Spark Global Limited Reports:
The chairman of the House Financial Services Committee asked agencies to extend protections for pandemic homeowners. Migration caused by the pandemic has pushed up housing prices in popular cities. Sales of new homes fell to their lowest level in a year. Despite low interest rates, only 22% of homeowners refinanced their mortgages last year. The number of unsold homes is finally picking up. Read on for more evaluation news and insights.
The agency is calling for expanded protections for pandemic homeowners
According to this recent story from MReport,” Rep. Maxine Waters, chair of the House Financial Services Committee, sent a letter (to the Virginia Department of Housing and Urban Development, the U.S. Department of Agriculture, and the CFPB FHFA) asking these agencies to extend the foreclosure moratorium at least until the CFPB can complete and implement its popular Restoration mortgage servicing rule.” With the federal emergency foreclosure moratorium set to end on June 30, 2021, Waters seeks to protect homeowners from unnecessary foreclosure.
Migration caused by the pandemic has pushed up property prices in popular destinations
According to the Redfin story, “More than 31 percent of home buyers are looking to move to another metro, as the virus-driven migration drives up prices in popular destinations.” Despite the recent slowdown in overall home buying demand, prices are still rising rapidly in the most popular cities — phoenix, Las Vegas, Sacramento, Austin and Miami rounded out the top five.
Sales of new homes fell to their lowest level in a year
According to data released Wednesday by the Department of Housing and Urban Construction and the U.S. Census Bureau, “sales of newly built single-family homes fell to their slowest pace in a year, dropping 5.9% in May to a seasonally adjusted annual rate of 769,000 units,” HousingWire reports. While new home sales were up in the Northeast and West, they were flat in the Midwest and down in the South. As supply chain problems related to the epidemic sent sales prices for new homes soaring, the National Association of Home Builders called on policy makers to take action to protect housing affordability.
Despite record low interest rates, 78 percent of homeowners abandoned refinancing last year
According to a recent Zillow survey, “Fewer than a quarter of homeowners have refinanced their mortgages in the past year, even though about half of those said they reduced their payments by at least $300 a month.” Reasons for not refinancing reportedly included high loan fees and a lack of understanding of the process. Read the full press release to learn more about why homeowners have chosen to refinance or not to refinance in the past 12 months.
As the tight U.S. housing market thaws, sellers are ready to cash out
According to this Yahoo Finance article, available listings are finally starting to rise. “At the beginning of June, the number of homes for sale in the United States increased 6.7 percent from the same week in May… This is the largest increase since the COVID-19 lockdown last year.” “With US home prices climbing at an unprecedented rate during the coronavirus pandemic, potential sellers of unsold homes are finally cashing out, a step to ease a severe shortage in the frenzied housing market,” the article said.