Author: Brad Beckett

The U.S. government is reporting that privately‐owned housing starts in August were at a seasonally adjusted annual rate of 1,575,000, which is 12.2% higher than July’s revised number and 0.1% lower than one year ago.  August’s rate for units in buildings with five units or more was 621k.  Privately‐owned housing units authorized by building permits in August were at a seasonally adjusted annual rate of 1,517,000, which is 10% lower than July’s revised number.  Authorizations of units in buildings with five units or more were at a rate of 571k in August. Click here to read the full report at…

We saw recently how mortgage applications have taken a nosedive in the face of rising interest rates, intense competition and rising prices.  Today’s graphic from Statista illustrates how the average 30-year fixed mortgage rate has sharply risen to levels not seen since 2008…Stay safe and have a Happy Friday! “For real estate markets, the rising costs of borrowing are further cooling demand for homes and deepening the affordability crisis,” George Ratiu, Senior Economist at Realtor.com said in a statement. “The buyer of a median-priced home is looking at a monthly payment of $2,100 at today’s mortgage rate, a 66% jump…

A new report from Zillow says home values slipped for the 2nd consecutive month as mortgage costs continue to sideline buyers.  Zillow says affordability is driving market momentum with low-cost markets remaining competitive.  Their data show the typical home value fell 0.3% from July to August and is now  $356,054. The largest monthly decline since 2011 and the second monthly decline in a row. “Substantial day-to-day and week-to-week rate movements mean that many potential buyers are able to qualify for a loan one week, but not the next, or vice versa…Even buyers able to afford a house at current rates…

The NAHB’s Eye on Housing recently crunched the numbers from the most recent BLS Producer Price Index, where they found building materials prices have climbed 4.9% through the first eight months of 2022 and 14.3% year-over over. Prices for gypsum products, transformers, and concrete posted historic 12-Month Increases.  However, softwood lumber prices were actually down 5.2% in August. Click here to read the full report at the NAHB’s Eye on Housing.

The Tax Foundation says property taxes are the primary tool for financing local government as well as generating revenue in some states.  In fact, they point out that, in FY 2020 alone, property taxes generated 32.2% of total state and local tax collections – more than any other source of tax revenue. Also, in 2020 property taxes accounted for 72.2% of local tax collections. So, where do people pay the most in property taxes?  See the interactive chart below… Click here to read the full report at the Tax Foundation.

HousingWire is reporting that Wells Fargo agreed to pay $94 million to settle a class-action lawsuit that placed more than 200k mortgage borrowers into forbearance during the pandemic, unlawfully and without their consent.   According to the report, customers who inquired about forebearance, but did not formerly request it, got it anyway, damaging their credit scores and making it more difficult for them to refinance.  Wells Fargo denied any wrongdoing in the settlement that includes over 212k loans. “…Chief Financial Officer Mike Santomassimo said the company was content to lose ground in mortgage originations and is “really focused on our consumer…

A recent episode of the Lead-Lag Report podcast featured Stephen Punwasi who discussed housing issues primary in Canada, but as the short 4-minute clip just below points out “…overall the US tends to be better value…”    Indeed… The block below contains the entire episode. Click here to watch the whole podcast at YouTube.com.

A mid-September “Chart of the Week” from the Mortgage Bankers Association illustrates how overall mortgage application activity continues to trend lower.  They say refinances have dried up due to rising rates rising and recently hit the 6% mark for the first time since 2008.   The MBA also says higher rates have led to a pullback from potential homebuyers who face affordability hurdles or are delaying their decision to get into the market.  The chart below shows home purchase applications by loan size as of August 2022. “Purchase activity saw a recent peak in the second half of 2020 and experienced…

According to the latest CoreLogic Loan Performance Insights Report, in June 2022, 2.9% of mortgages were delinquent by at least 30 days or more including those in foreclosure.  This figure represents a 1.5-percentage point decrease in the overall delinquency rate compared with June 2021.  CoreLogic says measuring early-stage delinquency rates is important for analyzing the health of the mortgage market.  Their monthly report coverage at the national, state and Core Based Statistical Area (CBSA)/Metro level and includes transition rates between states of delinquency and separate breakouts for 120+ day delinquency. “While early-stage delinquencies edged up in June, they remained near…

The U.S. Bureau of Labor Statistics is reporting that the Consumer Price Index for All Urban Consumers (CPI-U) was up 0.1% in August, 2022.  However, the all items index was up 8.3% for the 12 months ending in August.  The CPI’s food index increased 11.4% over the past year, the largest 12-month increase since the Carter Years. Click here to read the full release at the Bureau of Labor Statistics.