Today's Headlines - Realty Times
Posted On Monday, 29 May 2023 19:58
Posted On Monday, 29 May 2023 09:46 Written by
Posted On Monday, 29 May 2023 08:48 Written by
Posted On Monday, 29 May 2023 00:00 Written by

Rates continue to feel pressure as bank failures, inflation, and continued market discomfort about the economic path we are on with the debt ceiling issues before us. Despite that, we still see new buyers entering the market and more demand for homes than there is supply in most markets. Now many will point to the lower number of loans being done, and that is certainly true, but what you are missing is that there are fewer people and companies in the mortgage arena to handle that business! For those that are working, business is BOOMING! The key is, you must be using specific strategies and have a plan to get in front of these opportunities.

The numbers of mortgage companies and originators continue to fall; but what is missing, are the numbers of banks and credit unions who have left the mortgage business completely as the overhead and the risk rises. Those that once jumped into the mortgage market to buy up market share with portfolio lending, are being quick to exit that business because their boards are concerned that rising rates and falling deposits reduces the CASH VALUE of those holdings. No bank wants to book losses at the same time depositors are pulling their money out!

For those of us that have understood the value of the bank and credit union relationships, we have seen a dramatic number of referrals on great business that these banks and credit unions are no longer interested in doing. While we once partnered with these institutions to take on their turndowns, now we are getting the opportunity to see it all!

The small bank/credit union strategy has always been a solid and reliable strategy to build great referral partner relationships, but now it has opened the door to a significant stream of great mortgage opportunities. With fewer and fewer originators out there to pick up these deals, those working the plan find it to be working VERY VERY WELL!

If you have questions or comments: This email address is being protected from spambots. You need JavaScript enabled to view it.

Posted On Monday, 29 May 2023 00:00 Written by
Posted On Saturday, 27 May 2023 08:18

Redfin reports that while many sellers in some parts of the country are handing out freebies to attract buyers as high rates dampen demand, other markets have so few homes for sale that concessions aren’t necessary

Home sellers gave concessions to buyers in 42.9% of U.S. home sales during the three months ending April 30, up from 25.5% a year earlier, according to a new report from Redfin (, the technology-powered real estate brokerage. That’s just shy of the 45.6% record-high hit in February.

The share of home sellers providing concessions—which include things like money toward repairs, closing costs and mortgage-rate buydowns—has inched down from February’s peak due to typical seasonality. Concessions become less common in the early spring because that’s when more buyers typically enter the market, increasing competition and giving sellers more power. But this spring, concessions posted a smaller decline than the last two years because high mortgage rates have made it so sellers in cool markets need to take extra measures to woo and secure buyers. The likelihood of a seller giving a concession dropped 6% from February to April, compared with 18% drops during the same period in 2021 and 2022. This spring’s smaller drop corresponds with less homebuyer competition, with 46% of offers written by Redfin agents facing a bidding war in April, down from 59% a year earlier.

Sellers are throwing in freebies to woo buyers at a higher frequency than last year for several reasons:

  • Buyers backing out of the market. Many house hunters have put their buying plans on hold because rising mortgage rates have made homeownership more expensive. And while home prices have fallen 4% from a year ago, that’s not enough to offset the cost of higher rates, with monthly mortgage payments at a record high. Another factor dampening demand is the lack of supply, with fewer people listing their homes for sale as they hold onto comparatively low mortgage rates.
  • Sellers who need to sell. Many people who are listing their homes are moving because they need to; maybe they got a divorce or secured a new job in a different state. Those sellers may be willing to provide concessions because they need to sell their home quickly.
  • Homebuilders offering freebies to attract buyers. There was a surge in homebuilding during the pandemic as builders tried to capitalize on the moving frenzy, especially in pandemic homebuying hotspots. Now that rising rates have pushed many buyers out of the market, builders are trying to sell off their backlog of inventory by offering perks like money toward the buyer’s closing costs, gift cards and even free cars.

While buyers have the upper hand in some markets, that’s not the case everywhere. In some areas, there are so few homes for sale that homebuyers are encountering competition. And when buyers are involved in a bidding war, they typically won’t win if they ask for concessions like mortgage-rate buydowns or help with closing costs.

“High mortgage rates and low supply have thrown the housing market out of whack, and each deal is different. Some buyers are asking sellers for the sun, the moon and the stars in addition to offering below the asking price, and some are requesting no extras because they’re so motivated to secure one of the few homes on the market,” said Boise, ID Redfin agent Shauna Pendleton. “The one consistency in the market right now is homebuilders handing out freebies. Most builders are offering concessions equal to about 3% of the sale price, which gets credited to buyers at closing, to offload properties. Buyers are using the extra cash to cover closing costs or buy down their mortgage rate.”

Sellers are also accepting less money for their homes

Just over one in seven (15.7%) home sellers dropped their asking price in addition to providing a concession to the eventual buyer during the three months ending April 30. That’s nearly four times the share of a year earlier (4.2%).

Roughly one in five (20.5%) of homes that sold during the period had a final sale price below the asking price in addition to a concession, up from about 7% a year earlier. And about one in 10 (9.4%) had all three: A concession, a price drop and a final sale price below the original list price. That’s up from just 2.2% a year earlier.

Those shares have all inched down from record highs set in February, which is typical for this time of year, and 2023’s declines are actually smaller than the declines in 2021 and 2022.

Sellers concessions up most in pandemic homebuying boomtowns

Tampa, FL saw a bigger year-over-year jump in seller concessions than any other metro Redfin analyzed. Sellers in Tampa gave concessions to buyers in 58% of home sales during the three months ending April 30, up from 12% a year earlier.

The next-biggest increases were in Nashville, TN (49%, up from 5.6%), Salt Lake City (46.8%, up from 12.3%), Seattle (45.7%, up from 11.7%) and Raleigh, NC (64.6%, up from 31.2%).

The share of sellers giving out concessions rose over the last year in all metros Redfin analyzed.

Concessions are most common in Phoenix, San Diego and Raleigh

Sellers in Phoenix gave concessions to buyers in 68.5% of home sales in the three months ending April 30, the highest share of the metros Redfin analyzed and nearly double 35.9% a year earlier.

San Diego (66.1%), Raleigh (64.6%), Las Vegas (59.1%) and Denver (58.1%) rounded out the top five. Like the metros where concessions rose most, these are all places where homebuying demand skyrocketed during the pandemic and is now waning.

To view the full report, including charts, metro-level data, and methodology, please visit:


Posted On Friday, 26 May 2023 12:52 Written by
Posted On Thursday, 25 May 2023 19:56
Posted On Thursday, 25 May 2023 19:52

Mortgage rates rose dramatically in 2022, with the average rate on a 30-year, fixed mortgage doubling between January and December. Rates haven’t grown nearly as much this year, hovering between 6% and 7% — that said, they’re still considerably higher than at this time last year.

While it’s common knowledge that higher mortgage rates make monthly payments more expensive, it can be difficult to picture how much a higher rate can impact payments on a loan. With that in mind, LendingTree used data collected from users of our online mortgage marketplace to put a dollar amount on how rising rates could affect the cost of a mortgage. Here's what we found. 

  • 30-year, fixed-rate mortgage APRs increased by an average of 1.85 percentage points across all 50 states between April 2022 and April 2023. 
  • Nationwide, rising APRs caused calculated mortgage payments to increase by an average of $121.09 a month. To put that figure into perspective, that monthly increase amounts to an average of $1,453.10 in extra costs each year and an average of $43,593.12 in additional costs over the lifetime of a 30-year loan.
  • Calculated mortgage payments increased the least in North Dakota, Iowa and Wisconsin. 
  • Hawaii, New York and California saw mortgage payments increase the most. 

You can check out our full report here:

LendingTree's Senior Economist and report author, Jacob Channel, had this to say:

"Fortunately, mortgage rates have stopped climbing so dramatically over recent months. While rates have fluctuated up and down on a week-to-week basis over the last several months, they haven’t experienced the same consistent gains that they did last year. This trend could continue over the coming months as the Fed appears likely to have halted hikes to its target Federal Funds Rate for the time being, and as inflation continues to come down.” 

Posted On Thursday, 25 May 2023 06:46 Written by
Posted On Thursday, 25 May 2023 00:00 Written by
Posted On Wednesday, 24 May 2023 19:32
Posted On Wednesday, 24 May 2023 19:29
Posted On Wednesday, 24 May 2023 19:25

Agent Resource

Before You List

Realty Times

From buying and selling advice for consumers to money-making tips for Agents, our content, updated daily, has made Realty Times® a must-read, and see, for anyone involved in Real Estate.