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America’s most expensive ZIP codes
Plus: Existing home sales have hit the bottom
Welcome back to Mortgage Nuggets! We scour 100+ sources so you don’t have to.
Disclaimer: Average mortgage rates as of Nov 10, 2023. © MND's Daily Rate Index.
1. Redfin CEO: Existing home sales have hit the bottom
In a recent interview with Lance Lambert, Redfin CEO Glenn Kelman describes the U.S. housing market, especially in terms of existing home sales, as "dead as a doornail."
When asked what he is seeing in the U.S. housing market right now, he said:
“Well, mostly dead as a doornail, so it couldn't be worse. I mean existing home sales. What’s crazy about the market, you can make some prognostications, but people are just really [mortgage] rate sensitive. [...] And so the people that are moving are the ones that have to, and that’s why 'dead as a doornail' might be the right phrase: Home sales cannot go below, much below, 4 million units at an annualized rate of existing home sales per year. That’s where you get to housing is a basic need, instead of people moving opportunistically or speculatively or as an investment.”
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2. Sprout bankruptcy complicates ex-staff settlement
Here's a summary of the situation:
What Happened: Sprout Mortgage, after shutting down abruptly last year, filed for bankruptcy, revealing $66 million in claims from various parties, including former employees and industry vendors. A federal judge is likely to convert Sprout's Chapter 7 bankruptcy to Chapter 11.
Settlement Complications: A planned $3.5 million settlement for laid-off employees seeking back pay is now being delayed due to Sprout's bankruptcy proceedings. $1.95 million of this settlement is in escrow, and the bankruptcy trustee is requesting that these funds be held by the court.
Legal Challenges: Former employees are attempting to continue their lawsuit against Sprout's executives, including ex-CEO Michael Strauss, but are facing delays as the executives use the bankruptcy case as a defense. This situation complicates and potentially prolongs the process of reaching a settlement.
3. Catch up quick
⚡️ NAR president Tracy Kasper offers guidance on how agents can navigate commission lawsuit uncertainty. (NAR)
🤖 When AI denies your loan application, should you be able to appeal to a human? Is there a need for disclosure about AI involvement in the first place? (WSJ)
🚨 Mr. Cooper says customer data was exposed during cyberattack. (Mr. Cooper)
4. Mortgage delinquencies increase in Q3
The delinquency rate for mortgage loans on one-to-four-unit residential properties increased to a seasonally adjusted rate of 3.62 percent of all loans outstanding at the end of the third quarter of 2023, according to the MBA National Delinquency Survey. That’s 25 basis points up from Q2.
The increase was driven entirely by a rise in earliest-stage delinquencies – those 30 days and 60 days past due. Later-stage delinquencies – those 90 days or more past due – declined to the lowest level since the first quarter of 2020.
“The decline in later-stage delinquencies, along with a foreclosure starts rate of 0.14 percent – which is well below the historical quarterly average of 0.40 percent – suggest that distressed homeowners may be utilizing available loss mitigation options that prevent a foreclosure start.”
5. Charted: America’s most expensive ZIP codes
If California’s home prices had physical weight, they’d tip the state into the Pacific Ocean. Among the 100 most expensive ZIP codes in the United States in 2023, 61 were found in the Golden State.
Today’s chart shows the country’s 25 most expensive ZIP codes and the median list price in each, according to RealtyHop.
Source: RealtyHop
6. A third of homebuyers are paying all cash
Just over one-third (34.1%) of U.S. home purchases in September were made in cash, up from 29.5% a year earlier and the highest share in nearly a decade.
All-cash purchases are making up a bigger piece of the homebuying pie for two major reasons.
Elevated mortgage rates make buying a home in cash and avoiding interest altogether more attractive.
Affluent Americans who can afford to pay cash are more likely to buy homes in such an expensive housing market when the income necessary to buy a home is higher than ever before. Prices, sales, and inventory of luxury homes—defined as the top 5% of the market—are all outpacing the overall housing market
Quoted: The television series Mozart in the Jungle reminds us of the beauty of being an amateur
"You say 'amateur' as if it was a dirty word. 'Amateur' comes from the Latin word 'amare', which means to love. To do things for the love of it."
⬇️ This helps :) Thank you.
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