HELOCs & hot housing markets

For the umpteenth consecutive month, the desert city in March had the largest price growth in America

Good afternoon! Was this newsletter forwarded to you? Sign up here. Hello, LOs! 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 Flagstar Bancorp cuts 20% of its mortgage staff 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. eClosing: How to Generate More Revenue in Today's Market Join Notarize for an interactive discussion where you'll learn how to generate more business, close loans faster, and reduce funding cycle time, while providing an exceptional borrower closing experience. Register Today! Sponsored by Notarize How To Increase Production and Help Customers Achieve Wealth Through Homeownership Presented by Mortgage Coach This case study explores how Fulton Mortgage Company achieved its goal of delivering a more personalized, digital mortgage experience for borrowers, while also increasing production and return on assets. March new home sales: the last positive revision for 2022? Politics & Money, Real Estate, HW+ Exclusive Content The positive revisions on the new home sales report for March show that the housing data is still lagging behind the current market reality. 8 Tips To Build Your Referral Business Looking to drive revenue while interest rates rise? Referrals — whether they're from realtors or past customers — can be a key source of leads without spending a lot on marketing. Attract referral leads and get more loans closed with these 8 steps. Get the Guide Sponsored by Matic What a dip in mortgage demand says about the housing market Mortgage Demand for mortgage loans fell 8.3%, with a sharp decline in purchases applications indicating a potential weakness in home sales in the coming months. HousingWire, 433 East Las Colinas Blvd., Suite 830, Irving, TX 75039 Manage preferences

Share this

Share on FacebookPlus on Google+