Category: Residential

MBA: Rising mortgage rates put a damper on application volume

Applications for 30-year fixed rate rise 2.5%

Mortgage applications took a tumble for the week ending Mar.1, 2019, according to the newest data from the Mortgage Bankers Association’s weekly Mortgage Applications Survey.

MBA Senior Vice President and Chief Economist Mike Fratantoni said slightly higher mortgages rates last week led to a decrease in application volume.

“Furthermore, the average loan size for purchase applications increased to a record high, led by a rise in the average size of conventional loans,” Fratantoni continued. “This suggests that move-up and higher-end buyers have so far become a greater share of the spring market.”

On an unadjusted basis, the Market Composite index retreated 2.5% from the previous week.

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Hottest Zip Codes for Home Flippers

This week ATTOM Data Solutions released its Q4 and 2018 Year-End Home Flipping report. The report showed that 207,957 U.S. single family homes and condos were flipped in 2018, down 4 percent from the 216,537 home flips in 2017.

However, did you know that ATTOM Data drills all the way down to the zip code level for this specific report? In fact, most of ATTOMs reports consist of various granular geo levels being analyzed, but the flipping report can really help real estate investors who are looking for their next move.

Average time to flip down slightly from 2017
Homes flipped in 2018 took an average of 180 days to complete the flip, down from 181 days in 2017 but up from 159 average days to flip 10-years ago.

Among 6,013 zip codes with at least 10 home flips completed in 2018 and a population greater than 5,000, those with the longest average time to flip were in zip codes 95742 located in Sacramento, California (301 days); 85935 located in Show Low, Arizona (285 days); 77441 located in Houston, Texas (285 days); 98116 located in Seattle, Washington (280 days); and 53532 located in Madison, Wisconsin (277 days).

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The housing market isn’t appreciating like it used to

But will things turn around in 2019?

Home price growth continues to slacken, with annual growth decelerating to the slowest pace since August 2012.

According to recent data from CoreLogic, home prices in January grew 4.4% year over year, increasing just 0.1% from the previous month.

Since peaking at 6.6% growth in April 2018, home prices have continued to slow, which CoreLogic attributes to rising interest rates.


(Source: CoreLogic)

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New Single-Family Rental Pitch: Want to Buy a Piece of a House?

Roofstock is launching a platform to buy SFR properties and allow investors to purchase stakes in them for as little as $5,000.

(Bloomberg)—Here’s a new proposition from a company that markets single-family rental homes to mom-and-pop investors: Want to buy a tenth of a house?

Roofstock is pitching a chance for those interested in the asset class to start small. The company will buy a home and put it in a trust, then sell stakes for as little as $5,000. The aim is to provide investors direct access to rental income — and the tax benefits of owning commercial real estate — while lowering the buy-in and eliminating inconveniences like having to carry a loan on their personal balance sheet.

“The whole idea at our founding was to create a platform where real estate could trade much more like a stock,” said Gary Beasley, chief executive officer at Roofstock, a four-year-old startup based in Oakland, California. “At the end of the day, you can go to a website and after a few clicks, you have real estate exposure.”

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[Pulse] Housing industry reacts to Gary Vaynerchuck’s homeownership slam

Ryan Serhant, Casey Crawford, Mat Ishbia, Kristy Fercho and Anthony Casa weigh in on the controversy

Recently, I wrote an article for HousingWire’s Pulse column about a video of Gary Vaynerchuk slamming homeownership during an appearance on the Cannonball Mindset podcast.

The motivational speaker, best-selling author and respected tech entrepreneur called homeownership “bull***t” in the video that eventually went viral.

“I do not think the American dream should be buying a home anymore, I think it’s full of s**t,” Vaynerchuk said. “It’s a bad use of upfront capital, and it ties you up and it’s just not smart. And what is it for?”

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January 2019 Foreclosure Filings See an Uptick

ATTOM Data Solutions, curator of the nation’s premier property database, released its January 2019 foreclosure activity (State/MSA/County/ZIP and City code data available). Nationally there were a total of 56,251 U.S. properties with foreclosure filings in January 2019, up 8 percent from the previous month but down 19 percent from a year ago — the 7th consecutive month with a year-over-year decrease in foreclosure activity and a foreclosure rate of one in every 2,407 U.S. housing units with a foreclosure filing.

However, counter to the national trend, 60 of the 220 major metro areas analyzed in the report posted a year-over-year increase in foreclosure activity in January 2019, including Orlando, Florida (up 72 percent); Austin, Texas (up 60 percent); Miami, Florida (up 41 percent); San Diego, California (up 12 percent); and Seattle, Washington (up 10 percent)

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Underwriting, Assessing Risk, Big Data

Catastrophes have rewritten the rules of the insurance game. Before Hurricane Andrew, in 1992, insurers essentially guessed at what the financial damages would be if a disaster struck. Turns out, they drastically underestimated what the losses might be. And they suffered the consequences.

Smart underwriters don’t guess. They use the kinds of cutting-edge parcel mapping and risk assessment tools ATTOM Data Solution offers. They know the insurance industry is ripe for digital disruption. And they know the consequences of not keeping pace with technology.

How Underwriters Assess Risk

Whether they use cutting edge technology or paper trails, insurance underwriters all look for the potential risks to a property, from the probable to the highly unlikely. They look at the individual sites histories and nearby properties and play an elaborate game of “What could possibly go wrong, and how often?”

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LendingTree: Pool of mortgage borrowers receiving interest rates under 5% is shrinking

84.2% of borrowers received mortgages under 5%

LendingTree’s latest Mortgage Rate Competition Index revealed that borrowers with interest rates under 5% slid further for the week ending Feb. 17, 2019.

The report states that for 30-year fixed-rate mortgages, 84.2% of purchase borrowers received offers with interest rates under 5%, falling from 87.8% last week. Notably, this is a decrease from 2018’s rate when 88.2% of purchase offers were under 5%.

The report also highlights that across all 30-year, fixed-rate mortgage purchase applications made on LendingTree’s website, 21.2% of borrowers were offered an interest rate of 4.625%, making it the most common interest rate.

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Top 10 Seriously Underwater Metro Areas

ATTOM Data Solutions just released its Year-End 2018 Home Equity and Underwater report, which showcased graphics on historical data for the nation as well as heat maps narrowing in on zip code level data. However, what about those metropolitan areas that speak to the larger group of people? Areas where homeowners are still feeling the lingering effects of the housing market crash or areas that are seeing great value in their home.

With this latest report, ATTOM Data found that one in four homeowners were considered ‘equity rich’ while one in 11 remained seriously underwater. The number of equity-rich homeowners ticked up to its highest level in five years. However, homeowners in more expensive western states continued doing far better than those in the Midwest or South. In areas where the median home price was at least $300,000 last year, owners were far more likely to be equity-rich and far less likely to be seriously underwater than those in other parts of the country.

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MBA: Mortgage applications decline as economic uncertainty grows

Applications for 30-year fixed rate mortgages fall 3.7%

Mortgage applications fell even further for the week ending Feb. 8, 2019, according to the newest data from the Mortgage Bankers Association’s weekly Mortgage Applications Survey.

“Application activity fell last week – even with rates decreasing – as renewed uncertainty about the domestic and global economy likely held potential homebuyers off the market,” MBA Vice President of Economic and Industry Forecasting Joel Kan said. “Despite the recent decline in applications, we still expect that the continued strength of the job market and lower rates will support more purchase activity in the coming months.”

On an unadjusted basis, the Market Composite index retreated 3.7% from the previous week.

“The 30-year fixed-rate mortgage dropped to its lowest level since last March and was 52 basis points lower than its recent high last November,” Kan continued. “Government refinances provided a bright spark, picking up over 10%, as both FHA and VA refinancing activity saw increases over the week.”

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