its two biggest cities, Milwaukee and Madison. But even there, the cost of rent isn’t out of control. You’ll even make your New York City or Los Angeles friends jealous of how reasonable housing costs are. Even if an apartment in Milwaukee or Madison is too expensive, smaller cities and towns nearby likely have more affordable options.

Here’s what the average rent is like in some of Wisconsin’s biggest or most popular cities.

Eau Claire

A former lumber town in the west-central part of the state, Eau Claire is now a hip indie town flush with art, culture, trendy dining and innovation. Ever heard of a little band called Bon Iver? Yeah, they’re from here. With great live music, performing arts, festivals, galleries and events, it’s one of the best places for an artist in Wisconsin. It’s extremely popular with young professionals and the University of Wisconsin has a campus here. It’s also Wisconsin’s second-fastest-growing city, surpassed only by Madison.

As if all that fantastic art access wasn’t enough, housing costs here are also 16.1 percent lower than the national average. You can find a one-bedroom apartment for $795. Two-bedroom apartments cost an average of $995 a month. These rates have stayed constant over the past year.

Eau Claire’s housing market has grown a little bit more. Since last year, prices have increased by about 15 percent. The median sale price for a home here is $279,000.

Green Bay

Go Packers! Located on Lake Michigan’s Green Bay, this midsized city is best known for its National Football League team, the Green Bay Packers. But Green Bay has a lot more to offer besides sports. It has the distinction of being Wisconsin’s oldest settlement. It has a versatile range of things to do, from cool museums to outdoor activities. Sports fans and families alike enjoy living here.

Luckily, you don’t need too many greenbacks to afford housing in Green Bay. Housing costs here are 20.4 percent below the national average. The average rent for a one-bedroom apartment is $847, while two-bedrooms go for $1,175. The price of one-bedrooms is down 8percent from last year. But the price for two-bedroom units is up 30 percent.

Growing 15 percent over the past year, Green Bay’s housing market is also on the rise. Homes here go for a median sales price of $238,000.

Madison

Centered around two different lakes in the southern part of the state, Madison is Wisconsin’s state capital. With 269,196 residents, it’s the second-most-populous city in the state next to Milwaukee. Residents love Madison for its livability just as much as its cultural offerings. Several universities have campuses here, most notably the University of Wisconsin-Madison. Food and drink are also a big deal here, with excellent restaurants and craft breweries. All in all, it’s considered one of the best places to live in Wisconsin.

Housing costs here are also not too high. In general, the cost of housing is only 2.4 percent above the national average. One-bedroom apartments go for around $1,312 per month, which is down 4 percent from the previous year. The price for two-bedroom apartments is up 5 percent to $1,625.

Madison’s housing market has also grown 11 percent from last year, bringing the median sale price up to $380,000. That’s a fair bit below the national median sale price for a home, which is $428,000.

Marshfield

Marshfield is a small city situated in the middle of the state. With its many family-friendly attractions like the Wildwood Zoo, it’s a popular place for families to live. It’s also the home of the Marshfield Clinic. This notable healthcare system serves most of the state and has a reputation for excellent care. As such, Marshfield is a hub for high-quality healthcare access.

Low housing costs are another benefit of living here. The cost of housing is 17.1 percent below the national average. One-bedroom apartments cost an average of $775 per month. Two-bedroom units jump significantly up to $1,010 up 3 percent from last year.

With median sale prices around $202,000, Marshfield is also a great place to buy a home. The local housing market has seen a small amount of growth from last year, going up 5 percent.

Milwaukee

Unsurprisingly, housing costs in Milwaukee are among the highest in the state, rising 3.7 percent above the national average. Located on the shore of Lake Michigan in southeastern Wisconsin, Milwaukee is Wisconsin’s most populous city. This vibrant, magnetic city is best known for its brewing industry, cool cultural institutions and small-town atmosphere in a big-city package.

Despite being Wisconsin’s biggest urban center, rent prices have decreased over the past year. One-bedroom apartments are down 10 percent to $1,387 a month. Two-bedrooms are down 22 percent to $1,632.

Milwaukee’s housing market, on the other hand, has grown 3 percent over the past year. But with a median sale price of $195,000, Milwaukee is still a great city for a homeowner.

Wisconsin food prices

From beer to cheese, Wisconsinites love their local food. And luckily, it doesn’t break the bank to do so. Average grocery costs in Wisconsin are only 0.9 percent above the national average. Wisconsinites spend between $233 and $266 per person on food each month. That comes out to between $2,801 and $3,200 annually.

Food prices do vary by city, though. Here’s how food costs in these Wisconsin cities compare to the national average:

  • Green Bay is 6.9 percent below the national average
  • Milwaukee is 3.7 percent below the national average
  • Eau Claire is 0.5 percent below the national average
  • Marshfield is 0.3 percent below the national average
  • Madison is 2.7 percent above the national average

Madison is the most expensive city for food prices, while Green Bay is the least expensive. To illustrate that difference, a half-gallon of milk costs $2.38 in Madison. In Green Bay, it only costs $2.12. Want to buy a dozen eggs? It will cost you $1.48 in Madison and $1.32 in Green Bay. However, specific food costs don’t always reflect their citywide average. In Eau Claire, you’ll find the cheapest price for eggs at $1.16.

You’ll also be paying more to dine out in bigger cities. This is especially true of major foodie cities like Milwaukee and Madison. Going out for a three-course dinner for two at a nice restaurant in Madison will set you back $75. In Marshfield, a fancy date night out with your partner will only cost around $45.

Wisconsin utility prices

For the most part, you’ll be paying more than the national average for utilities like electricity, water and internet in Wisconsin. The costs for these services in most cities are slightly above nationwide rates. But, in other cities, it’s a few notches below the national average. That can come out to a pretty big dollar amount difference between cities. So considering the overall cost of utilities in different cities is important in determining where to live in Wisconsin.

For a brief overview of Wisconsin’s energy profile, the state gets the majority of its electricity from coal-powered plants. Natural gas and nuclear also make up a decent chunk of the electricity pie chart. Renewables represent a smaller portion, coming from hydroelectric and wind power primarily. Deep underground aquifers and lakes supply the majority of the state’s water.

Here’s how the cost of utilities in these Wisconsin cities compares to the national average:

  • Green Bay is 4.4 percent below the national average
  • Milwaukee is 4.4 percent above the national average
  • Marshfield is 3.4 percent below the national average
  • Eau Claire is 4 percent above the national average
  • Madison is 6.2 percent above the national average

With a total monthly energy bill of $197.82, Madison is the most expensive city for utilities. Green Bay is the cheapest, with total monthly energy costs coming out to $164.79. Wisconsinites also have a low average water bill of $18. The average statewide internet bill is $59.99. But, in some cities, it’s more expensive. In Madison, you’ll pay $72.50 for 60 megabits per second.

Wisconsin transportation prices

Most Wisconsin cities, towns and counties have some form of mass transit. The most extensive systems are found in major cities like Milwaukee and Madison.

Using public transportation like buses or light rail has many benefits. It can help you save money on gas, insurance costs and other vehicle expenses. If you live in a major city, it can cut down on commuting time and help reduce traffic. It’s also a more sustainable and eco-friendly mode of transportation. If you do need a car to get around, Wisconsin doesn’t have any toll roads.

Since the cost of transportation varies so widely between cities in Wisconsin, whether using public transit saves you money really depends on where you live. Let’s take a closer look at the differences in the cost of transportation in different Wisconsin cities:

  • Milwaukee is 9.5 percent below the national average
  • Marshfield is 9.2 percent below the national average
  • Madison is 3.3 percent below the national average
  • Eau Claire is 0.9 percent above the national average
  • Green Bay is 1.4 percent above the national average

All these cities have some form of public transportation. In Marshfield, a shared-ride taxi service called Running Inc. provides shared ride transit within the city limits. Adult fares are $5 per ride. This service does have limited hours, though. A fleet of buses provides mass transit to residents of Eau Claire for $1.75 per ride.

Let’s take a closer look at the bigger public transit systems in major cities like Milwaukee. We’ll also look at Green Bay, where public transit prices are the highest above the national average.

Metro Transit in Madison

Consisting of a fleet of buses, Metro Transit operates 47 bus routes throughout Madison and the surrounding suburbs. Single-ride adult fares are $2. You can purchase a full-day pass for $5 or a 31-day pass for $65. On routes servicing the University of Wisconsin campus, rides are free for anyone associated with the university.

With a transit score of 45, Metro Transit does a decent job of connecting the city through mass transit. However, this pretty city is also great to explore and navigate on foot. Madison boasts a high walk score of 64. Its bike score is even higher at 75. With a score that good, maybe the only wheels you need in Madison are a pair of bike wheels.

Green Bay Metro in Green Bay

Green Bay only scores a 31 for its public transit. This could be because the local provider offers limited routes. Green Bay Metro only operates 14 different bus routes. Some of these routes only have limited service. The cost of a single ride is $2 with no transfers. Day passes are available for $4 and a 30-day pass is $39. One benefit is that Green Bay Metro has free game-day routes during the National Football League season. Not only is this a nice show of community spirit, but it also improves public safety and access to the games.

Along with its transit score, Green Bay has low walk and bike scores. Its walk score is 45 and its bike score is 50. While certain parts of town are walkable or cyclist-friendly, the overall city isn’t well-connected enough.

MCTS in Milwaukee

With monthly parking costs averaging between $70 and $175, using public transit in Milwaukee is a great way to save money. The Milwaukee County Transit System provides bus-based public transit through Milwaukee city and county. It’s also the biggest transit agency in the state, with 60 bus routes and thousands of stops.

There are fare discounts if you pay using the system’s M-CARD or app. With the card, a single ride costs $2. Paying in cash costs $2.25. Day passes are $4 and $5, respectively, for card and cash. A 31-day pass is $72.

The Hop streetcar also provides mass transit around downtown and the city center. At the moment, it only has one 2-mile route. The Hop is a great option for visitors and residents who live or work in the city center. Best of all, riding the Hop is free.

With good connectivity and affordable rates, MCTS has a decent transit score of 53. If you want to live in a walk- and bike-friendly city, Milwaukee is a great option. It has high scores for both walking and biking, at 70 and 69 respectively.

Wisconsin healthcare prices

With the exception of Green Bay, you’ll be paying more than the national average for healthcare costs in Wisconsin. But with that high price tag comes top-quality care. As we mentioned above, Marshfield is home to the renowned Marshfield Clinic. The state also has many nationally- and internationally-ranked hospitals. It’s one of the healthiest states overall, as well. So, while healthcare costs are higher here, you also know you’re getting exceptional care.

We should also note that it’s difficult to determine average healthcare costs. This is because healthcare costs vary by person. Some people have to pay more for healthcare due to pre-existing conditions or more expensive prescriptions. Regard healthcare averages with a grain of salt as a result.

But to give you a rough overview, here’s how much a doctor’s visit costs in these different cities:

  • Green Bay: $168.75
  • Eau Claire: $178.28
  • Milwaukee: $181.67
  • Madison: $204
  • Marshfield: $207.70

Now, let’s see how overall healthcare costs in these cities compare to the national average:

  • Green Bay is 2.4 percent below the national average
  • Eau Claire is 13.9 percent above the national average
  • Milwaukee is 14.5 percent above the national average
  • Madison is 17.1 percent above the national average
  • Marshfield is 27.9 percent above the national average

Marshfield comes out on top as the most expensive city for healthcare. But once again, you’ll be receiving top-tier care from the Marshfield Clinic system. Marshfield is also among the top cities for expensive dentist visits, costing $100.50 for a dental check-up. Going to the dentist is the most expensive in Milwaukee at $127.50.

While healthcare costs here are high, you know you’re being extremely well taken care of at Wisconsin medical facilities.

Wisconsin goods and services prices

For various goods and services like getting a haircut or going to the movies, these costs bounce around a lot in different Wisconsin cities. Let’s see how the overall cost of goods and services in these cities compares to the national average:

  • Marshfield is 12.3 percent below the national average
  • Milwaukee is 6.2 percent below the national average
  • Green Bay is 1.1 percent below the national average
  • Madison is 3.3 percent above the national average
  • Eau Claire is 8.2 percent above the national average

Marshfield comes out on top with the least expensive goods and services. You’ll pay $15 for a haircut here compared to $19.32 in Eau Claire, which is the highest city above the national average. Milwaukee actually has the most expensive haircuts at $22.

But let’s look at that all-important Wisconsin item: How much does beer cost? The least you’ll pay for a six-pack is $7.82 in Milwaukee. The most expensive beer is $8.99 in Green Bay. Still pretty reasonable, but hey, as a big beer-loving state it does add up.

Wisconsin is a great place to raise a family, so you may need to consider childcare costs.

Childcare is pretty pricey around the state, but Green Bay is the most expensive. For a month of private preschool or kindergarten for one child, you’ll be paying $1,333.33. After Green Bay, Madison is $1,300 a month and Milwaukee is $1,250 a month.

Taxes in Wisconsin

Wisconsin has a statewide sales tax of 5 percent. If you go out and spend $1,000 on beer for a party, you’ll be paying $50 on top of that in tax.

Some counties and cities add extra sales tax on top of the statewide rate. Here’s what the total sales tax is in each of these cities:

  • Madison has a combined tax of 5.5 percent
  • Eau Claire has a combined tax of 5.5 percent
  • Marshfield has a combined tax of 5.5 percent
  • Green Bay has a combined tax of 5.5 percent
  • Milwaukee has a combined tax of 5.5 percent

All these cities and counties only add a 0.5 percent tax to the state rate. For that $1,000 spent on beer, the county sales tax brings that $50 up to $55.

How much do I need to earn to live in Wisconsin?

A good rule of thumb for figuring out if you can afford to live somewhere is to follow the 30 percent rule. While not a strict rule, it’s recommended by experts that you only spend 30 percent of your gross monthly income on rent or housing costs. This is to ensure that you cover your biggest monthly expense, which is usually housing, and still have plenty left over for other essentials like groceries.

The average rent in Wisconsin is $1,069. To only spend 30 percent of your gross monthly income on rent, you’d need to earn about $3,563 a month or $42,756 annually. The median household income in Wisconsin is $63,293, which is well above what you would need to earn to follow the 30 percent rule. This shows that it’s likely that most people are able to afford housing without straining their budget and can comfortably afford the cost of living in Wisconsin.

To find the right place in Wisconsin for your budget, use our rent calculator.

Living in Wisconsin

Beer, cheese and reasonable prices for things like housing. What could be better? With so much to offer, Wisconsin’s affordable cost of living is the icing on the cake. Living in this Midwestern state promises exciting opportunities, supportive communities and plenty of great beer and food.

Related Articles:

The Cost of Living Index comes from coli.org.
The rent information included in this summary is based on a calculation of multifamily rental property inventory on Rent. as of July 2022.
Rent prices are for illustrative purposes only. This information does not constitute a pricing guarantee or financial advice related to the rental market.

Source: rent.com

Apache is functioning normally

Government-sponsored enterprises Fannie Mae and Freddie Mac, two of the largest investors in the U.S. mortgage market, would experience combined credit losses of $35 billion in the event of a severe financial downturn, according to a report from the Federal Housing Finance Agency released Thursday.

The annual Dodd-Frank Stress test, which examines how balance sheets of high-value federally regulated entities would be impacted in the event of a global recession, reflected a staggering increase in estimated losses from last year, when the same test initially projected they’d be more than $17 billion. (The 2022 stress test number for credit losses underwent a slight downward revision earlier this year after Fannie identified some errors in its model and adjusted for them, bringing that number slightly below $17 billion.)

While the credit losses in the stress tests, defined as net charge-offs plus foreclosed property expenses, were markedly higher than a year ago, the FHFA found Fannie and Freddie would generally be sufficiently capitalized to withstand the shock. Notwithstanding adjustments for allowances on deferred tax assets, both would generate positive comprehensive income under the stressed scenario.

That means Fannie has the capacity to absorb more than $21 billion in credit losses modeled while Freddie would be able to take on almost $14 billion. Under revised numbers for last year, Fannie would have taken on somewhere between $10 billion and $11 billion in credit losses in a stressed scenario, and Freddie would have taken on more than $6 billion.

However, Fannie’s number for total comprehensive income after a severely adverse stress, at $6 billion, was about half of that seen in last year’s revised numbers. Freddie’s TCI, $4 billion, was around two-thirds of what it produced under the stresses modeled for 2022.

And with reserves set aside to offset potential losses on deferred tax assets, both enterprises would be in the red under the stressed scenario this year. Fannie would record a total comprehensive loss of $7.8 billion. Freddie would record a smaller loss of $600 million. Freddie remained profitable even with an allowance for deferred tax assets in place last year.

Provisions for credit losses remain the largest modeled expense at both enterprises. Mark-to-market losses became the second largest at Fannie. The impact of a global market shock with a counterparty default continued to be the second largest expense at Freddie.

The Dodd-Frank Act mandates that FHFA conducts annual stress tests for the enterprises in order to assess their capacity to withstand severe economic downturns. FHFA advises each government sponsored institution through the tests to ensure uniformity and comparability of results.

These tests — which the FHFA noted are not a forecast, but rather a tool to evaluate the enough capital to weather serious financial shocks — are now in their ninth iteration.

The most recent scenario — which had a testing “horizon” spanning nine quarters from December 2022 to March 2025 — simulates what could happen when economic downturns trigger distressed real estate markets, alongside challenges in corporate debt markets

Stresses modeled for that period included a decline in inflation-adjusted U.S. gross domestic product by nearly 8.75%, with a trough the first quarter of 2024 before recovering. The tests also looked at what would happen if unemployment soared by 6.5 percentage points and peaked at 10% in the third quarter of 2024. They additionally modeled an annualized consumer price index rate of inflation falling from below 3.25% to roughly 1.25% in the third quarter of 2023 before gradually rising to 1.5% by the end of the period.

Commercial real estate and home price declines of 40% and 38%, respectively, were applied to the financials of the two enterprises, up from 29% and 35% in last year’s scenario.

Debt market developments the modeled scenario examined included the three-month Treasury rate reaching nearly zero by the third quarter of 2023. The model also had the 10-year yield falling nearly 3.25 percentage points by the second quarter of this year and exhibiting a gradual climb later in 2023 to around 1.5% by the end of the scenario’s timeline.

The stress test outcomes provided an insight into the ongoing room for improvement at both Fannie Mae and Freddie Mac, who reported to Congress they ended 2022 critically undercapitalized under a different measure linked to conservatorship goals.

Source: nationalmortgagenews.com

Apache is functioning normally

There’s always been a house-sized gap separating homeowners from homebuyers. But as home prices and mortgage rates continue creeping higher, they’re increasingly living in different worlds.

While homebuyers grapple with affordability problems, existing owners are enjoying near record-low monthly payments and increasing equity levels, an analysis by Black Knight says.

Home price increases are driving each, and their growth rate keeps accelerating: the Black Knight home price index went up by 0.8% in June, a record high.

“We’ve been noting for some months that the recent rate of home price gains would have a lagging, but significant, impact on the annual rate of appreciation,” Black Knight’s vice president of enterprise research, Andy Walden, said in a press release. “Well, June marked that inflection point.”

After slowing for 14 months, Walden said, the pace of increases jumped up in June “amid widespread growth that saw annual rates of appreciation inflect and begin to trend higher in more than 80% of markets.”

In almost every city measured by Black Knight, home values rose month-to-month. Hartford, Connecticut; Seattle; and San Jose, California led the pack, with a rise of 1.2% in each. Only two Texas cities, Austin and San Antonio, saw price drops versus May, but they were still modest, at 0.3% and 0.2% respectively.

Year-over-year, prices grew in 60% of U.S. markets. But patterns vary by region — values rose the most in the Midwest and Northeast, while in some western cities prices still remained lower than last year’s, the report says.

More than anything else, prices are ballooning because of a housing stock shortage. Average inventory levels are still 51% lower than they were before the pandemic, and the gap has grown in over 90% of U.S. markets over the past year, Black Knight says.

The city with the highest monthly and yearly price gains, Hartford, is also the one with the biggest loss in housing stock since 2019. Since the pandemic, its deficit grew by 81%. Most other cities are struggling with the same issue: only Austin, Texas and Las Vegas’ housing inventories are larger than they were pre-pandemic.

But the report notes that since the pandemic, inventories have often peaked late in the year, so homebuyers could get some good news this winter.

Right now, though, stunted supply is forcing prices higher, and debt-to-income ratios are rising with them — for Federal Housing Administration loans, the average DTI was 45% in July. 

Down payments are on the rise, too. Black Knight said July’s average down payment for primary residences reached $90,200, another high. All loan types showed similar patterns. For conforming mortgages, the average down payment was over $110,000, for FHA, it was $21,000 and for Veterans Affairs loans, it was $29,400.

These prices, coupled with mortgage rates hovering near 7%, means homes are less affordable than ever. It now requires 12.6 percentage points more of buyers’ income to afford the average priced home compared to that of the last 25 years. Homes are less affordable now than the average in all 100 markets studied by Black Knight.

An average priced home purchased in July would cost $2,308 a month in mortgage payments, Black Knight estimated. That makes up 36.4% of the median household income, which is “close to the worst it’s been in 37 years,” the report says.

Current homeowners’ payments are much lower. On average, they pay $1,355 a month, which only makes up 21% of the median household income, lower than it’s been since 2001. 

The average interest rate of these homeowners is 3.94%. Many refinanced their mortgages during 2020 and 2021, when interest rates hung around 2.7%. Black Knight says refinancing saved homeowners a cumulative $42 billion over the past three years.

Existing homeowners also benefit from rising prices because they inflate home equity. Total mortgage equity in the U.S. reached $16 trillion in June and tappable equity reached $10.5 trillion, close to an all time high set last summer. On average, mortgage holders have $199,000 available in equity, Black Knight said.

Outstanding mortgage debt, on the other hand, reached $13 trillion for the first time ever. Underwater borrowers, who owe more than they own, also increased dramatically year-over-year, but Walden doesn’t think the uptick is cause for alarm.

“Yes, it’s true that is a 70% jump from this time last year – which may sound ominous – but everything is relative,” he said. “There are less than half as many underwater homeowners than there were in 2019 before the onset of the pandemic.”

Black Knight also saw a small bump in the national delinquency rate, along with small increases in borrowers who missed one and two payments. But serious delinquencies fell to their lowest point since 2006, which the analysis attributed to “the strong credit quality of today’s mortgage holders and an acute focus on loss mitigation by the industry at large.”

Source: nationalmortgagenews.com