Existing home sales declined by 4.3% in March

Plus: Mortgage applications surged by 3.3% last week

April 19, 2024

😎 It's Friday. We made it. Today's newsletter is 669 words, a 2.5-minute read.

Disclaimer: Average mortgage rates as of Apr 18, 2024. © MND's Daily Rate Index.

1. Mortgage applications surged by 3.3% last week

Mortgage applications rose by 3.3% from the previous week, pointing to some traction in mortgage demand following four consecutive weeks of muted applications.

  • Applications for a mortgage to purchase a new home rose by 5%, while applications for a mortgage to refinance a home edged up by 0.5%.

It was the sharpest increase in one month, despite the rising momentum in average mortgage rates due to the upswing in long-term US Treasury yields.

“Despite these higher rates, application activity picked up, possibly as some borrowers decided to act in case rates continue to rise,”

Joel Kan, MBA’s Vice President

2. Existing home sales declined by 4.3% in March

Existing-home sales fell by 4.3% in March to a seasonally adjusted annual rate of 4.19 million.

  • Among the four major U.S. regions, sales slid in the Midwest, South and West, but rose in the Northeast for the first time since November 2023. Year-over-year, sales decreased in all regions.

The median existing-home sales price rose 4.8% from March 2023 to $393,500 – the ninth consecutive month of year-over-year price gains and the highest price ever for the month of March.

The inventory of unsold existing homes grew 4.7% from one month ago to 1.11 million at the end of March, or the equivalent of 3.2 months' supply at the current monthly sales pace.

🚨 Coach’s Corner

They shopped you and you lost the deal…… Tune in for how to steal the client back! Let’s Go!! (Click to watch the video)

— Dave Krichmar CEO

3. Catch up quick

🔐 Many empty-nesters are staying put rather than downsizing, keeping housing inventory tight. (WSJ)

🎙️ How the NAR ruling will impact lenders. (Clear to Close by Maxwell)

⚖️ Guaranteed Rate sued for gender discrimination, sexual harassment, unpaid comp. (HousingWire)

🤝 First Federal Bank to acquire Watson Mortgage Corp. (PRNewswire)

4. Freddie Mac seeks to back home-equity loans as refi costs rise

Freddie Mac is seeking regulatory approval to guarantee second mortgages, potentially reducing borrowing costs for homeowners leveraging home equity.

This strategic shift reflects adaptations to higher interest rates, which have decreased the appeal of refinancing first mortgages due to existing lower rates.

  • The Federal Housing Finance Agency has opened public comments on Freddie Mac's proposal, which could lower lender costs and consequently, customer rates.

This move is backed by an increase in home equity, with 46.1% of mortgaged homes having significant equity by end of last year, up from 26.7% in 2019.

5. Fannie Mae: Home prices see YOY increases

Year over year, single-family home prices increased 7.4 percent from Q1 2023 to Q1 2024, up from the previous quarter's revised annual growth rate of 6.6 percent, according to Fannie Mae's latest Home Price Index (FNM-HPI) reading,

On a quarterly basis, home prices rose a seasonally adjusted 1.7 percent in Q1 2024, essentially the same as the growth in Q4 2023.

"The stabilization of mortgage rates in the 6.6 to 6.7 percent range in January helped to boost demand early in the first quarter, with existing home sales and mortgage applications both rising. Mortgage rates have trended upward again of late, but there is support for home prices in strong demographic demand from younger generations. We expect home sales to rise modestly this year as potential homebuyers appear to be acclimating to the higher-rate environment and, in some cases, may be less able to put off moving for life reasons."

Doug Duncan, Fannie Mae Senior Vice President

LAST WEEK’S POLL RESULTS

📺 1 fun thing: What's new this week on Netflix, Hulu, Max and Prime Video. (Axios)

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

Would you like to receive a done-for-you weekly marketing email that you can send to your realtors and/or clients? Go here.

Did someone forward you this newsletter? Subscribe here.