The real impact of interest rate for home

As recent reports from Freddie Mac show, mortgage interest rates rose sharply after the election, recently climbing back above 4% for the first time since 2015.

While still low by historic standards, interest rates are still roughly 50-basis points higher now than they were before Donald Trump won the election, and a new report from Black Knight Financial Services shows the real impact of that increase on borrowers and potential borrowers.

The bottom line, according to Black Knight’s report, is that housing is less affordable right now than it was before the election.

In fact, home affordability is now at its lowest point since June 2010.

Per Black Knight’s report, the post-election interest rate bump means that the average home price is $16,400 more expensive for the buyer than it was before the election.

That equates to borrowers being on the hook for $60 more per month in principal and interest in order to purchase the median home. That figures rises to $72 per month for borrowers putting 3.5% down on their home.

According to Black Knight’s report, it now requires 21.6% of median income to purchase the median

Home leader Ben Carson lists Florida

Ben Carson just announced that he accepted the role of HUD Secretary and is already making moves in his own personal housing situation.

According to an article in Variety, he listed his home in West Palm Beach, Florida for $1.2 million. If he sells his home at that amount, he would turn a nice profit, given Carson originally purchased the home three years ago for $775,000.

The home, which is located in an upscale guard-gated golf community, has 5 bedrooms and 4.5 bathrooms.

From the article:

Doctor Carson and his wife, Candy, have already purchased their next home, a nearly 9,000-square-foot similarly ersatz mock-Med mansion in Palm Beach Gardens that they picked up for $4.375 million, and they continue to own a 47.75-acre spread in rural Upperco, Maryland, about 25 miles northwest of The Johns Hopkins Hospital in Baltimore where until his 2013 retirement Dr. Carson was the esteemed head of pediatric surgery, that was acquired, per property records, in September 2001 for $1.5 million.

CoreLogic forecasts that home prices will increase by 4.6% year-over-year, and by 0.2% by next month.

The CoreLogic HPI Forecast is a projection of

Real Estate market response to higher interest

November’s sudden spike in interest rates could have negative consequences for the housing market in 2017, according to Freddie Mac’s monthly Outlook.

If President-elect Donald Trump passes a fiscal stimulus plan in early 2017 which includes infrastructure spending and tax cuts, it could bring higher real economic growth. The downside, however, will be that this growth could be partially offset by a rise in interest rates, according to the report.

“Much like in 2013, we expect housing markets to respond negatively to higher mortgage rates — they will drive down homebuyer affordability, dampen demand and weaken home sales, soften house price growth, and slow the growth in new home construction,” Freddie Mac Chief Economist Sean Becketti said. “And mortgage market activity will be significantly reduced by higher mortgage rates, especially refinance originations, which are likely to be cut in half.”

However, the economy is still expected to have a better year in 2017 with growth of 1.9% year-over-year. Freddie Mac expects 2017 to end with unemployment at 4.7%, and says this year’s slower hiring rate is due to the market being at full employment.

At this point,

Refinance as mortgage rates in America

While homeowners surged into the market, increasing refinance originations, potential homebuyers held back in the third quarter, according to the Q3 2016 U.S. Residential Property Loan Origination Report by ATTOM Data Solutions, a fused property database.

Overall, over 1.9 million loans were originated in the U.S. in the third quarter of 2016. That’s down 2% from the second quarter, but up almost 1% from last year. The total dollar volume of loan originations increased 8% from last year to over $502 billion due to higher average loan amounts.

The loan origination report is derived from publicly recorded mortgages and deeds of trust collected by ATTOM Data Solutions in more than 950 counties accounting for more than 80% of the U.S. population.

“The nominal increase in overall originations compared to a year ago masks divergent refinance and purchase loan origination trends during the quarter,” said Daren Blomquist, ATTOM Data Solutions senior vice president. “Refinance originations increased 16% compared to a year ago while purchase originations were down 11% and Home Equity Lines of Credit originations were down 6%.”

“Uncertainty surrounding the outcome of the presidential election may have kept some would-be homebuyers on the sidelines while the prospect of rising interest rates following the election

Increase despite tight labor force

The economy is generally considered at full employment with the unemployment rate hits 4.7%, Steve Rick, CUNA Mutual Group chief economist, told HousingWire.

“Overall it’s a pretty a solid report,” Rick said. “What’s surprising is the unemployment rate, that was a big drop.”

The drop, as it turns out, brings the unemployment rate to its lowest point since August 2007.

“The November jobs report shows an economy running largely at full steam, with the unemployment rate – already low – falling to its lowest level since August 2007,” Zillow Chief Economist Svenja Gudell said. “Given this strength, if there were any lingering doubts that Federal Reserve officials would opt to raise rates at this month’s board meeting, today’s report should toss them out the window.”

Here is where some of the more significant increases occurred:

Professional and business services: increased 63,000

Health care: increased 28,000

Construction: increased 19,000

Employment in other major industries, including mining, manufacturing, wholesale trade, retail trade, transportation and warehousing, information, financial activities, leisure and hospitality and government, changed little over the month.

On average in 2016, employment growth averaged 181,000 per month, compared with an average monthly increase of 229,000 in 2015.

“Employers are getting their labor force geared up for 2017,” Rick said. “The demand

HUD transition team of Loans VP

The Trump transition team ordered all lobbyists removed from its ranks two weeks ago to follow through on campaign pledges made by Mr. Trump to “drain the swamp” in Washington.

However, Quickens claims that Krause’s new role in the transition team didn’t pose any conflict of interests with the lender. In fact, the company’s CEO said Krause is a perfect fit for Trump’s team if he is looking to drain the swamp, according to the article.

From the article:

“It makes total sense you’d have someone like that. You’re finding people that actually understand housing,” said Bill Emerson, Quicken’s chief executive. “When you think about draining the swamp, this goes right in line with that.”

While Trump is getting his HUD transition team in place, the department’s secretary has yet to be officially named. Sources told HousingWire retired brain surgeon and former GOP candidate Ben Carson will accept the role, however he has yet to do so.

Sources confirmed he would make the announcement at the beginning of this week, but so far it has been silent. Perhaps he was waiting for the HUD transition team to be in place before announcing his acceptance?

Whatever the reason for Carson’s delay, companies are already urging the next

Upward climb in October of Home Price

Home prices continued their upward trend in October, and are forecasted to continue rising into next month and next year, according to the Home Price Index and HPI Forecast by CoreLogic, a property information, analytics and data-enabled solutions provider.

Home prices, including distressed sales, increased annually by 6.7% in October 2016, and increased 1.1% from September, according to the index.

CoreLogic forecasts that home prices will increase by 4.6% year-over-year, and by 0.2% by next month.

The CoreLogic HPI Forecast is a projection of home prices using the CoreLogic HPI and other economic variables. Values are derived from state-level forecasts by weighting indices according to the number of owner-occupied households for each state.

“Home prices are continuing to soar across much of the U.S. led by major metro areas such as Boston, Los Angeles, Miami and Denver,” CoreLogic President and CEO Anand Nallathambi said.

“Prices are being fueled by a potent cocktail of high demand, low inventories and historically low interest rates,” Nallathambi said. “Looking forward to next year, nationwide home prices are expected to climb another 5% in many parts of the country to levels approaching the pre-recession peak.”

In fact, it seems the market already hit pre-recession levels and the Federal Housing Administration even

Step to attract international home buyers

As international buyers are increasing, they are also bringing new trends to the market. For example, the Chinese influence is affecting home values for street addresses that contain the Chinese lucky number – four.

Now, even the way homes are sold may need to change. Jack Ryan, founder of REX, an online brokerage, former partner at Goldman Sachs and a onetime opponent of President Barack Obama for the Illinois Senate seat, decided to do just that.

Home prices continue to increase, a trend that will continue into 2017, according to a new report from CoreLogic.

These increasing home prices are narrowing the scope of possible buyers on luxury homes, and increasing the possibility that it will be bought by an international buyer. That is exactly what Ryan realized when he decided to turn to virtual reality to sell a $57.5 million home in Malibu, California, according to an article by James Tarmy for Bloomberg.

From the article:

“For homes like this,” Ryan said, gesturing to the house’s fireplace, “there’s a 50 percent chance that the buyer is outside the U.S., in around 15 financial capitals—London, Shanghai, Paris, Beijing.”

To reach that elusive group of the super-rich, Ryan had to get creative, which is why he decided

Fargo as bank reportedly fails fair lending requirement

The dark clouds surrounding Wells Fargo are about to get a lot darker, as the bank, which is already in hot water over its recent fake account scandal, is reportedly falling short in its fair lending requirements and faces additional sanctions.

Over the last few months, Wells Fargo has been in the crosshairs of various regulators after the Office of the Comptroller of the Currency, the Consumer Financial Protection Bureau and the city and county of Los Angeles fined Wells Fargo $185 million because more than 5,000 of the bank’s former employees opened approximately 2 million fake accounts in order to get sales bonuses.

In the fallout from the fake account scandal, Wells Fargo CEO John Stumpf lost his job, the bank lost business from several states, and the OCC slapped additional sanctions on it, including forcing the bank to ask the OCC for approval if it wants to make a change to its board of directors or its senior executive officers.

Now, according to a new report from Reuters, Wells Fargo is about to be more hot water with the OCC for reportedly failing to meet its requirements under the Community Reinvestment Act.

Under the Community Reinvestment Act guidelines, banks are legally required to meet the

Next HUD leader divides real estate industry

Some housing experts congratulated the new nominee, and took the opportunity to say what they think the new HUD secretary should focus on.

“CHLA congratulates Dr. Ben Carson on his nomination to be HUD Secretary,” said Scott Olson, Community Home Lenders Association executive director. “We urge him to focus on continuing the strong progress in FHA’s financial health, and on ending the overcharging of FHA premiums, by taking prompt steps to cut annual premiums and end the Life of Loan premium policy instituted three years ago.”

And they weren’t the only ones to step in with their congratulations for Carson.

“Realtors know that the incoming secretary of Housing and Urban Development has a big job ahead,” said William Brown, National Association of Realtors president. “Potential homebuyers face a range of hurdles, from rising prices to mortgage credit that’s burdened by fees and extra costs.”

“We congratulate Dr. Carson on accepting this important challenge and wish him the very best of luck in meeting the task ahead,” Brown said. “While we’ve made great strides in recent years, far more can be done to put the dream of homeownership in reach for more Americans.”

Even the Mortgage Bankers Association joined in with their congratulations.

“On behalf of the

Housing supply in Northwest reaches all time low

Pending home sales hit an all-time high in the Northwest, but new listings took a plunge, according to the latest report from Northwest Multiple Listing Service.

The report, which covers 23 counties in and around Washington state, showed that new listings added during November dropped to an 11-month low. This could increase home prices as buyers fight over the dwindling inventory, which is now at an all-time low.

“Last year’s holiday season ended up being the best time to sell a home around King County as sellers took the winter months off, but buyers remained persistent,” said Robert Wasser, Northwest MLS director and Prospera Real Estate owner/broker. “The supply of homes for sale hit a post-recession low, and so far, this year is mirroring last winter’s trends.”

Inventory decreased by 13.2% in November, but pending home sales increased 94% in the Northwest. Prices increased by 11% compared to last year.

This left a housing supply of just 1.69 months, a new low. King Country showed the lowest level of supply at just 0.96 of a month.

Pending home sales totaled 8,217 for the month, compared to the 5,779 new listings.

The cause for the sudden surge could be the oncoming winter months, but there is also

House Financial Services

The halls and chambers of Congress are certainly going to look different when the 115th Congress begins its term in January.

The leadership of the House Financial Services Committee, on the other hand, will look just the same as it has in the last two Congressional terms, as Rep. Jeb Hensarling, R-Texas, and Rep. Maxine Waters, D-Calif., will again serve as the committee’s leaders.

Hensarling currently serves as chairman of the House Financial Services Committee, and will serve his third term in that role beginning in January.

In his time as the chairman of the House Financial Services Committee, especially in his most recent term, Hensarling pushed for regulatory rollback.

Earlier this year, Hensarling introduced a bill in the House that would replace the Dodd-Frank Wall Street Reform Act with a “pro-growth, pro-consumer” alternative that would bring significant reforms to the Consumer Financial Protection Bureau, and much more.

The bill, called the Financial CHOICE act, passed out of the House Financial Services Committee in September.

The bill looks to gain traction in the next Congress, as President-elect Donald Trump is already signaling that his administration plans to “dismantle” Dodd-Frank.

Recently, at the Housing America’s Families Forum hosted by the J. Ronald Terwilliger Foundation for Housing America’s Families, Hensarling called Dodd-Frank a “grave

Executives leading mortgage industry

As the door closes on 2016, the mortgage industry is full of good news. Increasing home prices mean the vast majority of homebuyers have positive equity in their home, and the number of foreclosures continues to drop to pre-Recession levels. Millennials are starting to step into the market and both GSEs and private companies are making room for first-time homebuyers with low down payment programs and alternative credit models.

But the challenges of 2017 lie right around the corner.

Any new presidential administration signals change for our industry, but this year’s changes could be unprecedented. As the mortgage industry continues its slow but steady recovery from the financial crisis and the Great Recession, a new administration will have weighty decisions to make.

Amid the potential new direction from the president, congress and regulators, leadership in our industry is more important than ever. Understanding and planning for a changing environment will test the proficiency of mortgage lenders, servicers, investors and real estate professionals across the country.

Which is why HousingWire is proud to present the 40 winners of our 2016 Vanguard award. These leaders from all segments of the mortgage ecosphere demonstrate that our industry is more than capable of meeting the challenges that lie

Reactions to Ben Carson

Last week, as we all waited for Ben Carson to accept Donald Trump’s initiation to run the Department of Housing and Urban Development, reactions poured in from all sides about whether HUD Secretary Ben Carson is a good idea or not.

Well, now that’s officially official, with an announcement coming Monday that Carson accepted Trump’s offer, reactions are no longer based on hypotheticals about Carson as a potential choice.

Carson is Trump’s choice to run HUD.

Here’s a sampling of the reaction.

Vice President-elect Mike Pence took to Twitter on Monday to celebrate Carson’s nomination, saying that the retired neurosurgeon will help “strengthen communities” while at HUD.

While some Republicans feel that Carson is a good choice, much of the media reaction to Carson’s nomination focuses on his lack of experience in housing and urban development and the impact that will have.

Over at the Wall Street Journal, Nick Timiraos and Damian Paletta have a good recap of what HUD means for the country and what Carson is walking into on his first day.

From the article:

HUD, with a budget of $47.9 billion and some 8,400 employees, has played critical roles stabilizing the housing market after last decade’s boom and bust. The federal government currently insures one

Americans again expect home prices to start rising

Consumers became more optimistic about the housing market immediately following the election, according to Fannie Mae’s Home Purchase Sentiment Index. What’s more, the share of Americans who expect home prices will only continue to increase grew four percentage points to 35%, reversing the three-month downward trend.

The HPSI decreased in November for the fourth consecutive month, sliding down 0.5 points to 81.2. Four of the six components of the HPSI decreased. The election created a great divide in confidence levels from before and after election day.

“The November Home Purchase Sentiment Index outcome is difficult to interpret as the data collection period occurred across the Presidential election timeline,” said Doug Duncan, Fannie Mae senior vice president and chief economist. “The results are fairly evenly split between responses collected before and after the election, and there is evidence of an increase in consumer optimism in the immediate aftermath of the election.”

Those who said now is a good time to buy a home decreased by one percentage point to 30%, while those who said now is a good time to sell fell by six percentage points to 13% in November. Those who said now is a bad time to sell even rose two percentage points

Refinance as mortgage rates keep rising

The loan origination report is derived from publicly recorded mortgages and deeds of trust collected by ATTOM Data Solutions in more than 950 counties accounting for more than 80% of the U.S. population.

“The nominal increase in overall originations compared to a year ago masks divergent refinance and purchase loan origination trends during the quarter,” said Daren Blomquist, ATTOM Data Solutions senior vice president. “Refinance originations increased 16% compared to a year ago while purchase originations were down 11% and Home Equity Lines of Credit originations were down 6%.”

“Uncertainty surrounding the outcome of the presidential election may have kept some would-be homebuyers on the sidelines while the prospect of rising interest rates following the election may have prompted many homeowners to refinance to lock in low interest rates,” Blomquist said.

In the third quarter, 876,633 refinances loans were originated. That is an increase of 7% from the second quarter, and 16% from last year. Refinance originations made up 45.7% of total originations during the third quarter, up from 42.1% last quarter and 39.5% last year.

Many homeowners are rushing to refinance their homes before interest rates increase. While rates are currently still at historical lows, the 30-year mortgage rate recently hit its highest

Acquires TigerLead from Move

Earlier this year, Fidelity National Financial, the nation’s largest title insurance company, acquired Commissions, Inc., a provider of web-based real estate marketing and CRM software for residential real estate agents and agent teams, pledging to grow the company’s business.

When the companies announced the deal, Fidelity National Financial Chairman William Foley said that CINC’s “strong revenue and customer growth has been largely organic, with minimal sales force efforts needed,” adding that the title insurance giant planned to “leverage FNF’s title sales force to proactively cross-sell the CINC product suite to our leading customers.”

Now, CINC’s product suite is about to get a little larger, as the company plans to acquire TigerLead, a real estate agent lead generator, from Move, Inc.

Move acquired TigerLead in 2012, before bringing the company with it when News Corp bought Move in 2014.

Move, which operates realtor.com for the National Association of Realtors, said that it plans to “focus its attention” on realtor.com and its other properties moving forward.

“Move will focus its attention and resources on its realtor.com products, and the evolution of our professional software businesses, including: Top Producer, Market Snapshot, FiveStreet, ListHub and Reesio,” Move spokesperson Janice McDill said in a statement to HousingWire.

McDill said that Move determined that

Police presence becomes real estate

The state of New York is taking the next step in its fight against abandoned foreclosures and neighborhood blight by unveiling a consumer bill of rights for borrowers facing foreclosure.

The consumer bill of rights is part of series of “sweeping” new laws announced by the state earlier this year designed to reform the state’s foreclosure process and address the state’s issues with abandoned foreclosures, also called zombie homes. New York has one of the longest foreclosure timelines in the nation, averaging 1,070 days to foreclose in the third quarter.

According to the office of New York Gov. Andrew Cuomo, the new laws combat the blight of vacant and abandoned properties by expediting the rehabilitation, repair and improvement of these properties, and enable the state to assist homeowners facing foreclosure.

Additionally, the new laws also impose a pre-foreclosure duty on banks and servicers to maintain zombie homes, create an electronic registry of abandoned properties, and expedite foreclosure for vacant and abandoned properties to get those houses back on the market.

Included among the tenets of New York’s new laws is the establishment of a bill of rights for consumers facing foreclosure, which Cuomo and the New York Department of Financial Services introduced Wednesday.

The consumer bill

Plane crashed into home at Pearl Harbor

Today, Americans remember the day that the U.S. got pulled into World War II. Old stories begin re-circling as witnesses recount what they saw on that day.

One such story was published in the Honolulu Star Bulletin newspaper on the day of the attack. While the Japanese mainly focused their attack on the naval base, some of the attack also breached civilian areas.

One of the enemy aircrafts crash-landed into a home in a town near Pearl Harbor, according to the newspaper article. The plane and two houses nearby were destroyed by a fire caused by the crash.

Many lives were lost on that memorial day, including military and civilians. A total of 2,403 lives were lost, 68 of which were civilian and other others all military, and 1,178 were wounded, of which 35 were civilian, according to the U.S. Census Bureau.

The attack lasted one hour and 15 minutes, but changed many lives forever. In fact, I might could even go as far as to say there is not a single American alive today whose life was not affected by that day.

To see more stories and pictures of events from the attack on Pearl Harbor, click here.

As we think back on

Caliber Home Loans new fully digital

For consumers and lenders alike, the mortgage process can be a cumbersome and time-consuming process.

Recent data from Ellie Mae showed that on average, it takes about a month and a half to close a mortgage loan.

But Caliber Home Loans wants to change all that.

On Thursday, Caliber Home Loans, a mortgage origination and servicing company, unveiled a fully digital mortgage that the company claims can shrink the loan process from 45 days down to 10 days or less.

HousingWire got a preview of the program, which Caliber Home Loans calls the “Caliber Ultimate Homebuying Experience.”

According to details provided by Caliber, the “Ultimate Homebuying Experience” is a streamlined application, approval and closing experience for conventional, government, and Caliber portfolio loans.

The program takes nearly all of the mortgage process online, using various technological advancements to automate the process, from application all the way through closing.

Caliber boasts that this program is different than some other digital mortgages because of the company’s “best-in-class” loan officers and account executives, who work with the borrower throughout the process.

According to the company, the program can “simplify the mortgage process and to reduce stress” on borrowers.

So how does Caliber close a loan in 10 days or less?

According to the company, its