september

Apache is functioning normally

Apache is functioning normally

Your credit score communicates with lenders your level of credit trustworthiness. As a result, those with higher credit scores qualify for higher credit limits and better interest rates. Your credit score will play a major role if you plan to purchase a house or apply for a loan in the future.

Understanding credit scores and what they mean can improve your financial literacy. We gathered the following credit score statistics to help you get a better sense of where your credit score stands compared to other Americans.

Key findings:

  • The national average FICO® Score is 716 as of April 2022 (FICO)
  • About 10% of the U.S. population doesn’t have a credit record and are “credit invisible.” (Consumer Financial Protection Bureau)
  • Ages 76 and up have the highest average credit score at 760. (American Express)
  • Women’s and men’s average FICO Scores are virtually the same. (Experian)

Average U.S. credit score

The national average FICO Score is 716 as of April 2022. This is the same as when FICO last reported on it a year ago.

Average credit score by state

While your location doesn’t affect your credit score, some states have a higher average credit score than others as seen in the statistics listed below.

  • While 31 states (and the District of Columbia) have average FICO scores that are higher than the national average of 716, the upper Midwest and New England continue to have the best average FICO Scores. (FICO)
  • Minnesota, Vermont, New Hampshire and Wisconsin all have scores that are 23 points higher than the national average, with scores of 742, 739 and 737, respectively. (FICO)
  • Mississippi, Louisiana, Alabama and Arkansas have the lowest credit scores at 662, 668, 672 and 673, respectively. (WalletHub)

Average credit score by age

Since credit history length is a factor that influences your credit score, it makes sense that the average credit score increases with age as seen below.

  • Approximately 58% of consumers with the highest credit score are between the ages of 56 and 74. (Money Geek)
  • The average score for adults aged 18 to 29 increased by 24 points between April 2017 and April 2022; 19 points for those aged 30 to 39; 19 points for those aged 40 to 49; 13 points for individuals in their 50s; and 10 points for those aged 60 and older. (Nerd Wallet)
  • As of 2021, ages 18-24 have the lowest average credit score at 679. (American Express)
  • Ages 76 and up have the highest average credit score at 760. (American Express)

Average credit score by race

Average credit scores can differ across demographics like race. However, keep in mind that race doesn’t directly influence your credit score.

Average credit score by gender

Although women couldn’t legally apply for credit until 1974, women’s and men’s average FICO Scores are still very close in range at 705 for men and 704 for women as of 2019, according to Experian.

Average credit score by income

A common credit score myth is that your income contributes to your credit score. Although this is untrue, the statistics below show a correlation between income and credit score.

  • Approximately 25% of low-income consumers don’t have enough knowledge to raise their credit scores. (Consumer Federation of America)
  • The median credit score of 658 for lower income individuals suggests that many borrowers are unlikely to have access to affordable credit as those with scores above 720. (Federal Reserve Bank of New York)
  • Those considered high income have the highest average credit score at 774. (American Express)

Average FICO Score in the U.S.

FICO is an analytics firm that developed the credit scoring models used today. The national average FICO Score is 716 as of April 2022, the same as when FICO last reported on it a year ago. Here are some FICO statistics.

Average FICO Score by generation

  • The Silent Generation (ages 77 and up) has the highest average credit score at 760. (Experian)
  • The average credit score of baby boomers (ages 58-76) is 742 in 2022, up two points from 2021. (Experian)
  • Generation X (ages 42-57) has an average credit score of 706. (Experian)
  • The average credit score of Millennials (ages 26-41) is 687. (Experian)
  • Generation Z (ages 18-25) has an average credit score of 679 in 2022, the same as 2021.  (Experian)

Generation

Average credit score (2022)

Silent Generation

760

Baby Boomers

742

Generation X

706

Millenials

687

Generation Z

679

Average VantageScore in the U.S.

VantageScore is the second most popular credit scoring model in the U.S. As of September 2022, the average VantageScore was 697.

Credit card utilization statistics

Credit utilization refers to the amount of your available credit you’re currently using. Your credit utilization ratio is calculated by adding up your balances and then dividing by the total of your credit limits. Keeping your credit utilization ratio low can help raise your score.

  • Individuals with credit scores 800 to 850 have an average credit utilization ratio of 5.7%. (Experian)
  • Consumers with credit scores considered “very good” (740-799) have an average utilization ratio of 12.4%. (Experian)
  • Those with credit scores in the “good” range (670-739) have an average credit utilization ratio of 32.6 %. (Experian)
  • 47.6% of the population opened at least one new credit account in the last year. (FICO)
  • Approximately 26 million U.S. adults, or 10%, don’t have a credit record and are “credit invisible.” (Consumer Financial Protection Bureau)
  • 19 million Americans have a credit history but lack a credit score because their report is insufficient or out of date. (Consumer Financial Protection Bureau)
  • The 15% growth in credit card balances from 2021 to 2022 is the highest in more than 20 years. (Federal Reserve Bank of New York)
  • Currently, 83% of American people own at least one credit card. (Zippia)
  • There are currently 26.5% more credit card holders in 2022 than there were in 2017—just five years ago. (Zippia)

FAQ

Whether you’re new to credit or just need a refresher, we’ve answered some common questions about credit scores below.

What is a good credit score?

According to FICO, a good credit score is 670-739 or above, while a very good credit score is 740-799. A credit score that is 800 or above is considered exceptional.

How to check your credit score

To check your credit score, order a free copy of your credit report from each of the three credit bureaus. You can also check your credit score for free by visiting Credit.com.

What contributes to your credit score?

The factors that contribute to your credit score are payment history, amounts owed, credit history length, credit mix, and new credit.

What is the highest credit score?

The highest credit score is 850 for most FICO and VantageScore models.

How to work on your credit score

You can see from the above credit score statistics that everyone’s credit varies. If you checked your credit score and it’s currently low, we have resources available to help educate you about your credit so that you can qualify for the best rates available.

Source: credit.com

Apache is functioning normally

Apache is functioning normally

Data Mining, Digital Lending, Real Estate Database, Servicing Products; Conventional Conforming Program Shifts

<meta name="smartbanner:author" content="We now have a native iPhone
and Android app.
Download the NEW APP”>


This website requires Javascrip to run properly.

Data Mining, Digital Lending, Real Estate Database, Servicing Products; Conventional Conforming Program Shifts

By:
Rob Chrisman

49 Min, 7 Secs ago

As if lenders and vendors don’t have enough other stuff to worry about, the budgetary standoff in the U.S. doesn’t look like it will abate soon, raising the likelihood of the first government shutdown since 2019. Current funding for federal operations will end on October 1 unless a deal is reached or the proverbial can kicked down the road. Thousands of federal workers might be furloughed without pay. Sure it will be temporary, and its wider impact will likely be limited, but still even talking about it is lousy. According to Morgan Stanley, the last 20 government shutdowns that occurred since 1976 “appear to have had limited impact on the economy.” As for bond prices, a shutdown may cause some “temporary instability”, but this is not a given. There is talk of a short-term Continuing Resolution (CR) providing funding until later this year, but federal agencies, including HUD and Treasury, will cease to function normally. The National Flood Insurance Program (NFIP) authorities also expire on October 1st. The Mortgage Bankers Association created a guide outlining how HUD (including FHA and Ginnie Mae), VA, and USDA would be directly affected by the furlough of government employees and the curtailment of agency operations. (Today’s podcast can be found here and this week’s is sponsored by Built. Built is powering smarter and faster money movement for the entire construction and real estate ecosystem, all while reducing risk. Hear an interview with Servbank’s Bryan Crofford on how companies can best invest in employees, promoting longevity and success.)

Lender and Broker Software, Programs, and Services

Life can change on a dime, and sometimes even the most prepared borrowers end up facing financial hardships they never would have imagined. Forward-thinking credit unions are preparing today, so they can be there for their members when they need help the most. It’s why Mission Federal Credit Union implemented the MSP® loan servicing system, to not only improve their own efficiencies, but better serve their members who are facing financial difficulty. Are you ready to join Mission Federal Credit Union by enhancing your technology to be there for homeowners in life’s most challenging moments? Learn more about MSP today.

One thing that you can always count on in the mortgage space, is that regulatory requirements are always changing. This is why it’s critical for Banks or Mortgage Servicers to stay vigilant with comprehensive Compliance Testing and Monitoring to mitigate exposure and minimize risk. At the MBA Annual in Philadelphia, PA, Servbank’s Shayna Arrington will be helping us all do exactly that. Watch her moderate the panel, “Today’s Top Regulatory Issues” on Tuesday, October 17 at 1:30 PM, on 200 Level, Exhibit Hall E. Want to dive deeper into how Servbank can partner with you? Servbank will have a meeting space at the W Philadelphia on 10/16 and 10/17. Schedule some time to meet with them here: [email protected] or learn more at www.servbank.com.

One-Time Close (OTC) Volume Soars to record highs at AFR Wholesale® (AFR)! While housing inventory is still at an all-time low, OTC loans have witnessed an unprecedented surge in volume! In August, AFR closed more One-Time Close loans in one month than at any other time in their long history of offering the product. Homebuyers are increasingly drawn to the convenience and cost-saving benefits of OTC loans, as they streamline the construction process, reduce paperwork, and offer more favorable terms. This surge in OTC loans at AFR is not just a testament to its effectiveness but also an indicator of the outstanding clients and partners of AFR. Breaking news: As a thank you to their clients, AFR has also brought back FHA OTC on site-built homes!! This long-awaited product is back for partners of AFR to utilize now. Partner Today or contact AFR, email or call 1-800-375-6071.

One of the biggest questions for LOs in a down market is “How do I find more agent partners?” The answer is MMI. To find the right agent partners, you need the right data. MMI has assembled the industry’s most comprehensive real estate and mortgage transaction database which is leveraged by thousands of mortgage professionals daily. Using MMI’s database, LOs can easily search & filter, find an agent and at the click of a button, push the info to a CRM like Bonzo. Sign up for a demo today to see why a majority of the top 25 lenders rely on MMI.

Free eBook: Market-Proof: How to Build a Flexible Lending Business Resilient in Upcycles & Downturns. The exaggerated upcycles and downturns of the past few years underscore just how crucial it is for lenders to build resilience and flexibility into their businesses. To overcome today’s challenges, lenders need to hone their lending process at each step. In this new eBook, Maxwell provides 12 tips from industry veterans to help you optimize your mortgage process from loan application to the secondary market. You’ll get insight from exclusive interviews with industry veterans on how to increase efficiency, access economic scale, and become resilient to market volatility like never before. Click here to download Maxwell’s new eBook “Market-Proof: How to Build a Flexible Lending Business Resilient in Upcycles & Downturns.”

The transformation from paper to digital processes offers substantial benefits, including cost reduction and improved borrower experiences. Most lenders are in a hybrid phase, blending paper and digital processes. To navigate this ongoing change and ongoing innovations in the digital lending space, lenders should consider embracing five best practices: create a successful strategy, prioritize borrower experience, ensure compliance, harness technology, and stay adaptable in the evolving digital landscape. Tackle the future of lending by staying informed and proactive. For deeper insights into this digital lending revolution and actionable steps, read the full article.

“Heading to Vegas? The Total Expert team is in full force at the Digital Mortgage conference in Las Vegas! There are three ways to interact with us. The first is to stop by booth #501 to get your Customer Intelligence ROI report and learn how you could increase funded loan volume by 20 percent. You can watch a LIVE demo of Total Expert on Tuesday 9/26. Lastly, catch our Founder & CEO Joe Welu for a panel discussion: The Customer Data Goldmine Goes Way Beyond Credit Triggers on Wednesday 9/27.Schedule time to meet with the Total Expert team in Vegas.”

Freddie Mac, Fannie Mae, Conventional Conforming News

The Federal Housing Finance Agency (FHFA) released its second quarter 2023 Foreclosure Prevention and Refinance Report. The report shows that Fannie Mae and Freddie Mac (the Enterprises) completed 47,370 foreclosure prevention actions during the quarter, raising the total number of homeowners who have been helped to 6,818,471 since the start of conservatorships in September 2008. View the News Release

FHFA-OIG released two reports: Within the Federal Housing Finance Agency (FHFA), the Division of Federal Home Loan Bank Regulation (DBR) is responsible for supervising the Federal Home Loan Bank (FHLBank) System to ensure the safe and sound operation of the FHLBanks. In response to market disruptions, DBR adapted the scope of its Federal Home Loan Bank Supervisory Activities in 2023.

Regulated entities have not been immune to the trends affecting the labor market over the past few years. Some of the regulated entities experienced higher attrition in 2021 and 2022, consistent with trends in the broader labor market, but one Enterprise reported that its turnover rate started declining in 2022. Read the full report, People Risk at FHFA’s Regulated Entities.

Freddie Mac will update Loan Product Advisor® (LPASM) in October to support multiple recent Single-Family Seller/Servicer Guide announcements, plus more enhancements, described in Freddie Mac October LPA Releases.

Freddie Mac Loan Selling Advisor September Updates includes the following information: Uniform Loan Delivery Dataset (ULDD) Phase 4a Updates and Phase 5 Specification, Auto Evaluate on Import Loan, New Loan Delivery Rules Supporting the Duty to Serve Credit Fee Cap, Initial Principal and Interest Payment Amount Conditionality update, Auto Re-evaluate: Improvements to Modify and Evaluate, and Enhancements to Mandatory Cash Contracting.

Leverage Fannie Mae’s new edition of Beyond the Guide to help your organization build a best-in-class quality control (QC) program. Specific examples and scenarios provided can help teams understand and apply Selling Guide concepts in a way that is most impactful to their organization. A robust QC program helps strengthen loan quality ensuring a safe, sound, and resilient mortgage industry.

Fannie Mae Appraiser Update September 2023 edition focuses on dual themes of delivering high quality appraisals and understanding recent policy changes. Topics include updates to the Appraiser Independence Requirements (AIR), new options for 1004D completion, our stance on 3D printed homes, and more.

Fannie Mae posted the September Appraiser Quality Monitoring (AQM) list. Read the AQM FAQs.

Chris Whalen writes, “Our short take on the future of the GSEs (Government Sponsored Enterprises) looks a lot like the character played by Bruce Willis in the 1995 Terry Gilliam film, ‘Twelve Monkeys.’ Imagine if the GSEs were released from conservatorship, but then were immediately designated as a ‘systemically important financial institution’ (SIFI) by the FSOC. How do you think that would work for private investors? What would happen to the guarantee fees?”

Pennymac Conventional LLPAs updates effective for Best Efforts Commitments: Pennymac Announcement 23-58 replacement of ‘Purchase Special’ LLPA Grid with new ‘Area Median Income Adjustments’ LLPA Grid. Pennymac Announcement 23-59 introduces new ‘Investment Property’ LLPA to the ‘LLPAs by Product Feature for All Eligible Loans’ LLPA Grid. Pennymac Announcement 23-60 updates values for the ‘2nd Home Additional’ LLPA on the ‘LLPAs by Product Feature for All Eligible Loans’ LLPA Grid.

Pennymac is aligning with the FHFA based updated project review and eligibility requirements announced in Fannie Mae SEL 2023-06 and Freddie Mac Bulletin 2023-15, with the exception of any reference to co-op projects. View Announcement 23-61: GSE Updated Condo Project Review Requirements

Citizens Correspondent National Bulletin 2023-16 provides updates on the following topics: Conventional Conforming Products, Review requirements for condominium eligibility – DU and LPA, Gifts and Gifts of Equity – DU, 3D printed homes, Trust Income – DU, USDA-RD Product, Fiscal Year 2024 Conditional Commitment Notice, All Products, Disaster Tax Filing Relief.

PHH Mortgage Corporation updated Conforming Product listings for both Delegated and Non-Delegated loans.

Pennymac announcement 23-62: Fannie Mae SEL 2023-06 Condo Project Manager Updates

Citi Correspondent Lending Bulletin 2023-08 provides Credit policy updates regarding Non-Agency Depreciating Markets list updated, Condo & Co-Op Critical Repairs, Shared Equity and Shared Appreciation, LPA Asset, and Income Modeler (AIM), Continuity of Obligation: Limited Cash-Out, Hazard Insurance Update: Effective Date, and Taxpayer First Act.

On September 6, 2023, Fannie Mae and Freddie Mac announced Selling Guide policy changes addressing multiple topics in Fannie Mae SEL-2023-08 and Freddie Mac Bulletin 2023-18.

AmeriHome Mortgage accepts all revisions, view Product Announcement 20230910-CL for details.

Capital Markets

Ahead of today’s $48 billion 2-year Treasury auction, headlines to open the week revolved around increases in oil prices that’s evidence of inflation’s stickiness, Chinese developer Evergrande calling off talks with creditors as it appears headed for bankruptcy, and reaction to hawkish Fed remarks which is forcing yet another reprice from markets. There is growing sentiment that central banks across the globe aren’t done hiking rates, and Treasury yields trended higher to open the week as a result. With the calendar turning to fall, the economy is facing a few headwinds such as the run up in oil prices, student loan payment resumption, an expanding auto workers strike, and a partial shutdown of the U.S. government.

Every lender knows that mortgage rates remain above 7 percent, and housing data released over the last week highlighted another decline in builder sentiment. Housing starts fell 11.3 percent to a 1.25-million-unit pace in August. Existing home sales were down 0.7 percent in August as low inventory, high prices, and high mortgage rates continue to weigh on sales. Hoping for lower interest rates? A recession would likely mean lower interest rates, but workers with stable jobs (most individuals) would want to take advantage of low interest rates, causing home prices to rise faster. Initial jobless claims fell to 201k for the week ending September 16, which was the lowest weekly reading since January. The JOLTS report indicated that the demand for new workers is moderating somewhat however, significant layoffs are not on the horizon.

Today’s calendar includes the Philadelphia Fed non-manufacturing surveys for September, Redbook same store sales, July house price indexes from S&P Case-Shiller and FHFA, September consumer confidence, August new home sales, Richmond Fed manufacturing for September, Dallas Fed Texas services for September, the aforementioned Treasury auction of $48 billion 2-year notes, and remarks from Fed Governor Bowman. We begin Tuesday with Agency MBS prices a few ticks (32nds) better and the 10-year yielding 4.50 after closing yesterday at 4.54 percent. The 2-year is up at 5.12.

Employment

“At Fairway Independent Mortgage Corporation, customer service is a way of life. #FairwayNation mortgage loan officers are dedicated to finding great rates and loan options for our customers while offering some of the fastest turn times in the industry. Our goal is to act as a trusted mortgage advisor, providing highly personalized service and helping you through every step of the loan process, from application to closing and beyond.”

Logan Finance Corporation, a national Non-QM mortgage lender, is excited to welcome Aaron Samples to Logan’s Executive Leadership Team as Chief Revenue Officer. To learn more about why Aaron joined one of the fastest Non-QM lenders in the nation, contact Randy Viars.

The FHA has a job opening for a Senior Underwriter: Job Announcement Number 23-HUD-2915-P. Job duties include assisting the Branch Chief in monitoring the status of goal accomplishment. Advise the Chief of potential problems in attainment of goals and objectives. Research required underwriting procedures and techniques. Serve as an expert-level resource within his/her Office on matters relating to Underwriting and other Direct Endorsement issues.

Don’t forget that private mortgage insurance companies are hiring: MGIC, National MI, Arch MI, Radian, Essent, and Enact (in no particular order). And while’s we’re at it, Fannie Mae and Freddie Mac. And my cat Myrtle’s friend the CFPB.

Dovenmuehle Mortgage, Inc. announced that Robert Howerton has joined the organization as Chief Information Officer where he will be maintaining and expanding Dovenmuehle’s current information technology (IT) infrastructure.

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

Source: mortgagenewsdaily.com

Apache is functioning normally

Apache is functioning normally

Just weeks after New York-based digital lender Better Home & Finance Holding went public, Better issued pink slips to employees in early September in a new round of layoffs, Insider reported.

Better laid off about a quarter of its U.S. mortgage sales and origination team, according to the news outlet, citing two former employees who were affected by the latest downsizing.

The layoff news comes on the heels of Better going public via special purpose acquisition company (SPAC) Aurora Acquisition Corp. in August.

About 75 employees are left on the mortgage origination team in the U.S. as well as some employees in India, according to Insider. 

While Better didn’t respond to HousingWire‘s inquiry about the number of affected employees, spokeswoman Jessica Schaefer told Insider the firm has more than 100 people left on the team. 

Better plans to fill some vacant positions from the layoffs.

“As a publicly listed company, we’re focused on making prudent and disciplined decisions that account for market dynamics so that we can continue to serve both customers and shareholders for the long-term,” Better’s spokesperson said in an e-mailed statement to HousingWire.

“We are hiring more seasoned professionals who can sell in this tough mortgage environment and then making them 10X more productive through our continued investment [in] technologies such as Tinman and One Day Mortgage, which have created efficiencies that streamline and automate nearly every major function of homeownership,” the spokesperson said. 

As of June, Better had 950 team members, a 91% decrease over an 18-month period from 10,400 in Q4 2021, according to its previous filing with the Securities and Exchange Commission (SEC). 

While Better was an efficient refi shop during the pandemic years when rates hit record lows, the lender and other independent mortgage banks (IMBs) were hit hard by the Federal Reserve‘s monetary policy.

The digital lender reported a net loss of $45.5 million in Q2, an improvement from a net loss of $89.9 million the previous quarter.

In Q2, Better’s origination volume was $900 million across 2,421 loans, compared to production of $800 million across 2,347 loans funded in Q1.

When Better debuted on Nasdaq in late August, the SPAC deal unlocked $565 million of fresh capital for the unprofitable company.

The digital lender has pivoted its strategy from being a one-stop-shop to becoming a “mortgage-as-a-service” company or a white-label provider of mortgage tech.

“For things like homeowner’s insurance, title insurance, and Realtors, we’ve now just become a marketplace. We match the consumer with a partner capable of delivering the best product to them. So, we ended Better Real Estate for the sake of efficiency and savings for the consumer. We partner with best-in-class agents, insurance companies and title companies,” Better CEO Vishal Garg said in an interview with HousingWire in August.

Better will invest in tech-driven products like One Day Mortgage, a program that will allow customers to apply for a mortgage, get preapproved, lock their rate and receive a mortgage commitment letter within 24 hours.

“We are committed to further developing this technology during an interest rate environment where customers need it the most,” Better’s spokesperson noted.

Better was ranked as the 59th largest lender in Q1 2023, plummeting from the 19th in 2021, according to Inside Mortgage Finance.

Source: housingwire.com

Apache is functioning normally

Apache is functioning normally

According to a report prepared by the Congressional Research Service (CRS) earlier this month, there would be several immediate impacts following the program’s expiration.

“The authority to provide new flood insurance contracts will expire,” the CRS report said. “Flood insurance contracts entered into before the expiration would continue until the end of their policy term of one year.”

The borrowing authority of NFIP from the U.S. Treasury would also be reduced from $30.245 billion to $1 billion. Flood mitigation assistance grants would still be available, but “the expiration of the key authorities listed above would have potentially significant impacts on the remaining NFIP activities,” the CRS explained.

There would also be a chilling effect on the mortgage industry, according to experts and lawmakers.

“By law or regulation, federal agencies, federally regulated lending institutions and government-sponsored enterprises must require certain property owners to purchase flood insurance as a condition of any mortgage that these entities make, guarantee, or purchase,” the CRS report said.

Without NFIP, mortgage activity would be seriously diminished, as Sen. John Kennedy (R-Louisiana) stated.

“If for some reason the flood insurance program expires, existing policies are still in effect until their expiration date, and claims will continue to be paid as long as FEMA has money,” Kennedy said on the Senate floor on September 13. “However, the federal requirement that you have to purchase flood insurance under certain circumstances to get a mortgage would be suspended, which means that many mortgage companies would not loan the money to homeowners.”

In previous instances when NFIP lapsed, mortgage activity was temporarily halted. However, according to the CRS report, Congress eventually moved to reauthorize the program retroactively.

“In past NFIP lapses, borrowers were not able to obtain flood insurance to close, renew, or increase loans secured by property in [a Special Flood Hazard Area (SFHA)] until the NFIP was reauthorized,” the report said. “During the lapse in June 2010, estimates suggest over 1,400 home sale closings were canceled or delayed each day, representing over 40,000 sales per month. These figures applied to residential properties, but commercial properties were also affected by the NFIP lapse.”

The National Association of Realtors (NAR) has prepared an FAQ document to advise members of the potential impacts an NFIP lapse would have on the housing industry. They specify that a currently debated continuing resolution (CR) that would fund the federal government after September 30 includes an NFIP extension. Still, political observers and some in Washington are preparing for government funding to lapse.

The White House on Friday instructed federal agencies to prepare for a shutdown, according to reporting from the Associated Press.

“With the October 1 start of a new fiscal year and no funding in place, the Biden administration’s Office of Management and Budget began to advise federal agencies to review and update their shutdown plans, according to an OMB official,” the AP report said. “The start of this process suggests that federal employees could be informed next week if they’re to be furloughed.”

Source: housingwire.com

Apache is functioning normally

Apache is functioning normally

Mortgage rates actually recovered a bit on Friday as the underlying bond market experienced a modest correction after spiking to the weakest levels in more than a decade over the past 2 days.  Despite the improvement, mortgages are also still near multi-decade highs.  Why is this the case when the Fed didn’t hike rates this week?

This counterintuitive movement is fairly common when it comes to the 8 Fed meetings each year.  Rates have fallen on several occasions when the Fed hiked throughout this rate hike cycle.  There are several reasons this can happen.  Some are complicated, but two of the simplest reasons are all we need this time around. 

First off, the Fed only has 8 scheduled opportunities to update rates every year while the bond market has thousands of opportunities every day. Because of that, a Fed rate hike is often just a lagging development that the market has already priced in.  The Fed actually tries to avoid surprising the market when it comes to hikes/cuts.  Via speeches and press conferences, it effectively preps the market for potential changes. 

The market can trade these expectations in a variety of ways.  The most direct is via Fed Funds Futures, which give traders a way to bet on the level of the Fed Funds Rate on any given month well into the future. Traders haven’t budged in their expectation of this week’s meeting resulting in a 5.375% Fed Funds Rate for months!

In other words, when the Fed held rates steady this week, it wasn’t a surprise to anyone and the market was already priced for it.  We can thus rule out the rate decision as the catalyst for the mortgage rate volatility and look elsewhere.  We won’t need to look far.

On 4 out of the 8 Fed announcements per year, and at the exact same moment as the Fed Funds Rate decision, the Fed also releases a “summary of economic projections.”  Among these forecasts is a dot plot showing where each Fed member sees the Fed Funds Rate at the end of the next few years.  These so-called “dots” have become a big deal for financial markets despite Fed Chair Powell’s requests to avoid reading too much into them.

The market doesn’t care about the dots due to some amazing track record of accuracy from the Fed.  Rather, they simply offer a very detailed update as to how the Fed’s decision-making process is evolving  when it comes to future rate hikes/cuts.  If the average Fed member expected rates to be almost 1% lower by the end of 2024 and now only sees them being 0.25% lower, that would tell the market a lot about the Fed’s intention to keep rates higher for longer, all other things being equal.

That is exactly what happened.

Markets expected the dots to rise, but not by this much.  Neither stocks nor bonds (aka rates) were happy about it.

Traders had already been pricing in a “higher for longer” path for the Fed Funds rate based on recent economic data.  In the bigger picture, this week’s revelation didn’t materially alter the trend in those expectations, but it did give them a noticeable bump.  Here’s how the market’s outlook for the Fed Funds Rate in September 2024 has been evolving.

The “bump” just happened to hit when rates were already near long-term highs.  The average 30yr fixed rate didn’t technically break above the highest level seen last month, but it came within 0.01% based on the more timely data from Mortgage News Daily.  We expect Freddie’s weekly numbers will challenge multi-decade highs next week.

Why is all this happening?  In a nutshell, the Fed Funds Rate is a blunt instrument tasked with fighting inflation.  Inflation has been coming down, but it’s still high and a bit of a rebound can’t be ruled out due to things like higher fuel prices, auto worker strikes, and an adjustment in the way certain health care costs are calculated.  In addition, the Fed is not yet seeing the type of downturn in economic data that would suggest impending disinflation.  

That last point is a matter of debate as some critics say the Fed has already done enough and simply needs to give their policy more time to have an impact.  The Fed admits that this economic cycle is different than past cycles and that there’s no way to know with certainty when it’s time for a friendly shift.

Regardless of who’s right about the timing of a policy shift and whether enough has already been done, most can agree that it will be economic data that serves as the trigger for a change.  Not just any economic data will do.  The Fed and the market are both focused on several of the highest impact reports.  Most of them will be released on the first week of October.  If they take a turn for the worse, rates would likely recover.  If they continue to surprise to the upside, so will rates, unfortunately. 

Source: mortgagenewsdaily.com

Apache is functioning normally

Apache is functioning normally

When it comes to the Los Angeles housing market, the numbers speak volumes.

As we navigate the contours of 2023, the Los Angeles housing market continues to dominate conversations, not just among locals but also among potential buyers, sellers and investors nationwide. Recent data shows a complex narrative: a market that is both competitive and costly, while simultaneously in a state of flux.

While the towering home prices persist in their upward trajectory, a marked reduction in the volume of homes actually changing hands year-over-year offers a nuanced and intriguing subplot.

Climbing the million-dollar ladder

As of July 2023, the median sale price for a home in LA sits at an astonishing $1 million. This represents a 4.3% elevation since the previous year.

To place this figure in a broader frame, the median sale price in Los Angeles is a whopping 132% higher than the national average. But it’s not just the overall home prices that have climbed; even the cost per square inch is inflating. The median price per square foot has ascended to $627, a 2.0% increase from last year.

Market dynamics

In the Los Angeles housing market, homes don’t linger. The average home is sold after a mere 37 days on the market, a slight but meaningful increase from 35 days in the prior year. This suggests that while the market remains fiercely competitive, it is not a feeding frenzy. On average, homes in Los Angeles receive three offers.

However, adding a layer of complexity, the number of homes sold in July 2023 reached only 1,477, plummeting 18.8% from the same period last year. These numbers indicate a fascinating conundrum: Although the demand is astronomical, supply is staggering behind, making it predominantly a sellers’ market — but with intriguing twists.

How competitive is the Los Angeles housing market?

Measuring competition in any market is complex, but when it comes to the Los Angeles housing market, there are some quantifiable indicators. According to the Redfin Compete Score™, the market ranks as “somewhat competitive.” The average home here is sold for approximately 1% above the listing price.

Migration and relocation trends

The Los Angeles housing market isn’t solely affected by prices and competition; it’s also swayed by the tides of migration. Between June and August 2023, a considerable 81% of LA homebuyers expressed intentions to remain in the metropolitan area, affirming their loyalty to the City of Angels.

Conversely, 19% are looking to spread their wings and fly to other destinations, with Las Vegas, San Diego and Bakersfield topping the list. However, Los Angeles continues to exert its magnetic pull, drawing in new residents chiefly from San Francisco, followed by Chicago and New York.

LA’s housing market at a glance

The Los Angeles housing market of 2023 is an intricate choreography of rising prices, intense yet waning competition and fluctuating migration patterns. For prospective buyers, the city’s market poses challenges, but they are not insurmountable walls. Sellers, too, need to navigate carefully. The diminishing number of homes sold indicates a potential saturation point or perhaps signs of buyer fatigue.

For everyone involved — whether you’re an investor eyeing long-term gains, a first-time buyer looking to plant roots or a seller aiming to capitalize on high prices — knowledge is power. Staying abreast of the ongoing trends and dynamics in the Los Angeles housing market is not just advisable; it’s imperative. After all, in a market as multifaceted as this, understanding the lay of the land can make all the difference.

The Los Angeles rental market

While the focus has largely been on home buying and selling, the rental sector adds another complex layer to the Los Angeles housing market. As one of the most sought-after places to live in the country, it’s no surprise that Los Angeles’ rental rates are a significant talking point as well.

Average rent and annual changes

The average rent for a studio apartment in the City of Angels hovers at $2,421, marking a 3% increase from the prior year. One-bedroom apartments haven’t been left behind in this upward trajectory, clocking in an average rent of $2,905, which also reflects a 3% annual increment. Two-bedroom apartments, meanwhile, cost an average of $3,894, but have seen a more modest annual growth of 1%.

This data paints a picture of a rental market that, much like its home-owning counterpart, experiences its fair share of challenges and costs. Apartments in Los Angeles are not for those hunting for bargains, with the average rent ranging between $2,421 and $3,894.

Rent ranges

The Los Angeles rental market shows an overwhelming skew towards the higher-end. While 0% of apartments rent in the $501-$1,000 range, a staggering 80% of them command a rent north of $2,100. This underscores the upward pressure on the cost of living in Los Angeles and speaks volumes about the limited affordability.

Neighborhoods

When it comes to neighborhoods, Bel Air tops the list for studio apartments with an average rent of $3,695. On the other hand, areas like Beverly Grove and Westwood Village have seen decreases in average rent by 11% and 14% respectively. Silicon Beach, however, is bucking the trend with an 18% annual increase, echoing the tech boom that the area is experiencing.

For those looking for more budget-friendly options, South Park, South LA and Crenshaw offer average one-bedroom rents ranging from $1,650 to $1,900, compared to the Los Angeles average of $2,905 for a one-bedroom.

Comparing Los Angeles to nearby cities

In terms of rent, Los Angeles still commands a premium compared to other nearby cities. For instance, a studio apartment in Santa Monica averages $3,540 with a 6% annual increase, while the same in Long Beach costs $2,850 but has soared by 37% in the past year. Glendale stands at $2,755 for a studio, with an 8% rise.

Understanding the trends

The fluctuating rental rates over the past year indicate a market that’s anything but static. For instance, studio rents went from $2,302 in September 2022 to peak at $2,422 in July 2023 before slightly reducing. Similar patterns are observed for one-bedroom and two-bedroom apartments, showing the market’s elasticity and potential volatility.

The Los Angeles rental market at a glance

The rental landscape in Los Angeles is a vital part of the overall housing market, influencing and influenced by similar factors like location, demand and economic status. Whether you’re a potential tenant eyeing the city’s ritzy neighborhoods or someone seeking more affordable options, the Los Angeles rental market provides a plethora of choices — albeit at a generally high price point.

For individuals and families not yet ready to commit to homeownership, or those who prefer the flexibility that renting provides, understanding the dynamics of the rental market is as crucial as grasping the trends in home buying and selling.

When you’re ready to enter LA as a local, there will be an apartment waiting for you on Rent.

Rent prices are based on an average from Rent.’s multifamily rental property inventory as of July 2023.
Other demographic data comes from the U.S. Census Bureau.
The rent information included in this article is used for illustrative purposes only. The data contained herein do not constitute financial advice or a pricing guarantee for any apartment.

Source: rent.com

Apache is functioning normally

Apache is functioning normally

With hundreds of stores across more than 15 Southeastern states, Belk is a beloved brand among Southerners who appreciate the department store’s excellent customer service, reasonable prices, and wide selection of apparel, home goods, cosmetics, and more.

The Belk credit card, issued by Synchrony Bank, offers impressive rewards rates, ranging from 4% to 7% back in rewards, depending on your level of spending each year.

Even so, if you’re an infrequent Belk shopper — or if there’s any chance you’ll carry a balance on your Belk spending — you may be better off with a more straightforward cash-back credit card.

🤓Nerdy Tip

Though Belk offers frequent coupons to email subscribers, the brand doesn’t have a traditional store rewards program for noncardholders. Carrying and using a Belk credit card is the only way to earn and redeem store rewards.

Here are five things you should know about the Belk credit card.

1. There are two versions of the card

With a single application for the Belk credit card, you’ll actually be considered for two versions of the card. Ultimately, the card you’re offered will depend on your financial record and credit scores. These are the two cards you’ll be considered for:

  • The Belk Rewards+ card is a “closed-loop” credit card, meaning it can be used to make purchases only inside Belk stores and salons, as well as on Belk.com.

  • The Belk Rewards+ Mastercard is an “open-loop” credit card, meaning you can use it anywhere Mastercards are accepted. 

Both cards offer the same in-store earnings and benefits, but the Belk Rewards+ Mastercard offers rewards on eligible purchases outside of Belk — more on that below.

Who doesn’t want to be rewarded?

Create a NerdWallet account for personalized recommendations, and find the card that rewards you the most for your spending.

2. Big spenders earn rewards at higher rates

Like most store cards, the Belk credit card is designed to reward brand loyalists, offering elevated rewards when you spend more on the card at Belk. Here’s how much you’ll earn at each spending tier, regardless of which version of the Belk card you have:

  • Spend $299.99 or less per calendar year on the card at Belk: You reach Belk’s “Insider” tier, and your card earns 4 points per $1 spent at Belk, equivalent to 4% back in store rewards.

  • Spend between $300 and $999 on the card in a calendar year at Belk: You hit the “Premier” level, and your card earns 5 points per $1 spent at Belk, equivalent to 5% back in store rewards.

  • Spend $1,000 or more in a calendar year at Belk: You reach “Elite” status, and your card earns 7 points per $1 spent at Belk, equivalent to 7% back in store rewards.

Beyond that, the open-loop Belk Rewards+ Mastercard version also offers 2 points per $1 spent on gas and grocery purchases, along with 1 point per $1 spent on all other non-Belk purchases.

With either card, once you reach the spending threshold for a new status tier at Belk, you’ll start earning rewards at that status beginning with the next billing cycle, and you can maintain that status until the end of the following year. If, for example, you earned Elite status in September 2023, you would keep that status until Dec. 31, 2024.

Note, however, that qualifying purchases necessary to reach a status tier will reset each January. So in the example above, while you’d enjoy Elite status until the end of 2024, your purchases from October to December 2023 wouldn’t count toward your status in 2025.

3. Rewards can’t be saved for a big splurge

This is another area where the Belk credit card isn’t the best deal for just occasional visitors. Each time you earn 500 points through your Belk credit card, those points are automatically converted to a certificate for $5 in Belk Rewards Dollars. Certificates are sent via email or through your paper credit card statement and typically expire within 90 days of issuance.

You can apply up to $200 in Belk Rewards Dollars to a single transaction. But with such a short expiration window, all but the most frequent Belk shoppers may struggle to save up rewards for a significant purchase.

To help maximize savings, you can stack Belk Rewards Dollars with the store’s frequent online, in-app and paper coupons.

🤓Nerdy Tip

Both versions of the Belk credit card are also accepted inside Belk salons, and payments for salon services apply toward your rewards tier. However, payments for salon services don’t earn points toward store rewards, and you can’t use Belk Rewards Dollars to pay for salon services.

4. Financing plans are available, but they come with terms

As of this writing, the Belk credit card offers a variety of financing plans to help shoppers spread the cost of large purchases over time:

  • The Table Top Special Payment Plan can be applied to Conn’s x Belk purchases or guild products (including china, crystal, silver and table linens) with an initial purchase of $300.

  • The Fine Jewelry Special Payment Plan is available with an initial in-store purchase of $500 or more on eligible fine jewelry. Once established, the plan can also be applied to future in-store fine jewelry purchases of $150 or more.

  • The Belk Rewards+ Flex Pay Plan is available upon request for Premier and Elite level cardholders. Once activated, this plan is automatically applied to all purchase types until cardholders request to cancel Flex Pay. 

These options function much like some buy now, pay later plans. They allow you to finance a Belk purchase on your card without interest — as long as you pay the agreed-upon minimum amount each month under the terms of the plan. If you don’t meet these requirements, you may be subject to interest or late fees.

Also, note that purchases made with these financing plans don’t earn rewards, nor do they count toward your Rewards+ status for future calendar years. So if you need to finance a large Belk purchase over time, you might be better off with a traditional 0% intro APR credit card.

5. You won’t want to carry a balance

As of September 2023, both the Belk Rewards+ credit card and the Belk Rewards+ Mastercard carry a variable APR approaching 30%. That’s not an uncommon figure among store credit cards, but it is higher than average.

That means to actually save money through the Belk credit card’s elevated rewards, it’s essential that you pay your balance in full each month. If you don’t, chances are high that the interest you accrue on the card will outweigh any rewards you‘ve earned.

Source: nerdwallet.com

Apache is functioning normally

Apache is functioning normally

Published on September 24, 2023


Courtesy of Astraeus Clarke

While full-on Crayola-like green conjures less than complimentary connotations—green with envy; green around the gills; the grass is always greener—take the hue down a notch by mixing in some gray or black and the color yields a whole different experience. Deep-green hues evoke nature in a more meditative manner. Such elements feel nearly spiritual; think of jade, pines, and seaweed. Green is the color of the outdoors and it nurtures the soul. So, pull deep green-decor into your home.

One might balk at the thought of a green dresser, but Acerbis’s Storet subtly teases color out of a rich walnut. Think of it as a functional fern in the corner of your bedroom. Astreus Clarke’s Roebling lamp is a minimalist and earthy green marble alternative to a banker’s lamp with a lollipop-green glass shade. And, it looks as home in a library as on a nightstand. Sara Hayat’s Bevel sofa is a statement piece around which one builds a room; luscious green velvet upholstery is much more inviting than gray. Dive into deep green; we consider a timeless neutral.

  • Sara Hayat scoured industry sources near and far to find a fill that would give the Bevel a bit of bounce while ensuring its cushions would retain their pebble-like shape. Indeed, each velvet-upholstered seat cradles a person perfectly. As it should: It takes the team about a month to hand-stitch this low-slung belted beauty. $28,495

  • Minotti who passed away in August, played with the idea of balance in the Solid Steel coffee table, despite the heavy-metal inference of its moniker. Party-ready glossy and mirrored finishes belie the architectural geometry of the streamlined, staggered slabs. Even with its fashion-forward feel (or backward: the materials reference 1970s glamour), it evokes an unflinchingly Bauhaus sensibility. Price upon request

  • Astraeus Clarke found inspiration in N.Y.C. The Roebling table lamp takes its form, albeit loosely, from the Brooklyn Bridge and its name from the bridge’s engineers, John A. Roebling and his wife, Emma. The lamp’s deep-green marble pillars support a gable-shaped top that hides the light source. But there’s a twist: That top segment pivots 360 degrees, allowing the user to direct illumination as needed. $12,500

  • New Ravenna. Duo, a waterjet mosaic, features boxy, mustard-toned cross-stitches that punctuate a large, dark grid over elegant marble with green veining. The coastal Virginia–based company replicates the texture of stone that has been well-worn by salt air, ensuring your kitchen, bath, or patio looks suitably lived-in. $229 per square foot

    • Source: robbreport.com

    Apache is functioning normally

    Apache is functioning normally

    Wednesday was a confirmation of a hawkish Fed that won’t care about the economy until it sees actual damage, and even then, only if that damage coincides with the expected drop in inflation.  More important than Powell’s message during the press conference was the takeaway from the Fed’s dot plot.  The market was positioned for this, but subsequent trading suggests “not positioned enough.”  Domestic traders began shifting their selling focus away from the shortest end of the yield curve this morning.  This is their way of acquiescing to the idea that the Fed will attempt to keep rates high for as long as possible (or as long as it takes for inflation to come back to target levels). 

    Now for the plot twist: virtually all of the first paragraph was copied and pasted from last September’s post-Fed Thursday (here’s the link to the original).  Pretty spooky…

    In the present day example, we have the same sort of international follow-through in the overnight session following a “higher for longer” nudge from the Fed, but we also have stronger jobless claims data and a higher inflation reading inside the Philly Fed data (of the two, the labor market data is the bigger mover). 

    Comparing the present example to the big picture, we find similarities and differences.  In both cases, the Fed day reaction represented a technical breakout of a recently achieved high yield:

    But the 2022 bond market was in a much greater state of flux.  The yield curve had only recently inverted and 2s had been selling off faster and faster compared to 10s.  Contrast that to 2023 where 2s have been far more sideways compared to 10s.  While it can take months, the stabilization of a curve inversion trend is another step toward an eventual rate reversal.  

    The scary caveat is that some past examples show multiple head fakes back toward an un-inverted curve before it finally takes.  The following chart shows those head fakes (note, this is 10s vs 1s as opposed to 10s vs 2s, due to better historical data availability in 1yr Treasuries). 

    Source: mortgagenewsdaily.com