Newsletter – Page 23

Home Affordability Gets Tougher During Second Quarter Across U.S. As Prices Shoot Back Up

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Major Home-Ownership Expenses Now Consume 35 Percent of Average Wage Nationwide; Portion Hits High Point in Over a Decade as Median Home Price Soars to Another Record ATTOM, a leading curator of land, property and real estate data, released its second-quarter 2024 U.S. Home Affordability Report showing that median-priced single-family homes and condos remained less affordable in the second quarter of 2024 compared to historical averages in 99 percent of counties around the nation with enough data to analyze. The latest trend continued a pattern, dating back to early 2022, of home ownership requiring historically large portions of wages around the country amid ongoing high residential mortgage rates and elevated home prices. The report also shows that major expenses on median-priced homes consumed 35.1 percent of the average national wage in the second quarter – marking the high point since 2007 and standing well above the common 28 percent lending guideline. Both the historic and current measures represented quarterly and annual setbacks following a brief period of improvement from late 2023 into early 2024. The shifts came as the national median home price spiked to a new high of $360,000 during the Spring buying season and mortgage rates remained around 7 percent, leading to increases in the cost of owning a home that outpaced recent increases in wages. As a result, the portion of average wages nationwide required for typical mortgage payments, property taxes and insurance grew about three percentage points from both the first quarter of this year and the second quarter of last year. “The latest affordability data presents a clear challenge for home buyers. While home prices are increasing and mortgage rates remain relatively high, these factors are making homes less affordable,” said Rob Barber, CEO for ATTOM. “It’s common for these trends to intensify during the Spring buying season when buyer demand increases. However, the trends this year are particularly challenging for house hunters, more so than at any point since the housing market boom began in 2012. As the 2024 buying season progresses into the Summer, we will continue to monitor the data closely.” The patterns during the months running from April through June came as the national median home price rose 7.3 percent quarterly and 4.7 percent annually. Further hampering buyers during the second quarter were average 30-year home-mortgage rates that ended the quarter at about 6.9 percent, or more than double where they stood in 2021. Those factors helped boost home ownership expenses by about 10 percent in the second quarter of 2024 after declining slightly in the prior two quarters. The report determined affordability for average wage earners by calculating the amount of income needed to meet major monthly home ownership expenses — including mortgage payments, property taxes and insurance — on a median-priced single-family home, assuming a 20 percent down payment and a 28 percent maximum “front-end” debt-to-income ratio. That required income was then compared to annualized average weekly wage data from the U.S. Bureau of Labor Statistics. Compared to historical levels, median home ownership costs in 582 of the 589 counties analyzed in the second quarter of 2024 were less affordable than in the past. That number was up just slightly from 579 of the same counties in the first quarter of this year and from 577 in the second quarter of last year. But it was more than 15 times the figure from early 2021. Meanwhile, the portion of average local wages consumed by major home-ownership expenses on typical homes was considered unaffordable during the second quarter of 2024 in about 80 percent of the 589 counties in the report, based on the 28 percent guideline. Counties with the largest populations that were unaffordable in the second quarter were Los Angeles County, CA; Cook County (Chicago), IL; Maricopa County (Phoenix), AZ; San Diego County, CA, and Orange County, CA (outside Los Angeles). The most populous of the 115 counties with affordable levels of major expenses on median-priced homes during the second quarter of 2024 were Harris County (Houston), TX; Wayne County (Detroit), MI; Philadelphia County, PA; Cuyahoga County (Cleveland), OH, and Allegheny County (Pittsburgh), PA. National median home price jumps quarterly and annually in most marketsThe national median price for single-family homes and condos shot up to $360,000 in the second quarter of 2024 – $15,000 more than the previous high of $345,000 hit in the Spring of 2022. The latest figure was up from $335,500 in the first quarter of 2024 and from $344,000 in the second quarter of last year. At the county level, median home prices rose from the first quarter to the second quarter of this year in 514, or 87.3 percent, of the 589 counties included in the report. Annually, they followed a similar pattern, up in 441, or 74.9 percent of those markets. Data was analyzed for counties with a population of at least 100,000 and at least 50 single-family home and condo sales in the second quarter of 2024. Among the 47 counties in the report with a population of at least 1 million, the biggest year-over-year increases in median prices during the second quarter of 2024 were in Orange County, CA (outside Los Angeles) (up 16.2 percent); Alameda County (Oakland), CA (up 12 percent); King County (Seattle), WA (up 11.3 percent); Santa Clara County (San Jose), CA (up 9.8 percent) and Nassau County, NY (outside New York City) (up 8.9 percent). Counties with a population of at least 1 million where median prices remained down the most from the second quarter of 2023 to the same period this year were Honolulu County, HI (down 3.8 percent); Tarrant County (Forth Worth), TX (down 1.5 percent); Oakland County, MI (outside Detroit) (down 1.4 percent); Hennepin County (Minneapolis), MN (down 1.1 percent) and Fulton County (Atlanta), GA (down 1 percent). Prices growing faster than wages in half the U.S.With home values mostly up annually throughout the U.S., year-over-year price changes outpaced changes in weekly annualized wages during the second quarter of 2024 in 293,

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The good news for prospective buyers: There are more new listings to choose from, and monthly housing payments are down nearly $100 from their April peak as mortgage rates decline. Pending home sales posted their biggest decline since February during the four weeks ending June 30, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. The median sale price rose 5% from a year ago, hitting an all-time high. New listings jumped 10%. Full data is provided below: For Redfin economists’ takes on the housing market, please visit Redfin’s “From Our Economists” page. Leading indicators Indicators of homebuying demand and activity Daily average 30-year fixed mortgage rate 7.13% (July 2) Up from a 3-month low of 6.97% three weeks earlier, but down from a 5-month high of 7.52% in early May Up from 7.03% Mortgage News Daily Weekly average 30-year fixed mortgage rate 6.86% (week ending June 27) 4th straight week of declines; lowest level since week ending April 4 Up from 6.71% Freddie Mac Mortgage-purchase applications (seasonally adjusted) Decreased 3% from a week earlier (as of week ending June 28) Down 12% Mortgage Bankers Association Redfin Homebuyer Demand Index (seasonally adjusted) Essentially unchanged from a month earlier (as of week ending June 30) Down 17% Redfin Homebuyer Demand Index, a measure of requests for tours and other homebuying services from Redfin agents Touring activity Up 21% from the start of the year (as of June 30) At this time last year, it was also up 11% from the start of 2023 ShowingTime, a home touring technology company Google searches for “home for sale” Down 4% from a month earlier (as of July 1) Down 20% Google Trends Key housing-market data U.S. highlights: Four weeks ending June 30, 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 June 30, 2024 Year-over-year change Notes Median sale price $397,954 4.9% All-time high; biggest increase since March Median asking price $409,975 6.1% Biggest increase since October 2022 Median monthly mortgage payment $2,749 at a 6.86% mortgage rate 6.5% $88 below all-time high set during the 4 weeks ending April 28 Pending sales 87,160 -4.6% Biggest decline in 4 months New listings 100,989 9.9% Biggest increase in 2 months Active listings 967,516 17.5% Months of supply 3.3 +0.7 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 41.6% Down from 47% Median days on market 32 +5 days Share of homes sold above list price 32.3% Down from 36% Share of homes with a price drop 6.9% +2.1 pts. Highest level on record Average sale-to-list price ratio 99.7% -0.3 pts. Metro-level highlights: Four weeks ending June 30, 2024Redfin’s metro-level data includes the 50 most populous U.S. metros. Select metros may be excluded from time to time to ensure data accuracy. Metros with biggest year-over-year increases Metros with biggest year-over-year decreases Notes Median sale price Anaheim, CA (14.7%) Newark, NJ (13.5%) Nassau County, NY (12.6%) New Brunswick, NJ (11.7%) Fort Lauderdale, FL (11.1%) Austin, TX (-2.1%) Dallas (-1.5%) San Antonio (-0.2%) Declined in 3 metros Pending sales San Jose, CA (18.2%) San Francisco (6.1%) Pittsburgh (4.8%) Providence, RI (2.8%) Boston (2.2%) West Palm Beach, FL (-16.4%) Houston (-13.4%) Atlanta (-12%) Miami (-11.7%) Minneapolis (-10.7%) Increased in 9 metros New listings San Jose, CA (49.2%) Seattle (28.7%) Miami (24.8%) Boston (24.3%) Montgomery County, PA (22.2%) Atlanta (-7.7%) Detroit (-0.4%) Declined in 2 metros To view the full report, including charts, please visit: https://www.redfin.com/news/housing-market-update-home-prices-record-high-sales-decline

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Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of technology and data, released its July 2024 ICE Mortgage Monitor Report, based on the company’s industry-leading mortgage, real estate and public records data sets. This month’s Mortgage Monitor looks into the dynamics behind the changing makeup of the active mortgage market, which is gradually shifting toward higher average rates. As Andy Walden, ICE’s Vice President of Research and Analysis notes, the overall market remains heavily skewed toward lower-rate mortgages, but that is changing. “As of May, 24% of homeowners with mortgages now have a current interest rate of 5% or higher,” said Walden. “As recently as two years ago an astonishing nine of every 10 mortgage holders were below that threshold. “All in, there are 5.8M fewer sub-5% mortgages in the market today than there were at this time in 2022. This has been a slow-moving change, as borrowers with lower rates have sold their homes or, to a smaller degree, refinanced to withdraw equity. The entire market is acutely aware of how elevated rates have been constraining origination volumes. But seen from another angle, the same dynamic is also serving to gradually enlarge the population of folks with high-rate mortgages, who are actively waiting for the moment a refinance makes sense. This would benefit both a growing number of homeowners and lenders.” As noted in the report, 4M first lien mortgages originated since 2022 have 30-year rates above 6.5%, with 1.9M having rates of 7% or higher. On average, there are ~240K active mortgages in each 1/8th of a percentage point bracket in the 7-7.625% range; however, there’s a noticeable spike of 690K loans with rates just below 7%. Walden explains: “The concentration of active loans just below 7% has more to do with borrower psychology than concrete savings. There’s clearly something appealing in today’s market for a homeowner to see a 6-handle in front of their mortgage rate. From a rate/term refinance lending perspective, this group is worth watching as they represent a potential tipping point for a return to more meaningful, albeit historically modest, refi volumes.” For now, refi volumes remain at a fraction of historical levels. That said, we have seen some notable shifts in who is taking out refis in today’s market. Consider, for example, the recent rise in VA market share, from less than 10% of rate/term refis a year ago to more than 30% in recent weeks, according to ICE origination data. The rise in VA refinance share seems to be due, in large part, to streamline refinances. Some veterans, especially those who had taken out mortgages within the past year, availed themselves of the streamlined refinancing program to lower their interest rate by more than a full percentage point, for an average savings of $230 per month among April originations, according to a before-and-after analysis of ICE McDash +Property data. That makes sense, considering the ICE U.S. VA 30-Year fixed rate mortgage index is down nearly a full percentage point from its peak in late October, with the average rate offering among such loans notably below that of FHA and conforming mortgage counterparts. VA refinances also helped improve the servicing retention rate in Q1 to its highest level in 18 months, with retention of FHA and VA refinances tripling from 15% in Q4 to 46% in Q1. Those lower payments come at a cost, however, as the average borrower increased their loan balance to buy down their rate and/or finance closing costs. The quick turn also resulted in unusually high prepay speeds, which can negatively impact investors in VA loan backed securities. The recent activity among VA loans supports the findings of the recently released 2024 ICE Borrower Insights Survey, which showed that finding the lowest mortgage rate trumped all other concerns when choosing a lender, with a 20-point delta between that and the next most frequent choice. But, while borrowers want the lowest rate, they typically don’t consider many options. In fact, 84% of borrowers surveyed considered only one (36%) or two (48%) options before selecting a lender. This, as well as the successful proactive retention of FHA/VA borrowers in Q1, shows how important it is for lenders to stay attuned to their borrowers’ needs and make first contact when a beneficial refi opportunity arises. Much more information on these and other topics can be found in this month’s Mortgage Monitor. Source: Intercontinental Exchange

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Easy Street Offers, the premier online marketplace connecting real estate agents and property investors for cash real estate transactions, proudly announces its expansion into nine new states: Colorado, Georgia, Florida, Indiana, Kansas, Missouri, Oklahoma, Pennsylvania, and Utah, effective June 30, 2024. Easy Street Offers is revolutionizing the real estate market by bridging the gap between listing agents and property investors. Our platform ensures a seamless and user-friendly process, delivering quality offers, vetted investors, and an exceptional experience from start to finish. “Our mission at Easy Street Offers is to simplify and enhance the process of cash real estate deals. With this significant expansion, we are poised to bring our unique platform and services to even more markets, making real estate transactions smoother and more efficient for everyone involved,” stated CEO Dan Noma Jr. Agent and Investor BenefitsDesigned by agents for agents, the Easy Street Offers marketplace focuses on agent success with AgentEmpower and Private Label Prospecting. These benefits provide customized marketing assets and how-to marketing playbooks, allowing agents to present various options, including cash offers, to boost credibility and grow their business. For investors, Easy Street Offers provides exclusive access to off-market listings and advanced investment intelligence through custom modeling tools and free property valuation services. This gives investors a competitive edge and helps them make informed decisions, supported by our dedicated Investment Success Team. Easy Street Offers is redefining cash real estate deals by offering a transparent, two-sided marketplace that facilitates smooth transactions between agents and investors. This expansion opens new avenues for real estate professionals across the country. “We are thrilled to bring our platform to these new markets, providing real estate agents with additional selling options and investors with unparalleled support and resources to achieve their investment goals,” added Dan Noma Jr. Real estate agents and property investors in Colorado, Georgia, Florida, Indiana, Kansas, Missouri, Oklahoma, Pennsylvania, and Utah can now register for a free account on the Easy Street Offers platform. For more information and to register, visit www.easystreetoffers.com. Contact: Lauren Fox, Chief Marketing Officer(833) 469-3279379747@email4pr.com SOURCE Easy Street Offers

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New Brand Marks Bold New Chapter for the Tech Company BLN Software, formerly known as Bridge Loan Network, is proud to announce a bold rebranding strategy that marks a significant milestone in the company’s journey in the real estate software space. This strategic initiative is set to drive the company into a new era of innovation and cutting-edge solutions, reinforcing its commitment to revolutionizing the way businesses leverage software for success. As the software landscape rapidly evolves, BLN Software remains dedicated to redefining the industry’s future. This rebranding initiative is designed to elevate BLN Software as a pioneering force in loan origination solutions for real estate professionals. By refining the company’s brand identity, it aims to solidify its position as the go-to partner for businesses seeking advanced loan management solutions. Key elements of BLN Software’s rebranding efforts include: “Our main focus with this rebrand was to bring the brand identity into a more modern era, while still honoring the foundational identities that had come before,” said Taylor Fournier, Graphic Designer at BLN Software. “We decided to keep the icon, while expanding the color palette and redesigning the text portion of the logo. We manipulated parts of the logotype, creating a slot in the “O” to resemble a power button, & connecting the “F” and “T” to represent a connection or bridge. We feel confident that these design decisions help to accurately convey the brand’s ethos.” “We are thrilled to embark on this transformative journey at BLN Software,” said Jacob Therrien, Business Development Specialist at BLN Software. “Our rebranding strategy reflects our unwavering commitment to driving digital innovation and empowering businesses to thrive in the digital age.” BLN Software invites its clients, partners, and the broader business community to join them in celebrating this exciting new chapter as they continue to lead the way in delivering top-tier software solutions for the real estate industry. About BLN SoftwareBLN Software is the leading software provider for the private lending industry. BLN’s platform centralizes and organizes deal scenarios from direct investors, mortgage brokers, and private lenders in a cloud-based solution. Founded by industry experts with decades of experience in real estate investing and lending software, BLN Software streamlines the lending process for mortgage brokers and private lenders. BLN’s platform offers a Loan Origination System and Loan Management System, allowing users to order credit reports, background checks, property valuations, and upload required documents. Additionally, BLN’s platform allows users to easily store, and access client contact information. With BLN Software, users can increase efficiency and grow their business. Choose the industry-leading software solution for your lending needs. Visit www.blnsoftware.com to learn more about BLN Software and the solutions they offer.