Baby boomers are selling and millennials are buying

Plus: Payrolls jump 303,000 in March, unemployment drops

April 08, 2024

Hey there. Happy Monday. Today's newsletter is 543 words, a 2.5-minute read.

Disclaimer: Average mortgage rates as of Apr 05, 2024. © MND's Daily Rate Index.

1. Ginnie Mae issues warning about higher prepayments

Ginnie Mae this week issued a public notice to its issuer partners warning of an observation of higher prepayments in some of its mortgage-backed securities (MBS) programs, reminding issuers that a violation of its requirements could result in punitive action.

"This could include warranted sanctions," Ginnie warned in its Notes & News bulletin.

The warning comes as a change in monetary policy direction has contributed to rates lower than last year's peak, spurring prepayment activity in some recent originations.

2. Millennials now largest group of home buyers

Millennials have overtaken baby boomers to become the largest group of home buyers, making up 38% of the overall share of homebuyers, followed by Gen X (24%). That’s according to the newly-released Generational Trends Report from NAR which tracked data between July 2022 and June 2023.

Millennials surpassed baby boomers as the largest group of home buyers this year. This notable rise is attributed to both younger millennials stepping into homeownership for the first time and older millennials transitioning to larger homes that suit their evolving needs

Dr. Jessica Lautz, NAR VP of research

3. Catch up quick

👀 Does the CFPB have mortgage rate discount points in its crosshairs? (NMN)

🍿 UWM’s Mat Ishbia: Rocket is behind attacks on us. Rocket responds. (AZ Central)

🏡 From skipping vacations to working more to even moving in with Mom and Dad: Here’s how Americans are trying to afford housing. (Fortune)

⚖️ Appeals court to allow DOJ to reopen its investigation into NAR. (Politico)

4. Payrolls jump 303,000 in March, unemployment drops

Here are three key takeaways from the March employment report, released Friday:

  1. Nonfarm payrolls advanced 303,000 last month following a combined 22,000 upward revision to job gains in the prior two months, the Bureau of Labor Statistics report showed.

  2. The unemployment rate fell to 3.8%. But Black unemployment rose to 6.4% from 5.6%.

  3. Job growth was led by faster hiring in health care, leisure and hospitality, and construction, while a measure of the breadth of job gains increased. Manufacturing employment was unchanged in March after a downward revision to a loss of 10,000 jobs in February.

“The US labor market appears to be strengthening, not slowing, and risks delaying Fed rate cuts,” Sal Guatieri, senior economist at BMO Capital Markets, said in a note.

5. Purchase loan credit scores hit highest point in 6 years

Today, Optimal Blue released its March 2024 Originations Market Monitor report, which reveals the average homebuyer credit score has reached 737 – an all-time high since the company began tracking this data in January 2018.

“Driven by rising interest rates and home prices, we’re witnessing the highest average homebuyer credit scores in years,” said Brennan O’Connell, data director at Optimal Blue. “This unprecedented level of creditworthiness among purchasers is largely a result of the affordability issues borrowers face in today’s market, with prospective buyers with lower credit scores waiting on the sidelines until conditions improve.”

You’re all caught up. See you on Wednesday!

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