Existing-home sales grew 3.4% in October; first year-over-year gain since July 2021

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1. Existing-home sales grew 3.4% in October; first year-over-year gain since July 2021

Existing-home sales rose in October, according to the NAR. Sales improved in all four major U.S. regions. Year-over-year, sales rose in three regions but were unchanged in the Northeast.

Total existing-home sales – completed transactions that include single-family homes, townhomes, condominiums and co-ops – expanded 3.4% from September to a seasonally adjusted annual rate of 3.96 million in October. Year-over-year, sales progressed 2.9% (up from 3.85 million in October 2023).

Total housing inventory registered at the end of October was 1.37 million units, up 0.7% from September and 19.1% from one year ago (1.15 million). Unsold inventory sits at a 4.2-month supply at the current sales pace, down from 4.3 months in September but up from 3.6 months in October 2023.

2. Consumer watchdog to oversee digital wallets, payment apps

Large companies that offer digital wallets and payment apps will now be overseen by the Consumer Financial Protection Bureau (CFPB).

The CFPB finalized a rule Thursday to bring companies handling more than 50 million transactions a year under its supervision. This will include Apple, Google, Amazon, PayPal, Block, Venmo and Zelle, according to CNBC.

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3. More Nuggets

💻 Fannie Mae’s new version of DU to focus on credit risks. (Fannie Mae)

🛠️ The industries that could be hardest hit by Trump's immigration crackdown. (Axios)

📈 Credit reports will be at least 20% more expensive in 2025, frustrated mortgage execs say. (HousingWire)

🏡 3 ways lenders can earn the business of sidelined home buyers. (Maxwell)

🗂️ Mortgage applications increase by 1.7 percent from last week. (MBA)

🚨 Coach’s Corner

What is ATM? No not that ATM. This one is how to structure your marketing and sales approach. Tune in!!

— Dave Krichmar CEO

4. Families must spend 38% of their income on house payments

In Q3 2024, the National Association of Home Builders/Wells Fargo Cost of Housing Index reported that a family earning the U.S. median income of $97,800 needed 38% of their income to afford a mortgage on a median-priced new or existing home.

Low-income families, earning 50% of the median, required 75% of their income for the same. While affordability remained steady for median earners, it slightly improved for low-income families, with their CHI dropping from 77% in Q2 to 75%.

• Severely Cost-Burdened Markets: In 10 markets, families spend over 50% of their income on mortgages. San Jose, CA, led at 85%, followed by Honolulu (75%), San Diego (70%), San Francisco (68%), and Miami (63%). Low-income families in these areas face mortgage costs of 127%-170% of their income.

• Least Cost-Burdened Markets: Decatur, IL, had the lowest CHI at 16%, followed by Cumberland, MD-WV (18%), Springfield, IL (18%), Elmira, NY (19%), and Peoria, IL (19%). Low-income families in these areas spend 33%-39% on mortgages.

5. Trigger leads regulation faces conflicting proposals

Congress is debating how to regulate mortgage trigger leads, with Senator Jack Reed’s bipartisan Homebuyers Privacy Protection Act included in the FY 2025 NDAA. The amendment would prohibit unsolicited communications—calls, texts, emails, or mail—unless authorized by the consumer, shifting from an “opt-out” to “opt-in” model.

The Consumer Data Industry Association (CDIA) counters with a plan banning unsolicited calls but allowing texts, emails, and mail offers, with a two-year delay for implementation. Critics, including the Mortgage Bankers Association and Community Home Lenders of America, argue the CDIA proposal falls short, leaving consumers exposed to harassment.

Proponents of Reed’s stricter version argue it offers stronger protections and faster relief, though lobbying efforts by bureaus and post-election uncertainty may impact its passage.

☀️ You’re all caught up. See you on Monday!

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