New Data Shows a Sharp Decrease In Demand Driving Housing Market Cooldown Private Sector Adds 208,000 Jobs Home Price Appreciation Lose Steam

Sharp Decrease In Demand Driving Housing Market Cooldown

HouseCanary Inc., a nationwide brokerage renowned for the accuracy of its real estate valuations, published its most recent Market Pulse report on Wednesday. It covered 22 measures obtained from listings and compared data between September 2021 and September 2022. According to their new survey, the number of homes being taken off the market and price reductions has dramatically increased as mortgage rates climb.

The ongoing lack of housing inventory over the past year has been mostly caused by frequent interest rate increases by the Federal Reserve to combat escalating inflation. Due to the record-high mortgage rates, the post-pandemic housing market has undergone a dramatic turnaround, according to HouseCanary.

As per Jeremy Sicklick, HouseCanary co-founder and CEO, the significant increases in listing removals and price drops are driven by declining demand.

A net of 3,179,129 new listings has been added to the market since September 2021, a 7.6% reduction from the preceding 52 weeks. Monthly new listing volume decreased by 19.2% compared to last year.

Over the last 52 weeks, 3,194,231 properties have gone into contract, representing an 11.1% decrease in the same period in 2021.

Home Price Appreciation Losing Steam

Although U.S. home prices resumed their 127-month consistent annual growth in August, they slowed for the fourth consecutive month to 13.5%, according to CoreLogic’s monthly Home Price Index and HPI Forecast. Since April 2021, the slightest yearly appreciation has been observed.

Similar discoveries were published on Monday by Black Knight, Jacksonville, Florida. According to its monthly Property Price Index, the median home price declined by 0.98% in August, slightly better than the monthly decline of 1.05% in July, which had been upwardly revised. The report also shows the months of July and August saw the most significant monthly price drops since January 2009.

As per Selma Hepp, interim head of CoreLogic’s Office of the Chief Economist, the August results partially reflect continued cooling in buyer demand brought on by rising mortgage rates and changing housing trends sparked by the conclusion of the COVID-19 outbreak. With nearly three-quarters of states reporting drops from July, the 0.7% month-over-month price decrease also points to a decline in homebuyer enthusiasm.

ADP: Private Sector Adds 208,000 Jobs; Annual Pay Up 8%

According to ADP, Roseland, New Jersey, the private sector added 208,000 jobs in September, which released the second of four significant jobs reports this week. However, annual pay growth slowed to just under 8 percent.

The ADP National Employment report indicates small businesses (those with 1–49 people) added 58,000 jobs in September, followed by medium-sized businesses (those with 50–499 employees), which added 90,000 jobs, and big enterprises, which added 60,000 jobs. According to the data, employers in the service sector created 237,000 new positions in December, while companies that manufacture goods lost 29,000 jobs overall.

“There are signs that people are returning to the labor market,” said Nela Richardson, chief economist with ADP. “We’re in an interim period where we’re going to continue to see steady job gains. Employer demand remains robust, and the supply of workers is improving–for now.”

According to the survey, job changers’ pay declined in September after experiencing double-digit year-over-year improvements since the summer of 2021. The worst slowdown in the three-year history of ADP data occurred in their annual salary, which increased by 15.7 percent instead of the revised 16.2 percent advance in August. In September, the yearly salary increase for those who kept their jobs was 7.8%, up from a revised 7.7% in August.

Humor of the Week:

What is a mortgage officer’s favorite Mexican food?

Refied beans

Next week’s potential market-moving reports are:
Monday, October 10th – No Report
Tuesday, October 11th – NY Fed 5-year Inflation Expectations
Wednesday, October 12th – FOMC Minutes
Thursday, October 13th – Cofre CPI, Initial Jobless Claims, Continuing Jobless Claims
Friday, October 14th – Retail Sales, UMich Consumer Sentiment Index

As your mortgage and real estate professional, I am happy to assist you with any information you may need regarding mortgage or real estate trends.I welcome the opportunity to serve you in any way I possibly can. Please feel free to reach me at (800) 216-1047.


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If you’ve been checking interest rates online, you may see loan programs offering 3.7% interest for 30-year fixed rate mortgages, or 3.55% for a 15-year mortgage. But looking again, the same loan also says 3.82% APR. What does that mean? What is APR, anyway?

APR Means “Annual Percentage Rate”

Sometimes the interest rate quoted by lenders will be the same as the APR (Annual Percentage Rate). But APR can also be quoted at a higher percentage than the loan’s basic interest rate. The basic interest rate a lender indicates includes only interest charged on the actual mortgage amount. APR reflects the interest charged when lender fees are included.

Why is it important to know the difference between interest rate and APR?

Let’s say Lender A. is offering a $380,000 30-year fixed rate mortgage for 3.8% interest. But the APR is 4.1%.

Another lender is offering a $380,000 30-year fixed rate mortgage for 3.9% interest. But this lender has fewer additional costs and fees and their APR is 4.0%. Which loan would be the better deal?

The APR isn’t the only criteria for selecting one mortgage lender over another, but it can be an important one because it is tied directly to your monthly mortgage payment. The lower the APR, the lower your monthly payment will be.

You can calculate APR for a loan on your own by using a simple formula: the total cost of fees and interest divided by the principal (amount of the loan), divided by the number of days in a year (365). Then, multiply that number by 100 and you will have the APR.

Most lenders automatically do this calculation for you, but you can find advertisements with a simple interest rate being featured in bold numbers, while the APR is in smaller, less visible numbers. No matter what lender you’re considering, you should always check both the simple interest rate and the Annual Percentage Rate (APR). Thanks to a federal law, the Truth in Lending Act, lenders must provide you with a statement disclosing all the charges related to your loan, and how much it will cost to repay the loan in full before the end of its term.

Knowing the APR for the mortgage you’re considering is important, but just a reminder. The APR for a 15-year fixed rate mortgage isn’t comparable to one for a 30-year home loan or an adjustable rate mortgage (ARM). Working with a home loan professional, you can compare APRs and other loan terms to choose the best mortgage for your needs.

You can find interest-only mortgages, or 15-year fixed or 30-year fixed super jumbo mortgages up to $15 million. Adjustable rate mortgages with varying terms are also available in super jumbo mortgages. You may find the 5/1 ARMS, 7/1 ARMS and 10/1 ARMS more competitive in line with your overall financial needs. Or the interest only options a better  overall fit for your global debt service cash flow objectives.

You don’t need to fit into the standard conventional mortgage “box” if you want to buy a property worth $15 million or more. Working with a knowledgeable independent mortgage broker such as California Platinum Loans, you can evaluate a variety of pathways to getting the super jumbo mortgage you want and need. Think of California Platinum Loans like a jumbo mortgage concierge, who can make your path toward the property and home loan you desire as smooth as possible.  Get in touch with us to learn more how we can make that happen for you today!