News You Can Use – December 2022 Edition

Market News

• Mortgage Orb — Falling Mortgage Rates Helped Boost New Home Sales in November. “Falling mortgage rates gave new home sales a boost in November compared with October, but they remained down from a year ago.”
• NMN — Mortgage delinquency rate will rise 0.5% in 2023: TransUnion. “The rate at which borrowers have been marked consistently late on their mortgages is on track to increase by half a percentage point next year, according to TransUnion. The 60-day-plus delinquency rate will rise to 1.4% by year-end 2023 from an estimated 0.9% this year, the credit bureau forecast. This year’s expected delinquency rate is marginally higher than last year’s 0.8%. The two-month delinquencies tracked by TransUnion typically average around 2% and at their height during the Great Recession’s housing crash they got into the 7% range.”
• National Mortgage Professional — The Fed Adopts Final Rule To Replace LIBOR. “The Federal Reserve Board said today it has adopted a final rule to implement the Adjustable Interest Rate (LIBOR) Act. The final rule identifies benchmark rates based on the Secured Overnight Financing Rate (SOFR) that will replace LIBOR in certain financial contracts after June 30, 2023. The final rule is substantially similar to the proposal, but with certain clarifying changes made in response to public comments.”
• NMN — Housing inventory sees biggest surge in 7 years. “For-sale inventory of single-family homes increased by its largest year-over-year margin since 2015, but it was the result of homes staying on the market longer rather than a flood of new listings, Redfin found.”
• SCOTSMAN GUIDE — After eight-month slide, Fannie Mae’s housing sentiment index sees slight increase. “Fannie Mae’s Home Purchase Sentiment Index (HPSI) finally reversed course in November, breaking an eight-month streak of decreases but remaining near its all-time low point. The HPSI, which is derived from a survey that assesses consumer attitudes toward housing, increased by 0.6 points during the month, reaching a reading of 57.3. It is the first such increase for the index in nine months, although its reading is still hovering around the record low of 56.7, set in October.”
• CNBC— Why your credit score is so important as interest rates rise “The national average credit score sits at an all-time high of 716, unchanged from a year ago, according to a report from FICO, developer of one of the scores most widely used by lenders. When the data is broken down by state, residents of Minnesota have the highest average credit score nationwide, at 724, followed by New Hampshire, Vermont and Massachusetts, according to a separate report by WalletHub based on TransUnion data. With an average credit score of 662, Mississippi residents had the lowest ranking across the country, along with Louisiana, Alabama and Arkansas.”
• MORTGAGE ORB—Connecticut Market Leads Realtor.com List of Top Spots for 2023. “Realtor.com has released its 2023 Top Housing Markets forecast, highlighting markets that will see strong growth in home sales and listing prices following a period of relatively calm price increases and a smaller affordability crunch than other markets across the U.S.”
• SCOTSMAN GUIDE—Fannie Mae integrates more banking and investment account data into automated underwriting. “Fannie Mae has added more upgrades to its automated underwriting system aimed at further extending homeownership opportunities for underserved demographics. Specifically, the enhancements are targeted at simplifying the borrowing process for homebuyers who don’t have a credit score by pulling data from banking and investment accounts.”
• USA TODAY—The 10 hottest real estate markets of 2023: Goodbye COVID boomtowns. “After a sudden slowdown in many housing markets this year, will markets that are “slow and steady” shine in 2023? Midsize markets, which saw lower price increases and less of an affordability crunch than others, are poised to see the strongest combined growth in home sales and listing prices in the coming year, according to a report from Realtor.com.” 
• HOUSING WIRE—How to Reach the Growing Segment of Hispanic American Homebuyers in 2023.“As interest rates remain volatile and demand continues to suffer, lenders across the industry are seeking new avenues to reach borrowers. Often, that means analyzing target markets to determine fresh ways to connect with growing demographics. For many, this analysis is unearthing a noteworthy trend: In many pockets of the U.S., Hispanic Americans represent a fast-expanding segment of borrowers with an increasing number seeking home loans and homeownership.” 
• NMN— Regions are most at risk of housing decline. “Several counties in Mid Atlantic states, as well as California and Illinois, have an elevated risk of housing market declines compared to the rest of the country, according to analysis (Attom). Using information on gaps in home affordability, underwater mortgages, foreclosures and unemployment, Attom found that 28 out of the 50 U.S. counties most vulnerable were located in New Jersey, Illinois and California. In the second quarter, those same states had 27 of the counties that would be most at-risk in the event of a major economic downturn. Also New York City, Chicago and Philadelphia had the highest concentrations of most vulnerable counties.”