Latest news with #AndyWalden
Newsweek
21-07-2025
- Business
- Newsweek
House Prices Falling Nationwide in Worrying Sign for Economy
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. The U.S. housing market is cooling, and house prices are falling in an increasing number of metro areas in what economists have pointed to as another potential risk for the sector and the wider economy. According to Zillow's Home Value Index – a monthly gauge of house prices and housing market trends – national home prices rose 0.2 percent year-over-year in June, a marked deceleration from the 3.2 percent increase seen in the previous 12 months. However, a growing number of metro areas are seeing house prices fall. Analysis by ResiClub of the Zillow report found that 110 of the nation's 300 largest housing markets (36 percent) have seen home prices fall since June of last year. This compares to a year-over-year count of only 31 in January. Why It Matters While falling house prices will improve affordability and potentially allow more renters to enter the market, it comes with a significant loss for existing owners, given that for many Americans, a home is their largest financial asset. Should prices continue to trend downward, homeowners may also delay selling to avoid incurring a loss on their property, leading to reduced inventory and a stalled housing market. As well as the direct effects, a cooling housing market can also signal deeper problems and, as certain economists have recently warned, serves as a potential precursor to a wider economic downturn. In an aerial photo, single family homes are seen in a neighborhood on July 3, 2025 in Thousand Oaks, California. In an aerial photo, single family homes are seen in a neighborhood on July 3, 2025 in Thousand Oaks, To Know According to ResiClub's analysis of the Zillow reports, the number of markets in the nation's 300 largest now seeing prices fall has risen from 31 in January, to 80 in March, to 110 in the latest reading for June. Major declines have been recorded in Austin, Texas (down 5.8 percent year over year), as well as Tampa and Miami, Florida, down 5.7 percent and 3.8 percent, respectively. The research outlet noted that prices continue to rise – albeit more modestly – in areas where inventory remains low, particularly in the Northeast and Midwest. The findings echo recent research by mortgage data and technology firm ICE. Their research found that annual home price growth slowed to 1.3 percent in June from 1.3 percent in May, with 30 percent of the largest markets seeing prices drop by at least one percent from recent peaks. Andy Walden, vice president of research and analysis at ICE, told CNBC that this was in part due to increasing inventory levels, which had increased affordability but made many reluctant to list their properties. Housing inventory has risen sharply in 2025, according to with the number of active listings growing from 829,000 at the start of the year to nearly 1.1 million in June. This follows a sharp drop during the COVID Pandemic, which pushed listings to 347,000 in February 2022, the lowest level since began its monthly tallies. The prospect of a further slump in prices last week prompted Mark Zandi, chief economist at Moody's Analytics, to issue a "red flare" warning for the U.S. housing market. Zandi blamed this largely on persistently elevated mortgage rates and warned that these could further impact prices, as well as home construction and sales. "Housing will thus soon be a full-blown headwind to broader economic growth," he wrote on X, "adding to the growing list of reasons to be worried about the economy's prospects later this year and early next." What People Are Saying Andy Walden, head of mortgage and housing market research at mortgage technology firm Intercontinental Exchange, told CNBC: "There are two competing forces in the housing market right now. Increasing inventory levels are helping to make homes more affordable, but prices are falling in an increasing number of markets and homes are taking longer to sell, which could make homeowners reluctant to list." Moody's Chief Economist Mark Zandi wrote on X: "House price growth had held up well. But this, too, is changing, as prices have gone sideways and are set to fall. 7% [mortgage rate] is hammering demand, and there are more listings. Given their demographic and job situations, locked-in homeowners must move. They can only work around these needs for so long." What Happens Next? In a speech by Adriana D. Kugler last week, the Federal Reserve governor said that the future of the housing market depends "materially" on the nation's currently unclear economic outlook.
Business Wire
07-07-2025
- Business
- Business Wire
ICE Mortgage Monitor: Amid a Cooling Housing Market, Early Signs of Homeowner Risk Emerge
ATLANTA & NEW YORK--(BUSINESS WIRE)--ICE Mortgage Technology, a neutral provider of a robust end-to-end mortgage platform and part of Intercontinental Exchange, Inc. (NYSE: ICE), today released its July 2025 Mortgage Monitor report. ICE data reveals that beneath the surface of a broadly cooling but stable housing market, early signs of financial stress are emerging among subsets of homeowners. Pockets of vulnerability can be seen in rising negative equity, increased use of mortgage products that improve short-term affordability, and exposure to student loan debt. Softening home prices expand from the Sunbelt to Western states, driving increased negative equity According to ICE's Home Price Index, annual home price growth slowed to 1.3% in early June, and 30% of the largest markets have seen prices dip by at least a full percentage point from their recent highs. While this deceleration may help affordability, it could potentially weaken the equity positions of borrowers who purchased more recently, particularly those using FHA and VA loans, which are low down payment products. Nationally, one in four seriously delinquent loans would be in a negative equity position if sold at distressed (REO) prices. In certain markets, the figures are more pronounced: in Cape Coral, Fla., 27% of all 2023 and 2024 vintage loans are now underwater, while in Austin, Texas, the rate is 18% among 2022 vintage loans. ARM and temporary buydown usage reflect affordability pressure More than 8% of borrowers financed homes with ARMs or temporary buydowns this year, which reduce monthly payments in the first years of the loan. While these loans provide short-term relief, they may introduce future payment shock, particularly if interest rates remain elevated or reset higher. Student loan delinquency greatly increases mortgage delinquency risk The return of both payments and collection efforts on defaulted federal student loans, which resumed in May after a five-year pause, may put additional financial strain on some homeowners. Analysis of ICE McDash data and ICE Tradelines data powered by TransUnion shows that nearly 20% of mortgage holders also carry student loan debt. Among FHA borrowers, that number rises to nearly 30%. Borrowers delinquent on student loans are four times more likely to be delinquent on their mortgage. 'While the slowdown in home price growth may be easing affordability pressures, and negative equity volumes remain low, we're beginning to see localized pockets of recent homebuyers becoming financially exposed,' said Andy Walden, Head of Mortgage and Housing Market Research at ICE. 'Borrowers with minimal equity — particularly those who purchased recently — are often the first to be exposed when home prices soften. These early signs of stress highlight the importance of monitoring borrower-level risk as market conditions evolve.' Meanwhile, ICE Home Price Dynamics is beginning to show the impact of softening home prices on equity positions in credit risk transfer (CRT) securitizations with the majority of CRT deals issued in 2023 and 2024 having seen modest upticks in negative equity rates in recent months. 'As figures from the July Mortgage Monitor bear out, national averages don't tell the full story,' said Tim Bowler, President of ICE Mortgage Technology. 'We're seeing early signs of risk building within specific markets and within specific borrower populations, like borrowers with limited equity or who are behind on student loans. This is when proactive monitoring and data-driven risk management become essential. Identifying and engaging these borrowers early may prevent hardship later.' The full July Mortgage Monitor report contains a deeper analysis of May mortgage performance, a housing market update featuring June ICE Home Price Index (HPI) data, an analysis of the impact of student loans on homeowners and a look at loan origination operational trends. Further detail, including charts, can be found in this month's Mortgage Monitor report. About the ICE Mortgage Monitor ICE manages the nation's leading repository of loan-level residential mortgage data and performance information covering the majority of the overall market, including tens of millions of loans across the spectrum of credit products and more than 160 million historical records. The ICE Home Price Index provides one of the most complete, accurate and timely measures of home prices available, covering 95% of U.S. residential properties down to the ZIP code level. In addition, the company maintains one of the most robust public property records databases available, covering 99.9% of the U.S. population and households from more than 3,100 counties. ICE's research experts carefully analyze this data to produce a summary supplemented by dozens of charts and graphs that reflect trend and point-in-time observations for the monthly Mortgage Monitor report. To review the full report, visit: About Intercontinental Exchange Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune 500 company that designs, builds, and operates digital networks that connect people to opportunity. We provide financial technology and data services across major asset classes helping our customers access mission-critical workflow tools that increase transparency and efficiency. ICE's futures, equity, and options exchanges -- including the New York Stock Exchange -- and clearing houses help people invest, raise capital and manage risk. We offer some of the world's largest markets to trade and clear energy and environmental products. Our fixed income, data services and execution capabilities provide information, analytics and platforms that help our customers streamline processes and capitalize on opportunities. At ICE Mortgage Technology, we are transforming U.S. housing finance, from initial consumer engagement through loan production, closing, registration and the long-term servicing relationship. Together, ICE transforms, streamlines, and automates industries to connect our customers to opportunity. Trademarks of ICE and/or its affiliates include Intercontinental Exchange, ICE, ICE block design, NYSE and New York Stock Exchange. Information regarding additional trademarks and intellectual property rights of Intercontinental Exchange, Inc. and/or its affiliates is located here. Key Information Documents for certain products covered by the EU Packaged Retail and Insurance-based Investment Products Regulation can be accessed on the relevant exchange website under the heading 'Key Information Documents (KIDS).' Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 -- Statements in this press release regarding ICE's business that are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see ICE's Securities and Exchange Commission (SEC) filings, including, but not limited to, the risk factors in ICE's Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the SEC on February 6, 2025. Source: Intercontinental Exchange Category: Mortgage Technology ICE-CORP
Axios
27-06-2025
- Business
- Axios
Homeowners' mortgages include large share for insurance payments
More than a quarter of New Orleans-area homeowners' mortgage payments went to insurance last year, up from the decade's low of 18.9% in 2019, data shows. Why it matters: Rising costs for both insurance and property taxes threaten to make homeownership unaffordable for many. The big picture: Nationally, a growing share of monthly payments are going toward insurance, and that's not expected to change anytime soon, according to ICE Mortgage Monitor, an industry data provider. The analysis looks at single-family homes with mortgages that have taxes and insurance escrowed. Between the lines: More frequent natural disasters, plus rising costs to rebuild homes afterward, have hiked overall insurance costs, says Andy Walden, ICE's head of mortgage and housing market research. Rocketing home values also lift the cost of coverage, he tells Axios. By the numbers: The U.S. average monthly insurance payment ballooned from $106 to $191 over the past decade, per the data. That's practically chump change in New Orleans, where the average monthly insurance payment has leapt from $284 to $477. What's next: Insurify, which helps people compare quotes from multiple providers, projects home insurance premiums will climb in every U.S. state by the end of 2025 — with Louisiana expected to see the nation's largest rate increase of 27% — nearly $3,000 — to $13,937, by the end of 2025.
Yahoo
10-06-2025
- Business
- Yahoo
HELOC rates today, June 10, 2025: Interest rates on home equity lines of credit ease lower
HELOC interest rates drifted slightly lower today. Home equity line of credit lenders remain aggressive in pricing as demand for second mortgages increases. 'Equity levels remain historically high, and now we're seeing the cost of borrowing against that equity drop meaningfully,' Andy Walden, Head of Mortgage and Housing Market Research at ICE Mortgage Technology, said in a release. The home equity data firm reported that the average monthly payment needed to borrow $50,000 dropped from $412 in early 2024 to $311 by the end of the first quarter of 2025. Now, let's check the latest HELOC rates. Dig deeper: HELOC vs. home equity loan: Tapping your equity without refinancing According to Zillow, rates on 10-year HELOCs dropped two basis points to 6.83% today. The same rate is also available on 15- and 20-year HELOCS. VA-backed HELOCs also remained stable at 6.39%. Homeowners have a staggering amount of value tied up in their houses — more than $34 trillion at the end of 2024, according to the Federal Reserve. That's the third-largest amount of home equity on record. With mortgage rates lingering in the high 6% range, homeowners are not likely to let go of their primary mortgage anytime soon, so selling the house may not be an option. Why let go of your 5%, 4% — or even 3% mortgage? Accessing some of the value locked into your house with a use-it-as-you-need-it HELOC can be an excellent alternative. HELOC interest rates are different from primary mortgage rates. Second mortgage rates are based on an index rate plus a margin. That index is often the prime rate, which today is 7.50%. If a lender added 1% as a margin, the HELOC would have a rate of 8.50%. However, you will find reported HELOC rates are much lower than that. That's because lenders have flexibility with pricing on a second mortgage product, such as a HELOC or home equity loan. Your rate will depend on your credit score, the amount of debt you carry, and the amount of your credit line compared to the value of your home. And average national HELOC rates can include "introductory" rates that may only last for six months or one year. After that, your interest rate will become adjustable, likely beginning at a substantially higher rate. You don't have to give up your low-rate mortgage to access the equity in your home. Keep your primary mortgage and consider a second mortgage, such as a home equity line of credit. The best HELOC lenders offer low fees, a fixed-rate option, and generous credit lines. A HELOC allows you to easily use your home equity in any way and in any amount you choose, up to your credit line limit. Pull some out; pay it back. Repeat. Meanwhile, you're paying down your low-interest-rate primary mortgage like the wealth-building machine you are. Today, FourLeaf Credit Union is offering a HELOC rate of 6.49% for 12 months on lines up to $500,000. That's an introductory rate that will convert to a variable rate later. When shopping lenders, be aware of both rates. And as always, compare fees, repayment terms, and the minimum draw amount. The draw is the amount of money a lender requires you to initially take from your equity. The power of a HELOC is tapping only what you need and leaving some of your line of credit available for future needs. You don't pay interest on what you don't borrow. Rates vary so much from one lender to the next that it's hard to pin down a magic number. You may see rates from nearly 7% to as much as 18%. It really depends on your creditworthiness and how diligent a shopper you are. For homeowners with low primary mortgage rates and a chunk of equity in their house, it's probably one of the best times to get a HELOC. You don't give up that great mortgage rate, and you can use the cash drawn from your equity for things like home improvements, repairs, and upgrades. Of course, you can use a HELOC for fun things too, like a vacation — if you have the discipline to pay it off promptly. A vacation is likely not worth taking on long-term debt. If you take out the full $50,000 from a line of credit on a $400,000 home, your payment may be around $395 per month with a variable interest rate beginning at 8.75%. That's for a HELOC with a 10-year draw period and a 20-year repayment period. That sounds good, but remember, it winds up being a 30-year loan. HELOCs are best if you borrow and pay back the balance in a much shorter period of time.
Yahoo
03-06-2025
- Business
- Yahoo
HELOC rates today, June 3, 2025: Interest rates on home equity lines of credit are unchanged
HELOC interest rates were stable today, unchanged from yesterday. How hot are HELOCs? In a new analysis, Intercontinental Exchange (ICE), a mortgage data provider, said second mortgage home equity withdrawals in the first quarter of 2025 grew 22% year over year to nearly $25 billion. That's the highest first quarter volume since 2008. 'Equity levels remain historically high, and now we're seeing the cost of borrowing against that equity drop meaningfully,' Andy Walden, Head of Mortgage and Housing Market Research at ICE, said in a release. 'The monthly payment needed to withdraw $50,000 via a home equity line of credit (HELOC) has fallen by more than $100 since early 2024." Now, let's check the latest HELOC rates. Dig deeper: HELOC vs. home equity loan: Tapping your equity without refinancing According to Zillow, rates on 10-year HELOCs held steady at 6.81% today. The same rate is also available on 15- and 20-year HELOCS. VA-backed HELOCs also remained stable at 6.36%. Homeowners have a staggering amount of value tied up in their houses — more than $34 trillion at the end of 2024, according to the Federal Reserve. That's the third-largest amount of home equity on record. With mortgage rates lingering in the high 6% range, homeowners are not likely to let go of their primary mortgage anytime soon, so selling the house may not be an option. Why let go of your 5%, 4% — or even 3% mortgage? Accessing some of the value locked into your house with a use-it-as-you-need-it HELOC can be an excellent alternative. HELOC interest rates are different from primary mortgage rates. Second mortgage rates are based on an index rate plus a margin. That index is often the prime rate, which today is 7.50%. If a lender added 1% as a margin, the HELOC would have a rate of 8.50%. However, you will find reported HELOC rates are much lower than that. That's because lenders have flexibility with pricing on a second mortgage product, such as a HELOC or home equity loan. Your rate will depend on your credit score, the amount of debt you carry, and the amount of your credit line compared to the value of your home. And average national HELOC rates can include "introductory" rates that may only last for six months or one year. After that, your interest rate will become adjustable, likely beginning at a substantially higher rate. You don't have to give up your low-rate mortgage to access the equity in your home. Keep your primary mortgage and consider a second mortgage, such as a home equity line of credit. The best HELOC lenders offer low fees, a fixed-rate option, and generous credit lines. A HELOC allows you to easily use your home equity in any way and in any amount you choose, up to your credit line limit. Pull some out; pay it back. Repeat. Meanwhile, you're paying down your low-interest-rate primary mortgage like the wealth-building machine you are. Today, FourLeaf Credit Union is offering a HELOC rate of 6.49% for 12 months on lines up to $500,000. That's an introductory rate that will convert to a variable rate later. When shopping lenders, be aware of both rates. And as always, compare fees, repayment terms, and the minimum draw amount. The draw is the amount of money a lender requires you to initially take from your equity. The power of a HELOC is tapping only what you need and leaving some of your line of credit available for future needs. You don't pay interest on what you don't borrow. Rates vary so much from one lender to the next that it's hard to pin down a magic number. You may see rates from nearly 7% to as much as 18%. It really depends on your creditworthiness and how diligent a shopper you are. For homeowners with low primary mortgage rates and a chunk of equity in their house, it's probably one of the best times to get a HELOC. You don't give up that great mortgage rate, and you can use the cash drawn from your equity for things like home improvements, repairs, and upgrades. Of course, you can use a HELOC for fun things too, like a vacation — if you have the discipline to pay it off promptly. A vacation is likely not worth taking on long-term debt. If you take out the full $50,000 from a line of credit on a $400,000 home, your payment may be around $395 per month with a variable interest rate beginning at 8.75%. That's for a HELOC with a 10-year draw period and a 20-year repayment period. That sounds good, but remember, it winds up being a 30-year loan. HELOCs are best if you borrow and pay back the balance in a much shorter period of time.
