January, 2024

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Housing demand rises as inventory falls

Housing Wire

Housing demand is up and it’s time to track the spring housing data and see what the selling season will bring. As I always stress, we are working from the lowest bar ever with demand, so let’s add historical context to the data. But, even with mortgage rates higher this year than last year, demand is rising. Purchase application data As we get closer to the end of the first month of 2024, forward-looking purchase application data looks good.

Inventory 516
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Homebuyer purchasing power rises by $40K since October rate surge

Inman

A buyer with a monthly budget of $3,000 can now purchase a home worth approximately $453,000 — up from $416,000 in October when mortgage rates reached a record of 7.8 percent, according to Redfin.

Buyers 177
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NAR President Tracy Kasper, facing blackmail threat, steps down

Real Estate News

Kasper had been in the role for just over four months following the resignation of former president Kenny Parcell. Kevin Sears is taking over as president.

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Homeownership Rate Dips to 65.7% Amid Housing Affordability Woes

Eyes on Housing

The Census Bureau’s Housing Vacancy Survey (CPS/HVS) reported the U.S. homeownership rate declined to 65.7% in the last quarter of 2023, amid persistently tight housing supply and elevated mortgage interest rates. This is 0.3 percentage points lower from the third quarter reading (66%). Compared to the peak of 69.2% in 2004, the homeownership rate is 3.5 percentage points lower and.

Mortgage 190
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Home Prices Continue to Rise, and Detroit Just Beat Miami for the First Time

BiggerPockets

Home prices have grown year over year through the last several months and show no signs of slowing down. Some markets have more momentum than ever and have emerged as early hot spots this year. Here's what you need to know.

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Bank of Canada supports cap on international student enrolments

Mortgagebroker News

Central bank notes initiative will help alleviate pressures on housing market

More Trending

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NAR President Tracy Kasper resigns, alleges blackmail

Inman

The National Association of Realtors' leader said she recently received a "threat to disclose a past personal, non-financial matter unless she compromised her position at NAR.

Realtors 201
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Meet the reporter whose NAR story rocked the industry

Real Estate News

New York Times journalist Debra Kamin talked to Real Estate News about the response to her investigations, why her eXp story “hit differently,” and what’s next.

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Private Residential Construction Spending Grows for Third Straight Month

Eyes on Housing

NAHB analysis of Census data shows that private residential construction spending rose 1.4% in December, marking three months of gains. It stood at a seasonally adjusted annual pace of $911.7 billion. The 2023 annual spending on private residential construction was $864.9 billion, 5.8% lower than the 2022 annual totals. The monthly increase in total construction spending is attributed to more.

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Watch Out: Accredited Investor Minimums Might Increase Soon—Here’s How That Impacts Investors

BiggerPockets

Every four years, the SEC weighs in on accredited investor requirements. After loosening the requirements in 2020, more than 18% of U.S. households now qualify, making the SEC worry that there might just be far too much access to accredited-only resources. Here's what you need to know about the possible changes coming.

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Bank of Canada reveals first rate decision of 2024

Mortgagebroker News

Central bank makes eagerly awaited announcement on benchmark rate

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Fewer homes will take a price cut in spring 2024

Housing Wire

Will the number of homes that take a price cut this year drop below 2023 levels? Yes! If the current trends continue into the strong seasonal pricing period, we will see fewer homes that are discounted before selling. I believe this was the most overlooked housing story of the last year because even as mortgage rates rose all the way to 8% , the home price cut percentage data was always about 4% lower year over year.

Inventory 541
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NAR, KW and HomeServices seek new trial in Sitzer | Burnett suit

Inman

The defendants point to "legal errors at trial" they say justify setting aside the jury's historic, multi-billion-dollar verdict and giving the defendants another chance to make their case in court.

Legal 189
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SP 200: Real estate’s top leader, and a demographic shift

Real Estate News

Anywhere’s Ryan Schneider has been named the most powerful person in this year’s rankings of residential real estate’s movers and shakers.

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Remodeling Market Sentiment Improves in Fourth Quarter

Eyes on Housing

The NAHB/Westlake Royal Remodeling Market Index (RMI), a measure of sentiment among professional remodelers, for the fourth quarter posted a reading of 67, increasing two points compared to the previous quarter. Remodelers’ sentiment was quite positive at the end of 2023, when seasonally adjusted for the slowdown that invariably occurs during that part of the year.

Marketing 187
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The Impact of Lower Mortgage Rates Is Already Being Felt in These Five Markets

BiggerPockets

Rates have been falling for the past few months, and signs of the market warming up are already here. These five markets have the highest gains in activity since last year.

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Canada's inflation rate rises in December

Mortgagebroker News

Surging mortgage interest costs were a key factor

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Mortgage rates dip to 6.6% to mark the lowest level since May 2023

Housing Wire

Mortgage rates continued their descent this week to mark their lowest level since May 2023, welcome news for homebuyers who have been waiting on the sidelines for rates to drop. The 30-year fixed-rate mortgage averaged 6.6% as of Jan. 11, a decrease from last week’s 6.66%, according to Freddie Mac ‘s Primary Mortgage Market Survey released on Thursday.

Mortgage 527
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Fed policymakers want more data, dash hopes of March rate cut

Inman

Fed Chair Jerome Powell says a rate cut at the central bank's next meeting is not "the base case," with policymakers wanting to see more data showing inflation is on a sustainable path down to 2 percent.

Mortgage 186
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Is it time for MLSs to go their own way?

Real Estate News

The industry is at a crossroads as lawsuits threaten long-standing policies. For multiple listing services, separating from associations may be the answer.

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Residential Building Wages Continue to Increase

Eyes on Housing

The year-over-year (YOY) growth rate for residential building worker wages decelerated to 0.6% in June 2023. Over the past five months, wage growth accelerated moderately and reached 4.0% in November. Overall, average hourly earnings for residential building workers* increased at a relatively slower pace in the past year, compared to the peak rate of 8% in October 2021.

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6 Low-Risk Real Estate Investing Strategies

BiggerPockets

As a real estate investor, you must always remember one thing: every type of investing strategy involves risk. With that in mind, it’s good practice to learn more about low-risk real estate investing strategies. You may come to find that these provide the perfect balance of risk and profit potential.

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Number of price cuts drops as housing inventory rises

Housing Wire

Last week, housing inventory grew and the number of price cuts fell, which is expected at this time of the year. I hope the next thing we see is housing inventory grow at the level it typically does in January or February instead of being delayed until March or April. Last year at this time, inventory rose week to week and I was hopeful for a typical spring inventory year, but the seasonal bottom didn’t actually happen until April 14.

Inventory 524
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‘Silver tsunami’ could have a bigger impact on 2024’s housing market: analyst

Housing Wire

The “ silver tsunami ” — a colloquialism referring to aging Americans changing their housing arrangements to accommodate aging — could have more of an impact on the housing market this year, according to analyst Meredith Whitney in a conversation with Yahoo Finance. “[T]he other major demographic trend you see is the aging of America,” Whitney said.

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Cyberattack at loanDepot brings systems down

Housing Wire

Top-15 U.S. mortgage lender loanDepot confirmed Monday morning that it is the industry’s latest cyberattack victim. The incident has brought loanDepot’s systems down. The California-based lender, which originated roughly $17 billion in mortgage loans from January to September 2023, said it has launched an investigation with the support of cybersecurity experts.

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Many baby boomers live in “time capsules” that need renovations to age in place

Housing Wire

Fifty-five percent of surveyed baby boomers plan to remain in their existing homes as they age, but less than a quarter of those surveyed have any plans to renovate their homes to more safely and easily accommodate natural changes that come with aging. This is according to a new report from home improvement services company Leaf Home and market research firm Morning Consult , which enlisted responses from 1,001 baby boomer homeowners (aged 59–77) and 1,001 millennials (aged 27–42) in late Decemb

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California commission suit alleges collusion in the City of Angels

Housing Wire

Lights, camera, lawsuit! A copycat commission lawsuit has been filed in Los Angeles. The suit, known as Fierro, after its lead plaintiff Gael Fierro, a Californian home seller, accuses the real estate industry of colluding to artificially inflate real estate agent commissions. It was filed on Wednesday in U.S. District Court in Los Angeles. Patrick Thurber, a California home seller, is an additional named plaintiff in the suit.

Realtors 499
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Reverse mortgages could be a long-term care option: Kiplinger

Housing Wire

Among the numerous issues that retirement preparation can present to those near the end of their careers, long-term care (LTC) provides an increasingly common discussion point. One potential product that could assist in paying for LTC and its insurance could be a reverse mortgage, according to personal finance publication Kiplinger. LTC is already an expensive prospect and is projected to become a more common necessity as the U.S. population grows older in the coming years.

Mortgage 496
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Inflation data still pointing toward rate cuts in 2024

Housing Wire

Inflation came in hotter than expected on Thursday, but we are still talking about rate cuts in 2024! The 10-year yield had a mild reaction to today’s data , increasing a few basis points early. It’s now at 3.98% , a far cry from 5.04% as we saw last year. This, while jobless claims data is still historically low. As I have stressed time and time again, when the market believes the Federal Reserve is done hiking rates, the markets make a big move lower with the 10-year yield and mortgage r

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Homebuyer assistance programs rose to nearly 2,300 in 2023

Housing Wire

The U.S. housing market has reached its least affordable point in decades and housing agencies have increasingly rolled out homebuyer assistance programs to tackle this issue. A total of 135 new homebuyer assistance programs were introduced in 2023, a 6% increase over the previous year. This brought the nationwide tally up to 2,294, according to Down Payment Resource’s fourth-quarter Homeownership Program Index (HPI) report.

Landlords 473
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Fannie Mae updates HomeReady, provides temporary $2,500 credit

Housing Wire

Fannie Mae has announced updates to its HomeReady product, including a temporary $2,500 credit for very low-income purchase borrowers to use for down payment and closing costs. Another step the government-sponsored enterprise took was to enhance the best efforts commitments on HomeReady loans. It allows lenders to lock in margins and reduce hedging costs.

Insurance 471
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Demand for mortgages picks up: MBA

Housing Wire

Mortgage demand continued to increase last week, as seen in an uptick in purchase activity. Mortgage applications rose by 3.7% in the week ending Jan. 19 compared to one week earlier on a seasonally adjusted basis, per the Mortgage Bankers Association ‘s (MBA) weekly mortgage applications survey. “Conventional and FHA purchase applications drove most of the increase last week as some buyers moved to act early this season,” Joel Kan , MBA’s vice president and deputy chief economist, said in a st

Mortgage 467
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NAR President Kasper resigns following blackmail threat

Housing Wire

National Association of Realtors President Tracy Kasper has resigned following a threat made against her, the trade group said Monday. “Kasper informed NAR’s Leadership Team that she recently received a threat to disclose a past personal, non-financial matter unless she compromised her position at NAR,” NAR said in a written statement. “She refused to do so and instead reported the threat to law enforcement.

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Mortgage demand picks up again: MBA

Housing Wire

Despite an uptick in mortgage rates at the beginning of 2024, mortgage demand surged after adjusting for the holiday. Mortgage applications increased 9.9% for the week ending Jan. 5 compared to one week earlier, according to data from the Mortgage Bankers Association (MBA). The 30-year fixed mortgage rate averaged 6.62% as of Jan. 4, according to Freddie Mac ’s Primary Mortgage Market Survey.

Mortgage 468