Best 2 days for mortgage rates since March

🎉 Happy Friday! Today's newsletter is 638 words, a 2.5-minute read.

1. Inventory of homes for sale continues to “grow”

Housing inventory rose month over month in October even as high mortgage rates weighed on home-buying and listing activity, Realtor.com said in a monthly report published yesterday.

While the inventory of for-sale homes typically declines heading into October, it increased 5.1% from September. Nevertheless, it still pales in comparison to pre-pandemic levels: Active listings in October 2023 were -39% below October 2019 levels when there were 1,208,001 U.S. homes for sale.

"The inventory of homes for sale continued to grow late into the year when it would typically decline," the company said. The average 30-year fixed mortgage rate was 7.76% during the week ended Nov. 2, according to Freddie Mac data.

2. Fed holds rates steady

The Federal Reserve’s rate-setting group on Wednesday unanimously agreed to hold the key federal funds rate in a target range between 5.25%-5.5%, where it has been since July.

While Powell indicated policymakers could raise rates when they meet next month, he also allowed that officials may be done with their tightening campaign. He said he wasn’t yet confident to judge whether monetary policy was restrictive enough to bring inflation back to the Fed’s 2% target.

“It’s fair to say that’s the question we’re asking is ‘Should we hike more?’” Powell said, when asked whether a majority of policymakers still expected another rate increase would be necessary this year.

3. Catch up quick

📈 Real estate stocks soared yesterday after the Federal Reserve’s decision to hold rates steady sparked optimism that the central bank could be nearing the end of its tightening cycle. (Bloomberg)

📉 Best 2 days for mortgage rates since March. You'd have to go back to the days following the failure of Silicon Valley Bank in March to find a bigger drop in mortgage rates over a 48-hour time frame. (MND)

✍️ Zillow Group acquiring Follow Up Boss for up to $500M. (FollowUp Boss)

⚡️ Cyberattack on Mr. Cooper causes massive system outage. (TechCrunch)

💸 Better has launched a white-label platform for homeowners insurance. (Coverager)

⚖️ NAR to appeal Sitzer/Burnett commission lawsuit verdict after being found liable. (NAR)

In other news: Sam Bankman-Fried was found guilty yesterday on all seven charges against him, including fraud on FTX customers and investors, fraud on Alameda's lenders, and conspiracy to commit money laundering. (Axios)

4. NAR CEO resigns

The CEO of the National Association of Realtors, Bob Goldberg, resigned yesterday, just two days after a $1.8 billion jury verdict against the trade group.

The abrupt resignation is a sign of turmoil inside NAR, which has been rocked by the verdict in the case, which could severely diminish the group's stranglehold on the real estate industry.

Nykia Wright, the former CEO of the Chicago Sun-Times, will serve as interim CEO starting on November 20. Wright is coming from outside the real estate industry, and NAR touted her experience in leading the paper through a digital transformation and merger.

5. Mortgage applications decrease

Mortgage applications have fallen for a third straight week, down 2.1%, as rates surge towards 8%, the MBA reports.

Purchase applications are at their lowest since 1995, dropping 2% from last week and 22% year-over-year. Refinance activity also declined by 4%, hitting a low not seen since January.

Government loan applications fell (-3%) more sharply than conventional, with a significant shift to adjustable-rate mortgages, now accounting for 10.7% of all applications. FHA loan share dipped to 14.7%, VA loans to 10.1%, while USDA loans edged up slightly from 0.4% to 0.5%. LINK

☀️ See you on Monday!

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