Latest news with #consumerlending
Yahoo
3 days ago
- Business
- Yahoo
This is an 'opportunistic' housing market
The housing market has been hit by high mortgage rates and low inventory, creating confusion for consumers who want to know whether or not now is the time to buy. In the video above, Bank of America head of consumer lending Matt Vernon shares the results of the latest Bank of America Homebuyer Insights Report and explains why, for some buyers, it could be an "opportunistic" market. To watch more expert insights and analysis on the latest market action, check out more Wealth here. Housing market uncertainty. It is at a three-year high, according to the Bank of America Home Buyer Inside Report. 60% of home buyers and home owners can't tell whether now is a good or bad time to buy a new home. For more, I want to bring in Matt Vernon, Bank of America head of consumer lending. Matt, good to have you here with us. Just take us into this survey. It was conducted back in March and April. Do you think that uncertainty remains high? Hey, I think our respondent and Brad, good to see you. I think our respondents have have told us very clearly that they are a little bit confused right now and uncertain on whether it is a good time to buy with all of the different factors that are occurring from home prices and rates and volatility in the market. That said, 52% of our respondents are actually more optimistic that the housing market is heading in the right direction, up from a year year ago at less than 45%. So the movement is there. And then importantly, 75% of our respondents are absolutely interested in buying a home and they're ready to act as soon as they see some signs that rates are coming down or prices are coming down. They're going to jump right in and be very optimistic. And so, do you think this will affect the current home buying season, the sentiment, at least as evidenced through the survey data? Yeah, I think certainly we're off to a bit of a slower start. All the data shows that than we've traditionally seen in the spring market. That being said, the word opportunistic is probably the word of the day, right? Because folks are waiting for something to incentiv them to get back into the market. So right now, if we were to see rates come down like we've seen, and go up by the way, over the last, call it four months, when it comes down, I would expect folks that have prepared for home ownership, have found that property, have worked with a professional to jump back in and capitalize on that opportunity. And so we know that mortgage rates continue to remain lower than one year ago, more inventory for buyers to choose from in the last few years as Freddie Mac's chief economist also remarked in the recent rates that were released. So, how are you seeing some of the buyer propensity in comparison to years past at this point in the season where we know people are checking their list, they're getting out there, and they're trying to figure out what's going to sit within their price point and whether that be on the existing or the new home side? Yeah, I think it's it's an opportunistic market as I spoke to just a few moments ago. Rates are now in this new normal trading range of call it low sixes to the upper sixes and yet they move in there. So for those prospective home buyers who've done their research, that have saved, have prepared their credit, and they've found that home, when they see something that is going to again incentivize them to go do it, they're going to jump on it because if not, there's someone else more than likely that's looking at that same property. So having a pre-approval and getting out there with a real estate professional and making that offer when the when the rates are good or the prices come down is going to be incredibly important in this competitive market. What are you seeing in some of the generational differences? Members of Gen Z, even, maybe financing their home purchases. Yeah, interestingly enough, right? The Gen Z and the millennials still believe that home ownership is an achievement in life and it builds long-term wealth. And ultimately, they're doing the things that I would say past generations have done to achieve dream that dream of home ownership, whether that's taking out an extra job to save for a down payment, whether that's um really considering moving in with siblings. We've saw some good data on that or even asking mom and dad for a loan to get into that in addition to some of that 529 work that are previous your previous uh individual was chatting about. A study, we know, by the National Association of Realtors found that the average first-time home buyer was 38 years old last year. Do you think that number could retreat or go down in the near term? You know, it has certainly been increasing over the last call it five years to the number that you talked about that 38. I would not frankly be surprised if it moves a little bit here in the interim, but then I really do think it's going to flatten out as this new normal environment kind of takes place and we begin to see inventory come online and the market begins to function a little better than it has here recently and more closely to how it has historically. I told myself I would own a home by age 32 when I was graduating college. Boy, did I have a lot of learning to do. Matt, thanks so much for taking the time. My pleasure, Brad. Thanks. Sign in to access your portfolio
Yahoo
4 days ago
- Business
- Yahoo
This is an 'opportunistic' housing market
The housing market has been hit by high mortgage rates and low inventory, creating confusion for consumers who want to know whether or not now is the time to buy. In the video above, Bank of America head of consumer lending Matt Vernon shares the results of the latest Bank of America Homebuyer Insights Report and explains why, for some buyers, it could be an "opportunistic" market. To watch more expert insights and analysis on the latest market action, check out more Wealth here.
Wall Street Journal
22-05-2025
- Business
- Wall Street Journal
The AI Middleman Expanding in the Consumer-Bond Bonanza
Pagaya Technologies PGY -3.44%decrease; red down pointing triangle, the AI-powered consumer-lending firm, is issuing its first bond backed by loans made to online shoppers, part of a surge in financial engineering by Wall Street that is accelerating the flow of credit to U.S. consumers. The firm, founded in 2016 by Israeli entrepreneurs, acts as a financial middleman between the bond market and consumer lenders such as U.S. Bank and the Swedish financial-technology firm Klarna.
Yahoo
11-05-2025
- Business
- Yahoo
Affirm Holdings (NasdaqGS:AFRM) Reports US$2.8M Net Income In Third Quarter Earnings
Affirm Holdings experienced a robust price increase of nearly 49% over the last month, likely spurred by a combination of its recent strong third-quarter earnings report and strategic moves. The company's sales revenue and net income improvements contributed to positive investor sentiment. Additionally, Affirm's new client partnerships, such as with UATP, product innovations like AdaptAI, and its credit reporting expansion supported this upward momentum. Despite broader market volatility with concerns over tariffs and mixed performances among tech stocks, Affirm's solid earnings performance and strategic growth initiatives distinguished its market positioning during this period. Every company has risks, and we've spotted 1 risk for Affirm Holdings you should know about. Uncover 16 companies that survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. The recent upswing in Affirm Holdings' share price reflects optimistic investor sentiment spurred by strong quarterly earnings and strategic initiatives. These developments hint at possible benefits for Affirm's narrative of leveraging 0% APR loans and AI to redefine consumer lending. Such strategic growth efforts may bolster revenue and earnings potential, aligning with analyst forecasts projecting substantial revenue growth and a transition to profitability. The price surge could foster a positive outlook on Affirm's ability to meet those optimistic projections. Over the past three years, Affirm's total return of 200.78% underscores its significant growth story, painting a picture of success despite recent market volatilities. In comparison to the industry, Affirm outperformed the US Diversified Financial industry, which returned 20% over the past year, indicating its robust market presence and investor appeal. The 49% monthly increase in Affirm's share price brings it closer to the consensus price target of US$67.85. As of today, it remains 26% below this target. This movement suggests room for further gains if Affirm continues to execute on its growth strategy effectively. The alignment of its recent successes with future growth assumptions improves investor confidence in Affirm's ability to achieve the projected 26.1% revenue growth annually and expand profit margins from 7.1% to 12.4% over the next three years. Learn about Affirm Holdings' future growth trajectory here. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGS:AFRM. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
