New home sales highest in nearly ~1.5 years

Plus: Existing-home sales hit a 14-year low

October 25, 2024

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Disclaimer: Average mortgage rates as of Oct 24, 2024. © MND Daily Rate Index.

1. New home sales highest in nearly ~1.5 years

Sales of new single-family homes increased to the highest level in nearly ~1.5 years in September as buyers rushed in to take advantage of a decline in mortgage rates.

Just-released numbers from the Commerce Department showed sales of newly constructed homes climbed 4.1% to a seasonally-adjusted annual rate of 738,000 last month, the highest in over a year.

It’s worth noting that despite being the sole meaningful source of home inventory, builders still have to sweeten the deal for buyers who are facing the most unaffordable market in decades.

2. Existing-home sales hit a 14-year low

According to a NAR report, sales of previously owned homes fell 1% in September compared with August to a seasonally adjusted, annualized rate of 3.84 million units, the slowest pace since October 2010.

This count is based on closings, representing contracts signed likely in July and August. Sales were 3.5% lower than in September 2023. Sales fell in three out of four U.S. regions, with just the West region seeing a gain.

“Home sales have been essentially stuck at around a four-million-unit pace for the past 12 months, but factors usually associated with higher home sales are developing. There are more inventory choices for consumers and continued job additions to the economy. Perhaps, some consumers are hesitating about moving forward with a major expenditure like purchasing a home before the election.”

NAR Chief Economist Lawrence Yun

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3. More Nuggets

💸 Valon, a mortgage servicing startup, raises 100 million. (TechFundingNews)

📈 Why mortgage rates are back up to nearly 7%. (MarketWatch)

🗞️ Rate’s launches new $100M AI mortgage platform. (News Release)

📝 Mortgage application volume falls by 6.7% week-over-week. (MBA)

🏚️ The national delinquency rate rose 14 basis points to 3.48% in September, up 4.3% from August and 5.7% year over year. (ICE)

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4. NMLS launches new login process

The NMLS has introduced a login update ahead of the Nov. 1 license renewal period. Users must now update their usernames, passwords, and establish account recovery options.

Regulators are urging mortgage loan originators and other licensees to complete these updates by Nov. 1 to avoid issues during the renewal period, which runs through Dec. 31. The NMLS now also allows users with multiple accounts to consolidate logins for streamlined access.

The Conference of State Bank Supervisors (CSBS), which oversees the NMLS, reports an 8% decrease in individual licenses and a 3% increase in company licenses eligible for renewal compared to last year.

5. Charted: How prepared are would-be buyers?

Once rates descend to would-be buyers’ preferred levels, most are poised to take immediate steps. Around 77% report being “somewhat” or “very” prepared to buy, while just 16% say they’ll need to improve their financial position first.

Source and more data: Maxwell

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