iMove Chicago- Real Estate Rentals and Sales

Pending home sales plunge to two-decade low

December 3,2023 | By ERICKSON J OCASIO

Mortgage rate surge triggers historic drop in pending sales in October. With mortgage rates going off the charts, pending home sales fell to their lowest level in over two decades, according to the National Association of Realtors (NAR). The number of contract signings for existing homes dropped 1.5% month over month and 8.5% year over year in October, bringing NAR's Pending Home Sales Index (PHSI) to 71.4 – the lowest since the trade association began keeping records in 2001. Housing industry experts attributed this slump to October's peak mortgage rates. "During October, mortgage rates were at their highest, and contract signings for existing homes were at their lowest in more than 20 years," NAR chief

Bank of America to pay $12 million over reporting of false mortgage data

December 2,2023 | By ERICKSON J OCASIO

Fines will go into relief fund. Bank of America Corp. agreed to pay $12 million in fines for submitting false mortgage-lending information to the US government, regulators said. From early 2016 through late 2020, some of the bank’s loan officers failed to ask mortgage applicants for their race, ethnicity and sex, as required under federal law, and then falsely recorded that the customers declined to provide the information, the Consumer Financial Protection Bureau said in a statement Tuesday. The fines will go into the bureau’s victim-relief fund, according to a consent order. “Bank of America violated a federal law that thousands of mortgage lenders have routinely followed for decades,” CFPB Director Rohit Chopra said in the statement. “It is illegal to report false information to federal regulators, and we will be taking additional steps to ensure t

RE/MAX settles out of court over alleged commission collusion case

November 29,2023 | By ERICKSON J OCASIO

Real estate franchisor denies any wrongdoing in high-profile class action lawsuit. Real estate franchisor RE/MAX has secured preliminary approval from a Missouri court for a settlement in high-profile class action lawsuits involving claims around commission-sharing structures. On October 5, RE/MAX agreed to a settlement involving a $55 million payment and changes to its business operations. This agreement aims to resolve the pending litigation and avoid the uncertainties and costs associated with protracted legal battles. Despite agreeing to the settlement, the firm continued to deny any wrongdoing as alleged in the lawsuits. This lawsuit is part of a larger legal issue in the industry, highlighted by a commission collusion case involving the National Association of Realtors (NAR). The suit scrutinizes the standard commission model in real estate transactions, alleging that i

US existing-home sales plummet in October

November 29,2023 | By ERICKSON J OCASIO

Sales saw their biggest slump for 13 years. Sales of previously occupied homes in the US plunged in October, with rising borrowing costs and still-high prices contributing to the slowest pace of activity for over 13 years. Last month’s sales figures for existing homes were down 14.6% compared with the same time in 2022, and by 4.1% on a monthly basis to a seasonally adjusted annual rate of 3.79 million, according to the National Association of Realtors (NAR). The results missed analyst expectations, with economists on average having anticipated a clip of 3.9 million seasonally adjusted sales, according to FactSet. October’s figures mean sales have now dropped for five months in a row as prices continue to tick upwards despite the market cooldown. The median price of an existing home was up 3.4% on a year-over-year basis to $391,800, the NAR said, marking the

Upswing in office delinquencies add to commercial real estate distress

November 14,2023 | By ERICKSON J OCASIO

Office mortgage delinquency rates are now higher than those of retail properties. Mortgage delinquency rates for commercial and multifamily properties rose for the fourth consecutive quarter, with office delinquencies driving the increase in the third quarter. The early delinquency rate inched up four basis points to 97.3% at the end of the third quarter, according to the Mortgage Bankers Association’s recent Commercial Real Estate Finance (CREF) Loan Performance Survey. Loans that were 90+ days delinquent, or in REO, rose to 2.2%, up from 1.7% in the previous quarter. Jamie Woodwell, MBA’s head of commercial real estate research, pointed to a notable shift in the market, highlighting that: “The delinquency rate for loans backed by office properties now exceeds those of loans backed by retail and hotel properties.” Office property loans saw anothe

US foreclosure rates surge in Q3 2023

November 14,2023 | By ERICKSON J OCASIO

Economy rebounds, but foreclosure filings tell a different story. Amid a turbulent economic landscape, the US has witnessed a significant uptick in foreclosure filings in the third quarter. A new ATTOM report paints a concerning picture, with foreclosure filings reaching 124,539, which marks a 28% surge from the last quarter and a significant 34% rise year-over-year. Delving deeper into the monthly data, September alone saw an 11% increase in foreclosure filings, up to 37,679 properties. “The number of new cases filed by lenders in the third quarter did rise just a small amount from the same period last year and actually dipped a bit quarterly – signs that the upward pattern may be easing,” ATTOM’s CEO Rob Barber said. “But foreclosure starts are nearly back to where they were two years ago when the federal government lifted a pandemic-related mo

Skyrocketing rates lead to sharp decline in mortgage applications

October 23,2023 | By ERICKSON J OCASIO

30-year fixed mortgage rate hits staggering 7.7%, dampening homebuying activities. Mortgage applications plummeted to their lowest level in 28 years after weeks of consecutive increases in mortgage rates. The Mortgage Bankers Association (MBA) reported today that its Market Composite Index – a measure of loan application volume – fell 6.9% in the week ending October 13, marking the lowest level since 1995. This decline is attributed to the surge in the 30-year fixed mortgage rate, which has been on an upward trajectory for six consecutive weeks, reaching 7.7% – a peak not seen since November 2000. MBA's data also revealed a 10% decrease in the refinance index from the previous week and a 12% decline compared to last year. The seasonally adjusted purchase index fell by 6%, while the unadjusted version saw a 5% reduction, representing a 21% year-over-

Pending home sales plunge to two-decade low

Bank of America to pay $12 million over reporting of false mortgage data

RE/MAX settles out of court over alleged commission collusion case

US existing-home sales plummet in October

Upswing in office delinquencies add to commercial real estate distress

US foreclosure rates surge in Q3 2023

Skyrocketing rates lead to sharp decline in mortgage applications

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