43% of home sellers’ are making concessions

🎶 Happy Friday folks, we made it! Today's newsletter is 602 words, a 3-minute read.

1. A debt deal appears to be getting closer

With seven days until the earliest possible federal default, negotiators appear to be inching closer to a deal, according to Bloomberg. Rep. Patrick McHenry (R-N.C.) said negotiators are making progress on many issues. “Closer? Yes. Is it more difficult? Yes,” said McHenry, one of his party’s dealmakers in the private debt limit talks.

Should a deal be reached soon, Tuesday is emerging as the likely day for a House vote. The Senate would then have to act quickly to send it to Biden’s desk before June 1, the date by which Treasury Secretary Janet Yellen has said her department could run out of cash.

Zillow had predicted that if the debt ceiling is not raised, rates would rise to 8.4%.

2. Pending home sales stall in April

US pending home sales stagnated in April as high mortgage rates paired with limited inventory continued to curb buyer demand. The National Association of Realtors index of contract signings to purchase previously owned homes held at 78.9 last month, according to data released yesterday.

“Not all buying interests are being completed due to limited inventory,” Lawrence Yun, NAR chief economist, said in a statement. “Affordability challenges certainly remain and continue to hold back contract signings, but a sizeable increase in housing inventory will be critical to get more Americans moving.” LINK

3. More Nuggets

SoftPro has launched ClosingsLIVE, a communication portal for real estate settlements. The platform grants authorized parties secure access to order status, documents, and milestones, catering to the demands of clients and all transaction participants. SoftPro

The mortgage delinquency rate dropped to a historic low in March, according to CoreLogic. The serious delinquency rate – defined as 90 days or more past due, including loans in foreclosure – was 1.1%, down from 1.5% in March 2022. CoreLogic

Texas-based Colonial Savings has decided to exit the origination business amid one of the most challenging period in decades. The company will focus on full-service banking and mortgage servicing businesses. PR Newswire

4. Mortgage apps decline as rates rise

According to the Mortgage Bankers Association (MBA), the increasing mortgage rates, which have now reached the 7% mark, contributed to a 4.6% decline in mortgage applications for the week ending May 19.

Joel Kan, MBA Vice President, cited the impasse around the U.S. debt ceiling and recent remarks from Federal Reserve officials as factors that are driving uncertainty and leading to higher Treasury yields and mortgage rates. Kan also highlighted the ongoing scarcity of for-sale inventory and the volatile rates as challenges for sustained growth in purchase applications. LINK

5. 43% of home sellers are making concessions

According to Redfin, the rate of home sellers offering concessions to buyers has significantly increased, almost doubling from last year. During the three months ending April 30, 42.9% of home sellers made concessions, compared to 25.5% during the same period a year earlier.

These concessions often include contributions towards repairs, closing costs, and mortgage-rate buydowns. Sellers are offering concessions for various reasons, including the need to move quickly or the desire to sell off a backlog of properties, as in the case of homebuilders. However, the report notes that buyers are unlikely to receive concessions in certain markets where housing supply is especially scarce. LINK

☀️ See you on Monday!

Context: HBO’s Succession ends on Sunday after four seasons.

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