News You Can Use – January 2023 Edition

Market News

• MND — Builders See a Turn-Around in Housing Starts on the Horizon.“The National Association of Home Builders (NAHB) says builder confidence in the new home market has improved for the first time in January after 12 straight months of declines. All three HMI indices posted gains for the first time since December 2021.”
• NMN — Multifamily mortgage volume likely to drop 11% in 2023.  “Multifamily mortgage originations are expected to fall by 11% year-over-year in 2023 as the entire commercial real estate sector is not immune to the same economic instability that affects single-family lending, the Mortgage Bankers Association said.”
• Scotsman Guide — In dark times, the broker channel offers a ray of light. “In a time of widespread distress, however, there are signs that mortgage industry professionals are adapting. According to a recent United Wholesale Mortgage analysis of Nationwide Multistate Licensing System data, more than 6,300 originators who left the retail channel in 2021 became independent mortgage brokers. Another 7,000 did so in the first nine months of 2022. And the retail-to-wholesale shift may provide innumerable benefits.”
• National Mortgage Professional — Builder Confidence Rises For First Time In Over A Year. “A Builder confidence increased, though just a little, this month after declining for 12 straight months. According to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI), released Wednesday, builder confidence in the market for newly built single-family homes in January rose four points to 35, the first increase since December 2021.”
• National Mortgage Professional — MBA: Mortgage Applications Rebound After Year-End Drop. “After falling more than 13% over the final two weeks of last year, mortgage applications rebounded in the first week of January, the Mortgage Bankers Association (MBA) said Wednesday.”
• Mortgage Orb — Housing Market Experiences Uptick in Refinance Activity, MBA Observes “Mortgage applications increased 1.2% on a seasonally adjusted basis from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending January 6, 2023. On an unadjusted basis, the index increased 48% compared with the previous week.”
• Housing Wire — What a strong jobs report means for the housing market. “Despite several rate hikes throughout the second half of 2022, the labor market finished the year strong. Very strong, according to the latest jobs report. And that could spell trouble for the housing market in 2023 as the Federal Reserve looks to bring inflation down through aggressive interest rate hikes.”
• National Mortgage Professional — December Job Gains Mark 2 Years Of Growth. “The U.S. labor market rolled merrily along in December, adding more jobs than expected and marking the 24th consecutive month of gains, even as the economy has shown signs of slowing.”
• National Mortgage News— Higher conforming limits move over 2M homes out of jumbo market. “The increase in the conforming loan limits for 2023 pulled over 2 million homes out of the jumbo financing market, a Zillow Home Loans analysis found. On Jan. 1, the baseline single-family conforming limit rose 12% to $726,000, with the limit in high-cost areas approaching $1.1 million. The Federal Housing Administration’s high cost limit also is nearly $1.1 million. Ginnie Mae, which is the guarantor for FHA and Veterans Affairs securitizations, announced on Dec. 23, that those conforming amounts would be the limits for single-family forward mortgages in its pools.”
• Scotsman Guide — A Break in the Clouds. “For many in the mortgage industry, 2022 is a year that won’t be missed. Rampant inflation, rising interest rates and skyrocketing home prices combined with housing, labor and material shortages, as well as substantial declines in new home construction and refinance originations. These conditions proved beyond challenging for many in the business.”
• Mortgage Orb — December Home Sales Rose 18 Percent from Year Before. “The total number of homes for sale rose 18% from a year earlier during the four weeks ending December 25, the biggest increase since at least 2015, according to a new report from Redfin. Inventory is up even though new listings are down by double digits because homes are taking a long time to sell amid 6%-plus mortgage rates (the average 30-year rate ticked up to 6.42% this week), economic uncertainty and the typically slow holiday season.”
• National Mortgage Professional — Mortgage Economic Review For January 2023. “The Mortgage Economic Review is a monthly summary of key economic indicators, data, and events pertinent to mortgage and real estate professionals.”
• NMP — Pending Home Sales Hit Lowest Level Since At Least 2015. “Pending U.S. home sales dropped 32% year over year to their lowest level since at least 2015 during the four weeks ended Jan. 1, according to a new report from Redfin.”
• DSNEWS — Luxury, Investment Home Sales Dip Nearly 40%. “Redfin reports that sales of luxury U.S. homes and investment properties fell 38.1% year-over-year during the three months ending November 30, 2022, marking the largest decline on record, outpacing the record 31.4% decline in the sales of non-luxury homes.”