The latest economic and policy trends facing mortgage servicers

Join this webinar for an in-depth roundtable discussion on economic and policy trends impacting servicers as well as a look ahead at strategies servicers should employ in the next year.

2021 RealTrends Brokerage Compensation Report

For the study, RealTrends surveyed all the firms on the 2021 RealTrends 500 and Nation’s Best rankings, asking for annual compensation data for the 2020 calendar year.

A real estate professor weighs in on the future of MLSs

According to research done by Sonia Gilbukh, a real estate professor at Baruch College, there are some reasons to be concerned about the current number of real estate agents and the future of MLSs.

Lenders, it’s time to consider offering non-QM products

The non-QM market is making a comeback following a pause in 2020. As lenders rush to implement, Angel Oak is helping them adopt these new lending products.

MortgageReal Estate

CoreLogic: Home prices keep rising, demand not letting up

Driven by highest resale activity in 9 years

Home prices in May are up both monthly and annually, according to the Home Price Index and HPI Forecast released today by CoreLogic.

Overall, home prices, including distressed sales, increased by 5.9% from last year, and 1.6% from April, according to the CoreLogic HPI.

"Housing remained an oasis of stability in May with home prices rising year over year between 5% and 6% for 22 consecutive months," CoreLogic Chief Economist Frank Nothaft said. "The consistently solid growth in home prices has been driven by the highest resale activity in nine years and a still-tight housing inventory."

It does not seem like the demand will let up any time soon, as the industry continues to predict that mortgage rates will drop still further. In the wake of the United Kingdom’s shocking decision to leave the European Union, experts throughout the U.S. housing industry weighed in on the potential impact of the Brexit.

The general consensus among those experts is that mortgage interest rates will go down, but just how low? Here's the prediction from Fitch Ratings. 

“CoreLogic reported a strong rise in house prices in May, in line with the recent run of solid gains,” Capital Economics Property Economist Matthew Pointon said. “With mortgage rates now likely to stay close to record lows for longer, house prices will continue to come under upwards pressure.”

The HPI Forecast is a projection of home prices using the CoreLogic HPI and other economic variables. The values are derived from state-level forecasts by weighting indices according to the number of owner-occupied households for each state.

The HPI Forecast showed that prices will increase by 5.3% annually by May 2017, and by 0.8% month-over-month in June 2016.

Last month, CoreLogic predicted that on a month-over-month basis home prices were expected to increase 0.9% from April 2016 to May 2016, but home prices actually increased 1.6%.

"Price appreciation continues to be fairly broad-based across the U.S. From a regional perspective, the Pacific Northwest continues to be the hottest area for home-price growth, with Oregon and Washington leading the way," CoreLogic president and CEO Anand Nallathambi said.

"The recent turbulence in financial markets should lead to modestly lower mortgage rates, which will provide even more support to the steadily improving real estate recovery," Nallathambi said.

This chart shows the HPI change each year:

Click to Enlarge

HPI May 2016

(Source: CoreLogic)

Latest Articles

Existing home sales pop the 2021 housing bubble boys

So far this year, every existing home sales print has been higher in 2021 than the closing level of sales in 2020, which was 5,640,000. Even with the unhealthy home price gains that we have seen in the last two years, more Americans have bought homes with mortgages in 2020 and 2021 than any single year from 2008-2019, and this looks perfectly normal with our current demographics. HW+ Premium Content

Sep 22, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please