A&D Market Digest for Week of 11/7/22

Alex Suslov, Head of Capital Markets, and Billy Abrams, President/CEO of ADM Securities, discuss recent and upcoming trends happening in the capital markets and their impact on the Non-QM market. Check out their discussion.

MARKET NEWS

• NMN—Rent Prices Experience Second Month Over Month Decline.“In 2022 rents are up by a total of 5.9%, compared to 18% at this point in 2021. Rent prices have dipped nationally for two straight months, falling 0.7% during the month of October. It also marks the largest single-month dip in the history of the index, going back to 2017. The national rent index is down by 1.1% since August. Despite the monthly decline, rent growth over the course of this year continues to outpace the pre-pandemic trend, even as it has slowed significantly from last year’s peaks. So far in 2022 rents are up by a total of 5.9%, compared to 18% at this point in 2021.”
• MCT—Lock Volume Indices: October 2022 Data. “Lock Volume Indices show that year-over-year total lock volume (-60.4 percent) continues to drop, as expected, when compared to the white-hot origination space in 2021. The month-over-month rate/term refinance lock figure and purchase index, those figures were down 28.9 percent and 15.8 percent, respectively. Total mortgage rate locks by dollar volume decreased 17.1 percent month-over-month in October. Cash out refinances are down 27.6 percent month-over-month and from one year ago volume is down 87.2 percent, while rate/term refinance volume has dropped 93.2 percent from 2021.”