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.

Steve Murray on the importance of protecting property rights

In this episode, Steve Murray, RealTrends advisor and industry stalwart, discusses some of the issues facing private property rights, including how a case in Germany could potentially affect U.S. legislation.

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.

Real EstateValuations

Experts: Homebuyers should prepare for onslaught of competition this spring season

High home prices here to stay

The latest Case-Shiller report showed home prices are continuing to rise, but now experts say not only are those high prices here to stay, but homebuyers could be pummeled this spring by an increase in competition.

One expert explained that homebuyers will face not only the typical spring competition, but also the pent-up demand from would-be buyers looking for, but unable to find, a home over the past several months.

“The spring home shopping season will soon be in full swing, and with it we can expect the usual seasonal bump of would-be home buyers to come out of the woodwork to compete over a shrinking pool of homes to choose from,” Zillow Senior Economist Aaron Terrazas said. “But in a twist, this year’s buyers may be competing against some of those buyers who have been unsuccessful during the past few months.”

“Increasingly, the traditional seasonal boundaries around home shopping season – which generally heats up in early spring and cools off by late summer in time for back-to-school season – are becoming less pronounced,” Terrazas said. “Limited supply, fierce competition and rising prices are forcing many buyers to stay on the market longer in hopes of finding the right home at the right price. More inventory is really the only cure for those pressures right now, especially for those at the entry-level end of the market, but it has proven frustratingly slow in coming.”

And one expert explained this increased competition is also increasing home prices, which means high home prices are here to stay.

“Our first glimpse into Case-Shiller home price data in 2018 confirms high prices are here to stay,” realtor.com Chief Economist Danielle Hale said. “In fact, if we continue to see a steady stream of buyers and owners remain largely uninterested in selling, we can expect prices to continue to rise.”

Another expert explained that while homes on the lower end of the market are failing to keep up with demand and seeing quickly increasing prices, the same can’t be said for luxury homes.

“The Case-Shiller Home Price Index continues to support our view that today’s housing market is driven by a mismatch of demand and supply,” said Tian Liu, Genworth Mortgage Insurance chief economist. “There is robust demand by first-time homebuyers for affordable homes, and equally robust supply for higher-end homes.”

“Over the last 12 months, the low-tier homes measured by the Case-Shiller Index have out-performed the aggregate index significantly while the high-tier homes have under-performed,” Liu said.

The chart below from Trulia shows the amount of home price increases has been steadily climbing since about mid-2014. In the past couple months, the increase rate surpassed 6%, and has held there.

Click to Enlarge

Trulia

(Source: Trulia)

However, not all experts expect home price growth to continue at its current rate.

“That is the first time annual growth has fallen since June 2016, and supports our view that house price gains peaked at the end of last year,” Capital Economics Property Economist Matthew Pointon said. “We expect growth will continue to ease gradually this year, although tight market conditions and rising household incomes argue against a sharp slowdown.”

Most Popular Articles

Ex-loanDepot COO: Tony Hsieh cut corners to boost volume

The suit, filed by former COO Tammy Richards, accuses loanDepot CEO Anthony Hsieh of ordering the sales team to “trust [their] borrowers” and close loans, disregarding proper underwriting etiquette. 

Sep 23, 2021 By and

Latest Articles

UWM announces Bolt underwriting system for brokers

In a keynote session about the future of mortgage, UWM CEO Mat Ishbia previewed Bolt, an underwriting system that he said would enable brokers to underwrite a loan in 15 minutes or less, which will go live on Monday, Sept. 27.

Sep 25, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please