March 2024 – Page 4

Redfin Reports Supply Ticked Up in February for First Time in 8 Months

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There are more homes for sale as spring approaches, and house hunters are hitting the pavement. Home touring activity is rising, and mortgage-purchase applications are up 11% this week. New listings rose 13% from a year earlier nationwide during the four weeks ending March 3, the biggest increase in nearly three years, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. The boost in new listings helped bring the total number of homes for sale up 1.7%. Following eight months of declines, February is the first month the number of homes for sale has increased on an annual basis. This week’s pricing data also brings a few glimmers of hope for house hunters. Asking prices of new listings posted their smallest increase in roughly two months; additionally, 5.5% of home sellers dropped their asking price, on average, the highest share of any February since at least 2015. High mortgage rates pushed the median monthly housing payment to $2,694 this week, just $23 shy of the all-time high. But final sale prices, which rose 5.3% year over year, one of the biggest increases in a year and a half, should start declining soon as price growth for new listings loses some momentum. House hunters are looking at homes and applying for mortgages as we approach spring. Touring activity is up 23% from the start of the year, compared to a 14% increase during the same period last year, and mortgage-purchase applications are up 11% week over week. That early-stage buying activity hasn’t yet translated to a boost in sales, with pending sales down 6% year over year. “There have been two major obstacles for homebuyers over the last year: Low inventory and high housing costs,” said Redfin Economic Research Lead Chen Zhao. “Now, the first barrier is starting to come down as more supply comes on the market. Housing costs are still high, but they’re likely to come down a bit as mortgage rates gradually decline through the year and price growth loses some steam. Buyers who can afford today’s mortgage rates may have better luck finding a home now than they have in the past several months, and they also may be less likely to face competition because inventory is improving.” For more of Redfin economists’ takes on the housing market, including how current financial events are impacting mortgage rates, please visit our “From Our Economists” page. Leading indicators Indicators of homebuying demand and activity Value (if applicable) Recent change Year-over-year change Source Daily average 30-year fixed mortgage rate 6.97% (March 6) Down from 7.15% a week earlier Essentially flat Mortgage News Daily Weekly average 30-year fixed mortgage rate 6.94% (week ending Feb. 29) Up from 6.9% a week earlier; 4th straight week of increases Up from 6.65% Freddie Mac Mortgage-purchase applications (seasonally adjusted) Up 11% from a week earlier (as of week ending March 1) Down 8% Mortgage Bankers Association Redfin Homebuyer Demand Index (seasonally adjusted) Up 4% from a month earlier (as of week ending March 3) Down 7% Redfin Homebuyer Demand Index, a measure of requests for tours and other homebuying services from Redfin agents Google searches for “home for sale” Up 4% from a month earlier (as of March 2) Down 11% Google Trends Touring activity Up 23% from the start of the year (as of March 1) At this time last year, it was up 14% from the start of 2023 ShowingTime, a home touring technology company Key housing-market data U.S. highlights: Four weeks ending March 3, 2024Redfin’s national metrics include data from 400+ U.S. metro areas, and is based on homes listed and/or sold during the period. Weekly housing-market data goes back through 2015. Subject to revision. Four weeks ending March 3, 2024 Year-over-year change Notes Median sale price $368,588 5.3% Median asking price $399,223 5.1% Smallest increase since 4 weeks ending Jan. 14 Median monthly mortgage payment $2,694 at a 6.94% mortgage rate 6.9% Down just $23 from all-time high set in October 2023 Pending sales 77,925 -6.4% New listings 81,971 12.8% Biggest increase since June 2021 (there was also a 12.8% increase during the prior 4-week period) Active listings 773,048 1.7% Largest increase since the four weeks ending June 4, 2023. Based on revised data, active listings began increasing for the first time since June during the 4 weeks ending Feb. 11. Months of supply 3.7 months +0.3 pts. 4 to 5 months of supply is considered balanced, with a lower number indicating seller’s market conditions. Share of homes off market in two weeks 39.1% Up from 37% Median days on market 47 -2 days Share of homes sold above list price 24.3% Up from 23% Share of homes with a price drop 5.5% +1.3 pts. Average sale-to-list price ratio 98.5% +0.4 pts. To view the full report, including charts, please visit: https://www.redfin.com/news/housing-market-update-supply-increases-first-time-eight-months

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HPSI Inches Upward Again, Now at Highest Level in Nearly 2 Years The Fannie Mae Home Purchase Sentiment Index® (HPSI) increased 2.1 points in February to 72.8, inching higher for the third consecutive month, due primarily to increased optimism around home-selling conditions. In February, 65% of consumers said it’s a good time to sell a home, up from 60% last month. The share of those who believe it’s a good time to buy a home ticked up slightly this month but remains at an extremely pessimistic 19%. Additionally, a plurality of consumers continues to believe that mortgage rates will go down over the next 12 months, although on net that component fell slightly this month. Overall, the full index is up 14.8 points year over year. “The HPSI increased for the third straight month, continuing its slow but steady rise from the low-level plateau observed through much of 2023; and consumer sentiment toward housing now rests firmly above where it was this time last year,” said Doug Duncan, Fannie Mae Senior Vice President and Chief Economist. “Consumer attitudes toward home-selling conditions increased markedly in February, with current homeowners, in particular, expressing greater optimism that it’s a ‘good time to sell,’ a development that may foreshadow an upcoming increase in existing home listings. Additionally, despite the recent uptick in rates, consumers remain relatively optimistic that mortgage rates will decrease over the next 12 months. If their expectations come true and rates move closer to the 6-percent mark by the end of 2024, as we currently expect, then it’s likely that consumer sentiment on both sides of the transaction will improve, perhaps leading to a further thawing of the housing market. A decline in mortgage rates – and the resulting uptick in sentiment – would obviously bode well for the upcoming spring homebuying season, although affordability will likely remain a significant challenge for buyers, at least until there’s a meaningful addition to net supply.” Home Purchase Sentiment Index – Component Highlights Fannie Mae’s Home Purchase Sentiment Index (HPSI) increased in February by 2.1 points to 72.8. The HPSI is up 14.8 points compared to the same time last year. Read the full research report for additional information. Detailed HPSI & NHS FindingsFor detailed findings from the Home Purchase Sentiment Index and National Housing Survey, as well as a brief HPSI overview and detailed white paper, technical notes on the NHS methodology, and questions asked of respondents associated with each monthly indicator, please visit the Surveys page on fanniemae.com. Also available on the site are in-depth special topic studies, which provide a detailed assessment of combined data results from three monthly studies of NHS results. To receive e-mail updates with other housing market research from Fannie Mae’s Economic & Strategic Research Group, please click here. SOURCE Fannie Mae

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During the State of the Union address, President Biden announced that the administration was moving forward with a previously rejected pilot program that would waive the requirement for lender’s title insurance on certain refinances. This misguided effort should only be seen as a purely political gesture that offers a false promise of savings for homeowners when in fact all it will do is expose consumers, lenders, and taxpayers to greater financial risk. In his speech, the president touted this program as a cost-saving measure for would-be homeowners. In reality, the pilot only covers refinancings – which would exclusively benefit existing high-income homeowners and would not affect first-time homebuyers at all. The purposeful mischaracterization of the pilot is frustrating not only because it is a hollow promise, but it also diminishes the value and crucial role of an entire industry that contributes to the American economy. In an independent analysis conducted by EY Quest and released earlier this week, researchers found that the title industry employs 155,000 jobs across the country and directly contributes $30 billion annually to the GDP. Ninety percent of title companies are small businesses, many of them women-owned, and these businesses operate in every county in the country. The Biden administration fails to understand just how many working American families are going to be directly affected by this ill-conceived pilot program; nor do they understand the broader long-term impact on the national economy and the safety and soundness of the housing finance system. The title industry also believes that the independent regulatory process is a crucial part of the system of economic checks and balances. With this approval, the Biden administration has effectively overridden and politicized this process. They have ignored the decision that was made by FHFA Director, Sandra Thompson, just as recently as last summer, as well as the members of Congress who have expressed serious concerns about a repeat of the 2008 crisis and GSEs moving beyond their mission and charter into the primary market. In addition, the Administration is unnecessarily targeting closing costs. The Consumer Financial Protection Bureau (CFPB) posted a blog that says closing costs “all too often are full of junk fees.” Apparently, the current leadership at the Bureau isn’t aware of its TILA-RESPA Integrated Disclosures (TRID) rule, which the industry implemented in 2015. Under this federal rule that the CFPB overseas, closing costs must be provided and disclosed to a consumer on the Loan Estimate within three days of receiving a completed loan application. The same fees must also be provided on the Closing Disclosure, which homebuyers receive three days prior to closing. Most fees can’t change. The Bureau created the disclosures with the purpose of helping consumers shop around and understand the closings costs. CFPB’s own research shows these disclosures are working to educate consumers. The CFPB report praised its own rule for improving “consumers ability to locate key information, compare terms and costs between initial disclosures and final disclosures, and compare terms and costs across mortgage offers.” Reform of mortgage closing costs is unnecessary. The contradictory use of the term “junk fee” conflicts with the White House’s own definition, which cites the lack of disclosure of the fee being charged. The American Land Title Association (ALTA) is committed to working with policymakers to thoughtfully address housing affordability and opportunity while also protecting consumers and their most important investments. To read ALTA’s previous statement on the White House announcement of the waiver pilot program click here: ALTA Says White House Attack on Title Insurance Offers False Promise of Savings SOURCE American Land Title Association CONTACT: Jeremy Yohe, 1-202-590-8361, jyohe@alta.org

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Home sellers were more active this February, with 11.3% more homes newly listed on the market compared to last year According to Realtor.com®‘s February housing report, the Spring housing market is shaping up to be an active one for prospective homebuyers. In fact, there were 14.8% more homes actively for sale on a typical day in February compared to the same time in 2023, which marks the fourth consecutive month of annual inventory growth. “The first couple of months of 2024 have proven to be positive for inventory levels, as the number of homes actively for sale was at its highest level since 2020,” said Danielle Hale, Chief Economist of Realtor.com®. “While the country is still well below pre-pandemic levels, the South is leading the charge, moving faster than other parts of the country, largely driving the increase in availability of homes priced between $200,000 and $350,000, a price category that saw the most year-over-year growth nationally.” February 2024 Housing Metrics – National Metric Change over Feb 2023 Change over Feb 2019 Median listing price +0.3% (to $415,500) +40.4 % Active listings +14.8 % -39.7 % New listings +11.3 % -17.2 % Median days on market – 4 days (to 61 days) -14 days Share of active listings withprice reductions +1.4 percentage points(to 14.6%) -1.1 percentage points Affordable Home Inventory GrowsHomes in the $200,000 to $350,000 price range grew by 20.6% compared to last year, outpacing all other price categories. For home shoppers looking for affordable options, this may lead to particularly favorable home buying conditions. And, though the market is still a ways away from pre-pandemic levels, homebuyers may anticipate more options to choose from, compared to recent years, heading into the hot spring homebuying season especially in this category. Southern Metros See the Most Inventory GrowthThe inventory of homes actively for sale increased in 29 out of 50 of the largest metros compared to last year. Orlando (+38.5%), Miami (37.4%) and Tampa (36.3%) experienced the most inventory growth. While most metros are still seeing lower inventory levels when compared to pre-pandemic years, three metros actually saw higher levels of inventory in February compared to typical 2017 to 2019 levels. The top three were in the South, particularly in Texas: San Antonio (+26.6%), Austin (+10.8%), and Dallas (+2.2%). Mortgage Rates Remain in Flux, but Sellers are Ready to MoveAs mortgage rates continue to shift, home sales have been sensitive to the fluctuations. While rates declined abruptly in November and December they steadied around 6.6% in January and early February, before climbing higher following a hot inflation report, most recently hitting 6.94%. Additionally, the percentage of homes with price reductions increased from 13.2% in February of last year to 14.6% this year, marking the first time the share of price reductions had increased over the previous year since May of 2023. In fact, newly listed homes were 11.3% above last year’s levels for the fourth month of increasing-listing activity after a 17-month streak of decline. Additional details and full analysis of the market inventory levels, price fluctuations and stabilization, as well as days on market tallies can be found in the Realtor.com® February Monthly Housing Report. SOURCE Realtor.com

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National homebuilder celebrates Women in Construction Week with team member stories and new workforce statistics As the construction industry remains male-dominated, Taylor Morrison, America’s Most Trusted® Home Builder, is breaking barriers with an increasing number of women in its workforce. In honor of this year’s Women in Construction Week, celebrated March 3–9, Taylor Morrison is highlighting women in construction roles to recognize their contributions while releasing new workforce statistics. Taylor Morrison continues to see a growing number of women pursuing construction roles and experiencing immense career growth opportunities. As of March 2024, Taylor Morrison reported: “While women in construction roles could be seen as unconventional by the industry’s historical standards, we are experiencing meaningful movement of women choosing a fulfilling career in construction at Taylor Morrison,” said Taylor Morrison Chairman and CEO Sheryl Palmer. “Oftentimes people need to see themselves in key roles before going after something new, and Taylor Morrison is proof that people from all walks of life, experiences and perspectives can enjoy this rewarding career path.” Amber Reynolds began her construction career seemingly by fate after being assigned a position for a commercial real estate company from a temp agency, where she fell in love with the dynamic atmosphere the industry provides. Over her 25-year career, Reynolds has served as a starts coordinator, land coordinator and construction administration manager. Today, and as a division cadence manager, Reynolds leads weekly production meetings, enforces safety protocols, ensures the division is meeting its metrics, and supports the field team. “The construction industry is fast-paced and inspiring,” said Reynolds. “I love contributing to construction transformations and delivering beautiful homes with our team. I encourage women entering the construction field to always stand confident, ask questions and connect with a mentor.” Tampa-based Superintendent Brittany McConnell is the first Build-to-Rent Superintendent in Taylor Morrison’s Florida markets. Inspired by the strong women leadership at Taylor Morrison, she found her way to Taylor Morrison in 2023 and is now building the very first Yardly built by Taylor Morrison community in Florida. “I like being able to drive by my neighborhood and show my kids what I’ve built,” said McConnell. “Before I got into construction, I didn’t know any women in the industry. We’re often put into a box, but women are far more capable in construction roles than what people might expect.” Hope MacRonald, Construction Project Supervisor in Charlotte, knew from a young age that she wanted to work in the construction industry and has childhood memories of her building tree houses, forts and barns. MacRonald has since achieved those dreams and joined Taylor Morrison in 2022 where she has already earned two promotions. When asked what advice she would give women looking to enter the construction industry, MacRonald said: “I encourage women pursuing a construction career to understand that they deserve a seat at the table, alongside their male counterparts. It’s important for women to remain confident and always take the opportunity to learn and grow.” To read more team member stories, please visit the Taylor Morrison blog. About Taylor Morrison Headquartered in Scottsdale, Arizona, Taylor Morrison is one of the nation’s leading homebuilders and developers. We serve a wide array of consumers from coast to coast, including first-time, move-up, luxury and resort lifestyle homebuyers and renters under our family of brands—including Taylor Morrison, Esplanade, Darling Homes Collection by Taylor Morrison and Yardly. From 2016-2024, Taylor Morrison has been recognized as America’s Most Trusted® Builder by Lifestory Research. Our strong commitment to sustainability, our communities and our team is highlighted in our latest annual Environmental, Social and Governance (ESG) Report. For more information about Taylor Morrison, please visit www.taylormorrison.com. CONTACT: Erin Kristick(480) 840-8108ekristick@taylormorrison.com SOURCE Taylor Morrison

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$240 Million Deal Rated by Morningstar DBRS Toorak Capital Partners, Inc. (“Toorak”), a leading capital provider to the residential real estate lending industry, today announced the successful closing of the first-ever rated residential transition loan (“RTL”) securitization, Toorak 2024-RRTL1. The $240 million deal was rated by Morningstar DBRS, which in October 2023 was the first Nationally Recognized Statistical Rating Organization to finalize a methodology for RTL securitizations (a deal backed by short-term bridge loans generally used to rehabilitate residential properties). Morgan Stanley led the offering and served as initial purchasers along with Deutsche Bank, JP Morgan Securities, LLC, Performance Trust Capital Partners, and KKR Capital Markets. Significant investor demand during the marketing process led to the offering being upsized and to tightened spreads. “This development is a pivotal moment for our industry and a significant step forward in the institutionalization of the RTL market. Toorak’s securitization has substantially broadened participation in the RTL market by making it accessible to the bulk of the fixed income investor base which require ratings,” said John Beacham, CEO of Toorak. “I want to thank Ketan Parekh who led the deal team and Aleksandra Simanovsky who tirelessly spearheaded the yearslong effort to obtain rating agency support for the asset class.” The initial collateral underlying the Toorak 2024-RRTL1 securitization consisted of 370 residential transition loans that financed approximately 527 housing units. The securitization featured a sizeable portion (42.36%) of collateral originated by Toorak’s affiliate company – Merchants Mortgage & Trust Corporation, LLC (“Merchants”), an established originator of RTL loans mainly focused on the western U.S. with decades of experience in the space. “Merchants is excited to contribute to this significant moment for the RTL industry, and we remain committed to originating quality loans with the highest level of service for our borrowers,” said Justin Land, CEO of Merchants. The transaction features a two-year revolving period, during which time proceeds from loan payoffs can be reinvested in new loans. To date, Toorak has issued over $3 billion in securitizations across 12 deals, including 8 unrated revolving transactions backed by RTL loans and 4 rated transactions backed by long-term investor loans on rental properties. About Toorak Capital Partners Toorak Capital Partners is an integrated correspondent lending platform that funds business-purpose loans backed by residential, multifamily, and mixed-use properties throughout the U.S. and the U.K. With capital commitments from credit funds and accounts managed by KKR, a leading global investment firm, Toorak has revolutionized the way private lenders of business purpose real estate loans access capital. Toorak was the first to link small-balance commercial and residential originators with institutional capital and has perfected this approach in the single-family residential bridge, multifamily bridge, and 30-year single family rental lending space. Toorak’s principals have a deep understanding of mortgage credit in the residential and commercial space with backgrounds in real estate lending, capital markets, securitization, asset-liability management, asset management and credit. Since inception, Toorak has provided more than $12 billion in capital and funded over 30,000 mortgage loans. Toorak-funded projects are expected to renovate, stabilize, or provide rental housing for over 50,000 families. Further information is available at www.toorakcapital.com.