The U.S. Department of Housing and Urban Development (HUD) today awarded $54 million to 182 fair housing organizations across the country under its Fair Housing Initiatives Program (FHIP). The grants will provide $28,200,000 to support the efforts national, state, and local fair housing entities working to address violations of the Fair Housing Act and helping to end discrimination in housing. In addition, HUD provided $26,350,000 in funding to its second and third year Private Enforcement Initiative grantees to continue fair housing enforcement efforts nationwide.

“Far too many families in our country still face unconscionable prejudice, both as renters and homeowners,” said HUD Secretary Marcia L. Fudge. “The Fair Housing Initiatives Program puts money into communities to help them root out discrimination in housing. I am pleased to provide our state and local partners with the resources they need to combat inequity and build a fairer, more inclusive country for all.”

The awarding of these funds proceeds the 1-year anniversary of the Biden-Harris Administration’s Interagency Task Force on Property Appraisal and Valuation Equity (PAVE) Action Plan – led by U.S. Department of Housing and Urban Development (HUD) Secretary Marcia L. Fudge and White House Domestic Policy Advisor Ambassador Susan Rice. The PAVE Action plan represents the most wide-ranging set of commitments ever announced to advance equity in the home appraisal process. Eligible activities for the funding awarded today included testing for appraisal bias and educating local communities on the issue.

The grant funding will allow the grantees to provide fair housing enforcement by conducting investigations, testing to identify discrimination in the rental and sales markets, and filing fair housing complaints with HUD or substantially equivalent state and local agencies. In addition, grantees will conduct education and outreach activities to inform the public, housing providers, and local governments about rights and responsibilities that exist under the Fair Housing Act.

“The programs and services provided by the Fair Housing Initiatives Program are vital to eliminating housing discrimination that too many in this country endure,” said Demetria L. McCain, HUD’s Principal Deputy Assistant Secretary for Fair Housing and Equal Opportunity. “As we prepare to recognize the fifty-fifth anniversary of the Fair Housing Act next month, we know we have more work to do in the fight against housing discrimination. But, efforts of our fair housing partners through the years have made a significant contribution helping thousands of people and families. The funds provided today will ensure that our state and local partners have the financial resources they need to continue educating the public and opposing discriminatory practices in the communities they serve.”

HUD is awarding grants in the following categories and amounts:

Private Enforcement Initiative (PEI) – This initiative funds non-profit fair housing organizations to carry out testing and enforcement activities to prevent or eliminate discriminatory housing practices.

• HUD is awarding $14,575,000 to new organizations to conduct intake, provide testing, and investigate and litigate fair housing complaints under the Fair Housing Act.
• HUD is awarding $26,350,000 to second- and third-year FY 2020 and FY 2021 PEI Multi-year grantees. This multi-year award will allow grantees to continue fair housing investigations, testing and other fair housing enforcement activities.

Education and Outreach Initiative (EOI) – This program offers support for fair housing activities that educate the public and housing providers about equal opportunity in housing and compliance with the fair housing laws.

• HUD is awarding $9,425,000 to organizations that educate the public and housing providers about the Fair Housing Act. These grants will also support state and local organizations that enhance fair housing laws that are substantially equivalent to the Fair Housing Act.

Education and Outreach Initiative Test Coordinator Training (EOI-TCT) – The Fair Housing Initiatives Program is a significant source of funding for FHIP grantees that conduct fair housing testing in local communities across the country. Fair housing testing refers to the use of testers who, like “secret shoppers”, pose as prospective renters or buyers of real estate for the purpose of determining whether housing providers and others are complying with the federal Fair Housing Act.

• HUD is awarding $500,000 to one organization to support fair housing training courses specifically in fair housing testing.

Fair Housing Organizations Initiative (FHOI) – This program provides funding that builds the capacity and effectiveness of non-profit fair housing organizations by providing funds to handle fair housing enforcement and education initiatives more effectively. FHOI also strengthens the fair housing movement nationally by encouraging the creation and growth of organizations that focus on the rights and needs of underserved groups, particularly persons with disabilities.

• HUD is awarding $3,700,000 to equip nonprofit organizations to conduct fair housing enforcement related activities. The award will also establish and support a new organization to engage in fair housing enforcement work, particularly in unserved and underserved jurisdictions.

To read the full release, click here.

Originally Appeared Here

HouseCanary, Inc. has released its latest monthly Market Pulse report, covering 22 listing-derived metrics and comparing data between August 2021 and August 2022, which found that the housing market cooldown that appeared earlier this year continued into the traditional end of summer, and predicts further cooling through the fall. 

“The nationwide supply shortage accelerated by the Fed’s rate hikes and economic concerns persisted through the end of the summer despite a slight increase in inventory back in June,” said Jeremy Sicklick, HouseCanary’s Co-Founder and CEO. “Decelerating price growth, decreasing sale-to-list ratio, and an increase in median days on market are all indicators of a potential market normalization as both buyer and seller activity continue to cooldown. More and more would-be buyers are holding off on making offers as raised rates amplify perceptions of unaffordability.” 

According to the report, there were 260,489 new listings placed on the market which represents a 29.2% decrease compared to the same period last year.  

Over the last year, there have been 2.23 million new listings placed on the market representing a 6.4% year-over-year decrease.  

“In response to the decreased demand, sellers are cutting listing prices or dropping out of the market completely, suggesting we may see the market shift in buyers’ favor as we head into the fall,” said Sicklick. 

Top-level data from the report includes:  

• Since August 2021, there have been 3,226,813 net new listings placed on the market, which is a 6.4% decrease compared to the 52 weeks prior. 
• The volume of price drops increased 95.5% compared to the same period last year. 
• Monthly nationwide supply continues to trend downward on the heels of elevated interest rates and market seasonality. 
• Net new listing volume and contract volume are down across every price bin on a year-over-year basis. 

Percentage of total net new listings over the last 52 weeks, broken down by home price: 

• $0-$200k: 14.6% 
• $200k-$400k: 37.6% 
• $400k-$600k: 23.9% 
• $600k-$1mm: 15.9% 
• >$1mm: 8.0% 

Percent change in net new listing activity over the last 52 weeks versus the same period in 2021, broken down by home price: 

• $0-$200k: -25.4% 
• $200k-$400k: -15.3% 
• $400k-$600k: +9.5% 
• $600k-$1mm: +14.5% 
• >$1mm: +12.2% 

Monthly Net New Listing Volume (Single-Family Detached Homes): 

• Monthly new listing volume was down 18.7% compared to August 2021 
• In August, there were 260,489 net new listings placed on the market, representing a 29.2% decrease year-over-year. 

For the month of August, the percent change in net new listing volume compared to August 2021, broken down by home price: 

• $0-$200k: -35.4% 
• $200k-$400k: -31.9% 
• $400k-$600k: -23.6% 
• $600k-$1mm: -22.8% 
• >$1mm: -25.9% 

Listings Under Contract: 

• Over the last 52 weeks, 3,256,348 properties have gone into contract, representing a 9.8% decrease relative to the same period in 2021. 

Percentage of total contract volume since August 2021, broken down by home price: 

• $0-$200k: 15.7% 
• $200k-$400k: 38.4% 
• $400k-$600k: 23.2% 
• $600k-$1mm: 15.2% 
• >$1mm: 7.5% 

Percent change in contract volume over the last 52 weeks versus the same period in 2021, broken down by home price: 

• $0-$200k: -22.9% 
• $200k-$400k: -17.4% 
• $400k-$600k: +3.6% 
• $600k-$1mm: +7.3% 
• >$1mm: +0.9% 

Monthly Contract Volume (Single-Family Detached Homes): 

• For the month of August, there were 315,977 listings that went under contract nationwide, which is a 14.5% decrease year-over-year. 

For the month of August, the percent change in contract volume compared to August 2021, broken down by home price: 

• $0-$200k: -18.3% 
• $200k-$400k: -18.7% 
• $400k-$600k: -8.2% 
• $600k-$1mm: -6.6% 
• >$1mm: -15.0% 

Median Listing Price Activity (Single-Family Detached Homes): 

•  For the week ending September 2, 2022, the median price of all single-family listings in the U.S. was $433,473, a 13.1% increase year-over-year. 
• For the week ending September 2, 2022, the median closed price of single-family listings in the U.S. was $405,952, a 7.4% increase year-over-year. 
• The median price of all single-family listings in the U.S. is down by 1.8% month-over-month and the median price of closed listings has increased by 0.2% month-over-month. 

To see the report in its entirety, including state-level breakdowns of data, click here. 

Originally Appeared Here

This piece originally appeared in the September 2022 edition of DS News magazine, online now.

A booming housing market, stronger underwriting standards, and more effective foreclosure prevention practices have reduced home foreclosure volume in recent years, but when they do happen, Fannie Mae’s work is far from over.

In fact, to help save precious affordable housing stock, Fannie Mae is doubling down on its innovative efforts to repair and preserve foreclosed single-family homes and put them back in the hands of owner-occupants, and in many cases, into the hands of first-time homebuyers.

To ensure that a property attracts owner-occupant buyers, we renovate a home by making a wide range of repairs. Cosmetic repairs involve more visual items like fresh paint, new flooring, and upgraded appliances. Some homes need more extensive repairs, such as plumbing, electrical, heating ventilation and air conditioning (HVAC), or other mechanical system updates.

When required, we address environmental or health issues, such as lead-based paint, discoloration, and water supply upgrades.

We also believe lower energy costs and quality repairs will help reduce borrower expenses associated with owning a home and support sustainable homeownership. That is why we make “green” repairs that involve the installation of low-flow water efficient plumbing fixtures, energy-efficient appliances, programable thermostats, and LED lighting.

Many of you understand the complexity of undertaking home repairs. Just think about this in the context of your own home. It can be overwhelming to say the least. So, imagine this process applied to an entire group of homes spanning the continental United States and its territories.

Even though our real estate-owned (REO) inventory is a fraction of what it was in the years immediately after the financial crisis over a decade ago, repairing as many properties as we do presents challenges that require innovative solutions. That is why we have streamlined our repair process to ensure repairs are made quickly and efficiently.

To scale this approach over a wide geographic area, Fannie Mae relies on key partnerships with real estate agents, builders, and repair contractors to facilitate repairs and upgrades. We have created efficiencies through technology and process innovations by building repair management processes into third-party platforms.

As an example, our mobile repair scoping application connects real estate agents and general contractors for collaboration in a co-scoping bid process. For those of you who watch fix and flip shows, you may have witnessed co-scoping. This is the process that has a real estate agent and general contractor walk a property together to ensure the repair bid process captures a comprehensive list of needs for the property.

Another example of this innovation is how we utilize an integrated design board deployed through our technology and leveraged during this co-scoping process. This design board shows available color schemes, fixtures, and finishes to create standardized repair results across our REO portfolio regardless of property location. The real estate agent and general contractor even come together after repairs are finished to confirm the initial scope of work is complete and meets our standards.

We are seeing incredible results and benefits of this work. In March 2022, 95% of repaired properties in our REO portfolio were sold to owner-occupant buyers.

Fannie Mae’s REO repair strategy ensures that the nation’s housing supply is improved, it helps support homeownership, and it contributes to community stabilization.

We continue to build on our repair strategy and technology to help create affordable and sustainable homeownership opportunities and will do so for years to come.

This 1,940 square foot home in Maple Heights, OH, was rehabilitated through Fannie Mae’s REO repair strategy. Upgrades are evident throughout the home, including its bathroom and kitchen where new appliances were installed.

Pictures taken of the 1,940 square foot home in Maple Heights, OH rehabilitated through Fannie Mae’s REO repair strategy before the work was begun.

Pictures taken of the 1,940 square foot home in Maple Heights, OH rehabilitated through Fannie Mae’s REO repair strategy after the work was completed.

Located in Shaverton, PA., this 1,130 square foot property saw a dramatic rehabilitation thanks to Fannie Mae’s Real Estate Owned (REO) repair strategy.

Photos taken after the work on the 1,130 square foot property in Shaverton, PA, which underwent a rehabilitation thanks to Fannie Mae’s Real Estate Owned (REO) repair strategy, including upgrades like new flooring and new appliances in the kitchen and bathroom.

Originally Appeared Here

According to a new Zillow report, finding and landing a rental is stressing Americans out nationwide. The typical monthly rent in the U.S. has soared to a record high of $2,031, and the latest Zillow survey reveals just how tired and burnt out Americans are as they search for new homes and apartments. Recent data revealed that two in five recent renters —or 40%— said they lost sleep during their home search, with many worrying about cost, communication, and competition.

Two in five recent renters said they lost sleep during their search

Not being able to find an affordable rental is the most common stressor, with 38% of renters noting it as one of the most stressful parts of their search, which coincides with rents jumping 24% in just the past two years. According to census data, the typical renter household brings in $3,800 each month, meaning they’d have to spend more than half — or 53%— of their income to rent the typical apartment or house.

In addition to stress caused by runaway prices, 26% of renters said keeping track of emails or messages from landlords they contacted was a concern. And 22% reported the same of having to compete against other renters.

Renters are making tradeoffs to land a new home in a high-stakes search environment. According to Zillow’s survey, 77% said they made compromises to afford their most recent rental, with the most common being settling for a place that didn’t have all of the features they wanted, such as new appliances, AC or a balcony. Just under a third of recent renters —or 30%— said they ended up renting a smaller home than they had planned.

“Rising rents are only adding to the pressure renters feel during what is already an emotional and challenging process,” said Zillow home trends expert Amanda Pendleton. “Renters are often staring down a deadline to leave their current rental, and with competition so intense, they need to make decisions quickly. This survey shows even if renters are making compromises to land an apartment, many are still suffering emotional and physical strain.”

Peak rental season is here, and many renters are just starting their search. Zillow’s survey found 76% of renters said they would have done at least one thing differently in their most recent rental search. While the rental market is expensive and competitive, there are steps renters can take to help relieve stress and get a full night’s sleep:

• Understand what they can afford and establish a budget. 
  • Before browsing rentals and setting expectations, renters should start with a rent affordability calculator to figure out their ideal price range. They should set search parameters within that budget, and also use Zillow’s new move-in date filter to ensure they’re seeing apartments that are available when they need them to avoid paying double rent.
  • Renters should also do research on their market to better understand what they can expect to pay and if they should negotiate. Zillow has a Rental Market Trends tool showing typical rents, number of available units and market temperature down to the ZIP code. Renters can also compare rental costs in different cities side by side.
• Stay organized. 
  • Zillow’s Renter Hub, a one-stop shop for renters, is now available on the Zillow app. Instead of users having to dig through their inbox and toggle to and from the Zillow app for updates on their rental search, Renter Hub now keeps messages with prospective landlords and all of the up-to-date details on renters’ current home organized in one place, right at their fingertips.
  • Zillow’s Renter Profile lets renters create a personal profile outlining their renter qualifications, such as employment, income and credit score, as well as their desired move-in date and lease duration. A profile allows them to introduce themselves to potential landlords and to offer a sense of what they’re looking for in a rental.
• Know their rights. 
  • Zillow’s Local Legal Protections tool provides information about local laws that protect LBGTQ renters from housing discrimination. It also includes information on local laws that prevent housing discrimination based on the source of income used to pay the rent, such as housing vouchers.
• Search smarter. 
  • To save time on in-person tours, renters can take advantage of virtual 3D Home tours and interactive floor plans on many Zillow rental listings to quickly narrow their options and avoid wasting time touring rentals that are not a good fit.
  • Using Zillow’s new multilocation search, renters can browse available rentals in up to five areas at once, a great way for them to see options in another location that better fit their budget or lifestyle.

To read the full release, including charts and methodology, click here.

Originally Appeared Here

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