While median sales prices of single-family homes and condos reported little movement compared to a month ago, the same can’t be said for distressed home prices, which reached their highest level since December 2009.
New home sales maintained a downward trajectory in December, falling 7% below November’s revised rate of 445,000 unit sales to a seasonally adjusted annual rate of 414,000 units. But this is still 4.5% above year earlier levels.
While mortgage originations have hit the lowest level since 2010, it is not all bad news. Rising home prices have helped cause an increase in demand of home equity lines of credit, in addition to 2013 originating the best-performing mortgages on record.
For anyone actively working in the mortgage industry, it’s no secret that reverse mortgages have taken a brutal hit in the last two years. The U.S. Department of Housing and Urban Development issued major program changes at the end of 2017 that effectively limited the amount of proceeds and the number of people who could qualify for the loan. The result had lenders across the space enduring sizable volume drops and subsequent gashes to their bottom lines.