- Mortgage Nuggets
- Posts
- Pending home sales hit lowest level since records began in 2001
Pending home sales hit lowest level since records began in 2001
Plus: HUD secretary scraps Biden-era fair housing rule
🏝️ Friday! We love to see it. Today’s newsletter is 793 words, a 3.5-minute read.
Disclaimer: Average mortgage rates as of Feb 27, 2025. © MND Daily Rate Index.
1. HUD secretary ends Biden-era fair housing rule
Department of Housing and Urban Development (HUD) Secretary Scott Turner said he would terminate the Affirmatively Furthering Fair Housing (AFFH) rule on Wednesday, repealing the law which was enacted to “overcome historic patterns of segregation.”
President Trump originally terminated the rule created during the Obama administration in 2020 after he said it would “destroy the value of houses”, but it was restored by former President Biden in 2021.
“By terminating the AFFH rule, localities will no longer be required to complete onerous paperwork and drain their budgets to comply with the extreme and restrictive demands made up by the federal government,” Turner said in a statement.
2. CFPB updates: Nominee gains industry support, lawsuits against Rocket, Vanderbilt, Capital One dropped
Jonathan McKernan is receiving strong backing for his nomination as the next CFPB director from major housing industry groups such as NAHB, NAR, and MBA. In a joint letter to the Senate Banking Committee, these organizations highlighted his regulatory expertise and his readiness to support responsible lending and consumer protection.
Meanwhile, the CFPB has dropped lawsuits against companies including Rocket Homes, Vanderbilt Mortgage, and Capital One. Notices of voluntary dismissal were filed recently, marking a shift in the agency’s enforcement actions.
Those suits were all filed under the agency’s previous director, Rohit Chopra, who President Donald Trump fired just weeks ago.
New Maxwell Report: Nearly Half of U.S. Homeowners Worry Rising Taxes and Insurance Premiums Will Cost Them the American Dream
As climate disasters continue to make headlines, rising homeowners insurance premiums are becoming a major source of financial strain, according to a new report by Maxwell.
Key findings show that 50% of homeowners question their ability to afford a home due to rising taxes and homeowners insurance premiums and that nearly 60% will consider selling in the next 5 years if rates continue to rise.
Want to learn how rising homeowners insurance rates are shaping homeowners’ habits—and what to expect from the housing market in the next few years? Click here to get your copy of Maxwell’s Homeowners Insurance Data Report:
3. More Nuggets
📊 Mortgage applications fall 1.2 percent — purchase applications flat, refinance applications down 4 percent. (MBA)
📺 HUD TV’s hacked to show fake AI video of Trump kissing Elon Musk’s feet. (The Independent)
🗞️ Mat Ishbia predicts significant benefits for the mortgage industry from Trump. (NSC)
📉 UWM Q4 2024 earnings missed expectations, stock drops. (Investing)
🚨 DOGE accessed confidential HUD data on housing discrimination. (ProPublica)
📚 CoreLogic chief economist on witnessing the insurance crisis firsthand. (NMP)
🏘️ Homebuilders haven’t seen much disruption from deportations yet. (JB LinkedIn)
📈 Rocket Mortgage’s origination volume rises to $27.8B in Q4. (HousingWire)
🚨 Coach’s Corner
This One Word will help you crush your competition! (Youtube Video)
— Dave Krichmar CEO
4. NAR makes $197M commission suit settlement payment
The National Association of REALTORS® (NAR) made an initial payment of $197 million toward its $418 million settlement on February 20, 2025.
Lead plaintiffs' counsel, Michael Ketchmark of Ketchmark & McCreight, confirmed that NAR initially paid $5 million when the settlement was submitted for preliminary approval. This was followed by the $197 million payment made on February 20, 2025. The next installment, a $72 million payment, is scheduled for February 24, 2026.
Importantly, no settlement funds will be distributed to home sellers until all appeals are resolved and the settlement is finalized.
5. New home sales and pending home sales decline
New home sales fell sharply in January, with single-family home sales dropping 10.5% from December to a seasonally adjusted annual pace of 657,000 units, reflecting continued challenges amid high mortgage rates and affordability issues.
Additionally, pending home sales—contracts for previously owned homes—plummeted to their lowest level since records began in 2001, with the National Association of Realtors’ index falling 4.6% last month. These twin declines suggest that both new construction and the resale market are facing significant pressure from a challenging economic environment.
"It is unclear if the coldest January in 25 years contributed to fewer buyers in the market, and if so, expect greater sales activity in upcoming months," said Lawrence Yun, the NAR's chief economist. "However, it's evident that elevated home prices and higher mortgage rates strained affordability."
☀️ You’re all caught up. See you on Monday!
🚀 Wanna help our newsletter grow? Forward it to a friend or colleague.
Would you like to receive a ready-to-send weekly marketing email for your realtors and/or clients? Start your 30-day free trial here.
Was this email forwarded to you? Subscribe here.
Interested in advertising to 40k+ loan officers? Get in touch.