An Insider’s Look Into How Secondary Marketing Evaluates LOs

In this webinar we’ll explore the long-term financial impacts of renegotiations, extensions and fallouts, plus basic guidelines to be viewed as a professional by your secondary marketing department

HousingWire Annual Virtual Summit

Sessions from HousingWire Annual 2021 are going to be virtually streamed on October 25. Register now for FREE to tune into what housing industry leaders had to say this year!

How servicers can access timely, accurate data insights

Learn how to navigate the challenges in today’s market – for example, the need for ongoing, on-demand access to near-real-time data and the ability to access those data insights in a timely and accurate manner.

Experts on how AI makes a difference in the mortgage process

Today’s HousingWire Daily features a roundtable discussion on “Humans versus really smart machines” and what the right mix looks like to gain efficiencies in the mortgage loan manufacturing process.

Real Estate

Pending home sales reach highest May mark in 16 years

Contract signings on new homes jumped 13.1% year over year

Pending home sales reached its highest mark for the month of May since 2005, up 8% from the previous month of April as low inventory continues driving buyers to snatch up available real estate.

The strong increase in home sales and transactions in May —following a dip in April — was a surprise, per Lawrence Yun, National Association of Realtors chief economist, who attributed the home sales increase to mortgage rates remaining below 3%, as well as an uptick, nationally, in listings.

“Buyers are still lining up a feverish pace,” Yun said. “While [the COVID-19 pandemic, low inventory and high prices] have contributed to pricing out would-be buyers, the record-high aggregate wealth in the country from the elevated stock market and rising home prices are evidently providing funds for home purchases.”

Contract signings on new homes increased 13.1% year over year.

All four U.S. regions reported month-over-month and year-over-year home sale gains, per a release from the NAR. The Northeast increased 15.5% in May, a 54.6% climb from 2020. In the Midwest, sales increased 6.7% monthly and 7.8% year over year. The South reported a 4.9% increase (6.1% increase year over year) and the West increased 10.9% (up 12.5% year over year).

How fix’n’flip loans could help expand housing inventory

The market is tight, prices are soaring on what stock is available and it’s not available long. Here’s how fix’n’flip loans may be the fix.

Presented by: Acra Lending

Metros with the largest year-over-year increase in pending home sales were Tampa-St. Petersburg-Clearwater, Florida; Detroit-Warren-Dearborn, Michigan; Nashville-Davidson-Murfreesboro-Franklin, Tennessee; Riverside-San Bernardino-Ontario, California; and Jacksonville, Florida.

Yun said he expects an increase in market listings in the second half of the year, as more homes are built and the federal mortgage forbearance program winds down. A decrease in lumber prices will do wonders for builders, too, he said.

“Home price growth will steadily moderate with increased supply, but a broad and prolonged decline in prices is unlikely,” Yun said. “If a reduction does occur in some markets, homebuyers will view the lower home price as a second-chance opportunity to get into the market after being outbid in previous conditions.”

Ruben Gonzalez, Keller Williams chief economist, added that he is “optimistic” new home construction will pick up.

“We will continue to gain momentum through the rest of the year if we can avoid further supply chain disruptions,” Gonzalez said. “Lumber prices have come down from all-time highs, but are still far above previous norms.”

The continued distribution of the multiple COVID-19 vaccines is key to a return of affordable building material prices and shorter supply delivery times to increase home sales. Builders have told HousingWire that they are struggling to find full crews to build homes, as enhanced unemployment benefits   — enacted by the government to combat the effects of the pandemic — are keeping workers at home.

Leave a comment

Most Popular Articles

Fannie Mae: Mortgage rates and home prices will rise in ’22

Economists at Fannie Mae expect higher mortgage rates and home prices next year due to higher inflation, a tightening of monetary policy, and low home inventory

Oct 15, 2021 By

Latest Articles

Abortion, marijuana laws play a role in relocation decisions

People take the politics of a place into consideration when deciding where to move, but other factors including housing affordability and access to jobs and schools take priority, Redfin study shows

Oct 19, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please