U.S. Mortgage Lending Up in Q3 2024, Fueled by Refinancing and Home-Equity Loans

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Refinancing and Home-Equity Loans

U.S. mortgage lending has shown a modest rise in the third quarter of 2024, with 1.67 million mortgages issued, marking a 1.9% increase from the previous quarter. This growth comes amid a surge in refinancing and home-equity loans, though overall lending remains far below historic highs.

While mortgage rates dropped to nearly 6% by the end of the quarter, the number of new home purchase loans declined slightly, reflecting the tight housing market and high prices. Refinancing activity surged, with nearly 590,000 loans rolled over, marking the highest level in two years. Home-equity loans also rose, as homeowners took advantage of favorable conditions.

Refinancing has played a significant role in shaping the mortgage market trends this year. Many homeowners are turning to refinancing to secure better rates or access home equity. This refinancing surge highlights the importance of adapting to fluctuating market conditions.

However, despite these improvements, overall mortgage lending activity remains more than 60% lower than the peak seen in 2021. The trend indicates that while homeowners are refinancing at higher rates, new buyers are still cautious due to tight housing inventories. Refinancing remains a strategic option for those looking to navigate this challenging housing market.

One may wonder if this recent refinancing activity had anything to do with the catchy phrase “marry the house, date the rate” that became popular in Spring of 2022 as buyers have come to the end of their 2-1 buydown loans. Refinancing continues to be a go-to solution for borrowers aiming to take advantage of current rate conditions.

As refinancing gains momentum, it underscores the resilience of homeowners seeking to optimize their financial situations. The rise in refinancing highlights a broader shift in how Americans manage housing expenses in the current economy. Refinancing is not just a financial tool but also a strategic decision for long-term stability.

Overall, refinancing and its upward trend remain a key factor in the housing market, offering insights into the behavior of borrowers in the evolving mortgage landscape.

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Habitat Helps Millions Improve Housing Globally

According to Habitat for Humanity’s fiscal year 2024 annual report, the nonprofit organization helped over 3 million people build or improve a home in the past year. In addition, 5.3 million people benefited from Habitat’s community programs, training, and advocacy efforts aimed at improving housing conditions.

In Peru, Habitat’s partnership with local developers led to the creation of the ‘Guardian Constructor’ coalition, which has connected more than 4,000 families with trusted construction professionals over the past two years. One example is Brenda, who expanded her home in just 10 weeks after finding a vetted construction team through the coalition.

Habitat’s global ‘Home Equals’ campaign reached nearly 3 million people in informal settlements, advocating for 50 policy changes in 12 countries. Meanwhile, the ‘Cost of Home’ campaign in the U.S. secured over $23.6 billion in government funding to support home affordability for more than 9.5 million people.

Habitat’s fiscal year 2024 also saw $362 million in revenue, with an additional $3.1 billion generated through Habitat’s global network. For more information, Habitat’s annual report is available online. 

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Bob Vila Sells Renovated Palm Beach Gem

In entertainment news, TV home renovation legend Bob Vila and his wife, Diana Barrett, have sold their 1940s-era Palm Beach home for $13.375 million. The property, located at 345 Pendleton Avenue, was purchased by the couple in December 2023 for $12.5 million. Vila, known for his role on This Old House, had renovated the traditional-style home, which features five bedrooms and 5,340 square feet of living space. The buyer is interior designer Delphine Krakoff, married to fashion designer Reed Krakoff, a former Coach executive.

The house, designed by renowned Palm Beach architect John L. Volk, is situated in the private Pendleton Lane neighborhood. The Vilas still own a lakefront property on Everglades Island, which is listed for sale at $39.9 million. The sale marks another chapter in Vila’s legacy of home improvement and renovation. 

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