Guardian Residential Lending Industry News, October 8-15, 2020

Guardian Residential Lending Industry News, October 1-8, 2020
October 8, 2020
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In the Know: A Roundup of This Week’s Local and National Real Estate Stories

 

Average 30-year mortgage rate falls to another all-time low (HW, Oct. 15)

The average U.S. mortgage rate for a 30-year fixed loan fell to 2.81% this week, the lowest in Freddie Mac’s survey history, the mortgage giant said in a report on Thursday. The rate fell six basis points from the week prior and is now five basis points lower than the original all-time low set in mid-September.

The average fixed rate for a 15-year mortgage was 2.35%, falling from last week’s 2.37% — matching the record set three weeks ago.

There have now been 12 consecutive weeks when average mortgage rates have been below 3% and this is the tenth record broken this year, said Sam Khater, Freddie Mac’s chief economist.

30-year fixed loan now 5 basis points below the original record set in September

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Luxury Housing Market Booms as Affordable Home Sales Falter (The M Report, Oct. 14)

The third quarter saw the largest increase of luxury home sales since 2013 with a 41.5% increase year-over-year, according to a report from Redfin.

At the same time, “expensive” home sales rose by just over 17% year-over-year. Mid-priced home sales went up by 3% and affordable homes went down by 4.2%. The most affordable housing sales decreased even further, declining by 4.8% year-over-year.

Portland, Oregon and West Palm Beach, Florida also saw major gains in luxury housing sales, increasing 60.6% and 59.7% year-over-year, respectively.

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Portland apartment rents are falling, outpacing declines elsewhere (The Oregonian, Oct. 15)

Portland rents were down 5.7% in September compared to the same time last year, with median rents sitting at $1,155 for a one-bedroom apartment and $1,346 for a two-bedroom apartment, according to online rental platform Apartment List.

…many major cities across the United States are seeing declines in rent, while the rents in nearby suburbs are holding steady, or even increasing. That trend speaks to a shift in demand and preferences brought on by the pandemic, he said. With businesses still closed and people working from home without a need to live close to their offices, suburban areas where renters can have more space and access to the outdoors have become more desirable.

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Here are the 10 Oregon counties where home values are rising the fastest (Portland Business Journal, Oct. 12)

  1. Union County
  2. Jackson County
  3. Marion County
  4. Yamhill County
  5. Clackamas County
  6. Jefferson County
  7. Crook County
  8. Washington County
  9. Multnomah County
  10. Deschutes County

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Hottest ‘Hoods Q3 2020: Despite pandemic, Portland-area home sales outpace last year (Rankings) (Portland Business Journal, Oct. 14)

For Portland metro home sales, low mortgage rates and a willingness to move during a global pandemic fueled a strong start to the back half of the year.

Economists with home-seller Zillow have said that nationally, the housing market is far different from that of the Great Recession — when distressed sales and oversupply were pulling home values down — and prices have actually grown in the Portland market.

Despite the continued novel coronavirus threat, thousands more homes sold in the Portland metro area during the third quarter this year than in the same time period in 2019. Nearly 11,900 homes sold during Q3 2020 versus about 9,500 in Q3 2019, a 25 percent increase.

  1. 97229 Northwest Heights / Cedar Mill / Bethany
  2. 98682 Orchards / Livingston, WA
  3. 97123 Hillsboro
  4. 97007 Beaverton / Aloha
  5. 97206 Foster / Powell

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Portland ranks high on annual list of best places to live (Portland Business Journal, Oct. 14)

Portland has ranked in the top 10 in U.S. News & World Report’s annual list of best places to live in the United States.

The city comes in ninth on the list of 150 cities, just below Fayetteville, Arkansas, and ahead of San Francisco.

The recognition is a contrast to Portland’s portrayal as a hive of civil unrest and urban chaos since nightly protests were set off by the May death of George Floyd. The city has been a regular target of President Donald Trump and right-wing media wanting to contrast “law and order” talk with Democratic-run urban areas.

According to U.S. News, “Portland is a well-rounded region with more than just the offbeat shops and events. Museums, art galleries and the oldest public library on the West Coast feed a population with more academic degrees than the national average.” The report also points out its outdoor activities, sports teams, independent retailers and many startup businesses.

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Fannie Mae’s Doug Duncan offers his predictions for 2021 (HW, Oct. 8)

The economist shares his thoughts on the unemployment rate, housing starts, the likelihood of a “W-shaped recovery” and more

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Home prices rose by record numbers last week (HW, Oct. 9)

Median home sale price is at $320,625

Home sales are up, and so are the prices.

Median home sale prices have made the largest increase on record, jumping 15% year over year for the week ending Oct. 4. The previous largest increase was 14.5% seen in September 2005, according to Redfin analysis of the CaseShiller national home price index and analysis of MLS data.

As of last week, the median home sale price in America was $320,625, compared to $279,090 a year ago.

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Top 15 Fastest Growing Cities in America (M Report, Oct.13)

WalletHub analyzed 515 cities of various sizes across the country according to their jobs, economy, and sociodemographics to determine the fastest growing cities. Each city was assigned a total score accounting for 17 metrics, such as population growth, job growth and increase in new businesses.

Number 2 is Bend, Oregon – Total Score: 79.04

Bend, Oregon is ranked as the fastest growing midsize city in the U.S. and is ranked in third place for “Jobs and Economy.”

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Despite pandemic, Portland-area home sales outpace last year (Rankings) (PBJ, Oct. 13)

For Portland metro home sales, low mortgage rates and a willingness to move during a global pandemic fueled a strong start to the back half of the year.

Economists with home-seller Zillow have said that nationally, the housing market is far different from that of the Great Recession — when distressed sales and oversupply were pulling home values down — and prices have actually grown in the Portland market.

Despite the continued novel coronavirus threat, thousands more homes sold in the Portland metro area during the third quarter this year than in the same time period in 2019. Nearly 11,900 homes sold during Q3 2020 versus about 9,500 in Q3 2019, a 25 percent increase.

READ MORE…

San Francisco Apartment Rents Crater up to 31% (Bloomberg, Oct. 13)

San Francisco’s sky-high apartment rents are falling fast.

The median monthly rate for a studio in the city tumbled 31% in September from a year earlier to $2,285, compared with a 0.5% decline nationally, according to data released Tuesday by Realtor.com. One-bedroom rents in San Francisco fell 24% and two-bedrooms were down 21%, to $2,873 and $3,931 a month, respectively.

The figures underscore how the pandemic has roiled property markets and changed renter preferences. With companies allowing employees to work from home, people have fled cramped and costly urban areas in droves, seeking extra room in the suburbs or cheaper cities. Tech firms, in particular, have told staff they should expect to work remotely well into next year — and may be able to do so permanently.

“Renters are likely heading to more-affordable areas where they can get more space at a cheaper price,” Danielle Hale, Realtor.com’s chief economist, said in a statement. “The future of rents in many of these cities will depend on whether companies require employees to work from the office or continue to allow remote work.”

Bargains can be had in other high-cost areas, too. Studio rents dropped 15% to $2,495 a month in Manhattan. In King County, Washington, which includes Seattle, they fell 12% to $1,490.

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