June 24, 2021 | Market Update

Market News 6-25-2021

Today’s Market News:

Shortage in U.S. Housing Supply Causing Concern

A new report from the NAR indicates that due to underbuilding and underinvestment, the shortage in housing is substantial, having a real effect on the health of Americans and the economy. With a significant decrease in housing development over the past decade, experts from the NAR indicate that immediate solutions need to be put into place to get America out of this crisis.1

Interest Rates Down, Refinancing on the Rise

For the first time in a month, the average rate for a 30-year fixed-rate mortgage dropped to 3.11%, with refinance applications up 6% and mortgage applications up over 4%, according to the Mortgage Bankers Association.2

Why Real Estate Agents Need to Break Into The Pinterest Space

The visual social media platform where users can pin images and videos for inspiration has continued to grow successful over the years and has become a prime advertising space for real estate agents who want to build their business and drive traffic to their website. In addition, it offers real estate agents the opportunity to create a board for listings, share tips on interior design and host contests and giveaways. Pinterest can reach over 200 million people via advertising, according to Hootsuite.3

Record-Breaking Household Wealth in America Hits $136.9 Trillion

According to the latest report from the Federal Reserve, household wealth is up $5 trillion in Q1 of 2021, reaching the highest household wealth in America to-date. And as home mortgage borrowing increases, the report also showed that household debt rose in Q1, with an annualized rate of 6.5%, and $11 trillion in home mortgage debt. As the pandemic diminishes and states reopen, economic growth should continue to increase.4

Servicers Cleared to Use Digital Verification for Mortgage Assistance Applications

Fannie Mae is now allowing mortgage servicers to use third-party vendors for digital verification of income and asset information on mortgage assistance applications, effective immediately. This change will allow for mortgage servicers to catch up on their backlog of borrower requests. Servicers will be required to acquire legal authorization to use third-party vendors, and verification reports must be retained in loan files.5

Sources: 1nar.realtor, 2cnbc.com, 3rismedia.com, 4reuters.com, 5housingwire.com