Msb Houses

📍 Meet Zekeriya Polat, founder of MSB, in the following article 👇 "At MSB, we recognize the power of innovation in shaping the future of real estate. As a proptech company, we harness cutting-edge technologies and develop innovative solutions that streamline processes, enhance efficiency, and empower industry stakeholders. Our goal is to create a transformative impact by leveraging digital tools, artificial intelligence, and data-driven insights to drive smarter decisions and elevate user experiences." You can read the full interview here: https://lnkd.in/eEGrNDSx #realestate #future #power #data #interview #innovation #artificialintelligence

🏘 Existing home sales receded by 4.3% in March to a seasonally adjusted annual rate of 4.19 million, down from 4.38 million in February, according to a report released Thursday by the National Association of REALTORS® (NAR). Year over year, sales fell by 3.7%. The median price for all types of existing homes rose to $393,500, an increase of 4.8% from the median price of $375,300 one year ago. Existing home sales posted a year-over-year price gain for the ninth consecutive month and reached the highest price ever for the month of March. Sales slumped in every region except for the Northeast.  “Though rebounding from cyclical lows, home sales are stuck because interest rates have not made any major moves,” NAR chief economist Lawrence Yun said in a statement. “There are nearly six million more jobs now compared to pre-COVID highs, which suggests more aspiring home buyers exist in the market.” The inventory of existing homes has been steadily increasing, despite elevated mortgage rates. At the end of March, total housing inventory sat at 1.11 million units, up 4.7% from February and up 14.4% from one year ago. Meanwhile, unsold inventory sat at a 3.2-month supply at the current sales pace, up from 2.9 months in February and 2.7 months in March 2023.  As of April 12, there were 526,000 active single-family listings on the market, up 2.6% from the previous week, according to Altos Research data. This uptick in inventory is a function of high and rising mortgage rates, according to Michael Simonsen, founder and president of Altos Research. “More inventory is always welcomed in the current environment,” Yun added. “Frankly, it’s a great time to list with ongoing multiple offers on mid-priced properties and, overall, home prices continuing to rise.” Meanwhile, new construction of both single-family and multifamily homes receded in March. Homebuilder confidence also stagnated in April due to elevated mortgage rates, coupled with a stronger-than-expected inflation reading. “Prospective home buyers face a very confusing housing market,” Bright MLS chief economist Lisa Sturtevant said in a statement. “Mortgage rates, which had been expected to fall in 2024, have inched up close to 7% and seem poised to remain higher for longer.  “Inventory has started to increase, but the market is still competitive with sellers still getting multiple offers. And now, in the wake of the proposed NAR settlement, there is new confusion about how buyers and sellers will work with a real estate agent.”

🤔 What's a Good Mortgage Rate? Historically speaking, a good interest rate on a mortgage is one that's equal to or lower than the current national average. Mortgage rates have trended up and down over the last few decades, as high as 18% in the early 1980s to record-setting lows under 3% during the coronavirus pandemic. But since rates rose abruptly in 2022, what's considered a good mortgage rate today is different than it was just a few years ago. The best mortgage rates are typically reserved for well-qualified borrowers with a good credit score in the mid-700s or higher and a low debt-to-income ratio. Having a higher down payment can also help applicants lock in a lower rate. Having a competitive mortgage interest rate is important because it can keep your monthly housing payments low and help you pay less money toward interest over the life of the loan. #mortagagerate #interestrate #mortgage #usahouses

Housing Market Correction vs. Housing Market Crash If home prices drop more dramatically, a housing crash could occur – and it would be more obvious than a correction. During the housing crash that went hand-in-hand with the Great Recession, home prices fell by more than 30% in many markets. Based on current housing market conditions, such an accelerated drop in home prices seems unlikely. A factor that makes a housing correction more likely than a housing crash is the relative financial stability of homeowners today compared with during the Great Recession. Homeowners today are less likely to default on their homes in the current economic environment. Powell and other Fed officials have repeatedly said they will judge whether to begin lowering interest rates on the state of incoming economic data. Officials are fearful of cutting rates too soon. Meanwhile, the economy and financial markets are performing strongly, undercutting the argument that the Fed’s interest rate policy is too restrictive.

Is a Market Correction Possible Right Now? The short answer is never quite what you want to hear: maybe. It’s often difficult to make a declarative statement about current conditions until they have been evident for some time. There are a few indicators that point to a national housing market correction occurring either now or in the near future: 🔔 Home Price Appreciation First, there’s the history of price appreciation since the pandemic. While this can vary from market to market and can be discussed at levels from neighborhood-by-neighborhood to national, for the purposes of this article, national will be the most useful. According to Redfin data, the median sales price of a home in the United States was $290,807 in January 2020, just 6.6% growth over the year prior. Everybody knows what happened after that. In January 2021, the year over year appreciation rate had more than doubled to 13.8%, with a median sales price of $330,876. Another year, another alarming trend: 14.2% growth and $377,933 median sales price in January 2022. That’s when the brakes were applied, as the Federal Reserve raised interest rates . January 2023 still showed appreciation, but just 1.2% year over year; January 2024 came back more toward what was normal pre-pandemic levels, at 5.1%,but that still leaves homes with a median sales price of $402,242, according to Redfin. So, is a housing correction even an option given this? “It is possible – we have seen a really sharp run-up in home prices. So it is possible,” says Danielle Hale, chief economist at Realtor.com. “It is also possible that prices just move sideways.” A sideways movement of home prices would be more of a plateau than a correction. Rather than seeing prices decline to reset the market, “we may just see fewer transactions,” Hale says.

What is a Housing Market Correction or Price Correction in Real Estate? A housing market correction occurs when home prices drop slightly. There is no formal threshold that determines a correction, but a drop of 10% or less is commonly used. The use of the term “correction” indicates that prices have in some way become unsustainable, so the market is correcting itself to better fit with affordability, demand and supply. “When we talk about a price correction what we’re really looking at is prices that have been appreciating really aggressively and all of a sudden that slows down rapidly,” says Nicole Bachaud, senior economist at Zillow. How Long Does a Market Correction Last? There is no defined timeline for a market correction. “A price correction is not a thing that happens and you can expect it to go away after a period of time,” Bachaud says. A price correction can be as short as a couple of months or be drawn out over a year or more. Bachaud points to a relatively brief market correction that occurred in the latter part of 2018 and early 2019. When interest rates rose slightly, combined with high home prices, many homebuyers in coastal markets stopped making offers because they had concluded the market was too expensive. The market corrected with a downward shift in interest rates and a deceleration in home price increases. When home prices in a local market decline slightly and never pick back up again, it’s likely an indicator of greater decline in housing demand – people may have stopped moving to the area and the population is declining, for example. Other economic conditions can extend the duration of a correction. In 2018 and 2019 the economy was fairly strong. On the other hand, “if you’re in a recession period, it might be a really, really long time,” Bachaud says.

❗️COMMERCIAL/MULTIFAMILY MORTGAGE DEBT OUTSTANDING UP 2.8% FOR 2023 The level of commercial and multifamily mortgage debt outstanding at the end of 2023 was $130 billion higher than at the end of 2022, a 2.8% uptick, according to data from the Mortgage Bankers Association (MBA). On a quarterly measurement, total mortgage debt outstanding rose by 0.9% ($41.8 billion) to $4.69 trillion in the fourth quarter of 2023. Multifamily mortgage debt as a standalone consideration was up by $25 billion (1.2%) to $2.09 trillion during the fourth quarter, and was also up by $88.5 billion (4.4%) for the entire year. Looking solely at multifamily mortgages, agency and GSE portfolios and MBS held the largest share of total debt outstanding at $1 trillion (48% of the total), followed by commercial banks with $612 billion (29%), life insurance companies with $235 billion (11%), state and local governments with $116 billion (6%), and CMBS, CDO and other ABS issues with $67 billion (3%). “The amount of commercial mortgage debt outstanding grew in the final quarter of 2023 and for the year as a whole,” said Jamie Woodwell, MBA’s head of commercial real estate research. “However, the increase was among the slowest paces since the mid-2010s. Every major capital source increased its mortgage holdings during the year. Mortgage originations were down by roughly 50% in 2023 compared to 2022, but that meant that few loans were paying off, helping maintain portfolio sizes even in the face of lower inflows.”

REDFIN: FEBRUARY’S NEW LISTINGS UP 14.8% FROM LAST YEAR📈 New listings in February were up by 3.8% on a seasonally adjusted basis from January to February, according to data from Redfin (NASDAQ:RDFN), which marks the highest level since September 2022. On a year-over-year basis, February’s new listings were up 14.8%, the largest annual gain since May 2021. Redfin reported active listings 0.8% from a month earlier on a seasonally adjusted basis but squeaked down by a scant 0.1% from one year earlier–the smallest annual decline in months. New listings rose fastest from a year earlier in Texas and active listings rose fastest in Florida – which is no surprise, considering these are the two states that have been building the most homes. “February was a mixed bag for the housing market and the economy,” said Redfin Economics Research Lead Chen Zhao “Housing supply is finally starting to recover in a meaningful way, which is great news for buyers who for months have been competing for a tiny pool of homes for sale. Still, many house hunters are hesitant to pull the trigger because mortgage rates and home prices remain elevated.”

MORTGAGE RATES DIP, BUT STILL CLOSE TO 7% The 30-year fixed-rate mortgage averaged 6.88% as of March 7, down from last week when it averaged 6.94%. A year ago at this time, it averaged 6.73%. The 15-year FRM averaged 6.22%, down from last week when it averaged 6.26%. A year ago at this time, it averaged 5.95%. “Evidence that purchase demand remains sensitive to interest rate changes was on display this week, as applications rose for the first time in six weeks in response to lower rates,” said Sam Khater, Freddie Mac’s chief economist. “Mortgage rates continue to be one of the biggest hurdles for potential homebuyers looking to enter the market. It’s important to remember that rates can vary widely between mortgage lenders so shopping around is essential.”

📌 Choosing the Best First-Time Homebuyer Loan 🔹 Assess your finances: A good credit score and a low DTI ratio can help you qualify for a mortgage, but you will also need to determine the size of your down payment and make sure you have cash for closing. You don't necessarily have to put down 20%: Some loans, including conventional mortgages, may require just 3%. Closing costs are between 3% to 5% of your loan amount. 🔹 Determine the type of mortgage you want: Look at the variety of mortgages available and their requirements. Make sure you meet criteria for credit score, down payment, income, DTI ratio and other important factors. Compare rates from multiple mortgage lenders. You can usually get a quote on a lender's website. A mortgage broker can also offer free help finding the lowest rate for the type of loan you want. Keep your mortgage rate shopping to a two-week window to reduce the negative impact to your credit score. 🔹 Get preapproved for a mortgage. The preapproval process determines how much you can borrow and is necessary before you start home shopping. You will work with lenders to verify your financial information and to obtain loan estimates and preapproval letters. 🔹 Compare estimates from at least three lenders. The estimate will show you the loan terms, including the monthly payment, plus fees and closing costs. Make sure you compare loans by annual percentage rate, or APR, which is the annual cost of the loan with fees, and not just by interest rate.