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- 40% of under 30s received family money for their down payment
40% of under 30s received family money for their down payment
Plus: NAR President Kenny Parcell resigns
Good morning, Ian here. Today’s newsletter is 748 words, a 3.5-minute read.
Disclaimer: Average mortgage rates as of Aug 29, 2023. © MND's Daily Rate Index.
1. 40% of under 30s received family money for down payment
According to a Redfin survey of recent movers earlier this year, 40% of more than 500 buyers under the age of 30 either used a cash gift from a family member or an inheritance to afford their down payment.
Daryl Fairweather, Redfin’s chief economist, calls this category of buyers “nepo-homebuyers” (clearly a play on nepotism—giving power/favors to relatives), which she’s recently written about on Forbes.
“I think the reason that matters so much in this housing market is because of how expensive housing has become,” Fairweather said. “It seems like the only way to kind of get your foot in the door to the housing market is to have some help,” or have an exceptionally high-income, particularly at a younger age, she added.
2. NAR President Kenny Parcell resigns
Two days after The New York Times investigative report about alleged rampant sexual misconduct at the National Association of Realtors, President Kenny Parcell has resigned
The exposé included the accounts of 29 current and former NAR employees and leaders, detailed claims from 19 members who said they endured sexual harassment on the job, and depicted an overall culture of harassment, retaliation, and evasion.
The majority of the claims focused on Parcell, who allegedly invited female employees to late-night meetings, sent inappropriate pictures of his crotch, and made sexually suggestive comments.
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3. Guild Mortgage acquires First Centennial Mortgage
On Monday, Guild Mortgage, continuing its acquisition streak, announced the purchase of a medium-sized mortgage shop based in Illinois.
The addition of First Centennial Mortgage will give Guild a stronger foothold in the Midwest, they said. The price tag of the transaction was not disclosed.
"In today's market, good companies are coming together to do great things where the whole is stronger than the sum of its parts. First Centennial has high-performing local teams with a history of steady growth, and the Guild platform should allow them to accelerate growth and supercharge the good work they are already doing."
4. More Nuggets
🚨 Some homeowners are bailing on their home insurance. Those who are skipping coverage say they can no longer afford rising premiums. (WSJ)
📉 Mortgage rates improve after downbeat economic data. (MND)
👎 Guaranteed Rate, the seventh-largest mortgage lender in the country, has laid off hundreds of employees across two rounds of layoffs this month. (HW)
🏡 The 15 most in-demand ZIP codes for U.S. homebuyers. (CNBC)
💼 ICE's Black Knight purchase to close on Sept 5. The companies finalized an agreement with the FTC that permits the controversial deal to proceed. (JaxDaily)
5. FHFA says house prices grew 3%
According to the S&P CoreLogic Case-Shiller Indices and the Federal Housing Finance Agency House Price Index, housing prices continue to climb.
The FHFA reports that house prices increased by 3% year over year from the second quarter of 2022 to the second quarter of 2023 (i.e., 2022Q2 - 2023Q2).
They were up 1.7% quarter-to-quarter (i.e., 2023Q1 - 2023Q2), the highest gain since the second quarter of 2022 when prices rose 3.3% from the first quarter of that year.
"U.S. house prices appreciated at a slightly higher rate in the second quarter amid low inventory," said Anju Vajja. "While prices in a number of western states continued to decline year-over-year, house prices rose in all states quarter-over-quarter."
☀️ See you on Friday!
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