Investor Home Purchases Sagged in Q4

As home sales surged and prices soared, real estate investors were no small part of the mix. CoreLogic says the share of home sales going to investors, large and small, climbed steadily during the pandemic, rising from around 14 percent in the spring of 2020 to a peak of 26.9 percent last October. The data in the CoreLogic report, authored by economist Thomas Malone, is too limited, covering only the fourth quarter of 2021, to draw any solid conclusions, but they may be an early indication that investors are rethinking their business strategies. Moore says that, after accounting for the largest share of home sales transactions in CoreLogic’s records in October, the investor portion slipped the following month for the first time since July 2020. It wasn’t a big decline, 1.5 percentage point, but by year-end the share of home purchases was at 20.4 percent. Moore adds that, while the percentage share fell, the absolute number of homes purchased was in line with historical winter investor activity. In as shown in figure 2, the number of homes purchased by investors each month was fairly consistent pre-pandemic regardless of overall market movement. Malone says the trendline indicates that first quarter 2022 data may show that the investor share ticked back up in January and February if owner-occupied home sales slowed as they typically do in the winter months. It will be investor purchases in the summer months, when owner occupied buyers are most active, that will tell us whether the investor purchasing spree is here to stay or if investors will revert to their pre-pandemic level of buying.

April 22, 2022 Download our Mobile App: Download our Mobile App: Housing News Investor Home Purchases Sagged in Q4 As home sales surged and prices soared, real estate investors were no small part of the mix. CoreLogic says the share of home sales going to investors, large and small, climbed steadily during the pandemic, rising from around 14 percent in the ... (read more) MBS Commentary MBS Live Recap: Abnormally Uneventful Friday For Bonds Abnormally Uneventful Friday For Bonds Whether we're talking about actual Fridays or Thursdays that fall before 3-day weekends, the last trading day of each of the past 4 weeks has not been great for the bond... (read more) Mortgage Rates Mortgage Rates Are Even Higher Than You've Been Told! 30 Yr. Fixed Rate 5.39% +0.01% Rate Change Points Mortgage News Daily 30 Yr. Fixed 5.39% +0.01 0.40 15 Yr. Fixed 4.82% +0.03 0.40 30 Yr. FHA 5.00% 0.00 0.00 30 Yr. Jumbo 4.62% +0.03 0.00 5/1 ARM 4.30% +0.05 0.50 Updates Daily - Last Update: 4/22 15 Yr. Fixed Rate 4.82% +0.03% Rate Change Points Freddie Mac 30 Yr. Fixed 5.11% +0.11 0.80 15 Yr. Fixed 4.38% +0.21 0.80 5/1 Yr. ARM 3.75% +0.06 0.30 Updates Weekly - Last Update: 4/21 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 4.80% +0.30 0.56 15 Yr. Fixed 4.01% +0.25 0.55 30 Yr. Jumbo 4.40% +0.29 0.44 Updates Weekly - Last Update: 3/30 MBS / Treasuries MBS Live Recap: Abnormally Uneventful Friday For Bonds UMBS 30YR 4.0 99.28 -0.06 Price / Yield Change MBS UMBS 4.0 99.28 -0.06 UMBS 4.5 101.45 -0.19 GNMA 4.0 99.80 -0.09 GNMA 4.5 101.67 -0.11 Pricing as of: 4/22 5:21PM EST 10 Year US Treasury 2.9045 -0.0031 Price / Yield Change US Treasury 2 YR Treasury 2.676 +0.002 5 YR Treasury 2.940 -0.024 7 YR Treasury 2.952 -0.016 10 YR Treasury 2.905 -0.003 30 YR Treasury 2.950 +0.023 Pricing as of: 4/22 5:21PM EST Latest Video Fed Chair Jerome Powell on inflation and his outlook for the U.S. economy 'I don't think a 75 basis point hike is needed,' says Cleveland Fed Preside... The 2pm Bond Report - April 22, 2022 Fed: Net worth of households, nonprofits rose to $141.7T in Q2 2021 Around the Web Calculated Risk Blog Yellen: Inflation May have Peaked Eye on Housing High Home Prices Are Leading More Buyers To Give Up Home Search Calculated Risk Blog "Examining Resolution of Mortgage Forbearances and Delinquencies" CNBC Powell says taming inflation 'absolutely essential,' and 50 basis point hike possible for May Reuters Some investors tiptoe back into Treasuries, as hawkish Fed clouds outlook CNBC Cuts to unemployment benefits didnt spur jobs, says report Calculated Risk Blog Final Look at Local Housing Markets in March and Housing Inventory Milestones to Watch Eye on Housing Fewer Prospective Buyers Are Actively Searching for a Home Reuters Oil Extends Losses on Growth Concerns and Shanghai Lockdown Reuters Traders move to price in 80 bps of ECB rate hikes by year-end Calculated Risk Blog Q1 GDP Forecasts: Around 1% Calculated Risk Blog Hotels: Occupancy Rate Down 5.6% Compared to Same Week in 2019 Reuters Japan March consumer prices rise at fastest pace in over 2 years

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