Existing home sales hit an 8-month high in November

Plus: Senate passes trigger leads bill

December 20, 2024

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Disclaimer: Average mortgage rates as of Dec 19, 2024. © MND Daily Rate Index.

1. Senate passes trigger leads bill

The U.S. Senate has passed the Homebuyers Privacy Protection Act, a bill aimed at limiting the use of trigger leads in the mortgage industry. Trigger leads occur when credit inquiries made during mortgage applications are sold to third parties without the consumer's consent, often resulting in unwanted contacts.

Complaints about these practices have spurred calls for reform, with mortgage industry groups pushing for legislative action.

The bill now heads to the House of Representatives, where its fate remains uncertain with only two days left before the winter break. Advocates, including the Community Home Lenders of America (CHLA) and the Mortgage Bankers Association (MBA), have praised the Senate’s decision, urging the House to act swiftly.

2. RealPage software raises rents, report finds

Renters in the U.S. paid an extra $3.8 billion last year due to pricing algorithms used by landlords, according to a White House Council of Economic Advisers analysis.

The report highlights RealPage, whose software allegedly helps landlords collectively raise rents. In August, the Justice Department filed an antitrust lawsuit against the company, claiming its algorithm enables price-fixing.

Researchers found renters in algorithm-using buildings paid $70 more monthly on average, with higher impacts in cities like Atlanta, where 68% of multifamily landlords use RealPage, leading to an average $181 monthly increase.

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3. More Nuggets

💸 Americans under 40 are richer than ever but have money woes. (Axios)

💻 The mortgage industry’s cyber blind spot. (NMP)

📝 NAR threatens Phoenix Realtors over MLS Choice membership. (Inman)

🛌 Americans have more extra bedrooms than ever before. (Axios)

🚨 Coach’s Corner

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I use it in my own Loan Officer business, and it’s absolutely crushing it!

Heads up: Prices go up in 2025, so lock in the discounted rate of $19.99/month or $199/year now!

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4. Existing home sales hit an 8-month high in November

Sales jumped 4.8% last month to a seasonally adjusted annual rate of 4.15 million units, the highest level since March, the National Association of Realtors said yesterday.

It was the second straight monthly rise in sales since a 14-year low was hit in September. Sales were 6.1% higher than in November 2023. This is the third-highest pace of the year and the largest annual gain in three years.

“Home sales momentum is building. More buyers have entered the market as the economy continues to add jobs, housing inventory grows compared to a year ago, and consumers get used to a new normal of mortgage rates between 6% and 7%”

Lawrence Yun, chief economist for the NAR

5. Mortgage rates rise after Fed rate cut

Banks don't always act the way you expect them to, and this week is an example. The Federal Reserve cut short-term interest rates on Dec. 18. So what did mortgage rates do? They went up.

The average 30-year fixed mortgage rate climbed 0.18 percentage point in the week ending Dec. 19, to 6.72%, according to Freddie Mac.

“This week, mortgage rates crept up to a similar average as this time in 2023,” Sam Khater, Freddie Mac’s chief economist, said in a statement. “For the most part, mortgage rates have moved between 6 and 7 percent over the last 12 months. Homebuyers are slowly digesting these higher rates and are gradually willing to move forward with buying a home, resulting in additional purchase activity.”

ONE LAST THING

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