new construction

Apache is functioning normally

Apache is functioning normally

After eight straight quarters of contraction, it looks like the slide in U.S. residential investment may be finished. The nascent rebound now underway is set to remove a major obstacle to ongoing economic expansion.

With new construction activity at the highest level in more than a year, the Federal Reserve Bank of Atlanta’s GDPNow tracker is projecting residential investment added 0.1% to growth in gross domestic product in the second quarter. Though it may not sound like much, that would mark the first positive contribution since early 2021.

The new-home market has been slowly coming out of the woods as falling materials costs and vanishing logistics constraints have allowed builders to work their way through pandemic-era backlogs. Limited availability in the resale market is also pushing many prospective buyers toward new construction, helping support demand even as mortgage rates remain elevated.

“Construction was at the center of the storm for the surge in inflation and the supply-chain turmoil of 2021 and 2022,” said Bill Adams, chief economist at Comerica Bank. “The recent good news for construction makes it easier to imagine a soft or at least soft-ish landing for the economy.”

Government data out earlier this week showed new construction surged in May by the most since 2016, and applications for permits to build — a proxy of future activity — also rose. The unexpected increase sent homebuilding stocks rallying to a fresh all-time high and helped explain why builder sentiment is the most upbeat in almost a year.

A growing number of prospective buyers are opting for new homes amid limited availability in the resale market, where high mortgage rates have had a big impact. Before the pandemic, existing properties made up about 90% of all homes for sale — a number that as of April was closer to 70%.

Monetary Policy

Much continues to hinge on the outlook for monetary policy. The Fed has already raised its benchmark interest rate by five percentage points in a little over a year, and further increases could start to weigh on new-home construction again, said Priscilla Thiagamoorthy, a senior economist at BMO Capital Markets.

“Now that the Fed has continued to signal that rate hikes are still at play, we won’t see further improvement from here,” Thiagamoorthy said. “If rates continue to rise more than one more time, that does risk the chance of a harder landing.”

Another risk is that the number of homes under construction could fall as backlogs ease and applications for permits lag the pace of housing starts. Elevated inventories of new homes could also make builders hesitant to boost output, which risks limiting upside momentum in residential investment.

Still, after subtracting from growth for the longest stretch since 2005-2009, home construction is finally poised to offer the economy some breathing room at a time when other sectors are starting to cool.  

Ahead of this week’s slew of housing data, Wells Fargo & Co. economists were anticipating residential investment to be a drag on GDP growth for the remainder of the year.

“Now, I would say some of the stronger-than-expected housing data means that there’s some upside risk to that forecast,” said Charles Dougherty, a senior economist at Wells Fargo. “We’re not looking for a massive run-up in new construction, but some modest pace seems very likely.”

Source: nationalmortgagenews.com

Apache is functioning normally

Apache is functioning normally

Automation, ROI Calculation, Homeowner Engagement Tools; STRATMOR on AI Adaption; Rates and Builders

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Automation, ROI Calculation, Homeowner Engagement Tools; STRATMOR on AI Adaption; Rates and Builders

By:
Rob Chrisman

Fri, Jun 23 2023, 10:43 AM

Time is an interesting construct. The solstice is officially behind us, and we can officially hum “The Boys of Summer” with impunity. Time… “5,000 years of eating bread. And in less than a decade it seems half the population is allergic to gluten!” Shifting times, and ages, mean a lot to LOs. If 10,000 people a day turn 62, does that mean reverse mortgages might be worth exploring? I don’t know when the terms “elderly” or “middle-aged” became politically incorrect. How about the term “geriatric millennial?” Although there appears to be a bit of a baby boom going on, no one’s getting any younger: The nation’s median age increased by 0.2 years to 38.9 years between 2021 and 2022, according to Vintage 2022 Population Estimates released by the U.S. Census Bureau. (“Median:” half above and half below.) A third (17) of the states in the country had a median age above 40.0 in 2022, led by Maine with the highest at 44.8, and New Hampshire at 43.3. Utah (31.9), the District of Columbia (34.8), and Texas (35.5) had the lowest median ages in the nation. Hawai’i had the largest increase in median age among states, up 0.4 years to 40.7. LOs ignore demographics at their own risk. (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 has an interview with MCT’s Andrew Rhodes on assignment of trade – AOT – and loan sale automation.)

Broker and Lender Services, Products, and Software

Despite the doom and gloom in the headlines these days, there is a market to tap into. Nearly 10 million families will need to buy or sell a house this year, and Percy has helped its clients earn the business of 10,000 of them in the first quarter of 2023 alone. Percy’s private-labeled homeowner engagement solutions hook homeowners with equity and financing insights and have helped housing professionals start conversations representing $7.5 billion worth of business this year. You deserve a partner that will put your brand front and center and deliver. Check out Percy’s Equity Insights to learn how our clients average 400% ROI.

Ascertaining value can be difficult without the right expertise, as a 2004 visitor to Antiques Roadshow discovered when his great-grandfather’s pocket watch turned out to be a 1914 Patek Philippe worth nearly $250,000 at the time. To help LOs assess the value of their referral partnerships, Mobility Market Intelligence (MMI) has announced the release of its ROI Calculator. Using the ROI Calculator, LOs gain deep insights into their buy-side real estate agent relationships and measure the impact on production volume by increasing their agent wallet share. For example, a lender averaging $1B in annual volume would see that increasing wallet share 0.1% with their current partners results in nearly $10M in additional volume. That same lender could also see that in the last year, they left more than $9B in uncaptured partner volume on the table. Know your partners. Know their worth. Get the ROI Calculator from MMI here.

Are you tired of having to adjust head count every time the market changes? The Mortgage Automation Suite, brought to you by Richey May and Zoral, can help. With scalable automated solutions that improve accuracy while reducing repurchases and costs, your business will be well-equipped for any market cycle. Leveraging this powerful automation will allow your team to close loans more easily, helping to retain your best staff. Plus, it adds the extra layer of stability needed during difficult times; something we could all use a bit more of these days! Find out how the Mortgage Automation Suite from Richey May & Zoral can help you today. Email [email protected].

Need processing support for Non-QM or FHA manual underwrites? Carrington Wholesale has launched ProcessIQ to help expand broker capacity and increase capabilities for time intensive and/or complicated loans such as those with low FICO, high DTI, Non-QM (bank statements, DSCR, high balance) and FHA/VA manual underwriting loans. The Carrington ProcessIQ team handles all the logistics, jumps in and works directly with borrowers to process the loan. For more information contact Amy Marsh at (714) 642-2044.

STRATMOR, AI, and Originators

What will it look like to be an AI-powered loan officer? In the brave new world of AI, an originator’s main value will not be in their ability to gather borrower information, quote a rate or even convey periodic progress updates. Their value will, more than ever before, be centered around soft skills like creating rapport and building trust. How can mortgage professionals benefit from AI while also taking advantage of its limiting factors? In his June CX Tip, STRATMOR Group’s MortgageCX Director Mike Seminari outlines what originators can do to adapt and reinvent themselves by harnessing, not competing with, AI. He shares three steps originators can take now to AI-proof their careers in his article, “Mortgage Originators’ Guide to Success in the Age of AI.”

Capital Markets, Existing Home Sales, and Builders

Like frogs being cooked in cool water that gradually reaches boiling, rates have been edging higher as people realize that the Fed is actually doing what it has been talking about doing. As with anyone involved in real estate or lending, rising mortgage rates have trickled up to builders because many buyers can no longer afford the homes they ordered when rates were lower at current rates. Instead of cutting prices, builders are finding other ways (below market mortgage rates, free upgrades etc.) to give more value to the buyer without impacting the comps.

Historically, housing has been a critical driver of the broader business cycle. Existing-home sales (completed transactions that include single-family homes, townhomes, condominiums, and co-ops) increased 0.2 percent in May to a seasonally adjusted annual rate of 4.30 million, according to the National Association of Realtors. Sales were mixed among the four major U.S. regions, with the South and West posting improvements and the Northeast and Midwest experiencing pullbacks. All four regions experienced year-over-year sales declines, and aggregate sales nationally dropped 20.4 percent annually (down from 5.40 million in May 2022). Separately (and fortunately), the number of U.S. homes beginning construction unexpectedly surged in May by the most since 2016 and applications to build increased, suggesting residential construction is on track to help fuel economic growth. Homebuilders have responded to limited inventory in the resale market, and have grown more upbeat as demand firms up, and materials costs and supply chain pressures fade.

The housing market is likely to pull the economy out of any future slowdown, and mortgage rates heavily influence the direction of home sales. It’s widely known that millions of Americans are locked into their property through low mortgage rates from the QE4 program. It remains to be seen what happens in the coming months, but for June, borrowers have seen a slight stabilization of rates across a range of industries, which should be a tailwind for mortgages. Will steady rates spur those who have been holding off to finally engage in a new purchase or refinance? Consistent rates should lead to consistent home sales.

While volatility has dropped this month, affordability and credit availability issues remain. The shortage of skilled labor and cost of building materials means that new construction will have a limited effect on affordability, and wage growth will have to do the heavy lifting. The supply of homes available for sale sits at 2.9 months, well below the trailing average of 5.4 months seen over this millennium. A $300,000, 30-year 6.8 percent fixed rate mortgage has a monthly payment of about $2,000, up from around $1,300 at rates slightly above 3 percent as seen in January 2022. Lenders have pulled back on loan offerings for higher LTV and lower credit score loans, even as loan applications continue to run well behind last year’s pace. Reflecting higher mortgage rates and concerns about the economy, mortgage credit availability dropped 3.1 percent in May, according to MBA. The index has dropped ten of the past twelve months to now sit nearly 20 percent lower than it did one year ago and at the lowest level since January 2013.

And let’s remember the adage, “Don’t fight the Fed.” Yesterday’s market moves stemmed largely from overnight rate hikes from the Swiss National Bank (+25 basis points), Norges Bank (+50 basis points), Bank of England (+50 basis points), and the Central Bank of Turkey (+650 basis points), which served as reminders that central banks are not quite to the light at the end of the tunnel in the struggle to rein in inflation. On a related note, Fed Chairman Powell appeared before the Senate Banking Committee yesterday and he doubled down on the hawkish view that the Fed isn’t done battling inflation. He repeated the need for more rate hikes during the conclusion of his semiannual testimony on monetary policy and reiterated that the Federal Open Market Committee does not expect to cut rates anytime soon. He noted that policymakers believe that the appropriate fed funds rate range is within a couple hikes of the current level and that the central bank also remains attuned to its employment mandate.

Not much going on today except for preliminary June S&P Global PMIs and several Fed Presidents speaking starting with St. Louis’ Bullard, who will be followed by Atlanta’s Bostic and Cleveland’s Mester. We begin the day with Agency MBS prices better by .125-.250 and the 10-year yielding 3.74 after closing yesterday at 3.80 percent.

Employment

Angel Oak Mortgage Solutions’ is hiring in several markets across the country! Are you a Rockstar Account Executive looking for a new home? Looking to join a firm with a strong culture, new technology and an unparalleled operations focus? Come join the team with the leader in Non-QM at Angel Oak. Hiring locations: Missouri, Wisconsin, Indiana, Southern Ohio, Northern California, Northern Virginia, Charlotte, North Carolina, Philadelphia, Pennsylvania, Rhode Island, and Connecticut. Apply here.

A top-rated national retail lender with headquarters in the Southeast is searching for a VP of Sales to join its exec team. This lender has strong backing that provides stability, an elevated level of support and a large residential builder network which offers expansive growth. The VP of Sales will design, develop, and execute thoughtful strategies and tactics to increase business development and strengthen customer and partner relationships. Interested parties can send confidential resumes to Chrisman LLC’s Anjelica Nixt for forwarding to the company.

“Hey, mortgage sales professionals do not join radius financial group for our amazing culture, president club trips, best workplace accolades, 100% 401K match or because of our shared success program which grants phantom stock to ALL employees. Join radius to grow your business, mortgage team and wealth. Over the past 23 years, radius has become the best at what we do by caring intensely about the career growth of our team members and investing in technology that simplifies and automates our process. We are a world-class customer obsessed team focused on our loan officers’ growth and success. So, if you want real opportunities to grow, the ability to make a positive impact starting on day one and the freedom to chart the career you’ve always wanted, at radius, you can! For confidential inquires please contact Carla Herrera and visit us at radius financial group inc., Mortgage Lending Careers.”

Sovereign Lending Group, LLC is expanding its team of consumer direct loan officers at Fashion Island in Newport Beach, CA. This is a great opportunity for those interested in joining a company that provides superior marketing and a diverse suite of products, committed to adding value for Sovereign’s loan officers and creative borrower solutions. If you’re interested in joining the team, be sure to contact Matthew Cataño (949-736-9148).

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

Source: mortgagenewsdaily.com

Apache is functioning normally

Apache is functioning normally

The rest of the country is catching on to what Montanans have always known — it’s a beautiful and affordable place to live, and not as wild as it seems on the show, “Yellowstone.”

Montana is known as The Treasure State for its literal on-site treasures, like silver, gold, sapphire and so on. But it’s a hidden gem for many more reasons than that. First, it’s home to some of the most stunning and unspoiled landscapes in the country. For the more practical renter, however, much of the state falls well below the national average in cost of living.

Affordable beauty? Yes, please! Here are some of the best places to live in Montana, and they’re about as wide and varied for a state that sports so much land.

  • Population: 54,539
  • 1-BR median rent: $2,257
  • 2-BR median rent: $2,532
  • Median home price: $693,000
  • Median household income: $67,354

Life in the southern Montana city of Bozeman splits the difference between big-city and rural living. As the fourth-largest city in the state, apartments in Bozeman can be found at a range of price points and styles.

Termed the “most livable place” in Montana, Bozeman has plenty to offer people of diverse interests. Obviously, its proximity to the legendary Yellowstone National Park begets its people access to all kinds of outdoor activities. That said, Bozeman has also cultivated impressive nightlife opportunities for a city its size, not to mention a booming cultural scene complete with art galleries, museums and a symphony.

Bozeman boasts a great selection of housing options, especially when it comes to luxury rentals like Icon Apartment Homes at Ferguson Farm, 19th and Graf and Madison Park, all of which feature up-to-date rentals with plenty of upgrades.

  • Population: 117,445
  • 1-BR median rent: $1,341
  • 2-BR median rent: $1,513
  • Median home price: $360,000
  • Median household income: $63,608

Billings is far and away the most populated city in Montana by tens of thousands of people. Living in Billings is obviously more affordable than in Bozeman, a welcome revelation for the renter looking for a good value. Also found on the southern end of the state, Billings keeps its local population entertained via a spate of events, such as the Yellowstone International Air Shot, MontanaFair and the Magic City Blues Festival, among others. There are also plenty of spas and such to help a local relax following a tough day hiking the trails or climbing rock faces.

There are plenty of apartment options in Billings, from a furnished studio at Billings-West End to one of the more spacious options at Interurban Apartment Homes or Farmstead Apartments.

  • Population: 34,786
  • 1-BR median rent: $900
  • 2-BR median rent: $950
  • Median home price: $250,000
  • Median household income: $50,661

Life in Butte is a picturesque one, as the smaller city is found right between Glacier National Park and Yellowstone National Park. It features some of the best fishing and boating opportunities in the world, not to mention more than a dozen scenic trailheads for hiking, jogging and biking.

Butte’s restaurant scene is larger and more diverse than one would expect from a city its size, including a variety of chain spots mixed in with locally owned and operated eateries. The film industry is also alive and well in Butte as more and more television shows and movies are choosing to set up shop there.

Butte’s apartment scene is a bit more limited than some of the larger Montana cities, but there are still plenty of places to lay your head. This three-bedroom unit has clearly been renovated recently, and this spacious two-bedroom apartment rents for far less per month than the same type of unit would in another city.

  • Population: 33,120
  • 1-BR median rent: $999
  • 2-BR median rent: $1,175
  • Median home price: $430,000
  • Median household income: $59,712

The capital city of Montana is small but mighty. It’s similar in both population and price point to Butte, making it ideal for people who want some neighbors, but not too many.

It’s one of the historic centerpieces of the state and has a lot of attractions to prove it. The lovingly maintained downtown area has a colorful history, best told by any of the walking tour experts available for hire. Then there’s the stunning Mansion District, which is an experience all on its own. Just north of the city are the significant “Gates of the Mountains,” a stop on Lewis and Clark’s historic exploration route, which can be viewed via boat tour. That’s all in addition to the locally owned shopping, dining and other establishments that have become the norm for quaint towns like this one.

Apartments in Helena are available at all price points, including the ideally located Element 79 Apartments, which is close to so many coffee shops and restaurants. Or, there are plenty of units within larger houses to look at. Inventory is lower given the size of the city, but the patient renter can find something to suit and prove the wait worthwhile.

  • Population: 60,403
  • 1-BR median rent: $1,290
  • 2-BR median rent: $1,595
  • Median home price: $255,000
  • Median household income: $53,126

Living in Great Falls doesn’t require as much in the bank compared with some other Montana cities, as the median home price is lower to match a slightly lower median income. So named for the stunning waterfalls, courtesy of the Missouri River, the area is home to the state’s largest urban Native American population and is also the site of the Little Shell Chippewa tribe’s headquarters.

Indeed, Great Falls, like many other areas of the country, has a sad history related to Native Americans, but today’s citizens do their best to preserve the complicated history and encourage the traditions to continue. Locals appreciate the four distinct seasons that the area enjoys, with cold winters but delightfully mild summertime temps. It’s easy to stay busy year-round with tons of scenic drives, trailheads, outdoor activities and festivals to choose from.

Much like other cities in Montana, there aren’t a ton of huge apartment communities to choose from. One good traditional option is Talus Apartments, which has multiple floor plans and a lot of the standard amenities that renters have come to expect. Or, there are furnished units available at Sunnyside Apartments.

  • Population: 74,822
  • 1-BR median rent: $1,295
  • 2-BR median rent: $1,595
  • Median home price: $542,000
  • Median household income: $54,423

Just east of the Idaho border on Montana’s western edge is Missoula, a mid-sized city with big aspirations. Buying a home in Missoula is a pricier prospect than it is in a lot of other parts of the state, with a median home price of $542,000.

It’s not as pricey as Bozeman, but it’s nipping at its heels. Fortunately, there are lots of other reasons people choose to live in Missoula. First, it’s still pretty affordable to rent an apartment in Missoula. It’s also a generally fun and whimsical place to hang out. Shoppers and fans of local goods love to bundle up and hit Missoula’s Winter Market, held at the Fairgrounds. Then there are plenty of hot springs to soak in, gold and gems to mine and even ghost towns to tour.

812 Toole Ave sometimes has chic units available for rent, and 712 Spruce St also has apartment options at a range of price points. Once again, availability is a bit limited as Missoula is far from what people would refer to as the “big city.”

  • Population: 26,110
  • 1-BR median rent: $1,250
  • 2-BR median rent: $1,650
  • Median home price: $499,000
  • Median household income: $55,411

Unlike many other cities on our list, the city of Kalispell is located in the northwestern corner of the state. Only 32 miles from Glacier National Park, this mountain town is also home to the western U.S.’s largest natural freshwater lake, Lake Flathead. Obviously, between the two there is an abundance of outdoor activities to enjoy in Kalispell and its stunning surrounding areas.

Locals and visitors also love to stroll the quaint area of downtown Kalispell for food, shopping and general ambiance. The area is also ultra-friendly to dogs and families, thanks to an abundance of parks and recreation opportunities.

For a city its size, Kalispell actually has a nice range of apartment homes to consider. The Meridian Apartments is a pet-friendly, smoke-free establishment that features beautiful in-unit flooring. Or there’s Stillwater Crossing, which offers covered carports, video monitoring and lots of design upgrades.

  • Population: 8,492
  • 1-BR median rent: $1,400
  • 2-BR median rent: $1,850
  • Median home price: $913,000
  • Median household income: $64,595

The housing market is booming in the city of Whitefish, which has a median home price of $913,000, up more than 30 percent since last year. Situated around Whitefish Lake, this city is a popular ski destination but sees tourism year-round thanks to its proximity to Glacier National Park.

For all of the athletic endeavors that can be enjoyed here, there’s also an exceptional arts and culture scene. The Whitefish Theatre Company puts on shows regularly ranging from plays to musicals. Boating enthusiasts in particular flock to the area’s Whitefish Woody Weekend, specifically put on to showcase classic boats. So although Whitefish boasts some of the best skiing in the world, it also has a lot of other things going for it.

Fortunately, apartment rents in Whitefish haven’t inflated the same way as local real estate has. The new construction units at Whitefish Apartment Homes are pristine and ideally located. Or there are a number of individual units available for rent, like this one on Cottonwood Ct.

  • Population: 9,491
  • 1-BR median rent: n/a
  • 2-BR median rent: $806
  • Median home price: n/a
  • Median household income: $44,809

Only slightly larger than Whitefish is the southwestern Montana city of Anaconda. Known for its iconic smokestack, the city of Anaconda is one of Montana’s best-kept secrets. Originally, Anaconda grew as a result of copper mining in nearby Butte, as Anaconda became the site of critical copper smelting jobs.

Like most of the rest of the state, Anaconda is firmly ensconced in some serious natural beauty. It’s found in the Deer Lodge National Forest, so there’s obviously plenty of outdoor fun to be had. A bit of modern sport is also available at the Old Works Golf Course, however.

Anaconda’s a pretty small city by most people’s standards, so rental options are somewhat limited. There are single units available if you know where to look, such as this one on 4th Street and this one on Locust Street.

Find an apartment for rent in Montana

Montana is thoroughly its own state, thanks to its unique beauty and culture. Anyone who’s interested in adopting a quieter, but still exciting way of life should consider looking at apartments for rent in Montana.

Methodology

The rent information included in this summary is based on a median calculation of multifamily rental property inventory on Apartment Guide and Rent.com as of April 2023.

Median home prices are from Redfin as of April 2023. Population and median household income are from the U.S. Census Bureau.

The information in this article is for illustrative purposes only. This data herein does not constitute a pricing guarantee or financial advice related to the rental market.

Source: rent.com

Apache is functioning normally

Apache is functioning normally

The 30-year fixed-rate mortgage (FRM) averaged 6.67% this week, another decline from last week’s dip to 6.69%. This is the third consecutive week of rates declining, according to the latest Primary Mortgage Market Survey® (PMMS®) from Freddie Mac released Thursday.

This week’s numbers:

  • 30-year fixed-rate mortgage averaged 6.67% as of June 22, 2023, down from last week when it averaged 6.69%. A year ago at this time, the 30-year FRM averaged 5.81%.
  • 15-year fixed-rate mortgage averaged 6.03%, down from last week when it averaged 6.10%. A year ago at this time, the 15-year FRM averaged 4.92%.

What the experts are saying:

“Mortgage rates slid down again this week but remain elevated compared to this time last year,” said Sam Khater, Freddie Mac’s chief economist. “Potential homebuyers have been watching rates closely and are waiting to come off the sidelines. However, inventory challenges persist as the number of existing homes for sale remains very low. Though, a recent rebound in single-family housing starts is an encouraging development that will hopefully extend through the summer.”

Realtor.com economist, Jiayi Xu commented:

“The Freddie Mac fixed rate for a 30-year mortgage declined for the third week in a row by 2 basis points to 6.67% as markets absorbed a strong uptick in new construction. While the headline CPI dropped significantly in May to 4.0%, the core CPI— which includes goods and services excluding volatile food and energy – has not retreated as much as the overall inflation in recent months, creating a troubling situation for policymakers. Meanwhile, the Fed opted not to raise short-term rates at June’s FOMC meeting, choosing to wait for additional data and see how recent rate increases are influencing price growth and the real economy. In the coming months, we may see a faster slowdown in inflation because the growth in the shelter index, the largest contributor to inflation growth, has passed its peak and started to trend down in April.

“Nevertheless, as the inflation is well-above the 2% target and the labor market is still strong, FOMC signaled that the Federal Funds rate will be half a point higher than previously expected at the end of 2023, which is also half a point higher than the current rate. In other words, borrowing, including home purchases, will likely remain expensive through the remainder of the year.

With the potential for additional rate hikes ahead, mortgage rates will remain elevated throughout the remainder of the year. As a result, affordability will continue to be an important factor in buyers’ home purchasing decisions. According to Realtor.com’s recent hottest markets report, home buyers continue to flock to relatively inexpensive markets below the national median price, leading to notable price growth in these otherwise affordable areas. The heightened competition in these markets may worsen the conditions faced by buyers with financial constraints, particularly due to the already limited supply of affordable homes. While the rise in new construction is encouraging, there is a pressing need to build homes catering to all income levels. Our joint research with the National Association of REALTORS confirms this urgent necessity, especially in the lowest price tier where the shortage of affordable housing is most severe.

“However, there is still some good news for home sellers. As improving homes before selling is one of the top concerns among sellers, lower prices for household furnishings and supplies may bring a sense of relief. While this improvement primarily affects sellers, buyers may also benefit, as the high cost of home repairs are often passed on to them in the end. In May, the household furnishing and supplies index increased 4.1% over the prior year while the core inflation increased 5.3%. Compared to the previous month, prices for household furnishing and supplies dropped 0.4% versus an increase of 0.4% for core prices, on a seasonally adjusted basis.”

Source: rismedia.com

Apache is functioning normally

Apache is functioning normally

One of the more unique mortgage originators out there is First Republic Bank, due to both their large volume of jumbo home loans and adjustable-rate mortgages.

Unlike most mortgage bankers that stick to fixed-rate conforming loans and home loans backed by the government, they mostly make jumbos that don’t adhere to the guidelines of those agencies.

In fact, they don’t even bother with FHA loans, USDA loans, or VA loans.

As such, they tend to cater to high-net worth individuals who are also relatively low-risk borrowers relative to the rest of the population, including billionaires like Mark Zuckerberg.

Let’s learn more about this premium mortgage lender, which may be a good fit if you need a very large home loan.

First Republic Bank Fast Facts

  • Headquartered in San Francisco, CA, founded in 1985
  • Publicly traded depository bank valued at more than $25B+
  • Offer home loans, construction loans, and HELOCs
  • Funded more than $14.5B in mortgages in 2019
  • Most of loan volume came from states of CA, MA, and NY
  • Specialize in jumbo home loans for high-net worth individuals

First Republic Bank was founded by its current CEO Jim Herbert back in 1985 in the city of San Francisco.

Today, the company is publicly traded on the NYSE and valued at more than $25 billion.

Based on their numbers through the first nine months of 2020, they likely originated more than $20 billion in home loans last year, which would be quite a jump from 2019.

Most of their loan volume comes from just a few states, including California, Massachusetts, and New York, though they’re nationally licensed.

Perhaps more interesting, about 75% of the home loans they extend to customers are adjustable-rate mortgages.

That’s basically unheard of in the industry, especially with fixed mortgage rates breaking record lows left and right.

In fact, the 7/1 ARM accounted for nearly 40% of their mortgage business, while the 5/1 ARM grabbed another 25%.

The rest went with a more traditional 30-year or 15-year fixed, which tells you their clients often put their money to work elsewhere, and are likely able to pay off their loans whenever they wish without fear of a rate adjustment.

How to Apply for a Mortgage with First Republic Bank

  • It’s unclear if they offer a digital mortgage application
  • You’ll need to visit a branch, call them, or request a call to get started
  • Expect a thorough underwriting process since they deal with high-dollar loan amounts
  • Loan processing, underwriting, and funding are done in-house and they service their own loans

To get started, you’ll either need to visit a physical bank branch, call them up on the phone, or fill out a short contact form on their website and wait for a call back.

My assumption is they offer a very high-touch, personalized home loan experience, as opposed to say a Rocket Mortgage or other fintech-fueled lender.

That’s not to say they don’t offer a digital mortgage application as well (unknown), but when you’re dealing with super jumbo loans, they likely do a bit more hand-holding.

And because they’re dealing with high-dollar loan amounts, there’s a good chance you’re underwriting process will be a bit more rigorous, with mention of three years of tax returns (as opposed to the standard two) on their application checklist.

I wish they’d share about their home loan process, but their website is a bit light on details.

However, they do seem to process, underwrite, and fund loans in house, and there’s a good chance they’ll service your loan as well since it’ll likely stay in their bank portfolio.

Home Loan Programs Offered by First Republic Bank

  • Home purchase loans
  • New construction loans (all-in-one construction-to-perm)
  • Refinance loans (rate and term and cash out)
  • Jumbo home loans
  • Conforming home loans
  • Home equity lines of credit (HELOCs)
  • Eagle Community Home Loan (for borrowers in underserved minority areas)
  • Fixed-rate and adjustable-rate options available

As noted, First Republic Bank is big on jumbo home loans, no pun intended. In fact, roughly 80% of their total production exceeded the conforming loan limit.

And while they do originate conforming home loans as well, their average loan size exceeded $1.6 million.

In other words, they’re financing very expensive homes, mostly in very pricey regions of the country, such as California and New York.

Oh, and they’re offering mortgages to the very, very wealthy, such as Mark Zuckerberg, who went with an ARM that featured an interest rate of 1.05%.

So it’s clear they’re not your everyday mortgage lender, but if you are rich, they could be a good choice, as they’ll likely have options others won’t.

In terms of loan programs, you can get a home purchase loan, a refinance loan, or a new construction loan on a variety of different property types, including single-family homes, condos/co-ops, and multi-unit properties.

You can finance a primary residence, a vacation home (popular with the wealthy), or a non-owner occupied investment property.

To be fair, it’s not all high net-worth lending at First Republic Bank.

They also created their “Eagle Community Home Loan” program back in 2015, which offers discounted fixed rates and waived non-recurring closing costs to borrowers in underserved minority areas.

Since it was launched, they’ve extended more than $1.8 billion in mortgages to borrowers located primarily in African-American or Hispanic/Latino neighborhoods.

First Republic Bank Mortgage Rates

You won’t find mortgage rates on the First Republic Bank website, which differs from some of the other big depository banks that do feature their rates.

This doesn’t say anything about how competitive they are, it’s just not what they lead with.

Ultimately, First Republic Bank is a premium bank so you’re not going to see mortgage rates in large font and discounted lender fees.

However, as we’ve seen with some of their celebrity borrowers, they do offer very low mortgage rates, especially on adjustable-rate mortgages and jumbo loans.

But if you need pricing, you’ll need to get in touch with a banker first, then you can shop their rate with other lenders.

The one advantage First Republic Bank might have is that their competitors may not even be able to offer the same loan products, including high-dollar loan amounts and short-term ARMs.

Still, you should take the time to compare lenders, especially if we’re talking about a very large loan amount, where even an eighth of a percent difference in rate can result in hundreds of dollars a month.

First Republic Bank Mortgage Reviews

It’s somewhat difficult finding customer reviews for First Republic Bank, possibly because they deal with high-end clients who may not bother writing reviews.

Nonetheless, there are some out there if you dig a little bit. For example, they have a 3.5-star rating on Yelp from roughly 100 reviews.

You are able to fine-tune to include words like “mortgage” to see what folks said about that specific line of business.

Additionally, they’ve got a 3.8-star rating out of 5 on WalletHub based on 100+ reviews, though not all pertain to their mortgage division. Comb through and you can find mortgage-specific ones.

There are also some Google reviews for each branch if you search via Google Maps for a branch near you. But all in all, somewhat light in the reviews department.

Lastly, First Republic Bank is not Better Business Bureau accredited, but does enjoy an ‘A+’ rating based on its history of dealing with complaints.

First Republic Bank Mortgage Pros and Cons

The Good

  • Can get a very large home loan (they specialize in jumbo loans)
  • They offer portfolio loans that their competitors may not be able to
  • Offer home equity lines of credit
  • In-house loan processing, underwriting, funding
  • A+ BBB rating
  • They may service your loan after closing
  • Free mortgage calculators and home buyer resources

The Maybe Not

  • Do not offer FHA loans, USDA loans, or VA loans
  • Limited number of bank branches
  • Need to speak to someone before applying for a mortgage
  • Do not publicize mortgage rates or lender fees
  • Small handful of customer reviews

Source: thetruthaboutmortgage.com

Apache is functioning normally

Apache is functioning normally

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.

Source: mortgagenewsdaily.com

Apache is functioning normally

Apache is functioning normally

While searching for a home loan, you may have come across “Paramount Residential Mortgage Group,” or PRMG for short, along the way.

It’s also possible that your real estate agent referred you to the company since they do quite a bit of home purchase loan volume.

In fact, more than 75% of their overall business last year was derived from home purchase financing, with the remainder split between refinance loans.

The Southern California-based company is a top-50 mortgage lender nationally, having closed more than $7 billion in home loans last year. Let’s discover more about them.

Paramount Residential Mortgage Group Fast Facts

  • Direct-to-consumer retail mortgage lender
  • Corporate headquarters located in Corona, CA
  • Founded in 2001 by mortgage veteran Paul Rozo
  • Now employ over 2,000 with 180 retail locations nationwide (and growing)
  • Licensed to do business in 48 states and D.C.
  • Funded more than $7 billion in home loans last year
  • Also operate wholesale and correspondent lending programs

Paramount Residential Mortgage Group got its start back in 2001, founded by Paul Rozo and a couple friends.

Today, the company employs more than 2,000 workers across more than 180 retail locations nationally, and just cracked the top-50 for total home loan volume among all banks and lenders out there.

That means they’re a very large mortgage company, and because they’re licensed in 48 states and the District of Columbia, they should be an option for most of us.

Aside from running a retail direct-to-consumer mortgage business, they also operate sizable wholesale lending and correspondent lending divisions.

So it’s possible you could get a mortgage backed by PRMG from a mortgage broker or via a smaller credit union that resells their loan products.

Last year, they were most active in the state of Florida, doing nearly half of all their business in the Sunshine State.

They also do quite a lot of business in California, New Jersey, and Washington state.

How to Apply with Paramount Residential Mortgage Group

  • They offer a digital mortgage application powered by Ellie Mae
  • You can apply directly from their website once you select a branch office near you
  • Alternatively you can request a mortgage rate quote and someone will get in touch
  • PRMG says it employs the best underwriters/processors to ensure quick turn times

Once you visit their website, you’ll can either click on “get a quote” or “find a branch.”

If you do the former, you’ll need to fill out a somewhat lengthy form, at which point a loan officer will reach out to discuss loan options and pricing.

Assuming you locate a branch nearby instead, you’ll be able to see who works in that office and apply for a home loan directly from their individual webpage.

They offer a digital mortgage application powered by Ellie Mae that lets you accomplish most tasks paperlessly, including the ability to eSign many documents.

Once you create an account, you’ll be able to get in touch with your lending team, access an updated to-do list, and check loan status 24/7.

PRMG says it has some of the best loan underwriters and processors in the industry who are dedicated to quick turnaround times to get you to the finish line quickly.

Loan Types Offered by Paramount Residential Mortgage Group

  • Home purchase loans (including new construction)
  • Mortgage refinance loans (rate and term and cash out)
  • Home renovation loans (FHA 203k and Fannie Mae HomeStyle)
  • Conforming and jumbo loans
  • Government-backed loans: FHA/USDA/VA
  • Down payment assistance programs
  • Non-QM loans
  • Buy after BK loan programs
  • Reverse mortgages
  • Fixed and adjustable-rate options available

While information is a little hard to come by on their website, they appear to offer the full range of home loan options, including new construction loans.

Additionally, they say they’ve got programs for home buyers who experienced a bankruptcy in the past, along with other non-QM loan programs that don’t fit the rigid guidelines of Fannie Mae and Freddie Mac.

Along with that, PRMG has all the usual stuff including conventional home loans backed by Fannie Mae and Freddie, jumbo home loans that exceed the conforming loan limit, and FHA, USDA, and VA loans.

Those aged 62 and older can also take advantage of a reverse mortgage offered by PRMG.

You can get either a fixed-rate mortgage such as a 30-year or 15-year fixed, or an adjustable-rate mortgage such as a 5/1 ARM or 7/1 ARM.

PRMG provides financing on all property types, including primary residences, vacation homes, investment properties, and condos/townhomes.

Paramount Residential Mortgage Group Rates

As noted, information seems to be lacking a bit on the Paramount Residential Mortgage Group website, and that is especially true when it comes to mortgage rates.

They do not publicize their rates anywhere on their site, so it’s not clear how competitive they are compared to other mortgage lenders out there.

The only hints we have come from their many customer reviews, which are quite favorable and do mention rates being lower than expected in many cases.

However, because we don’t know upfront a thing about their mortgage rates, it may be prudent to first request a rate quote before submitting an application.

You can do this by simply calling up a local loan officer and inquiring about pricing.

While you’re at it, be sure to ask about what lender fees are charged, such as a loan origination fee, processing/underwriting, etc.

Paramount Residential Mortgage Group Reviews

When it comes to customer satisfaction, PRMG seems to be on point.

They have a 4.9-star rating out of 5 on LendingTree based on nearly 18,000 customer reviews, with a 99% recommended rating.

Customers indicated that interest rates, fees, and closing costs were all excellent, along with customer service and responsiveness.

The company also ranks in the top-10 in terms of ratings on the LendingTree platform, only bested by five other lenders.

Over at Zillow, PRMG has a 4.91-star rating out of 5 from roughly 2,000 reviews, which again is a testament to being a well-liked company.

Many of the reviews also indicated that the interest rate was lower than expected, which is a good sign if you’re looking for a competitive and competent mortgage lender.

Additionally, they have a 4.85-star rating out of 5 on SocialSurvey from more than 40,000 reviews.

So it’s clear they are doing something right, as their reviews are generally excellent across multiple major ratings websites.

While they aren’t an accredited company with the Better Business Bureau, they do have an ‘A’ rating based complaint history.

In summary, PRMG seems to be a very well-liked mortgage lender that offers tons of mortgage programs via all origination channels.

They could be a good choice for both those purchasing a home and existing homeowners looking to refinance a mortgage.

Paramount Residential Mortgage Group Pros and Cons

The Good

  • Excellent customer reviews from past customers
  • One of the top-rated lender on LendingTree
  • ‘A’ rated by the BBB
  • Retail locations for those who prefer to work face-to-face
  • Digital loan application powered by Ellie Mae
  • Can apply for a mortgage online without a human
  • Tons of loan programs available
  • Free home buyer guides and mortgage glossary on site

The Maybe Not

  • Not licensed in New York or Wyoming
  • Not BBB accredited
  • Do not publicize their mortgage rates or lender fees

Source: thetruthaboutmortgage.com

Apache is functioning normally

Apache is functioning normally

New York, US, May 24, 2023 (GLOBE NEWSWIRE) — According to a Comprehensive Research Report by Market Research Future (MRFR), “Home Decor Market Information by Product Type, Distribution Channel and Region- Forecast till 2032”, the global home decor market was estimated to be worth USD 926.1 billion in 2022. The home decor market is expected to increase from USD 964.9 billion in 2023 to USD 1341.1 billion by 2032, at a compound annual growth rate (CAGR) of 18.20% between 2023 and 2032. Rising building, remodelling, and remodelling activities in residential and commercial regions are one of the primary industry drivers currently supporting the market.

Home Decor Market Overview:

Smartphones are useful for acquiring home décor products such as wall art, cushions, curtains, and figurines from various online e-commerce websites. According to The Economic Times, an Indian business journal, by October 2021, India will have the highest mobile data consumption rate in the world, with each user consuming 12 gigabytes per month, and the country is adding 25 million new smartphone users every three months. Furthermore, according to Bankmycell, a mobile phone pricing comparison website based in the United States, 6.37 billion people (80.76% of the world’s population) will be using smartphones in 2021. As a result, as smart gadgets grow more popular, the market CAGR for home decor is increasing.

Get Free Sample PDF Brochure @  https://www.marketresearchfuture.com/sample_request/11525

Report Scope:

Report Attribute Details
2032 Market Size USD 1341.1 Billion
CAGR 18.20% (2023–2032)
Base Year 2022
Forecast Period 2023-2032
Historical Data 2018-2022
Forecast Units Value (USD Billion)
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Segments Covered By Product Type, Distribution Channel and Region
Geographies Covered North America, Europe, Asia-Pacific, and Rest of the World (RoW)
Key Market Drivers Increase in online expenditure and use of smartphones
Increasing demand for green home décor products

Buy Now Premium Research Report – Get Comprehensive Market Insights.

Strategic partnerships and collaborations have emerged as a key trend in the home decor business. To maintain their market position, key players in the home decor business are focusing on strategic alliances and partnerships. For example, in April 2022, Dabito, a designer, photographer, artist, and the proprietor of Old Brand New, partnered with Mitzi, a home decor firm situated in the United States. This collaboration resulted in the production of 12 new Mitzi pieces that are equally sleek, modern, and appealing, ranging from wall sconces to chandeliers. In addition, in April 2022, Ruggable, a pioneering washable rug maker based in the United States, will join with Keith Haring Studio to create a collection of 15 chenille rugs and 9 doormats adorned with the late American artist’s distinctive line drawings.

Ruggable rugs are constructed of a machine-washable top layer that is easily separated from a cushioned base. As a result, the home decor market revenue is increasing.

Key Companies in the home decor market include

  • Ashley Furniture Industries Inc.
  • Duresta Upholstery Ltd.
  • Forbo Holding AG
  • Herman Miller Inc.,
  • Inter IKEA Systems B.V.
  • Kimball International Inc.
  • Koninklijke Philips N.V.
  • Mannington Mills Inc.
  • Mohawk Industries Inc.
  • Hanssem Co., Ltd.
  • Siemens AG
  • Springs Window Fashions, LLC
  • Suofeiya Home Collection Co., Ltd.
  • Samson Holding Ltd
  • Shaw Industries Group Inc. (Berkshire Hathaway Inc.)
  • Sophia Home

Market Segmentation:

The worldwide home décor market is classified by product type, distribution channel, and geography.

The home décor market is divided into four product categories: home furniture, home textiles, flooring, wall décor, lighting, and others. The market was dominated by the home furniture category.

The home décor market is divided into four distribution channels: Home Décor Stores, Supermarkets and Hypermarkets, Online Stores, Gift Shops, and Others. The most money was made in the home décor stores category.

Browse In-depth Market Research Report (128 Pages) on Home Décor Market: https://www.marketresearchfuture.com/reports/home-decor-market-11525

Regional Analysis:

The home décor market is divided into four regions: North America, Europe, Asia-Pacific, and the Rest of the World.

Because of the population shift to urban areas, the Asia Pacific home decor industry will dominate this market. The area’s real estate industry is fast increasing, indicating that new homes and structures are being constructed. As a result of new construction, the market is flooded with innovative and creative décor products. Furthermore, the growing tendency of using waste materials to provide a contemporary appeal has boosted the trend of waste material utilisation. As a result, the level of innovation in home décor products has increased.

From 2023 to 2032, Europe’s home decor market is predicted to develop at the quickest CAGR. The bulk of uses for home decor are in the residential industry, followed by the European business market.

As a result of a growth in the usage of design goods for residential applications, Spain currently maintains the top revenue rank in the global market for home décor. Government laws also require that hospital furniture be specially designed and manufactured. Furthermore, the German home décor market had the highest market share, while the UK home decor industry was the fastest expanding in the European region.

The home decor market in North America is the second largest in the world. The market’s growth can be due to increased product availability as well as increased online and offline home décor channel penetration. The use of various décor products, such as furniture, lighting, decorative flooring, and textiles, is most common in the region, which has a sizable market participant base. Furthermore, the United States had the biggest market share, while Canada had the fastest expanding market in the Asia-Pacific region.

Leading market players are extensively spending in R&D to extend their product lines, which will help the home decor market grow even more. Important market developments include new product releases, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organisations. To grow and thrive in a more competitive and increasing market climate, the home decor sector must provide low-cost items.

Discover More Research Reports on Consumer And Retail Market, by Market Research Future:

Scented Candles Market Research Report Information By Product Type (Synthetic Wax, Paraffin Wax, Vegetable Wax and Animal Wax), By Category (Mass and Premium), By Distribution Channel (Store-Based and Non-Store-Based), and By Region (North America, Europe, Asia-Pacific, And Rest Of The World) – Market Forecast Till 2030

Rapport d’étude de marché sur les meubles de luxe : informations par type de produit (RTA et non-RTA), type de matériau (bois, mélamine, verre, acier, panneaux enveloppés, films finis, laminés et panneaux laqués), type de mobilier (chaises, canapés, tables, lits, armoires et autres), utilisation finale (commerciale et domestique) et région ( Amérique du Nord, Europe, Asie-Pacifique et reste du monde) – Prévisions jusqu’en 2030

Taille du marché du meuble, informations d’analyse des parts : par type (RTA et non RTA), type de matériau (bois, mélamine, verre, acier, panneaux enveloppés, films finis), type de mobilier (chaises, canapés, tables, lits), utilisation finale (commercial et domestique) — Prévisions mondiales jusqu’en 2027

About Market Research Future:

Market Research Future (MRFR) is a global market research company that takes pride in its services, offering a complete and accurate analysis with regard to diverse markets and consumers worldwide. Market Research Future has the distinguished objective of providing the optimal quality research and granular research to clients. Our market research studies by products, services, technologies, applications, end users, and market players for global, regional, and country level market segments, enable our clients to see more, know more, and do more, which help answer your most important questions.

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Source: globenewswire.com

Apache is functioning normally

Apache is functioning normally

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.”

Source: housingwire.com