HUD pledges $12 Million to boost housing affordability

Plus: Judge grants final approval to 9 commission settlements

November 01, 2024

🥳 Friday! November! And it's technically a "long weekend," since we get an extra hour when the clocks shift back Saturday night.

Disclaimer: Average mortgage rates as of Oct 31, 2024. © MND Daily Rate Index.

1. HUD pledges $12 Million to boost housing affordability

The Department of Housing and Urban Development (HUD) is injecting $12 million into affordable housing initiatives in an attempt to boost homeownership opportunities for Americans in rural and urban areas alike.

Through its Self-Help Homeownership Opportunity Program (SHOP), HUD aids eligible organizations to acquire land, upgrade infrastructure, and develop homes, a move that aligns with the Biden-Harris Administration’s ongoing effort to make housing more affordable.

“These funds will help make dreams come true. Many families want to buy a home, but can’t find one they can afford,” said HUD Agency Head Adrianne Todman. “Working with our partners, HUD will support the creation of new homes to purchase, while also helping families navigate the homeownership process. This is another demonstration of the Biden-Harris Administration’s commitment to housing."

2. Judge grants final approval to 9 commission settlements

Judge Stephen R. Bough approved nine settlements totaling $110.6 million in the commission lawsuits, a relief for major brokerage firms. This ruling follows the 2022 Sitzer/Burnett case, where the National Association of Realtors (NAR) and others were found liable for inflating agent commissions.

The settlements involve prominent firms like Compass ($57.5 million), The Real Brokerage($9.25 million), and Redfin ($9.25 million), with one-third of the amount going to plaintiffs' attorneys. The final NAR settlement approval is expected on Nov. 26, marking a significant moment for the industry.

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3. More Nuggets

📈 Freddie Mac house price index increased in September; up 3.6% year-over-year. (Freddie Mac)

💸 Billionaires have business interests hinging on election outcome. (The Hill)

⬇️ Jobless claims retreat for third straight week, hit lowest level since May. (MarketWatch)

📉 Fannie Mae profits decline In third quarter. (NMP)

💬 How to navigate new FTC rules banning fake and incentivized reviews. (BankingDive)

🚨 Coach’s Corner

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4. Pending home sales increase 7.4% in September; Up 2.6% year-over-year

Pending home sales rose in September, according to NAR. All four major regions experienced month-over-month gains in transactions. Year-over-year, the Northeast and West registered increases while sales remained steady in the Midwest and South.

The Pending Home Sales Index (PHSI)* – a forward-looking indicator of home sales based on contract signings – jumped 7.4% to 75.8 in September, the highest level since March (78.3). Year-over-year, pending transactions ascended 2.6%. An index of 100 is equal to the level of contract activity in 2001.

“Contract signings rose across all regions of the country as buyers took advantage of the combination of lower mortgage rates in late summer and more inventory choices,” said NAR Chief Economist Lawrence Yun. “Further gains are expected if the economy continues to add jobs, inventory levels grow, and mortgage rates hold steady.”

5. Study: Homeowners who bought in 2019 are $158,000 richer

A home purchased in 2019 generated approximately $158,000 in wealth. A renter over that same time cumulatively lost $89,000. LINK

How homeowners and renters fared since the pandemic

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

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