A&D Market Digest for Week of 3/25/24

Join this A&D Market Digest for an important discussion on the escalating cost of homeowners insurance and its profound impact on the mortgage industry and homeowners. Underwriting Team Leader Kaye Chapman provides valuable insights into the causes of insurance increases, regional differences, and ways to prepare clients for the added financial burden.

Key Highlights

• 19% increase in the cost of homeowners insurance over the past year and its impact on affordability
• Natural disasters as the primary driver of insurance rate increases
• Advice for borrowers on communicating with mortgage brokers to understand insurance specifics
• Addressing regional disparities in insurance costs and preparing clients for the additional financial burden
• The importance of understanding insurance conditions and communication between brokers and underwriters
• The importance of protecting borrowers with insurance
• Potential future insurance rate increases and the importance of annual reviews
• The need for updated insurance coverage during refinancing

Watch the full episode to arm yourself with the knowledge of homeowners insurance trends to provide exceptional service to your clients.

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Mortgage News

• NMN – Home builder supply costs head higher for fourth straight month. Prices for residential construction headed up for a fourth straight month, with materials running higher compared to last year’s average rate of growth but slowing its early-2024 surge, according to the National Association of Home Builders.

• NMP – How NAR’s Settlement Impacts Homebuying. While the settlement’s silver lining is that homes are expected to become more affordable, many uncertainties loom over the housing market. Loan originators have been mulling over news from the National Association of Realtors (NAR), which agreed to a $418 million settlement March 15, transforming several rules and guidelines set by the NAR that critics say have kept housing costs artificially inflated.

• Scotsman Guide – February’s existing home sales pace shatters expectations – Scotsman Guide. February’s month-over-month existing home sales surge of 9.5% ranked as the largest jump in a year, according to new data from the National Association of Realtors (NAR). February’s seasonally adjusted annual resale rate of 4.38 million units is the fastest pace since February 2023, per the NAR’s figures.