Let’s talk about home prices again because there have been numerous reports of eroding affordability and fears that we might be topping out just five short years after hitting rock bottom.
For example, the National Association of Realtors recently noted that the median existing-home price in February was up 7.7% to $228,400 from a year earlier (February 2016: $212,100), the fastest pace since last January (8.1%).
It also marked the 60th consecutive month of year-over-year gains, which if you’re doing the math, is five full years of gains.
A month ago, NAR chief economist Lawrence Yun referred to the rapid price appreciation as “concerning” because it was doubling the pace of income growth.
Meanwhile, the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index (I feel like this title needs to be longer) chalked a 5.9% annual gain in January, up from 5.7% a month earlier.
The index also hit a 31-month annual return high, which forced Managing Director and Chairman of the Index Committee David M. Blitzer to address affordability concerns.
He argued that while higher home prices and mortgage rates may dent affordability and reduce the number of households able to purchase homes, the lack of inventory and strength of the economy means we likely won’t see a change in direction just yet.
Blitzer did admit “at some point” market forces would drive prices down, but said, “we don’t appear to be there yet.”
Supply and Demand Imbalance
While home prices feel really high
The supply/demand imbalance means they won’t come down
Until prospective buyers can no longer afford them
But it’s unclear when that will actually materialize
I think everyone feels the same way, that prices are too darn high, it’s just that no one knows when prices will fall, or by how much. And what the catalyst might be, other than affordability or a lack of willing buyers.
Everyone is referring to the current situation as an inventory crisis, with many potential move-up buyers trapped thanks to limited equity and/or a low mortgage rate they don’t want to let go.
That further limits the supply of starter homes, keeping renters out of the market as they watch home prices creep higher and higher.
In fact, Trulia reported that national housing inventory hit its lowest level on record during the first three months of 2017. I believe their data only goes back to 2012 though.
Still, the recent numbers are troubling – starter and trade-up home inventory fell 8.7% and 7.9%, respectively, year-over-year. And there wasn’t much a year ago either…
Basically, this means the entire housing market ecosystem is out of whack, with no sign of relief anytime soon.
Are Home Prices Really Expensive?
Home prices may not be as high as they look
When you factor in inflation, interest rates, wage growth, etc.
We see that real home prices remain 33.3% below the peak seen in 2006
Of course prices at that time were unsustainable so it shouldn’t necessarily be a benchmark
To add insult to injury, home prices might not even be that high, assuming you look at “real home prices,” those adjusted for inflation, wage growth, interest rates, etc.
The First American Real House Price Index (RHPI) measures single-family home prices after accounting for changes in incomes and interest rates.
They use median household income and mortgage rates to determine how much a particular consumer can afford. This allows them to measure house-buying power and in turn affordability.
What we wind up with is a very difficult picture than what you might see with other home price charts.
For example, real house prices are still 33.3% below their peak seen in July 2006, not that we should measure a healthy market based on that turbulent time. Still, it’s quite a margin.
Additionally, real home prices are 10.3% lower than they were in the year 2000.
Now can that all change in a hurry? Sure, and it is. In just the past year, real house prices surged by 8.2%.
If both mortgage rates and home prices continue to rise, we’ll hit another breaking point soon enough, assuming wage growth can’t keep up.
First American chief economist Mark Fleming noted that despite this, “affordability in most markets is still high by historical standards.”
As such, he expects another strong spring home buying season. Or at least lots of interest, despite a lack of inventory.
Purchase mortgage rates have risen faster in the last three months than at any time since May 1994, climbing ever closer to the 5% mark due to a combination of rising inflation, the war in Ukraine, and disruptions to the supply chain. And bad news for homebuyers: there’s no sign that they’ll fall anytime soon.
The latest weekly Freddie Mac PMMS mortgage survey, released Thursday, showed that the average purchase mortgage rate touched 4.72%, up five basis points from the week prior. A year ago at this time, rates were at 3.13%. The GSE’s index accounts for just purchase mortgages reported by lenders over the past three days.
Another index shows mortgage rates even higher. Black Knight‘s Optimal Blue OBMMI pricing engine, which considers refis and data from the Mortgage Bankers Association (MBA), reported that rates on Wednesday averaged 5.05%, up about 25 bps from a week prior. Several LOs told HousingWire that clients had locked loans in the 5% to 5.3% range on Wednesday.
“Mortgage rates have increased 1.5 percentage points over the last three months alone,” Sam Khater, Freddie Mac’s chief economist, said in a statement. “The increase in mortgage rates has softened purchase activity such that the monthly payment for those looking to buy a home has risen by at least 20% from a year ago.”
The central bank has signaled that it will raise interest rates another six times this year and several more in 2023 to control inflation, which reached the highest level in 40 years in February, at 7.9%.
Normally, a period of rising mortgage rates cools housing prices. But this is no normal market. The problem, of course, is inventory. National inventory of active listings declined by 18.9% over the last year in March, according to Realtor.com. Consequently, the March national median listing price for active listings was $405,000, up 13.5% compared to last year and 26.5% compared to March 2020.
How lenders can continue to serve borrowers despite housing affordability challenges
Potential borrowers who’ve been priced out of the housing market need to be able to compete with an increasingly growing share of cash buyers and investors who are beating them in bidding wars.
Presented by: Finance of America
The latest MBA survey this week found that the landscape is reducing borrowers’ demand for mortgages. Interest in residential mortgage loans fell 6.25% for the week ending April 1. While refi applications fell 10% from the prior week, purchase apps declined 3.4% in the same period.
Refinance applications are in a free fall, as few borrowers these days have an incentive to change their current loans rates. Additionally, home price appreciation and insufficient for-sale inventory are holding back purchase activity.
According to the PMMS report, the average 15-year fixed-rate mortgage averaged 3.56%, up six bps from the prior week. (On average homebuyers paid 0.8 mortgage points.) The 5-year Treasury-indexed ARM averaged 3.56%, up from 3.50% a week prior.
Inside: Looking for fun things to do with friends? Look no further! This guide has 101 fun activities for you and your friends to enjoy. From painting parties to bowling nights, there’s something for everyone.
Do you ever feel like you’re in a rut, doing the same things with your friends all the time?
If you’re looking for some new ideas for fun things to do with friends, look no further!
We’ve compiled a list of fun activities for friends to do so you can find something that fits your mood.
Whether you want to get active and try something new, or stay in and relax together, we’ve got you covered.
So round up your besties and get ready for some fun!
Why spending time with friends is important
Spending time with friends is an essential aspect of human life. It provides us with an opportunity to bond, socialize, and create lasting memories.
The benefits of spending time with friends are numerous, and they range from improving our social skills to reducing stress levels.
By participating in activities that allow us to spend quality time with our friends, we will have better overall mental health.
What should friends do for fun?
There is no one answer to this question, as friends can have different interests and preferences.
However, some fun activities that friends could do together include going to the movies, playing sports, going out to eat, or attending a concert.
That is why we will cover so many various ideas for you and your friends!
The fun things to Do with Friends
We all know the importance of having friends in our lives. They are the people we rely on and confide in. They make us laugh, help us when we’re down, and are always there for us.
If you are wondering what should I do today, then we have you covered.
So, it’s important to have plenty of fun things to do with friends as well.
1. Go on a Scavenger Hunt
Scavenger hunts are a popular group activity that can be enjoyed by friends of all ages.
Planning and executing a scavenger hunt with friends can be a fun and engaging way to spend time together.
To get started, choose a location that offers a variety of interesting sights and sounds.
Next, create a list of items to find, such as a red bicycle or a funny sign.
Divide into teams and set a time limit for the hunt.
Use a special hashtag and have each team post a pic every time an item is found.
Nowadays, you can even buy a scavenger hunt kit to make it easier!
2. Play Board Games
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Board games are a great way for friends to have fun and connect with each other.
Some popular board games include Scrabble, Chess, and Monopoly, but there are many other options to choose from. Card games like poker and blackjack are also great choices. Party games like Charades and Apples to Apples can bring a lot of laughter and enjoyment.
Board games provide an opportunity for friends to engage in friendly competition, improve their strategic thinking and social skills, and have a great time together.
So, gather your friends, choose one of the best-selling board games, and let the fun begin!
3. Explore street food
Exploring street food with friends is an exciting way to satisfy your taste buds while spending quality time with your loved ones. From food trucks to pop-up stands, there are plenty of options to choose from.
Here are three street food examples that are worth finding:
Tacos: Bite into the crispy shell and savor the juicy meat, fresh salsa, and creamy guacamole. Tacos are the perfect combination of flavors and textures that will leave you craving more.
Gyros: Sink your teeth into the warm pita bread and taste the tender slices of meat, crunchy vegetables, and tangy tzatziki sauce. Gyros are a delicious Greek dish that will transport you to the Mediterranean with every bite.
Bao buns: Savor the fluffy steamed bun filled with savory meat, pickled vegetables, and sweet sauce. Bao buns are a popular street food item in Asia that will tantalize your taste buds with their unique flavors and textures.
Exploring street food with friends is an adventure that will take you on a gastronomic journey around the world. You can try new dishes, share your opinions, and bond over your love of food.
The joy of exploring street food with friends lies in discovering hidden gems, trying something new, and creating memories that will last a lifetime.
4. Get Messy with a Color Run
Participating in a color run is a unique and exciting way to stay fit while having fun with your friends.
This 5K run involves getting covered in colored powder while running through different stations. It’s a great way to stay active and create some memorable photos with your friends.
Plus, you get to support a good cause since many color runs are organized as charity events.
5. Watch a Movie Marathon
A movie marathon with friends is a fun way to bond and enjoy each other’s company. They provide a fun and relaxing environment to enjoy each other’s company and appreciate great films.
To plan and execute a successful movie marathon, follow these steps:
Choose a theme or movie series: Decide on a theme or movie series that everyone will enjoy. This could be a specific genre, actor, or movie franchise like “Harry Potter” or “Star Wars.” Or just pick a variety of old classics and new favorites.
Prepare snacks and refreshments: Popcorn, pizza, and soda are classic movie snacks, but feel free to get creative with your choices. You could even have a potluck and have everyone bring their favorite snack to share.
Arrange the viewing space: Make sure the viewing space is comfortable and has enough seating for everyone. Consider using blankets and pillows to create a cozy atmosphere.
So, grab some popcorn and gather your friends for a movie marathon that you’ll never forget!
The best movies can be found on Paramount Plus!
6. See What Festivals Are in Town
Attending festivals with friends can be a fun and unique activity to break up your routine. There are many different types of festivals to choose from, including food, music, art, and film festivals.
Additionally, there are usually free local events like food festivals, music festivals, farmers’ markets, and intercultural events.
Planning ahead and checking the festival schedule is important to ensure that all friends can attend. So why not gather your friends and try attending a festival together?
7. Hike
Hiking is a fantastic way to stay active and enjoy the great outdoors with friends.
Not only does it provide a great workout, but it also offers the opportunity to bond with your crew while surrounded by natural beauty.
You can even plan on these fantastic hiking trails for beginners or more experienced hikers:
In California, Big Basin Redwoods State Park offers a variety of trails ranging from easy to challenging, with the highlight being the 11-mile Skyline to the Sea Trail.
In Colorado, the Mount Falcon Park Trail offers stunning views of the Rocky Mountains and is a moderate 3.6-mile hike.
For those on the East Coast, the Franconia Ridge Trail in New Hampshire is a challenging yet rewarding 8.9-mile hike with breathtaking views of the White Mountains.
Remember to dress appropriately for the weather and terrain, wear sturdy hiking boots, carry plenty of water, and pack snacks to keep your energy levels up.
8. Go for a short road trip
Planning a road trip with friends can be a bonding experience, from working together on a collaborative Spotify playlist or burning some old-fashioned mixtapes to listen to on the road to stocking up on snacks and booking an Airbnb.
Going for a short road trip with friends is an excellent way to take a break from the daily grind and explore new places. It is also a reason to escape life’s hustles and bustles.
A spontaneous road trip might turn out to be a trip to remember as you explore unknown routes, stop at scenic spots, and try the local cuisine.
9. Host a Vision Board Party
A vision board is a visual representation of your goals and aspirations for the future.
Making a dream board with friends can be a fun and inspiring activity that promotes deeper social connections while helping you achieve your dreams.
It’s a crafting and manifesting activity that can help you visualize your dreams and work towards them with the support of your friends.
Learn how to host a successful vision board party.
10. Make Smoothies Together
Making smoothies with friends is a fun and healthy activity that promotes bonding and trying out new recipes.
You will need fresh or frozen fruits, such as bananas, strawberries, or blueberries, a liquid base like almond milk or coconut water, and optional add-ins like spinach, chia seeds, or protein powder to make smoothies.
Personally, I have found the Vitamix to blend the perfect smoothie!
11. Have a Karaoke Night
Karaoke is a great way to build confidence and create lasting memories with friends, so don’t be afraid to let loose and have a good time!
To host a successful karaoke night, start by choosing a venue such as a karaoke bar or setting up a karaoke machine at home.
Provide drinks and snacks to keep energy levels high and make sure to take plenty of photos and videos to capture the fun.
12. Have a Potluck Dinner
Having a potluck dinner with friends is a fun and affordable way to spend time together while enjoying delicious food.
To organize a successful potluck, consider the following tips:
Set a date and theme: Choose a date that works for everyone and select a theme to make the potluck more exciting. Some ideas for themes include Italian food, comfort food, or secret family recipes.
Assign dishes: Encourage everyone to bring a dish to share, and assign specific types of dishes to avoid duplicates. For example, one person can bring an appetizer, another a main course, and another a dessert.
Communicate and coordinate: Make sure everyone knows what they’re bringing and communicate any dietary restrictions or allergies. Coordinate with each other to ensure a good variety of dishes and avoid too many of the same thing.
A potluck is a great way to try new foods and bond over shared experiences. It’s also a money-saver and takes the pressure off one single host.
13. Skateboard/Roller-skate
Skateboarding and roller-skating are not only fun but also great ways to build friendships and community.
There are numerous activities that can be done while skateboarding or roller-skating with friends like:
Trying out tricks and stunts with friends can be a great way to learn and improve your skills.
Racing with friends can add an element of competition and excitement to the activity.
Obstacle courses can also be set up to test your agility and coordination.
Freestyle sessions can allow for creativity and self-expression.
Doing these activities with friends can provide support, encouragement, and a sense of camaraderie.
14. Have a DIY spa day
Spa days with friends are a fantastic way to bond, relax and practice self-care. It offers a break from the stress of daily life and provides opportunities for quality time together.
Moreover, hosting a spa day at home is a more affordable alternative to going to an actual spa.
You can confer with your BFF and figure out what kind of spa treatments both of you are in the mood for. For example, you can apply face masks, give each other manicures, or soak your feet in bath salts.
If you have the funds, you could even book a couple of treatments at a real spa and make it a real spa day! Regardless of where you have it, having a spa day with friends is an excellent way to relax, rejuvenate, and bond with friends.
15. Have a Craft Night
You don’t have to be crafty to enjoy craft night!
To have a successful craft night, start by choosing a craft that everyone is interested in and gather all the necessary supplies. A few craft ideas that are perfect for a craft night include making jewelry, painting, scrapbooking, or even DIY home decor.
Once you have everything set up, encourage everyone to let their creativity flow and enjoy the process of making something together.
Make sure to create a comfortable atmosphere by providing plenty of space to work and snacks to munch on.
16. Blow Bubbles
Roll by the time calendar and remember how much fun blowing bubbles was!
Blowing bubbles is a great way to spend a lazy afternoon or unwind after a long day.
You can go with the classic way of blowing bubbles or look into a bubble machine!
So, grab some bubble solution and wands and get ready for a fun and bubbly time with your friends!
17. Have a Water Balloon Fight
Water balloon fights are a fun activity to indulge in during the scorching heat of summer.
To make the water balloon fight even more enjoyable, you can incorporate team play or set up a tournament bracket. This will add a competitive element to the game and make it more exciting.
Regardless, having a water balloon fight with friends is a great way to beat the heat and have fun.
18. Plant a Garden
Gardening with friends is a rewarding activity that allows you to connect with nature and each other.
Plus it can also provide a sense of accomplishment and a source of fresh produce.
You can choose to plant a garden in someone’s backyard or join a local CSA.
Also, this is a continuous way to get together!
19. Spend Time in Nature
Spending time in nature with friends is a great way to relax, recharge and create lasting memories.
There are a variety of activities that friends can engage in while spending time in nature such as hiking, camping, picnicking, rock climbing, paddleboarding, and gardening.
Personally, know that spending time in nature with friends can be a refreshing and rewarding experience that allows friends to bond and enjoy the great outdoors together.
20. Sign up for a Recreational Sport
Signing up for a recreational sport is a great way to spend time with friends while staying active. There are many sports that are suitable for recreational leagues and can be played with friends, such as soccer, basketball, volleyball, and ultimate frisbee.
Playing team sports has many benefits, including building camaraderie, improving communication, and developing a sense of teamwork.
Costs associated with joining a league can vary, but many leagues have affordable fees.
21. Go Kayaking
Kayaking is a fantastic outdoor activity that is gaining popularity among friends who want to bond and have fun at the same time. It provides a great opportunity to explore new waterways, race each other, play games, fish, and take breaks to swim.
While kayaking, you and your friends can discover new places and enjoy the serenity of nature, which will help you to relax and forget about your daily worries.
Also, you have to work on your communication with each other while kayaking.
22. Cook Together
Cooking with friends can be a fun and rewarding activity that helps build strong bonds.
This is one of my favorite ways to spend time with friends. You can spend hours and never actually make anything edible and it doesn’t matter! Or you can create something absolutely delicious!
23. Join a Club
Joining a club with friends is a great way to try new things and meet new people.
There are many different types of clubs to choose from, including:
Book clubs
Hiking clubs
Cooking clubs
Bunco groups, and more.
Joining a club with friends not only provides an opportunity for shared experiences and new adventures but can also strengthen relationships by creating a common interest. Plus you meet on a regular schedule for spending time together.
24. Have a Painting Party
Painting artwork with friends can be a fun and fulfilling activity. Even better, plan to host a painting party with friends!
You hire someone with experience to help you out or you can watch a video on YouTube.
The best part is being able to exchange ideas and inspiration with each other to spark creativity!
25. Play Laser Tag
Playing laser tag with friends is a thrilling and exciting activity that is sure to get your adrenaline pumping.
This is always a must-do for most teens!
Playing laser tag with friends not only provides a fun and memorable experience, but it also helps build teamwork skills, promotes physical activity, and fosters friendly competition.
26. Go Birdwatching
Birdwatching is a relaxing and enjoyable activity that can be done with friends to appreciate the beauty of nature and learn about different bird species.
All you need to go birdwatching with friends is a simple guide to birds in your area, a pair of binoculars, bird seed, and a park or garden.
Birdwatching can enhance the bond between friends as they learn to identify different bird species and discover a new hobby together. It is a great opportunity to explore new trails, take pictures, and enjoy the scenic location.
27. Have a Marshmallow Fight
Marshmallow fights with friends are a fun and exciting activity that can help you forget your worries and bond with your friends.
You need a good laugh, right? This is exactly what you should participate in.
It’s a great way to relieve stress and enjoy some friendly competition with your friends.
So, grab some marshmallows, find a safe spot, and get ready for an unforgettable marshmallow fight with your friends!
Make sure to grab this indoor s’more kit!
28. Do Yoga
Yoga is a great way to improve flexibility, reduce stress, and promote overall well-being. Doing yoga in a class with friends or in a park can make the experience even more enjoyable and motivating.
Attending a yoga class with friends can be a fun and social way to exercise. You can encourage each other to push yourselves further and hold each other accountable for attendance. Additionally, practicing yoga in a group setting can help to create a sense of community and support, which can be beneficial for mental health.
Alternatively, practicing yoga in a park can be a great way to connect with nature and enjoy the fresh air and sunlight. You can bring your own mat or towel and find a quiet spot to practice. Practicing yoga outdoors can be a refreshing change of pace from the usual indoor studio setting.
29. Plan a Trip
Planning a trip with friends can be an exciting and bonding experience. It provides an opportunity to create unforgettable memories and explore new places with your closest friends.
However, it can also be expensive, so use this 100 envelope challenge to save for the trip.
Another way to save money is to be flexible with your travel dates.
Research your destination, create a budget, and be flexible with your travel dates to save money. With some dedication and effort, you and your friends can have the trip of a lifetime. Remember, the journey is just as important as the destination.
30. Explore a New Town
Exploring a new town with friends is an adventure that offers new opportunities to learn more about each other’s interests and create lasting memories. It allows you to discover new places, try local cuisine, and learn about the history and culture of the area.
When exploring a new town with friends, you can visit local landmarks such as museums, botanical gardens, and historical sites. You can also attend local events such as festivals, concerts, and fairs.
Don’t forget to try the local cuisine at restaurants and cafes.
31. Paint Pottery
Pottery painting is a popular activity to do with friends that allows you to unleash your creativity.
Thankfully, you can go to a business that provides all of the necessary supplies or you can purchase online.
Painting pottery can also be a relaxing and therapeutic activity that helps to reduce stress and anxiety.
32. Try a New Food
Let’s be honest… If it wasn’t for good friends, you may be missing out on different types of foods and cuisines.
Trying new foods with friends is an excellent way to break up your eating routine and have some fun while discovering new flavors.
So step out of your comfort zone and try something new – you never know what delicious dishes you might discover!
33. Visit a Farmer’s Market
Visiting a farmer’s market with friends is a fun and exciting way to spend a day outdoors. Not only does it support local businesses, but it also provides an opportunity to stock up on fresh fruits and vegetables.
Did you know the Palisade Farmer’s Market is one of the best in the country? I can attest to that; it was wonderful, especially during peach season.
There are many activities to enjoy at a farmer’s market with friends, here are my favorites:
Shopping for fresh produce: One of the main reasons to visit the farmer’s market is to stock up on fresh fruits and vegetables. You can compare prices, sample different varieties, and even learn new recipes from the vendors.
Trying free samples: Many vendors offer free samples of their products, from homemade jams to artisanal cheeses. This is a great way to taste new flavors and support local businesses.
Exploring local crafts: Along with food, many farmer’s markets also feature handmade crafts and artisanal products. You can browse jewelry, pottery, candles, and other unique items.
Eating street food: If you’re hungry, there are often food trucks and stalls selling everything from tacos to crepes. You can grab a bite to eat and enjoy it at one of the picnic tables or benches.
So why not gather your friends and head to a farmer’s market? You won’t regret it!
34. Compete with Minute-to-Win-It Games
This one is popular! Competing with Minute-to-Win-It games is a fun and easy way to spend time with friends while challenging each other’s skills.
To get started, gather a few household items and set a timer for one minute.
These games are not only a great way to have fun with friends, but they also improve hand-eye coordination and quick-thinking skills.
Plus this is a low-cost and entertaining way to bond with friends. Give them a try and see who comes out on top!
35. Host a DIY Escape Room
If you are looking for a cost-effective way to enjoy an escape room challenge with friends, setting up your own escape room at home is a great idea.
You can find free missions at Escape Team, and additional missions only cost a few dollars each.
Hosting a DIY escape room for your friends is an excellent way to challenge their problem-solving and teamwork skills in a fun and engaging way.
36. Join a Flash Mob
Joining a flash mob can be an exciting and memorable thing to do with your friends. Flash mobs are spontaneous gatherings of people who come together to perform a predetermined action, often in a public place.
Typically, flash mobs can range from dance performances to singing events and can involve people of all ages and backgrounds.
Participating in a flash mob can be a unique and fun experience that you and your friends can cross off your bucket list.
You can find local flash mob announcements by searching on Google or checking out websites that list flash mobs in your area.
37. Create a Time Capsule
Creating a time capsule with friends is an exciting and unique way to capture memories and special moments together. It allows you to reminisce about the past and look forward to opening the capsule in the future.
To create a time capsule, start by finding a sturdy waterproof container.
Next, gather items that are important to each of you, such as letters to your future self, photos, ticket stubs, and other mementos.
Add these items to the capsule and bury the capsule in a safe place, such as a backyard or a park.
Make a pact to open it up in a few years, say five or ten years or twenty years.
Cherishing memories with friends is important, and creating a time capsule is a fun and meaningful way to do just that.
38. Head to the Beach
Visiting the beach with friends is a great way to spend quality time together while enjoying the beauty of nature. There are many activities you can do with your friends at the beach, such as lounging under an umbrella, playing beach volleyball, building sandcastles, or having a picnic.
If you’re feeling more adventurous, you can go surfing, snorkeling, or take a walk along the shore. The possibilities are endless, and the memories you create with your friends will last a lifetime.
Whether you want to relax and unwind or have an action-packed day, the beach offers something for everyone.
39. Try an Art Class
Trying an art class with friends is a fun and fulfilling way to explore your creative side.
There are many places you can try painting or pottery! by going with a friend, it cuts out the scary risk of doing a creative project alone.
Don’t miss out on this opportunity to create something beautiful with your friends! This is a great experience gift idea, too!
40. Go Bowling
Bowling is a fun and engaging activity to do with friends.
Not only is it a great way to get some exercise, but it also offers a variety of fun things to do while playing. From trying trick shots to competing for the highest score, bowling is a great way to bond with friends.
Bowling is a fun and engaging activity that everyone can enjoy, regardless of their skill level.
41. Use Guest Passes
Typically, when you belong to a gym, museum, or any other membership-based activity. They will offer free guest passes.
This is a great way to hang out with your friends while enjoying a new activity. Or showing your friend one of your hobbies.
42. Go Snowshoeing
Snowshoeing is a winter activity that involves walking on snow with specialized footwear. It is a fun and unique way to explore the outdoors with friends while enjoying the beauty of nature.
There are many snowshoeing trails and locations that friends can explore together.
Snowshoeing provides an opportunity to get exercise, enjoy the peacefulness of nature, and bond with friends.
43. Get Creative With Sidewalk Chalk
Regardless of age, sidewalk chalk is a fun activity to do with friends that can ignite your creativity and bring out your inner artist.
There are a variety of ways to get creative with sidewalk chalk.
You can draw a hopscotch board and challenge each other to see who can jump the longest.
Create a masterpiece by working together on a huge drawing and experimenting with different styles and themes.
Play a game of tic-tac-toe and enjoy some friendly competition.
You can even use sidewalk chalk to write positive messages or quotes to inspire each other.
Spending quality time with friends is important, and simple activities like using sidewalk chalk can create lasting memories.
44. Have a Cocktail Party
Overall, the goal of a cocktail party with friends is to have fun and create shared experiences that will be remembered for years to come.
The best cocktail parties are based on a theme that will set the tone for the evening. Then, select a variety of easy-to-make and crowd-pleasing cocktails that will impress your guests.
Dress up smartly, put on some music, and decorate your space to match the theme. Provide snacks such as finger foods, cheese platters, and charcuterie boards to accompany the drinks.
During the party, encourage guests to mingle and try each other’s cocktails, while sharing conversation and laughter.
45. Go to a Drive-in Movie
Drive-in movies are a unique and fun experience that makes for a great activity to do with friends.
However, drive-in movie theaters are harder and harder to find. So, you may have to plan ahead for a local showing.
Once you arrive, park your car and settle in for the movie, chatting and joking around with your friends as you watch.
46. Meditate
Meditating with friends can be a powerful way to connect and improve your mental and emotional well-being.
To get started, find a quiet spot in nature, set up a blanket, and close your eyes. Take in the natural sounds as you sit in silence together.
Alternatively, you can attend a group meditation or breathwork session or hold a moon circle.
The benefits of meditating with friends include reducing stress and anxiety, improving focus and concentration, and deepening your connection with others.
47. Have an Insta Photoshoot
One of the best things about having a photoshoot with friends is that it offers you the opportunity to create memories together.
You can make funny faces, strike silly poses, and capture the moment in a photograph. You can also dress up in costumes and enact your favorite movie scenes together, which is bound to create some beautiful memories.
Whether you are looking to be goofy or play model, a photoshoot is an excellent way to express yourself and have some fun. You don’t necessarily have to photograph people either! You can experiment with still-life photography, food photoshoots, or even take pictures of landscapes.
P.S. You will always see teens taking photoshoots around town.
48. Play charades or Pictionary
Playing charades or Pictionary with friends is indeed a fun way to build excitement and laughter within the group while also improving communication skills and teamwork.
These guessing games are perfect for group activities and can elicit lots of shouting and laughter as people try to guess the correct word or movie.
You can even form teams and start a tournament to make it more interesting. Alternatively, card games such as poker, blackjack, spoons, and rummy are also fun and cost nothing to play if you already have a deck of cards.
All of these games can help improve your strategic thinking and social skills while having a great time with friends.
49. Make videos together
Indeed, making videos with friends can be a fun and exciting activity that creates lasting memories. There are many different types of videos that can be made with friends, such as music videos, vlogs, or short films.
The research suggests that enacting favorite movie scenes with friends can uplift the atmosphere as well. Dressing the part, rehearsing together, and video shooting the entire set can create fun moments that are bound to create some beautiful memories.
Making videos with friends can strengthen friendships and develop new skills such as video production and editing. The key is to have fun with your best friends and enjoy the time spent together.
50. Start a Band
If you and your friends have instruments, getting together and making music can be a fantastic way to bond and express yourselves while also encouraging collaboration and teamwork.
Creating music together is an excellent opportunity to learn new skills and experiment with different musical styles.
Plus, it helps create unforgettable memories and offers new opportunities to learn.
51. Create a Photo Album
In our digital age, putting together a photo album is another fabulous activity that you can do with friends.
Asking each friend to contribute a few photos and putting them in a friendship photo album is an excellent way to keep your memories close and spend an afternoon with your best friends.
Plus you are creating something you can enjoy for years to come!
52. Have a pillow fight
Having a pillow fight with friends can be a hilarious bonding experience that will make you forget all your worries.
To get started, find a spacious room or outdoor area where you can safely swing your pillows without breaking anything. Before starting the fight, agree on some basic rules to ensure everyone’s safety, such as no hitting in the face or aiming for sensitive areas.
Once you’re ready, grab your pillow and let the feathers fly! Don’t forget to laugh, scream, and dodge as you try to land a hit on your friends.
53. Attend park concerts
Attending park concerts is one of the best fun things to do with friends.
Not only are they affordable or free of charge, but they also offer a great opportunity to relax and unwind with friends.
This is something to enjoy after long work weeks!
54. Start a Business
Starting a business with friends can be a great way to combine your passions and skills while also earning extra income.
However, before jumping into any business venture with friends, it’s important to consider the potential risks and challenges. It’s crucial to have a clear agreement and plan in place to avoid conflicts and misunderstandings in the future.
Another option is to research side hustles as a great way to earn extra income. There are numerous side hustle ideas that can be done with friends such as dog walking, pet sitting, house cleaning, and tutoring.
Learning how to make money online for beginners is a hot topic.
55. Play Tourist in Your Own Town
Playing tourist in your own town can be a great way to spend time with friends while discovering new sights and experiences. There’s no need to travel far when there are plenty of activities to do in your hometown.
To start, visit local landmarks such as museums, historical sites, or city parks. These places offer a glimpse into the history and culture of your town.
Try out new restaurants and cafes that you haven’t been to before. It’s a great opportunity to sample local cuisine and support small businesses.
Attending local events such as concerts, festivals, or farmer’s markets can also be a fun way to experience your town.
Exploring the outdoors by taking a hike, bike ride, or even a picnic in a nearby park can be a refreshing change of pace.
Playing tourist in your own town not only allows you to discover new places but also strengthens friendships by creating shared memories and experiences.
56. Play games via video call
Playing games with friends remotely is indeed a great way to stay connected despite the distance.
There are various options available for playing games online with friends, such as board games, card games, and online games like Fortnite or Minecraft. Additionally, apps like Words with Friends or Yahtzee with Buddies can also be used to play games with friends remotely.
If you prefer non-digital games, you could play games like “Would You Rather?” or “Truth or Dare?” on a video call.
Playing games with friends online is an excellent way to spend time together and maintain a strong connection, even when you can’t be together physically.
57. Go to a bonfire
Going to a bonfire with friends is a fun and memorable activity that allows for bonding through storytelling, laughter, and shared experiences. Honestly, I forgot how fun a bonfire was until I went last weekend!
A bonfire is an outdoor gathering around a fire, typically held on a crisp fall evening.
With the hot temperatures and risk of fires, I would plan to attend a bonfire put on by an organization with fire trucks readily available.
Ensure there are snacks and drinks, and follow safety precautions. Overall, a bonfire with friends is a great way to escape the monotony of life and create lasting memories.
58. Bake something delicious together
Baking with friends is indeed a fun and exciting activity that can bring people closer together. It provides an opportunity to bond and share a sweet treat afterward.
One can choose a recipe they would like to try, whether it’s an old standby or something brand new. A cake, a sweet fruit pie, or a few batches of favorite cookies are some of the options that one can bake and decorate.
Alternatively, holding a friendly bake-off is a good way to bond competitively with friends.
So, next time you’re looking for something fun to do with your friends, why not try baking together?
59. Go camping together
Camping with friends is an excellent way to bond and enjoy the outdoors while disconnecting from technology. It is a cheap and fun hobby that offers numerous benefits, including strengthening friendships.
Whether you choose to camp in a nearby park or your backyard, sharing stories around a campfire, cooking meals together, and exploring nature can be a healthy move for everyone to unwind.
Camping provides an opportunity to enjoy the serenity of nature away from the disruptions of city life. You can hitch a tent, make a bonfire, roast some marshmallows, and play games, which is sure to be an adventure away from the hustle and bustle of the city.
It is important to plan ahead, bring necessary supplies, and follow safety precautions to ensure a fun and safe camping experience.
60. Go Geocaching
One of our personal favorite activities.
Geocaching is a fun and exciting activity that involves using GPS to find hidden containers or “caches” outdoors. It’s like a real-life treasure hunt that can be enjoyed with friends.
To get started, one can download the official Geocaching app for free.
Geocaching can be a great way to explore new places in your local area with friends while having fun. With GPS coordinates, you can search for hidden treasures that are waiting to be discovered.
61. Go to A Local Coffee Shop
Going to a local coffee shop is a great way to spend quality time with friends. Aside from being a cliche, it is an easy thing to do and offers a comfortable environment to catch up with your friends.
You can order your favorite beverage and indulge in a little slice of cake while chatting about everything you have missed since you last spoke.
A coffee shop offers a cozy and relaxed atmosphere, which makes it a perfect spot to hang out with friends.
Going to a local coffee shop also supports small businesses in your community. It is also a great way to discover new cafes and coffee shops in your area, which can become your new favorite hangout spot.
62. Volunteer
Volunteering with friends is a great way to give back to the community while having fun with your pals.
There are various ways friends can volunteer together, such as helping out at a local animal shelter, sprucing up city landscaping, or serving meals at a soup kitchen.
Volunteering with friends strengthens relationships, gives back to the community, and is a fun way to do good.
These are the best ways to capture your bucket list and find ideas!
FAQ
There are a number of things you can do right now with friends. You can go for coffee, take a walk, or visit a museum. You could also consider doing something more active, such as going for a run or playing a sport.
Whatever you choose to do, make sure you enjoy it and spend time with your friends.
The important thing is to find something that you both enjoy so that you can have fun together.
You can watch a movie, play video games, go for a walk, listen to music, or even just sit and talk.
What Fun Places to Go with Friends Will You Choose?
These unique activities are just a few examples of the many fun things you can do with your friends.
Don’t be afraid to try something new and get creative! Who knows, you might just discover a new favorite activity.
A little short on cash? Don’t worry… here are 101 things to do with no money.
So, gather your friends and start planning your next adventure together.
And if you have any unique ideas of your own, be sure to share them in the comments below!
Know someone else that needs this, too? Then, please share!!
A majority of the housing market data on any given month tends to come out mostly on the same week. This was that week and the takeaway was that the housing market could be doing worse. Some might even argue that we’re seeing some resilience relative to the rate landscape.
Let’s refresh our understanding of the rate landscape first. The bond market (which drives interest rate movement) has been broadly sideways recently as investors wait to see how quickly inflation (bonds’ biggest concern) is subsiding. That “wait and see” approach prompted the Fed to hold its policy rate steady at last week’s meeting, but that was widely expected by the bond market and thus not worth much of a reaction.
Fed Chair Powell gave his regularly-scheduled congressional testimonies this week and had a chance to talk a bit more about where the Fed sees things going from here. We already knew the average Fed member saw about 2 more rate hikes before achieving a terminal “ceiling” level, assuming the economy evolved as expected, but Powell was able to clarify what “as expected” meant.
Interestingly enough, the additional hikes are not seen happening in response to some additional upward momentum in inflation or economic growth. Rather, the Fed’s baseline expectations call for continued cooling in the labor market, modest economic growth, and continued cooling in inflation. In other words, inflation and the economy have a very low bar to justify a few more rate hikes. Things would have to deteriorate pretty abruptly for the Fed to abstain. Moreover, if things improve a bit better than expected, we could be looking at more than 2 additional hikes.
The problem with these expectations and the actions predicated upon them is the elevated uncertainty about the outlook. Economic uncertainty is often reflected in sideways trading ranges in the bond market. Using 10yr Treasury yields as a proxy for other rates (like mortgages), we see clear sideways ranges in the short term.
And in the long term.
The longer term chart also serves as the best recap of the rate landscape. Specifically: rates are high–not as high as they were in late 2022 or even earlier this year, but certainly much closer to the higher end of the range over the past few years.
The rate surge in 2022 had predictable consequences for the housing market, but even though rates remain high, volatility has died down.
Lower rate volatility has helped housing find bottom. Essentially every housing report that came out this week told a different version of that same story. Some reports were downright upbeat, such as the surge in “housing starts” (a term that refers to the ground-breaking phase of new construction). Only 10 months have been higher in more than a decade.
This also marked a major reversal in the trend for new construction. Last month’s report showed the worst year-over-year growth in 14 years while the new report showed the best growth in more than a year–a shift of more than 20%.
This is a notoriously volatile set of data, but swings like this still send analysts looking for explanations. One of the most commonly cited mitigating factors is the larger and more stable role being played by multi-unit construction. Multi-family starts are right in line with their highest levels in more than 3 decades, and they were essentially unaffected by the 2022 rate spike.
The other “yeah but” is that the new home market is quite a bit smaller than the existing home market, and the latter is better described as “treading water,” even though the most recent number came out slightly higher than last month.
The “yeah but” to that “yeah but” is that inventory is holding the market back.
There are a few more of the big monthly housing reports yet to come in the week ahead. Most arrive next Tuesday morning with New Home Sales expected to stay fairly flat at an annual pace of 670k and the duo of home price indices from FHFA and Case-Shiller (both expected to show slower, near-zero price growth). Thursday’s Pending Home Sales index is expected to show 0.2% growth after holding steady last month.
The reality of the home sales market is in the eye of the beholder these days and the just-released Existing Home Sales report doesn’t shed much light. The National Association of Realtors (NAR) logged an annual pace of 4.3 million units, essentially unchanged from last month’s 4.28m and close enough to the median forecast of 4.25m.
Existing sales bottomed in January at 4.0m units, and you’d have to go back to 2010 to find anything lower. The bounce back since then has lacked a certain sense of urgency, but that’s not a huge surprise given the persistence of mortgage rates near 7%.
A frequent observation is that the rapid rise in rates has homeowners reluctant to give up the low rates achieved in 2020 through early 2022, thus crimping supply and restricting sales. The housing market has certainly managed to post a lot more inventory at rates this high, but only have years of getting used to them (not to mention the fact that rates were still generally falling from the ultra-high levels of the early 80s at the time).
A chart of actual sales (as opposed to inventory) versus mortgage rates suggests that the ultra-low rates achieved in 2020 through early 2022 also helped pull forward a few years worth of housing demand.
All that having been said, those who continue to lament inventory being a bigger issue in the resale market certainly have a leg to stand on. The difference in “months of supply” versus the new homes market is very enlightening in that regard.
Bottom line, it will either take lots of time or decent drop in rates to free up more of the discretionary inventory of existing homes.
Other highlights from the release:
The median existing-home price for all housing types in May was $396,100, a decline of 3.1% from May 2022 ($408,600). Prices grew in the Northeast and Midwest but fell in the South and West.
Properties typically remained on the market for 18 days in May, down from 22 days in April but up from 16 days in May 2022.
First-time buyers were responsible for 28% of sales in May, down from 29% in April but up from 27% in May 2022.
All-cash sales accounted for 25% of transactions in May, down from 28% in April and identical to one year ago.
Regional breakdown of % change in existing sales from last month (and last year):
Existing home sales marginally increased in May, but were still down significantly from a year prior, according to the latest report from the National Association of Realtors (NAR).
Total existing home sales rose 0.2% from April to a seasonally adjusted annual rate of 4.30 million in May. Year-over-year, sales dropped 20.4% from 5.40 million in May 2022.
Home sales have been dropping on an annual basis since the Federal Reserve began hiking the benchmark rate in spring of 2022. Mortgage rates have settled into the 6% to 7% range over the last three months, which has led to several consecutive months of consistent, if unimpressive, home sales.
Total housing inventory recorded at the end of May was 1.08 million units, up 3.8% from April, but down 6.1% from May 2022 (1.15 million). Unsold inventory is at a 3.0-month supply at the current sales pace, up from 2.9 months in April and 2.6 months in May 2022, the trade group said.
“Available inventory strongly impacts home sales,” Lawrence Yun, chief economist at NAR, said. “Newly constructed homes are selling at a pace reminiscent of pre-pandemic times because of abundant inventory in that sector. However, existing home sales activity is down sizably due to the current supply being roughly half the level of 2019.”
Though all four regions experienced year-over-year sales declines, the South and West posted month-over-month improvements while sales faltered in the Northeast and Midwest from April. Prices grew in the Northeast and Midwest but fell in the South and West.
Sales in the South rose 1.5% from April to an annualized rate of 2 million; the median price in the South fell to $361,000, down 2.7% from May 2022.
In the West, where affordability challenges and a tech downturn have led to a softer market, existing home sales rose 2.6% from April to an annual rate of 790,000, an overall 25.5% decline from a year ago. Prices in the West came in at $596,500, down 5.7% from May 2022.
Meanwhile, existing home sales in the Northeast declined 2.0% from April to an annual rate of 500,000 in May, down 25.4% from May 2022. The median price in the Northeast was $439,000, up 2.5% from one year ago.
In the Midwest, existing home sales dropped 2.9% from April to an annual rate of 990,000, decreasing 20.8% from the previous year. The median price in the Midwest was $298,000, up 1.1% from May 2022.
The median existing home price in May for all housing types – which includes single-family homes, condos and townhouses – was $396,100, a decline of 3.1% from May 2022 ($408,600). The median existing single-family home price was $401,100 in May, down 3.4% from one year prior.
“Despite the report of prices falling in May, we could be seeing the bottom and prices should be stable or increasing across much of the country in the second half of the year,” said Lisa Sturvetant, chief economist for Bright MLS. “The pace of existing home sales will continue to be slow for the rest of the year, and it is likely we will see total annual home sales down more than 10% compared to last year’s level. Lower mortgage rates and an increase in supply could spur a busier market in 2024.”
Properties typically remained on the market for 18 days in May, down from 22 days in April, but up from 16 days in May 2022. Nearly three-quarters of homes sold in May were on the market for less than a month. First-time buyers were responsible for 28% of sales in May, down from 29% in April, but up from 27% in May 2022.
All-cash sales accounted for a quarter of transactions in May, down from 28% in April and identical to one year ago. Individual investors or second-home buyers, who make up many cash sales, purchased 15% of homes in May, down from 17% in April and 16% the previous year.
To the continuing dismay of housing bears, distressed sales represented just 2% of sales in May, virtually unchanged from last month and the prior year.
Though the existing home sales market is faring poorly, homebuilders have been capitalizing on a lack of competition and injecting supply into the marketplace. New home sales now account for roughly one-third of transactions, and housing starts in May were at one of the highest readings in history.
“This slow flow of new existing home listings coming onto the market is suppressing sales from levels seen a year ago as there are so few homes available to transact, but this spring season is getting back into the normal rhythms of the market and sales have increased from a year ago,” said Nicole Bachaud, a senior economist at Zillow. “Low inventory will continue to keep a hold on this market and suppress overall existing home sales numbers, and thus put pressure on prices and affordability. But thankfully the new construction market is churning out a steady flow of new homes to help fill the gap.”
China Cuts Key Interest Rates, Hoping to Kick-Start Flagging Economy
The reduction in the rates, which are used to set corporate loans and home mortgages, signaled concern that the country’s postpandemic rebound was stalling.
Rate cuts by the People’s Bank of China put it at odds with the policies of Western central banks, which have been pushing rates up in response to inflation.Credit…Agence France-Presse — Getty Images
June 19, 2023
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China’s central bank cut key interest rates on Tuesday for loans issued by the state-controlled banking system, in the clearest sign yet of mounting concern in the Chinese government and corporate sector that the country’s economy is stalling.
The interest rate cut was small — a tenth of a percentage point for the country’s benchmark one-year and five-year interest rates for loans. But because almost all of the country’s corporate lending and mortgages are linked to the two rates, the reductions could have some effect on the overall pace of economic growth.
The move by the central bank, the People’s Bank of China, puts China at odds with policies in the West. The Federal Reserve spent over a year battling inflation by raising rates before pausing this month. The European Central Bank has also been pushing up interest rates in response to inflation.
1.08 percentage points in a single day. And during the Asian financial crisis of the late 1990s, China cut loan rates 1.44 percentage points in one day.
Tuesday’s cut brought the benchmark one-year rate to 3.55 percent from 3.65 percent. Companies typically pay the benchmark rate plus one or more percentage points, with smaller companies and private-sector businesses paying more than big companies and state-owned enterprises.
The five-year rate, used as a benchmark for setting mortgage rates, was cut to 4.2 percent from 4.3 percent. Home buyers and homeowners often pay another percentage point above that level.
@KeithBradsher
A version of this article appears in print on , Section B, Page 1 of the New York edition with the headline: As the West Zigs, China Zags With Rate Cuts. Order Reprints | Today’s Paper | Subscribe
I realize that this is a mortgage commentary, but our business touches many aspects of many lives. Today is the summer solstice, marking the astronomical first day of summer in the Northern Hemisphere. Yes, there is quantitatively less sunlight going forward. While we’re on quantitative things… “Two hearts are better than one… two hearts gonna’ get the job done…” Are you thinking about your heart? Me neither. It just motors along while you’re doing mortgage stuff, beating 32 million times a year, year in and year out, pumping two thousand gallons of blood each day. Up until recently there were only about 2,000-2,500 heart transplants but 2022 set a U.S. record with over 4,000. On average that’s only about 6 per month per state. They’re special. Amy Silverstein was well known about speaking on improving organ donor drug regimens, and the quality of treatment received by those receiving organs. Amy died last month. I hope that she had an impact. Like being a loan officer and prospecting for loans, transplants are a numbers game. The majority of Americans, 95 percent, are in favor of organ donation. But only 58 percent are actually registered. The most commonly transplanted organs are the kidney, liver, heart, lungs, pancreas and intestines. Register today. It won’t hurt a bit. (Today’s podcast can be found here and this week’s is sponsored by MCT and its Hedge Advisory division. Download their recently released whitepaper, Mortgage Pipeline Hedging 101, for more information on hedging in today’s market. Today’s includes an interview with Morris, Manning & Martin, LLP’s Bonnie Hochman Rothell on risks and legal considerations for lenders in a high-rate environment.)
Broker and Lender Services, Products, and Software
This 25,000 sq. ft. Malibu Beach compound is California’s most expensive Zillow listing, priced at a cool $195,000,000. Whether you are closing loans on palatial properties or starter homes, Nexus Closing by SimpleNexus, an nCino company, supports a top tier eClosing experience that borrowers and their agents will love. Nexus Closing’s single sign-on convenience makes it easy for borrowers to review and sign documents from anywhere. Also, it provides the flexibility of conducting in-person, hybrid, and full eClosings. Title and settlement partners also love the ease of centralized collaboration that keeps them up to date on closing docs and signing status. Learn how Dan Windell of Thrive Mortgage has been winning with Nexus Closing. Or schedule a demo to see Nexus Closing in action for yourself.
When thinking about effective approaches for succeeding in this market, two ideas come to mind. First, understand prospective homebuyers within the context of their economic uncertainty and get back to the basics of why homeownership still makes sense. Highlight building equity, and consider discussing the framework of creating generational wealth, especially for first-time buyers! Also, underscore the emotional aspects of ownership, like pride, stability, and better family environments. Next, articulate secure tactics to make purchasing more affordable: things like down payment strategies, interest buydowns, and ARMs offering lower payments as the market steadies. (Keep in mind buyer bias against ARMs; counter with education on their contemporary framework). Usherpa, the #1 ranked Mortgage CRM in both customer satisfaction and loyalty, is here to help you through this and every challenge. Download this free, informative PDF for homebuyers.
Your company has collected enough customer and contact data from across your tech stack to shut down a server farm. Now what? Data by itself isn’t that useful. It needs to be organized, categorized, and analyzed before it can truly be utilized. Otherwise, you’re just relying on instincts and blind luck to generate leads and drive growth. Total Expert Customer Intelligence aggregates all that data you’ve collected and constantly monitors it for key behaviors to identify and surface the most promising opportunities. Now, you can spend less time digging through your database and more time engaging customers about their financial needs and goals. Learn how Prosperity Home Loans uncovered 2,000+ new opportunities within their existing database using Total Expert Customer Intelligence.
As lenders adapt to volatile mortgage rates, many are stopping to reconsider their servicing strategy. Do inconsistent mortgage origination volumes have you questioning what makes more sense: retaining servicing or selling servicing released? Seth Sprague, CMB, Richey May’s Director of Mortgage Banking Consulting Services (aka, resident servicing expert), outlines the 13 key trends and strategies in servicing including recommendations on how to make the right decisions for your business. Want more help defining the optimal strategy? You know where to find us.
NEW EBOOK: How to fill your pipeline with referral business, even in today’s tight market. Right now, a steady stream of referrals means the difference between maintaining a pipeline and scrounging for leads. And real estate agents still hold the keys to the referral kingdom. To create this eBook, Maxwell interviewed agents and broker-owners across the country. The result is firsthand advice to help you better network to create a strong funnel of referral leads. Download your free copy to learn the 4 qualities real estate agents value in their lending partners, agent networking dos and don’ts, 5 ways to become a go-to lender for real estate agents, and more. Click here to download “Winning Agent Business: The Lender’s Guide to a Strong Referral Network.”
You know the headaches that come with your tech: you have too many screens to navigate, too many emails from too many departments, that file from three weeks ago just went missing, and your computer has slowed to a crawl… again. But ask yourself: are these normal hiccups, or is aging and outdated technology struggling to keep pace with your business? Shop-worn tech isn’t just an annoyance. It puts you at a competitive disadvantage in a market that leaves little room for lagging behind. Read Black Knight’s blog “Spotting Signs of Wear,” and see why so many decision-makers recommend investing in your technology now – even (and especially) in a downturn market.
FHA, VA, HUD, Ginnie, and USDA Program News
Although conventional conforming loans continue to represent the lion’s share of our biz, “government” product volume is somewhat steady, and substantive. Last week, the FHA share of total applications was 13.3 percent, the VA share of total applications was 11.9 percent, and the USDA share of total applications was 0.4 percent. And so, the changes that HUD and other government loan programs make are followed by lenders who originate that product. And the FHA has more than a dozen measures planned for proposal and final action, according to the Department of Housing and Urban Development’s spring agenda.
The result of audits was released last week by the Office of Inspector General for the U.S. Department of Housing and Urban Development. OIG looked at how mortgage servicers handled loss-mitigation aid during the pandemic, and it was not good: they failed to help two-thirds of distressed borrowers.
Bob Broeksmit, CMB, President and CEO of the Mortgage Bankers Association (MBA), issued the following statement in response to the news. “The report from the OIG confirms what we all know: the COVID-19 pandemic presented unprecedented challenges to homeowners, servicers, and the federal agencies like HUD that administer loan guarantee programs. Since the pandemic began in March 2020, mortgage servicers provided payment relief to nearly 8 million borrowers via forbearance. Today, only approximately 255,000 borrowers remain in forbearance, and delinquency rates are near historic lows.
“The OIG’s report details the difficulties that HUD faced in effectively communicating extensive and rapidly changing COVID-related loss mitigation program requirements. These difficulties are understandable in light of the challenges faced by both HUD and servicers in an unprecedented and rapidly changing environment. Those difficulties increased the challenges that servicers faced in implementing these new and evolving programs for a never-before-seen volume of borrowers.”
FHA announced that its FHA Catalyst Claims Module is being updated to further align module functionality with FHA’s claim certification requirements published in Single Family Housing Policy Handbook 4000.1, IV.A.1., Claim Submission Process. On July 14, 2023, the FHA Catalyst Claims Module will be updated to reinforce user profile accuracy and to be consistent with FHA policy that only mortgagee employees may certify claim submissions.
FHA is taking new steps to remove an important barrier to homeownership for those who have limited English proficiency. FHA just announced the availability of multilingual educational materials on its new Language Access Resources web page.
Ginnie Mae announced in All Participants Memorandum (APM) 23-09 that it is extending the use of electronic signatures in conjunction with Remote Online Notarization (RON) to include power of attorney (POA) mortgage documents.
(Recall that in December Ginnie Mae announced new loan limits for 2023 for single-family forward mortgages eligible for pooling in its mortgage-backed securities programs. Loan limits for most of the country increased this year due to house price appreciation during the first half of 2022, which is factored into the statutorily mandated calculations that determine the limits each year. One-unit properties in the contiguous 48 States, District of Columbia, American Samoa, and Puerto Rico will have a loan limit of $726,200 while one-unit properties in Alaska, Hawaii, Guam, and the U.S. Virgin Islands have a loan limit of $1,089,300.
Ginnie Mae has added “Ginnie Mae Mortgage-Backed Securities Portfolio Reaches $2.404 Trillion in May “.
USDA Rural Development SFHD posted a new bulletin updating exhibits in RD Instructions 1944-N, Housing Preservation Grants.
PennyMac issued a reminder to correspondents with Announcement 23-40 of the USDA Guaranteed Rural Housing Loan Program annual income eligibility requirements, specifically as it pertains to asset review requirements.
Help your low to moderate-income borrowers, who are looking to purchase a single-family home, with Hometown Equity Mortgage new CalHFA Down Payment Assistance Program which provides low interest home financing, down payments and closing cost assistance for homebuyers in California.
Capital Markets
Federal Reserve Chair Jerome Powell will have an opportunity this week to clarify what many found a confusing message on the path of interest rates, with the added task of assuring Democrats and Republicans the economy is on track. Who the heck would want that job?
Rates dropped to open the holiday-shortened week despite a report that residential construction is gaining momentum. Housing starts rose 5.2 percent above April to a 1.63 million annualized figure in May, which exceeded expectations. The number is still down 12.7 percent from May 2022 and total starts are down 15.5 percent on a year-to-date basis. Continued growth in new home construction is consistent with improving home builder sentiment and ongoing lack of existing homes for sale. Building Permits rose to 1.49 million.
This morning the industry learned that mortgage applications increased 0.5 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending June 16, 2023. It’s nice to see an increase, albeit small, and not another decline. “The refinance share of mortgage activity decreased to 26.9 percent of total applications from 27.3 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 6.3 percent of total applications. The FHA share of total applications increased to 13.3 percent from 13.0 percent the week prior. The VA share of total applications decreased to 11.9 percent from 12.6 percent the week prior. The USDA share of total applications decreased to 0.4 percent from 0.5 percent the week prior.”
The rest of the week won’t have much in the way of market-moving data, but we will have plenty of Fed speak, including Fed Chair Powell heading to Capitol Hill for his semiannual testimony today and tomorrow. Markets will also receive remarks from Chicago President Goolsbee and Cleveland President Mester. Today’s data, besides the MBA’s application data, only has supply and demand monitoring with a Treasury auction of $12 billion reopened 20-year bonds. We begin the day with Agency MBS prices roughly unchanged from Tuesday afternoon, the 10-year yielding 3.75 after closing yesterday at 3.73 percent, and the 2-year is at 4.71.
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As you may have noticed, updates about the ongoing remodel of our San Francisco Victorian have been rather few and far between these days. I’ve come to learn remodels are like molasses – they move at a pace you cannot control! And while progress is in fact being made, there’s not a lot of excitement related to rough-in plumbing, insulation or rewiring. I am getting super excited to share our plans as the designs are coming together! But in the meantime I thought it’d be fun to play what-if with some of my favorite designers. What if they had their hands on this house and could do whatever they wanted! I knew they’d have as much fun dreaming of what could be done with the space as I have. So for the next few weeks you’re going to be treated so some major design inspiration from a bevy of design studs! I’m thrilled my dear friend and interior stylist extraordinaire Kirsten Grove is kicking things off with some serious kitchen inspiration!
To jog your memory, when it comes to the kitchen we’re basically starting from scratch because this is the house’s current “kitchen”:
This is the floor plan for our new kitchen:
While not a terribly big space, we hope to maximize storage with a separate pantry woot!. I’ve toyed with the idea of a kitchen island too. And I’m still debating what the cabinets should look like. And lighting?? Oh the lighting dilemmas. I am excited the kitchen will be directly connected to our living room via a breakfast bar. Obviously, it’s a very blank slate at the moment as we’re still in our demolition phase, so I’m excited to see what Kirsten thinks we might do with this design!
Kirsten’s Designer Take: Hi everyone! My name is Kirsten Grove and I am an interior Stylist/Blogger from Boise Idaho. I am a huge fan of Apartment 34 and I think the world of Erin and the team! She definitely has her work cut out for her with this renovation. But it’s something that I know she will successfully complete.
We all know that the kitchen is the heart of the home. Whether we cook or not, we all want the perfect kitchen. Of course they are the biggest money takers, but it’s well worth it at the end.
I have always been a fan of modern, minimal kitchens. Especially in older homes. The juxtaposition is always stunning! Right now cabinet slabs are on point. No molding, no panels. Just clean slabs. Paired with hardware or just kept plain, these doors are simple yet beautiful.
Here’s a kitchen with simple hardware that doesn’t take away from the doors. I also love the style of hood that mirrors the cabinets. It’s a nice, clean look. This same thing can be assigned with the refrigerator.
Another trend is two toned cabinets. Above we have a dark paint on the top and natural wood on the bottom. You could also do one color on top and another color on the bottom. It breaks the kitchen up and adds stylish personality!
Here’s another example of two-toned cabinets. This kitchen also has another favorite trend of mine. Square tiles! It’s a refreshing change from the classic subway tiles. White grout keeps it more traditional while dark grout keeps it modern.
Kitchens can be a lot of fun to design! Good luck, Erin! We can’t wait to see what you come up with!
I love that Kirsten named a few of my favorite kitchen trends – and a couple that just might make their way into my final kitchen design. But you’ll have to wait a little longer before I can reveal all of that. For now, follow more of Kirsten’s design savviness on her blog, Simply Grove!
Image 1 via Simply Grove // 2 via 30 Collins // 3 via The D Pages // 4 via Emma’s Design Blog
Mortgage rates have finally dipped, after three panic-inducing weeks of climbing upward.
For the week ending June 8, the average 30-year fixed mortgage rate sank to 6.71%, down from the previous week’s 6.79%, according to Freddie Mac.
And that’s not where the good news ends.
Home price growth, which has been spiraling skyward since the COVID-19 pandemic, has also “slowed to a halt,” according to Danielle Hale, chief economist for Realtor.com® in her recent analysis of the latest housing data.
Indeed, median listing prices came in a mere 0.2% higher for the week ending June 3 compared with this same week last year. That’s the lowest level in the history of Realtor.com data, which goes back to 2016.
Yet despite this double dose of good news, Hale points out that “homebuying costs haven’t come down.” In fact, today’s buyers who make a 20% down payment will still pay about $280 more per month than they would have last year.
Here’s what these statistics mean for homebuyers and sellers in our latest installment of “How’s the Housing Market This Week?”
How high mortgage rates have changed homebuyer priorities
Although home prices seem to be finally leveling off a bit, the median listing price is still high, coming in for May at a median of $441,000.
High home prices combined with high mortgage rates have pressured many homebuyers to adjust their home-shopping priorities. For many now, their only priority seems to be finding a bargain.
“Affordability has evolved into an increasingly important factor that influences people’s decision-making processes when searching for homes,” says Hale. “In order to attain homeownership, a higher share of online shoppers were drawn toward more affordable markets compared to a year ago.”
Affordability explains why markets in the relatively budget-friendly Northeast have been heating up of late, while markets in the South and West have cooled. Yet hot markets tend to drive home prices higher, so it may be only a matter of time before the balance shifts.
Last month, median home prices in the Northeast shot up by double digits compared with one year ago, while prices in the South and West showed low single-digit growth.
Although many buyers are finding success by scrounging for deals, other buyers are simply pausing their search until interest rates subside.
“Worries about high inflation, rising interest rates, and escalating home prices have caused many prospective buyers, especially more first-time buyers, to postpone their plans to purchase a home,” said Hale.
How high mortgages affect home sellers
Homebuyers aren’t the only ones feeling deflated. Home sellers have also been pulling back from the market, as the number of new listings has declined for 48 straight weeks. For the week ending June 3, new listings are down by 25% compared with a year ago.
“Many remain skittish about listing since it would mean trading in their low mortgage rate for something much higher,” says Hale.
Although new listings are down, overall housing stock (which includes listings both new and old that have been lingering on the market) is 13% higher for the week ending June 3 than the same week last year. But unless more new listings hit the market soon, even overall inventory will soon suffer.
“The ongoing decrease in new listings has restrained the growth of active inventory,” says Hale. “And there is a possibility of further deceleration in the upcoming weeks.”
The pace of home sales slows further
The homes that are still for sale continue to linger—and linger. For the week ending June 3, homes spent 14 more days on the market compared with the same time last year. This marks a 46-week streak of homes taking longer to sell compared with the same week the previous year.
Yet although things are slowing, homes remained for sale for about 43 days in May, which is still faster than the average May from 2017 to 2019.
“Homes are still selling faster than the pre-frenzy norm, emphasizing the persistent supply-demand imbalance,” says Hale.
And this means that those homeowners who do decide to sell at an affordable price will likely be greeted by plenty of buyers looking to make an offer.
Meanwhile, all those homebuyers searching high and low for bargains might want to give those stale listings a second look, and gamble that lowballing might actually work.
