Uncategories HELOCs & hot housing markets

HELOCs & hot housing markets

12.02
For the umpteenth consecutive month, the desert city in March had the largest price growth in America
You could fry an egg on Phoenix's housing market. For the umpteenth consecutive month, the desert city in March had the largest price growth in America, according to the latest Case-Shiller index. And about one-third of all sales are bought in cash, according to Redfin data. 

 

So what's it like for LOs? Predictably, it's busy. 

 

"With the values in Phoenix having soared over the past two years many of my clients are loving the equity but nervous about selling and taking on another mortgage with a higher rate," said Brannon Bartley, branch manager for Citywide Home Loans. "Not that 5s are that high. I still say rates are having a sale from their 50-year average of about 7.96%  Many calls I'm receiving are, 'Hey…I have $250K in equity with a 2.75% interest rate and want to do something with the additional equity.' Well if they have a $450K mortgage at 2.75% and want to take $50K out it's hard to justify taking on a rate of 5.25%. Many are looking for HELOCs to keep that low rate intact."

 

LOs – are you also seeing an uptick in demand for HELOCs for the same reason? Are you losing past clients because your lender doesn't offer the product? Let me know at james@hwmedia.com. 

 

Other stuff to know

 

*Flagstar Bank is the latest to trim its staff. The Michigan-headquartered depository cut 420 of its 2,100 mortgage jobs during the first quarter. Originations fell to $8.2 billion in Q1, a 23% decline from the prior quarter. 

 

*Top homebuilder DR Horton reported an interesting quarter – the company had just 600 completed-but-unsold homes in the entire country as of March 31. Its inventory is 59,800 homes. Net income in the quarter rose to $1.44 billion. 

 

*Fannie Mae and Freddie Mac finally released their duty-to-serve plans today. We'll have coverage today and in the coming days.

 

*Better.com lost $303.8 million in 2021, according to an SEC filing made by SPAC partner Aurora Acquisition Corp. 

 

OK, everybody. That's it from me! As a quick programming note, I will be off on paternity leave for the month of May. Mortgage reporters Flávia Furlan Nunes and Connie Kim will be stepping in to help produce LendingLife. Please send them tips and ideas at flavia@hwmedia.com and connie@hwmedia.com. 

 

James Kleimann

Managing Editor, HousingWire

 

Mortgage

Flagstar Bank has reduced its mortgage staff by 20% since the calendar turned to 2022, laying off 420 employees amid a significant drop in origination volumes and margins.

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