Guardian Residential Lending Industry News, July 2-9, 2020

Guardian Residential Lending Industry News, June 25 – July 2, 2020
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In the Know: A Roundup of This Week’s Local and National Real Estate Stories

6 Reasons Why This Is Actually the Best Time in Years To Sell a House (, July 9)

Talk about a strange summer. Between the continued threat of the novel coronavirus, a wobbly economy, and layoffs happening left and right, it’s no surprise that many who may have hoped to sell their home this season are wondering whether to put those plans on hold—or they’ve already thrown in the towel.

Such hesitancy is understandable. Yet the irony is that, after closely examining the current housing market conditions, many real estate experts believe this summer could be one of the best times to sell a home in years.



Homebuyer mortgage demand spikes 33% as rates set another record low (CNBC, July 8)

-Mortgage applications to purchase a home rose 5% for the week and were a remarkable 33% higher than a year ago.

-Home price gains continue to accelerate, so low mortgage rates are giving buyers much-needed help.



Tappable home equity rises to record $6.5 trillion (HW, July 6)

More than 75% of homeowners with tappable equity have mortgage rates above 3.5%, Black Knight says

Tappable home equity, meaning the equity homeowners could borrow against while leaving a 20% buffer, rose to a record $6.5 trillion in the first quarter, Black Knight said in a report on Monday.

More than 75% of homeowners with tappable equity have interest rates above 3.5%, the report said. With rates currently near 3%, the amount they would save each monthly likely would outweigh the cost of the transaction, the report said.


Is now a good time to buy a home? Over 60% of surveyed Americans say yes (HW, July 7)

Fannie Mae’s Home Purchase Sentiment Index, a composite index designed to track consumers’ housing-related attitudes, intentions and perceptions, increased nine points in June to 76.5. Although the HPSI is down 15 points year-over-year, June’s gain marked the second rise in HPSI since April’s almost record low.

According to the report, 61% of Americans now believe it is a good time to buy a home – an increase of 9 percentage points from May’s 52%. The share of respondents who say it is a good time to sell also increased to 41% from 32% the month prior.


The rate of Black homeownership varies significantly by metro area (HW, July 2)

Although the smallest gap between Black and white homeownership is still more than 20 points

According to the Census Bureau, in the 2000s the Black homeownership rate was 46.3%, compared to a Hispanic homeownership rate of 45.7% and a white homeownership rate of 71.3%. However, the Hispanic homeownership rate has gained during the intervening years, to 48.9% in the first quarter of 2020.

Factors that contribute to the lack of Black homeownership include redlining, gentrification and student loan debt.


Forbearance rate declines after June’s economic improvements, but will it hold? (HW, July 8)

With COVID-19 infections in the U.S. surging above 3 million, jobs recovery could be stymied

The U.S. mortgage forbearance rate fell to 8.39% in the last week of June, down from 8.47% a week earlier, as businesses reopened and the jobs market improved, according to a report on Tuesday from the Mortgage Bankers Association. But will it hold?


Zillow Offers resumes in five more markets, bringing the total to 20 out of 24 markets (HW, July 7)

Web traffic to for-sale listings keeps rising

Zillow announced Tuesday morning that it would resume buying homes via Zillow Offers in five more markets, making 20 out of its 24 markets operational again since pausing the service due to COVID-19.

Home sellers in Los Angeles; Riverside, California; Minneapolis; Cincinnati; and Orlando, Florida can once again sell their homes directly to Zillow Offers.

About a month ago, iBuying resumed in Atlanta; Dallas; San Antonio; Austin, San Diego and Sacramento, California.


Mental coach shares the 4 mindsets that help you succeed (and the ones that hold you back) (CNBC, July 7)

There are four sets of mindsets that can affect success. Having one of the following mindsets over the other can lead to “enhanced success,” says Gottfredson.

  1. Have a growth mindset vs. a fixed mindset
  2. Have an open mindset vs. a closed mindset
  3. Have a promotion mindset vs. a prevention mindset
  4. Have an outward mindset vs. an inward mindset


Thanks for reading, and be well.