Builder sentiment posts third consecutive gain

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Onto the news, today’s newsletter is 596 words, a 2.5-minute read. Let’s dive in…

1. Builder sentiment posts third consecutive gain

Expectations that mortgage rates will continue to moderate in the coming months, the prospect of future rate cuts by the Federal Reserve later this year, and a protracted lack of existing inventory helped provide a boost to builder sentiment for the third straight month.

Builder confidence in the market for newly-built single-family homes climbed four points to 48 in February, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). This is the highest level since August 2023. LINK

2. Mortgage rates rise

On the heels of consumer prices rising more than expected, mortgage rates increased this week.

• The 30-year FRM averaged 6.77 percent as of February 15, 2024, up from last week when it averaged 6.64 percent. A year ago at this time, the 30-year FRM averaged 6.32 percent.

• The 15-year FRM averaged 6.12 percent, up from last week when it averaged 5.90 percent. A year ago at this time, the 15-year FRM averaged 5.51 percent. LINK

“The economy has been performing well so far this year and rates may stay higher for longer, potentially slowing the spring homebuying season. According to our data, mortgage applications to buy a home so far in 2024 are down in more than half of all states compared to a year earlier,” said Sam Khater, Freddie Mac’s Chief Economist.

3. Catch up quick

💸 Better launches fully digital VA loan with no minimum down payment. (Better)

🏘️ Why 6.625% is an affordable mortgage rate in 2024. (The Basis Point)

✍️ NAR halts 'presidential initiatives' for next 2 years to refocus on the basics. (HW)

4. Charted: Mortgage purchase application index

The bad news for loan officers: The mortgage market is still passing through one of its biggest slumps in recent memory.

The good news for loan officers: This mortgage recession, in terms of volume, is likely passing through the trough/bottom.

5. Loandepot sues Flashhouse over copycat logo

loanDepot has filed a lawsuit against Flashhouse LLC, alleging that Flashhouse's real estate platform, fello, infringes on Loandepot's mello brand through the use of a similar name and logo.

The suit, lodged in a California federal court, claims that Flashhouse's actions lead to consumer confusion and violate Loandepot's intellectual property rights. loanDepot, which has held its trademark for over six years, points out that even the email addresses for customer outreach between the two companies are strikingly similar.

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