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Conquering the Realtyverse
By Jeff Walton & Kelly Guest
While the parent companies of Homes.com and Realtor.com duke it out in court over alleged theft of trade secrets, Rocket Companies busted a move and announced today that it has entered into an agreement to acquire digital real estate brokerage Redfin and its approximately 50 million monthly site visitors. The release says Redfin also comes with a million active purchase and rental listings and staff of 2,200+ real estate agents across 42 states. Describing the deal, Rocket Companies CEO Varun Krishna said, "Together, we will improve the experience by connecting traditionally disparate steps of the search and financing process with leading technology that removes friction, reduces costs and increases value to American homebuyers.”
Rocket is also taking off from the great white north: NMN and others report that the company is ceasing operations in Canada by the end of June to focus on the U.S.
In other disruptive news, National Association of Realtors startup rival American Real Estate Association (AREA) announced its “Clear Cooperation Policy,” that “modernizes how listings are marketed while preserving transparency and professional cooperation, [ ] avoids the rigid constraints that have frustrated agents and brokerages alike, and prevents unnecessary restrictions while maintaining an open and cooperative marketplace.”
CHATTER
Crypto Mortgage Pioneer Milo Surpassed $65M in Volume
Milo offers up to 100% financing on home purchases, with loan amounts up to $5 million, eliminating the need for a cash down payment. By pledging digital assets as collateral, clients can invest in real estate while maintaining exposure to crypto appreciation. Milo safeguards client assets through industry-leading custodians Coinbase and BitGo while operating under strict regulatory oversight as a Soc2-compliant licensed lender.
Homeowners' Insurance Up 61% in 5 Years: ICE Mortgage Technology's March Mortgage Monitor
Property insurance costs for mortgaged single-family homes rose by a record $276 (+14%) to $2,290 in 2024 with average premiums now up 61% over the past 5 years. Premiums in Florida increased by less than half the national average on a percentage basis, but rates there remain among the highest in the country.
Cut Timber, Cut Housing Costs: Trump Admin Issues Executive Order to Increase Timber Production
The order states: "The United States has an abundance of timber resources that are more than adequate to meet our domestic timber production needs, but heavy-handed Federal policies have prevented full utilization of these resources and made us reliant on foreign producers. Our inability to fully exploit our domestic timber supply has impeded the creation of jobs and prosperity, contributed to wildfire disasters, degraded fish and wildlife habitats, increased the cost of construction and energy, and threatened our economic security."
MBA Issued Statement of Support for Pulte & McKernan
Mortgage Bankers Association President & CEO Bob Broeksmit, CMB, released the following statement after the Senate Banking Committee’s votes last week: “We appreciate the importance being placed on William Pulte’s and Jonathan McKernan’s nominations to lead the FHFA and CFPB, respectively, and urge Senate leadership to schedule floor votes on their confirmations as soon as possible.”
Angel Oak Mortgage REIT reported a Q424 net loss of -$15.1M. For the year, the company had a 28% increase of 28% versus FY 2023 - net interest income of $28.9 million.
Guild announced total originations of $24.0 billion for 2024, up 57% from $15.3 billion in the prior year. “Our team created positive momentum throughout the year as we increased our total originations by 57% over the prior year enabling us to deliver strong earnings and return on equity." - Terry Schmidt, Guild CEO
MOVING & SHAKING
Rate names top originator Shant Bonosian as President of Rate Mortgage, Victor Ciardelli remains CEO and President of all Rate companies.
loanDepot CEO Frank Martell has stepped down, company Founder, Chairman of the Board, and controlling shareholder Anthony Hsieh rejoins the executive leadership team as Executive Chairman of Mortgage Originations.
The National Association of Realtors appointed Matthew Cenedella CFO, replacing John Pierpoint.
Costar Group Completed the Purchase of Matterport
The Homes.com parent says the acquisition will drive the growth of digital twin technology across the global commercial and residential real estate sector. Matterport pioneered 3D digital twins, enabling property owners, buyers, and renters to experience properties with immersive accuracy from anywhere in the world.
Dream Finders Homes acquired Cherry Creek Mortgage via its wholly-owned subsidiary Jet Home Loans.
CMG Financial named Tom James SVP of Joint Venture Channel.
FirstClose named John Aslanian as Chief Revenue Officer to lead FirstClose's go-to-market activity.
Union Home Mortgage (UHM) Acquired Nations Reliable Lending: NRL Mortgage closed $1.091 billion in lending in 2024, which will add to the $7.6 billion in lending UHM closed last year.
The company also added Brian Smith as Chief Operating Officer, Retail Lending, as well and hired of David Alonzo to as Chief Technology Officer.
MARKET/INDUSTRY
Mortgage Rates Continue To Fall: Freddie 3-6-25
As the spring homebuying season gets underway, the 30-year fixed-rate mortgage saw the largest weekly decline since mid-September.
The core CPI comes out this week, but Bill Bodnar channels Genesis and Goldilocks to sort through recent indicators in his latest Master the Markets segment.
Mortgage Applications Increased 20.4% From One Week Earlier: MBA Survey for the week ending 2-28-25.
Notable: The Refinance Index increased 37% from the previous week and was 83% higher than the same week one year ago.
“Mortgage rates declined last week on souring consumer sentiment regarding the economy and increasing uncertainty over the impact of new tariffs levied on imported goods into the U.S. Those factors resulted in the largest weekly decline in the 30-year fixed rate since November 2024. At 6.73 percent, the rate is now at its lowest level since December 2024.” - Joel Kan, MBA’s VP & Deputy Chief Economist
Seller Stress & Cash Time
Clever Real Estate says 9 in 10 homeowners fear selling for various reasons, while Zillow says homeowners should list in late May if they want the most money. Zillow's recent research found that homes listed in the second two weeks of May sold for 1.6% (or $5,600) more.
What They Don't Know Should Shock You: JW Surety Bonds Survey Reveals Knowledge Gap
76% of homeowners lacked homeownership literacy until after buying their home.
1 in 3 homeowners doesn't know their mortgage interest rate, and 22% are unsure of their monthly mortgage payment.
Over 1 in 4 homeowners (27%) were surprised by unexpected fees during the homebuying process.
1 in 5 prospective homebuyers have delayed purchasing a home due to confusion around financial literacy.
1 in 8 prospective homebuyers can't accurately define "mortgage," and 43% are unsure about the meaning of "mortgage rate."
1 in 4 Gen Z renters get their homebuying knowledge from TikTok.
SENTIMENT SUCKS: Fannie Mae HPSI Down YoY First Time Since 2023
Fannie’s Home Purchase Sentiment Index® (HPSI) decreased 1.8 points in February to 71.6, driven largely by consumers’ increased pessimism that mortgage rates will go down in the next year.
The share of consumers who say it is a good time to buy a home inched up last month to 24%, while the share who say it is a good time to sell dipped to 62%.
February also saw a notable decline in consumers’ optimism toward their personal financial situation, including household income and concern they could lose their job. Year over year, the HPSI is down 1.2 points.
Expansion & Contraction: NAHB Releases Q424 Home Building Geography Index
Single-family building grew, multi-family still contracted. Key findings:
2024 ended with growth in single-family construction, as a lack of existing inventory continues to drive demand for new construction.
This was the 4th consecutive quarter during which the HBGI for single-family continued to post positive results. With interest rates expected to move lower in the second half of 2025, new construction is likely to continue growing this year.
Multifamily construction was mostly negative across high-density areas, which represent the largest segments of the market. These high-density areas have seen 7 consecutive quarters of contraction after expanding to record highs in 2022. Many of the multifamily units that were started during the record highs in 2022 are starting to reach completion.
The large number of multifamily completions reaching the market should help to alleviate the sticky shelter inflation level that continues to outpace overall inflation.
Risky Business: ATTOM Data Releases Q424 At-Risk Housing Markets Report
Two-thirds of the 50 most at-risk counties were in California, Florida, Illinois, and the NYC region.
High-risk markets include Chicago, NYC, and inland California counties, where affordability gaps, underwater mortgages, and foreclosures are prevalent.
The least vulnerable markets were found in Wisconsin, Virginia, Tennessee, and Pennsylvania, where affordability and foreclosure rates remain relatively stable.