Industry Update: the Future of eClosing and RON

Join industry experts for an in-depth discussion on the future of eClosing and how hybrid and RON closings benefit lenders and borrowers.

DOJ v. NAR and the ethics of real estate commissions

Today’s HousingWire Daily features the first-ever episode of Houses in Motion. We discuss the Department of Justice’s recent move to withdraw from a settlement agreement with the NAR.

Hopes for generational investment in housing fade in DC

Despite a Democratic majority, the likelihood of a massive investment in housing via a $3.5 trillion social infrastructure package appears slim these days. HW+ Premium Content

Road to the one-click mortgage

This white paper will outline how leveraging a credential-based data provider can save money for lenders, reduce friction for borrowers, speed time to close, and overall bring lenders one step closer to a one-click mortgage.

Mortgage

Tappable home equity rises to record $6.5 trillion

More than 75% of homeowners with tappable equity have mortgage rates above 3.5%, Black Knight says

Tappable home equity, meaning the equity homeowners could borrow against while leaving a 20% buffer, rose to a record $6.5 trillion in the first quarter, Black Knight said in a report on Monday.

More than 75% of homeowners with tappable equity have interest rates above 3.5%, the report said. With rates currently near 3%, the amount they would save each monthly likely would outweigh the cost of the transaction, the report said.

While cash-out refis might provide support to the economy in the future, as people tap equity to renovate homes or pay down credit cards, the levels have fallen this year, the report said.

“Driven by record-low 30-year mortgage rates, the first quarter saw overall refinance lending climb to a 7-year high,” the report said. “At the same time, the number of cash-out refinances, as well as the dollar value of equity withdrawn via refinance, fell for the first time since early 2019.”

Cash-outs accounted for 42% of refinance loans in the first quarter, the lowest share in four years, the report said. The $38.7 billion in equity withdrawn via cash-out refis was down 8% from the prior quarter.

Rising home prices have increased the equity Americans have in their properties. Home values are based on what comparable properties in the neighborhood sell for, so even if homeowners aren’t thinking of putting a property on the market, it increases their equity when nearby homes sell at high prices.

The median price of an existing home rose 4.9% in 2018 and 2019, according to the National Association of Realtors. It probably will increase 3.6% this year, the group said in a forecast on Monday.

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