Rocket launches credit card to attract buyers

Good morning. This is Mortgage Nuggets, where we take the best mortgage ingredients from the day to make a fresh new treat for you every morning.

1. Rocket launches credit card to attract buyers

Rocket has launched a credit card that aims to make homebuying easier and more affordable through everyday spending. Here’s how it works;

• Homebuyers can earn 5% back — up to $8,000 — each time they use the card and put that toward closing costs and down payments.

• Rocket Mortgage-serviced clients can use their points to receive 2% of their card spending toward their unpaid principal balance.

• There's a $95 annual fee, but Rocket will waive the fee for cardholders who are Rocket Mortgage-serviced clients.

• All cardholders receive a premium subscription to Rocket Money, where they can manage all recurring payments and subscriptions.

“Every day, consumers tap their credit card to refill their gas tank, stock up on groceries, or pay for any number of other purchases. Now, those transactions can unlock the dream of homeownership for millions of consumers across the country,” said Haroon Mokhtarzada, co-founder and CEO of Rocket Money.

The Rocket Visa Signature Card is issued by Celtic Bank, while Deserve powers the card.

2. Home prices fall for 7th straight month

US home prices continued their downward trend in January, falling for the seventh straight month, according to the S&P CoreLogic Case-Shiller National Home Price Index.

Before seasonal adjustment, the US National Index posted a -0.5% month-over-month decrease in January, while the 10-City and 20-City Composites posted decreases of -0.5% and -0.6%, respectively.

Year-over-year home prices increased, but at a slower rate in January from December, with the National Composite showing a 3.8% annual gain, down from 5.6% in December.

Miami (13.8%), Tampa (10.5%), and Atlanta (8.4%) again reported the highest year-over-year gains among the 20 cities in January. On the other hand, San Diego and Portland joined San Francisco and Seattle in the negative year-over-year territory.

"With affordability still stretched, we expect price falls to continue over the coming months and the peak-to-trough fall to reach around 8% when all is said and done," Capital Economics deputy chief property economist Kiran Raichura wrote Tuesday.

3. More Nuggets

🧑‍⚖️ A class action lawsuit against UWM alleging that the company's ultimatum to brokers not to work with Rocket or Fairway violated state and federal laws, including the Sherman Antitrust Act, has been bolstered by UWM's announcement that it claimed over 50% of the wholesale lending channel in Q4 2022, as it supports the antitrust claims of the lawsuit. (NMP)

💼 Fannie Mae has announced two new Credit Insurance Risk Transfer (CIRT) deals, which include over $31 billion in single-family mortgage loans, designed to reduce risk to taxpayers by increasing the role of private capital in the mortgage market. (Fannie Mae)

⚖️ A federal judge in Georgia has ruled that a predatory lending lawsuit against Wells Fargo can proceed. Three counties claim the bank engaged in a discriminatory "equity stripping" scheme targeting minorities. (Report)

4. Boomers overtake millennials

For the first time in eight years, baby boomers have overtaken millennials as the largest group of homebuyers, according to the National Association of Realtors.

“I am so used to saying millennials are the biggest generation purchasing homes, and they are not any longer,” says Dr. Jessica Lautz, deputy chief economist for NAR.

According to the report, millennials are struggling to enter the market due to factors such as inventory and affordability issues, student loan debt, and rising rent, leading to a drop in their presence as first-time homebuyers.

On the other hand, boomers, who are more likely to be homeowners, benefited from the recent rise in home prices, using their equity to buy the "perfect retirement property".

Gen Z also showed increased participation in the housing market, with a rise from 4% to 7%.

☀️ See you on Friday!

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