Home prices continue to grow, but pace slows

👋 Good morning! Don't ask us to come to the office more or we'll quit, 50% of finance workers say… Today's newsletter is 594 words, a 2.5-minute read. Let’s dive in.

1. Chase rolls out a 90-day rate lock option

To celebrate National Homeownership Month, Chase Home Lending has introduced an enhanced set of tools to support homebuyers through the purchasing process and homeownership management.

Among these is the "Lock and Shop" feature, which allows buyers to lock in their mortgage rate for 90 days without any upfront costs if using the Chase Homebuyer Advantage. Borrowers must find their property within 60 days and will have the option of a one-time float down if rates improve.

Alongside this, Chase guarantees an on-time closing within 21 days through its Closing Guarantee; failing this, the borrower will receive $5,000. Chase will also provide various savings and assistance programs, such as the Homebuyer Assistance Finder. Additionally, they're offering a $5,000 grant for eligible homebuyers purchasing in majority Black and Hispanic neighborhoods.

2. Four real estate titans just lost their Fortune 500 status

In the wake of the Federal Reserve's rigorous campaign to increase interest rates, a jolt in mortgage rates ensued, triggering a significant downturn in the housing market.

The downturn was so sharp that four major real estate companies, which had been on the Fortune 500 list last year, were missing when the new list was disclosed on Monday.

That list includes Zillow (No. 424 last year), Anywhere Real Estate (No. 427 last year), Rocket Companies (which was No. 282 on the Fortune 500 list unveiled in June 2022), and Compass (No. 495 last year). You can read more on how others fared here.

3. More Nuggets

🧐 Sprout Mortgage is nearing a $3.5 million settlement with over 800 former employees for unpaid wages following its abrupt closure last year, but the court has yet to approve the deal, with the negotiations continuing amidst concerns over the limited assets left in the accounts of Sprout. LINK

⛳️ Outside interests: Who would have thought? PGA Tour agrees to merge with Saudi-backed rival LIV Golf. LINK

🧑‍⚖️ UWM has settled a lawsuit with broker shop Mid Valley Funding, with Mid Valley acknowledging sending loans to rival companies Rocket and Fairway, and agreeing to pay UWM $40,000, in violation of UWM's "All in" initiative that barred its broker partners from doing business with these competitors. LINK

4. Home prices continue to grow, but pace slows

CoreLogic reports a 2% year-on-year rise in single-family home prices in April, marking the 135th consecutive month, or over 11 years, of home price growth. However, it also represents the sixth straight month of single-digit gains, following an all-time high of nearly 20% annual growth in spring 2022.

Chief Economist at CoreLogic, Selma Happ, notes that while volatile mortgage rates are causing buyer hesitation, the shortage of for-sale homes is placing upward pressure on prices.

Despite this, CoreLogic anticipates that the recent surge in mortgage rates and continued inflation issues may lead to a slowdown in home-price appreciation later in 2023, "trends suggest that home-price growth in 2023 will fall in line with the historical 4% annual average.“

5. Charted: Most popular metros for Gen Z homebuyers

According to a recent study by LendingTree, older members of Gen Z — born between 1997 and 2012 — are graduating college, starting their careers, and buying homes for the first time. Here’s where they are looking to buy.

☀️ See you on Friday!

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