Marketing

Spring Awakening: Housing Market’s Delinquencies, Inventory, and Action Plan

March 12, 2024

Share

What’s your plan?

Reach out and let’s talk about it.

Click HERE and complete a short contact form.


Spring Awakening: Housing Market’s Delinquencies, Inventory, and Action Plan

The housing market is showing signs of life as we approach the spring season. With FHA delinquencies reaching nearly 11%, the sweet smell of inventory is in the air. But the question remains: will these delinquencies turn into defaults, foreclosures, and ultimately sales? If so, this could be a positive development for the market.

Adding to the optimism, the housing market just witnessed its biggest inventory spike in three years, with new listings climbing 12.9%. Total inventory is also improving, suggesting that new home builders are finding their footing. This, along with the rise in delinquencies, is fantastic news for the industry.

As spring approaches, it’s time to ask yourself: what are you doing right now to prepare for the upcoming season? If your answer is “I’m doing enough,” then you’re on the right track. But if you’re unsure or feel like you could be doing more, now is the time to take action.

The good news continues with rate lock volume rising 5% from January to February, driven by a notable 8.3% increase in purchase activity. This increase outpaced the decrease in refinancing activity, which fell by 22.5% for rate-and-term refis and by 3.1% for cash-out loans. It’s worth noting that 86% of origination’s in February consisted of purchase mortgages, with refis accounting for only 14%.

Purchase lock activity in February 2023 was up 7% compared to January, marking a significant improvement from the 2% increase seen in the previous year. This also represents the smallest year-over-year decrease since the Federal Reserve began hiking interest rates in March 2022.

As the mortgage and real estate industries continue to show signs of improvement, it’s crucial to have a plan in place. If you don’t have a plan, now is the time to develop one. Reach out to industry experts who can provide you with proven strategies and guidance to help you navigate the changing market conditions.

In conclusion, the housing market is showing promising signs as we head into the spring season. With rising delinquencies, increasing inventory, and a surge in purchase activity, opportunities are on the horizon. The key to success lies in having a well-defined plan and taking action. So, what’s your plan?

.