Remax, Keller Williams, Anywhere settlements approved

Plus: ‘Seriously underwater’ home mortgages tick up

May 10, 2024

🎉 Happy Friday. Today's newsletter is 511 words, a 2-minute read. Let’s go…

Disclaimer: Average mortgage rates as of May 09, 2024. © MND's Daily Rate Index.

1. Mortgage rates decline for the first time in six weeks

This week mortgage rates fell, switching direction after five weeks of increases. The average for a 30-year, fixed loan was 7.09%, down from 7.22% last week, Freddie Mac said in a statement yesterday.

Signs of a cooling labor market have bolstered expectations that the Federal Reserve may make its first interest-rate cut as soon as July. After policymakers’ most recent meeting, Fed Chair Jerome Powell didn’t offer a time frame for any potential reductions, but he calmed traders’ fears by saying further hikes are “unlikely.”

“Whether this week’s friendlier mortgage-rate momentum will persist in the near term depends largely on April inflation data due out next week,” Danielle Hale, chief economist for Realtor.com

2. Judge approves KW, Anywhere, RE/MAX settlements

A Missouri judge has given final approval to three settlements totaling $208.5 million in the buyer agent commissions lawsuits, marking the end of a years-long litigation process for Anywhere Real Estate, Keller Williams, and RE/MAX.

The ruling by Judge Stephen R. Bough on Thursday resolves antitrust claims in the Sitzer | Burnett, Moehrl, and Nosalek commission cases. However, it won’t quash other existing suits from buyers.

"What this means moving forward is these cases are resolved against those defendants, and the practice changes are going to go into effect eliminating the requirement that home sellers pay buyers commissions," Michael Ketchmark, lead attorney for the plaintiffs

🚨 Coach’s Corner

Worst coaching advice I ever received…… (Youtube)

— Dave Krichmar CEO

3. More Nuggets

🛠️ Fannie Mae adds web-based income calculator for mortgage originators. (Here)

💰 UWM sets record Q1 purchase volume and returns to profitability. (NMN)

🫨 Surefire CRM error results in 600K errant, unsolicited messages. (Yahoo)

🏘️ Fannie Mae CEO: Beyoncé is right. Climate change has already hit the housing market—and homeowners aren’t prepared. (Fortune)

4. ‘Seriously underwater’ home mortgages tick up

Roughly one in 37 homes are now considered seriously underwater in the US, and that share is much higher across a swath of southern states, according to data released yesterday.

In 10 states, number of seriously underwater homes up at least 3,000 year-over-year

Nationally, 2.7% of homes carried loan balances at least 25% more than their market value in the first few months of the year. That’s up from 2.6% in the previous quarter, according to the 2024 US Home Equity & Underwater Report by ATTOM.

While the share of these homes is ticking up, it remains much lower than before the pandemic, when the rate was more than twice as high.

5. 1 fun thing: The Stolen Bill Riddle

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

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