This Week in Real Estate
Good Morning!
According to the Mortgage Bankers Association This Week in
Real Estate
applications to purchase a home last week reached its
highest level since April. Contributing factors of the surge in activity are
nine straight weeks of increases in new listings to end the summer and mortgage
rates hovering at or below 3% for roughly two months. Below are a
few newsworthy events from the third week of September that influence
our business:
* Mortgage Demand
From Homebuyers Jumps to Highest Level Since April. Potential
homebuyers are seeing a slight rise in inventory and consequently rushing back
into the fray. Mortgage applications to purchase a home jumped 7% last week
from the previous week according to the Mortgage Bankers Association. That is
the highest level since April of this year. Buyers have been hamstrung by the
meager supply of homes for sale, but that supply has been rising lately, albeit
slowly. The number of new listings rose for nine straight weeks during the
summer, but finally fell again last week, according to a Realtor.com report.
“Both conventional and government purchase applications increased, and the
average loan size for a purchase application rose to $396,800. The very
competitive purchase market continues to put upward pressure on sales prices,”
said Joel Kan, an MBA economist.
* America is Short 5.24M Homes. More
real estate listings are coming to the market, but that won’t be able to make
up for the fact that America is short millions of homes based on population
needs. That likely means home buyers will continue to face inventory shortages
and a dearth of homes for sale in the future. The U.S. is short 5.24
million homes. That is an increase of 1.4 million homes from 2019, according to
research from realtor.com. New-home construction - at its slowest pace since
1995 - is not making up the difference either. About 12.3 million American
households were formed from January 2012 to June 2021. However, only 7 million
new single-family homes were built during that period, CNBC reports. Builders
would need to double the new-home production pace to make up the gap in five to
six years. “No matter how you frame the scenario, it will take a more
meaningful shift in the pipeline to meet demand in the foreseeable future,”
Hale told CNBC.
Full
Story…
https://magazine.realtor/daily-news/2021/09/17/report-america-is-short-524m-homes
* Huge Decline in
Forbearances, Down 67 Percent From Peak. There
was a huge reduction in the number of borrowers in COVID-19 related
forbearance plans over the last week as servicers plowed through the
remaining plans with August expirations and began processing those with
September reviews. Black Knight says a net of 92,000 homeowners exited the
program over the week ended September 7, a 5.4 percent decline. The
forborne population is now 1.618 million loans, 3.1 percent of the 53 million
universe of mortgages. The number of forborne loans has fallen by 129,000 since
the first week in August and 3.1 million or 67 percent from the peak in
May 2020. The company says nearly 540,000 homeowners are scheduled for review
for extension of their plans or removal from the program this month. Of those,
400,000 will reach their final expiration date in September unless allowable
terms are extended.
Full
Story…
http://www.mortgagenewsdaily.com/09102021_black_knight_forbearances.asp
Have a productive week.
Jason
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