The U.S. Department of Housing and Urban Development (HUD) today announced the availability of $40 million through the Healthy Homes Production Grant Program to help transform communities by fixing older housing, preserving affordable housing, and improving communities and the health of children and families in these communities.

“Access to safe, stable, and affordable housing is a critical social determinant of health and a priority of this Department,” said Secretary Marcia L. Fudge. “These grants will help protect families and children from health and safety hazards and support community efforts to provide healthy and sustainable housing for their most vulnerable residents.”

The Healthy Homes Production Program (HHP) is part of HUD’s overall Healthy Homes Initiative; which enables communities to address multiple housing-related hazards in a comprehensive fashion, instead of one hazard at a time.

The HHP program helps children and other vulnerable residents reach their full potential by preventing injuries and diseases, lowering healthcare costs, and improving their overall quality of life.

The program builds upon HUD’s successful Lead Hazard Control programs to expand HUD’s efforts to address environmental health and safety hazards. Those receiving a Healthy Homes Production Award will be expected to accomplish the following objectives, among others:

• Find and eliminate housing-related health and safety hazards in privately owned, low-income rental and/or owner-occupied housing, especially in units and/or buildings where families with children, older adults 62 years and older, or families with persons with disabilities live;
• Conduct public education and outreach activities that raises awareness of housing-related health and safety hazards and that identifies individuals and families for grant services;
• Develop a professional workforce that is trained in conducting healthy homes assessments;
• Develop partnerships to assist in meeting program goals; and
• Promote collaboration, data sharing, and targeting between health and housing departments.

Applications for the grant program funds are due Tuesday, October 18, 2022, by 11:59pm ET.

To read more information on the HHP, including full eligibility requirements, click here.

Originally Appeared Here

The Fannie Mae Home Purchase Sentiment Index (HPSI) decreased 0.8 points in August to 62.0, the sixth consecutive monthly decline of the index, according to their latest report. Surveyed consumers continue to express pessimism about homebuying conditions, especially in the home-selling segment of the housing market. 

Despite the minute change in the index, four of the six major components which make up the HPSI experienced significant volatility resulting in the HPSI dropping 13.7 points year-over-year. 

On a monthly basis, consumers indicated via the survey that home-selling conditions have worsened over the last month dropping from 67% to 59% of respondents who believe now is a good time to sell. 

According to Fannie Mae, consumers also reported that homebuying conditions have improved since last month increasing from 17% to 22%, but on the future of home prices, consumers report mixed sentiments with the majority of consumers believing that mortgage rates will go up over the next year. 

“The share of consumers expecting home prices to go down over the next year increased substantially in August. Accompanying this, HPSI respondents reported a significant decrease in home-selling sentiment,” said Doug Duncan, Fannie Mae’s SVP and Chief Economist. “We also observed a large decline in consumers reporting high home prices as the primary reason for it being a good time to sell a home, suggesting that expectations of slowing or declining home prices have begun to negatively affect selling sentiment.” 

“Conversely, lower home prices would obviously be welcome news for potential first-time homebuyers, who are likely feeling the combined affordability constraints of the high home price and high mortgage rate environment. In fact, the survey’s ‘ease of getting a mortgage’ component dropped to an all-time low among this typically younger demographic (i.e., 18- to 34-year-olds).” 

“With home prices expected to moderate over the forecast horizon and economic uncertainty heightened, both homebuyers and home-sellers may be incentivized to remain on the sidelines—homebuyers anticipating home price declines and potential home-sellers not keen to give up their lower, fixed mortgage rate—contributing to a further cooling in home sales through the end of the year,” Duncan concluded. 

Additional findings on the six major components of the HPSI include: 

• Good/Bad Time to Buy: The percentage of respondents who say it is a good time to buy a home increased from 17% to 22%, while the percentage who say it is a bad time to buy decreased from 76% to 73%. As a result, the net share of those who say it is a good time to buy increased 8 percentage points month-over-month. 
• Good/Bad Time to Sell: The percentage of respondents who say it is a good time to sell a home decreased from 67% to 59%, while the percentage who say it’s a bad time to sell increased from 27% to 35%. As a result, the net share of those who say it is a good time to sell decreased 16 percentage points month-over-month. 
• Home Price Expectations: The percentage of respondents who say home prices will go up in the next 12 months decreased from 39% to 33%, while the percentage who say home prices will go down increased from 30% to 33%. The share who think home prices will stay the same increased from 26% to 28%. As a result, the net share of Americans who say home prices will go up decreased 9 percentage points month-over-month. 
• Mortgage Rate Expectations: The percentage of respondents who say mortgage rates will go down in the next 12 months increased from 6% to 11%, while the percentage who expect mortgage rates to go up decreased from 67% to 61%. The share who think mortgage rates will stay the same increased from 21% to 25%. As a result, the net share of Americans who say mortgage rates will go down over the next 12 months increased 11 percentage points month-over-month. 
• Job Loss Concern: The percentage of respondents who say they are not concerned about losing their job in the next 12 months increased from 78% to 79%, while the percentage who say they are concerned decreased from 22% to 21%. As a result, the net share of Americans who say they are not concerned about losing their job increased 2 percentage points month-over-month. 
• Household Income: The percentage of respondents who say their household income is significantly higher than it was 12 months ago increased from 24% to 25%, while the percentage who say their household income is significantly lower increased from 13% to 15%. The percentage who say their household income is about the same decreased from 61% to 59%. As a result, the net share of those who say their household income is significantly higher than it was 12 months ago decreased 1 percentage point month-over-month. 

Originally Appeared Here

The latest report from Black Knight, Inc, revealed yet another sign of the times as annual home price growth changed from a deceleration to an official decline in July 2022 as the median home price fell 0.77% from June 2022, the largest single-month decrease since January 2011. 

According to Black Knight Data and Analytics President Ben Graboske, July’s month-over-month decline is the first price pullback in nearly three years. 

“After 31 consecutive months of growth, home prices pulled back by 0.77% in July,” said Graboske. “Annual home price appreciation still came in at over 14%, but in a market characterized by as much volatility and rapid change as today’s, such backward-looking metrics can be misleading as they can mask more current, pressing realities.” 

“Case in point—this cooling has been indicated in our home price data for several months now, and at an increasing pace. In January, prices rose at 28 times their normal monthly rate before slowing to five times average in February as interest rates began to tick up. Even May was still about two times normal, before June growth came in 70% below the long-run average. And all the while, annual appreciation continued to appear historically strong, showing double-digit growth month after month. Without timely, granular data, market-moving trends don’t become apparent until they’re right in front of you—like a sudden shift to the largest single-month decline in home prices in more than a decade.  

“Similarly, while mortgage-holders’ tappable equity had grown 25% from last year to hit yet another record high in Q2, we noted that equity actually peaked in May and tracked the pullback that began in June before escalating in July.” 

“Tappable equity is now down 5% in the last two months, setting up Q3 to likely see the first quarterly decline in tappable equity since 2019. Some of the nation’s most equity-rich markets have seen significant pullbacks, most notably among key West Coast metros. From April through July, San Jose lost 20% of its tappable equity. Seattle followed, shedding 18% of tappable equity over that same three-month span. Likewise, San Diego (-14%), San Francisco (-14%) and Los Angeles (-10%) have all seen double-digit declines since April.  

“Keep in mind that of the roughly 275K borrowers who would fall underwater from a 5% price decline, more than 80% purchased their homes in the first six months of 2022 – right at what appears to have been the top of the market,” Graboske concluded. “With prices continuing to correct and our McDash HELOC data showing home equity lending at its highest level in 12 years, we will keep a very close eye on equity positions in the coming months.” 

Additional high-level findings from the Mortgage Monitor include: 

• More than 85% of the 50 largest U.S. markets are at least marginally off their peaks through July, with home prices down by >1% in a third, and more than one in 10 seeing prices fall by 4% or more 
• Tappable equity – the amount a homeowner can borrow against while keeping a 20% equity stake – hit its 10th consecutive record high in Q2 2022 at $11.5T but appears to have peaked in May of this year 
• Escalating declines in June and July have total tappable equity down 5% over the past two months, suggesting a sizeable reduction is likely in Q3, which would mark the first quarterly decline in three years 
• In some markets, equity pullbacks have quickly become fairly significant, with the five most equity-rich West Coast markets shedding 10-20% of previously available tappable equity from April through July 
• The impact of home price declines is twice as pronounced on tappable equity levels; a 5% decline in home values nationally would equate to a 10% decline in tappable equity, and so on. 

Click here to see the 27-page report in its entirety. 

Originally Appeared Here

As the housing market finally displays signs of continued cooling, home prices across the nation remain at inflated highs, with Americans sitting on a record $27.8 trillion in home equity, according to a new study from LendingTree —an estimated $333,000 worth of equity for each owner-occupied housing unit in the nation.

While most homeowners likely don’t have that much value built into their properties, many are nonetheless tapping into the equity they’ve generated through home equity loans. To better understand how much money homeowners are looking to borrow against their equity, LendingTree analyzed more than 350,000 home equity loan offers to users of their online loan shopping platform from Jan. 1 through July 20, 2022.

LendingTree found that the average size of a home equity loan offer is approximately $50,000 or higher in all but one of the nation’s 50 states.

Key findings:

• The average home equity loan offer across the nation’s 50 states is $83,872. Average loan offers vary from nearly $130,000 in Colorado to less than $31,000 in Iowa.
• Colorado, Hawaii and Connecticut homeowners are being offered the largest average home equity loans. In Colorado, home equity loan borrowers are approved for an average of $128,482. That’s followed by $119,172 in Hawaii and $112,721 in Connecticut.
• On average, borrowers in Iowa, Alabama and Nebraska receive the smallest home equity loan offers. In Iowa, the average home equity loan amount offered is $30,904, making the Hawkeye State the only state where the average offered loan is worth less than $50,000. In Alabama and Nebraska, borrowers received average loan offers of $55,098 and $56,509, respectively.
• Offered interest rates on home equity loans can vary notably by state. For example, the average rate of 8.47% offered to borrowers in Alaska —the highest in the nation— is nearly 4 percentage points higher than the average rate of 4.55% offered in Maryland —the lowest in the nation.
• Like rates and loan amounts, monthly home equity loan payments can vary by state. The highest average payment in the nation is in Hawaii, where home equity loan offers would cost borrowers an average of $1,102 a month. On the other hand, the average home equity loan payment for Iowans would be only $284 a month —the lowest in the nation.

States where homeowners are offered the largest home equity loans

1. Colorado

• Average offered home equity loan amount: $128,482 
• Average offered home equity loan interest rate: 5.22% 
• Average offered home equity loan monthly payment: $552 

2. Hawaii

• Average offered home equity loan amount: $119,172
• Average offered home equity loan interest rate: 7.40% 
• Average offered home equity loan monthly payment: $1,102

3. Connecticut

• Average offered home equity loan amount: $112,721
• Average offered home equity loan interest rate: 5.08% 
• Average offered home equity loan monthly payment: $460 

States where homeowners are offered the smallest home equity loans

1. Iowa

• Average offered home equity loan amount: $30,904
• Average offered home equity loan interest rate: 7.23% 
• Average offered home equity loan monthly payment: $284 

2. Alabama

• Average offered home equity loan amount: $55,098
• Average offered home equity loan interest rate: 8.44% 
• Average offered home equity loan monthly payment: $564 

3. Nebraska

• Average offered home equity loan amount: $56,509
• Average offered home equity loan interest rate: 8.05% 
• Average offered home equity loan monthly payment: $556

Increased home equity is a tangible benefit of rising home pricesWhile getting into the real estate market can be challenging when home prices are steep, that doesn’t mean rising prices are all bad news. In fact, rising prices can be a good thing for current homeowners.

For example, the record amount of home equity that homeowners are sitting on is likely the result of how high home prices have climbed since the start of the pandemic. This is because homeowners generate home equity when the value of their property increases above the value of their mortgage. In other words, if property values rise dramatically —as they have since the start of the pandemic— homeowners can generate a significant amount of home equity, even if they haven’t paid off much of their mortgage.

Building equity can yield numerous benefits for homeowners. For example, tapping into equity through a home equity loan or a home equity line of credit can allow homeowners access to cash that they can use for various purposes, from home renovations to paying off higher-cost debts. Having equity can also be beneficial when it’s time to sell your home, as the more valuable a home is relative to what was paid for it, the more money a seller will end up making in profit.

Though the prolonged rapid growth of home prices since the start of the pandemic is a cause for concern that should be addressed, the high amounts of home equity that many Americans are sitting on as a result of recent price growth is nonetheless a positive worth recognizing.

To read the full report, including tips to tapping into home equity, more charts and methodology, click here.

Originally Appeared Here

Epiq, an Atlanta-based provider of intelligence to the legal services industry, has released its August 2022 bankruptcy filing statistics from its new Bankruptcy Analytics platform which found that filings increased by 10% since last year representing 35,276 filings of all types, up from the 30,848 seen in July, 32,175 filings seen in June, and 32,508 filings seen in May. 

According to Epiq, total filings also show a 15% increase month-over-month compared to the July 2021 total of 30,854 filings. 

Epiq also noted that for the first time in months, all chapters of bankruptcy registered a month-over-month increase. 

Chapter 11 filings increased 81% to 466 (from 257 in July), Chapter 13 increased 15% to 14,981 filings (from 12,992), Chapter 7 filings increased 13% to 19,884 filings (from 17,593). 

Commerical filings increased 6% as the 1,861 were up from the 1,753 seen last year. 

“New bankruptcy filings in August clearly show momentum in the market,” said Chris Kruse, SVP at Epiq Bankruptcy. “Chapter 13 new filings continue the recent trend of month-over-month growth, and for the first time since March, we also see increases in new Chapter 7 filings in August. We expect this trend to continue as the U.S. exits the summer and marches toward the fourth quarter.” 

From a commercial Chapter 11 perspective, filings continue to trend up. August’s Chapter 11 filings totaling 466 increased 81% from the 257 registered in July 2022. Small business filings, captured as subchapter V elections within Chapter 11, increased 41% to 140 in August 2022 from 99 in August 2021. Similarly, August’s commercial Chapter 11 filings were up 91% over the 212 filings in July 2022. The commercial filing total represented a 16% increase from the July 2022 commercial filing total of 1,607. Subchapter V elections within Chapter 11 increased 42% from the 85 filed in July 2022. 

“Financially distressed households and companies are experiencing expanding debt loads amid rising interest rates, inflation, and supply chain concerns,” said ABI Executive Director Amy Quackenboss. “Though still at historically low numbers, the increase in bankruptcy filings in August points to more families and businesses looking for a path to alleviate mounting financial challenges.”

Click here to view the source report in its entirety. 

Originally Appeared Here

For the first time since the housing market picked up after the pandemic, Redfin has reported that the average home has sold for less than its listing price as of August 28 in another sign of a housing market cooldown. 

This information comes by way of a new report published by Redfin, which covers the four-week period prior to August 28. 

According to Redfin, every month since March 2021 has seen an average sale-to-list ration of over 100%; this comes as the share of listings with a price drop has finally begun to plateau. 

Even as prices ease, demand from homebuyers is subdued—purchase application and pending sales have both recently posted large yearly declines—thanks in parts to mortgage rates, which have eclipsed the 5.6% mark, to their highest level since June. Home sellers were also found to be reluctant to enter the market as new listings and total inventory of homes have also posted large declines.

“While the cooldown appears to be tapering off, there are signs that there is more room for the market to ease,” said Daryl Fairweather, Redfin’s Chief Economist. “The post-Labor Day slowdown will likely be a little more intense this year than in previous years when the market was super tight. Expect homes to linger on the market, which may lead to another small uptick in the share of sellers lowering their prices. Homebuyers’ budgets are increasingly stretched thin by rising rates and ongoing inflation, so sellers need to make their homes and their prices attractive to get buyers’ attention during this busy time of year.”

Other leading indicators of homebuying activity include:

• For the week ending August 25, 30-year mortgage rates rose to 5.66%. That’s down from a 2022 high of 5.81% but up from 3.22% at the start of the year. 
• Fewer people searched for “homes for sale” on Google. Searches during the week ending August 27 were down 26% from a year earlier. 
• The seasonally adjusted Redfin Homebuyer Demand Index—a measure of requests for home tours and other home-buying services from Redfin agents—was up 15% from the 2022 low in June during the week ending August 28, but was down 16% year over year. 
• Touring activity as of August 28 was down 9% from the start of the year, compared to a 11% increase at the same time last year, according to home tour technology company ShowingTime. 
• Mortgage purchase applications were down 2% week over week, seasonally adjusted, and were down 23% from a year earlier during the week ending August 26. 
• The median home sale price was $370,000, up 6% year over year. Prices have declined 6% from the record high of $393,725 hit during the four-week period ending June 19. A year ago, they rose 0.4% during the same period. 
• Three metro areas saw a year-over-year decline in their median home-sale price: Honolulu, Hawaii, where prices fell 3.6% to $676,875, Oakland, California, where prices fell 3% to $918,500, and San Francisco, where prices were down 3.7% to $1,453,125. 
• The median asking price of newly listed homes increased 9% year over year to $379,194. Asking prices are down 5.8% from the all-time high set during the four-week period ending May 22. Last year during the same period they were down just 0.4%. 
• The monthly mortgage payment on the median asking price home was $2,306 at the current 5.66% mortgage rate, up 39% from $1,665 a year earlier, when mortgage rates were 2.87%. That’s down from the peak of $2,461 reached during the four weeks ending June 12. 
• Pending home sales were down 18% year over year. 
• New listings of homes for sale were down 16% from a year earlier, the largest decline since May 2020. 
• Active listings (the number of homes listed for sale at any point during the period) fell 0.9% from the prior four-week period. On a year-over-year basis, they rose 4.2%. 
• 35% of homes that went under contract had an accepted offer within the first two weeks on the market, little changed from the prior four-week period but down from 43% a year earlier. 
• 24% of homes that went under contract had an accepted offer within one week of hitting the market, little changed from the prior four-week period but down from 30% a year earlier. 
• Homes that sold were on the market for a median of 26 days, up from 21 days a year earlier and the record low of 17 days set in May and early June. 
• 37% of homes sold above list price, down from 50% a year earlier. 
• On average, 7.5% of homes for sale each week had a price drop, a record high but unchanged from the prior four-week period. 
• The average sale-to-list price ratio, which measures how close homes are selling to their asking prices, fell to 99.8% from 101.4% a year earlier. In other words, the average home sold at its asking price. This was the first time since March 2021 the ratio has fallen below 100%, meaning the typical home is now selling for below asking price. 

Click here to view the report in its entirety. 

Originally Appeared Here

It’s no secret that the combination of rising home prices along with a trend of increasing interest rates have made buying the typical single-family home much more expensive, if not completely unaffordable for many. 

According to Joint Center for Housing Studies at Harvard University author Daniel McCue, the median sales price of an existing home exceeded 15% gain from April 2021 to April 2022, going from $340,700 to $391,200. During this same period of time, mortgage rates themselves went from 3.05% to 4.98% (which has since eclipsed the 5.5% mark) changing mortgage costs significantly. 

McCue said that the average buyer purchasing an average house with a 30-year fixed-rate mortgage now faces a monthly payment of $2,020 versus $1,400 a year prior. 

“In markets where the typical home is much more expensive than the U.S. median, a household needs a much higher income,” McCue said in a Housing Perspectives blog post. “For example, in the San Francisco metro, the median home price is $1.5 million, which means a household would need an annual income of over $400,000 to afford the steep $10,700 in monthly owner payments. 

“In fast-growing Austin, a household would need an annual income of $165,000 to qualify for a loan on the $600,000 median priced home. This is nearly twice as high as the $84,000 needed to buy the median-priced home in nearby Houston.” 

“In all, total monthly payments were up by at least $500 over the past year in 70 of the 100 largest metro areas, including 30 metros where owner costs jumped by more than $1,000 per month,” said McCue. 

The report concluded saying that the additional barriers to homeownership are hurting consumers because they are not building wealth through home equity. This affects a wide swath of the population, but affects households of color the most.  

At last measure, the homeownership rates for Hispanic households (48.3%) and non-Hispanic Black households (46.0%) were 26 and 29 percentage points lower than for non-Hispanic white households (74.6%). Higher barriers to homeownership make it more difficult and costly for policy to help reduce these longstanding inequalities. 

Click here to read the blog post in its entirety. 

Originally Appeared Here

While many in the housing market are predicting a shift in power to buyers’ favor, that switch may not be coming anytime soon to according to a recent NerdWallet report due to tempered demand due to higher mortgage rates. 

In addition, home affordability hit another low for first-time buyers during the second quarter of 2022; though inventory was up, the combination of climbing list prices and still stagnant wages means more borrowers are struggling to afford the homes that are on the market. 

All of this comes at a time when mortgage rates topped the 5.5% mark recently, so many would-be buyers have decided to sit in out for now that the interest on their current home would cost more. 

But according to NerdWallet, the slowed demand will eventually affect list prices, but as of the second quarter, that effect on the market has yet to materialize based on the latest numbers. 

“Average asking prices crept higher again in the second quarter. Paired with wages that aren’t keeping up with inflation, homes became less affordable,” said NerdWallet author Elizabeth Renter in her report. “A long-held rule of thumb is that home shoppers should look at properties priced roughly three times their income. That has become near-impossible for many people.” 

“Homes were listed at 6.5 times the typical first-time home buyer income in the second quarter across the most populous 50 U.S. metros, and 6.6 times their income across the nation. Both of these top the highest rates we’ve seen in the two-year duration of this analysis, previously bested in the first quarter of 2022.” 

For another quarter, homes remained largely priced out of reach for first time buyers in the second quarter of 2022. 

Among the largest cities, Pittsburgh remained the most affordable area for first-time buyers as homes there were listed at 3.3 times the typical income of a first-time buyer. Other affordable metros in the second quarter were: San Diego (10.8 times median income), San Jose (10.3x), Miami (9.9x) and Sacramento (8.8x). 

Inventory rose in the second quarter as the average number of listings are up 51%. 

“It’s not unusual to see inventory climb in the second quarter as we move into the typical homebuying season, but this rise could be more than just a seasonal shift,” NerdWallet said. “Paired with slowed demand due to higher interest rates, more listings could moderate prices. Even so, with the second quarter increase, there are still only half as many listings on the market as there were pre-pandemic.” 

But knowing all this, NerdWallet says “buyer beware” as mortgage rates hit highs not seen in over a decade, resulting in fewer bidding wars and fewer homes selling for thousands above list price. 

Click here to view NerdWallet’s report in its entirety. 

Originally Appeared Here