U.S. single-family rent growth increased 10.2% in September 2021, the fastest year-over-year increase in over 16 years, according to the CoreLogic Single-Family Rent Index (SFRI). The index measures rent changes among single-family rental homes, including condominiums, using a repeat-rent analysis to measure the same rental properties over time. The September 2021 increase was nearly four times the September 2020 increase, and while the index growth slowed last summer, rent growth is running well above pre-pandemic levels when compared with 2019.
The latest release of the S&P CoreLogic Case-Shiller Index indicated that home price growth remained strong in August, clocking in a 19.8% annual growth, same as the month prior. Nevertheless, after 10 months of double-digit annual home price growth nationally, home price acceleration is showing signs of reprieve. In addition to the national growth rate stalling, the 10-city annual growth slowed from 19.2% to 18.6%, and the 20-city annual rate was down from 20% to 19.7% in August, non-seasonally adjusted.
The CoreLogic Loan Performance Insights report features an interactive view of our mortgage performance analysis through August 2021. Measuring early-stage delinquency rates is important for analyzing the health of the mortgage market. To more comprehensively monitor mortgage performance, CoreLogic examines all stages of delinquency as well as transition rates that indicate the percent of mortgages moving from one stage of delinquency to the next.
In August 2021, 4% of home mortgages were in some stage of delinquency (30 days or more past due, including those in foreclosure) , which was a 2.6-percentage point decrease from August 2020 according to the latest CoreLogic Loan Performance Insights Report . However, overall delinquencies were still above the early 2020 pre-pandemic rate of 3.6%. The share of mortgages that were 30 to 59 days past due — considered early-stage delinquencies — was 1.1% in August 2021, down from 1.5% in August 2020.
Supply shortages have been a hallmark of the pandemic. Not only is the U.S. facing a labor shortage, but many building materials are in short supply, slowing down new home construction and making it difficult for some sellers to prepare their existing homes for sale. The shortage in for-sale homes has driven the number of days homes are on the market to new lows in 2021.
National home prices increased 18% year over year in September 2021, according to the latest CoreLogic Home Price Index (HPI®) Report. The September 2021 HPI gain was up from the September 2020 gain of 6.6% and was the highest 12-month growth in the U.S. index since the series began in 1976. The increase in home prices was fueled by low mortgage rates, low for-sale supply and an influx in homebuying activity from investors. Projected increases in for-sale supply and moderation in demand as prices grow out of reach for some buyers could slow home price gains over the next 12 months.
The CoreLogic Home Price Insights report features an interactive view of our Home Price Index product with analysis through September 2021 with forecasts from September 2022. CoreLogic HPI™ is designed to provide an early indication of home price trends. The indexes are fully revised with each release and employ techniques to signal turning points sooner. CoreLogic HPI Forecasts™ (with a 30-year forecast horizon), project CoreLogic HPI levels for two tiers—Single-Family Combined (both Attached and Detached) and Single-Family Combined excluding distressed sales.
U.S. single-family rent growth increased 9.3% in August 2021, the fastest year-over-year increase in over 16 years, according to the CoreLogic Single-Family Rent Index (SFRI). The index measures rent changes among single-family rental homes, including condominiums, using a repeat-rent analysis to measure the same rental properties over time. The August 2021 increase was more than four times the August 2020 increase, and while the index growth slowed last summer, rent growth is running well above pre-pandemic levels when compared with 2019.
In July 2021, 4.2% of home mortgages were in some stage of delinquency (30 days or more past due, including those in foreclosure), which was a 2.3-percentage point decrease from July 2020 according to the latest CoreLogic Loan Performance Insights Report . However, overall delinquencies were still above the early 2020 pre-pandemic rate of 3.6%. The share of mortgages that were 30 to 59 days past due — considered early-stage delinquencies — was 1.1% in July 2021, down from 1.5% in July 2020.
The CoreLogic Loan Performance Insights report features an interactive view of our mortgage performance analysis through July 2021. Measuring early-stage delinquency rates is important for analyzing the health of the mortgage market. To more comprehensively monitor mortgage performance, CoreLogic examines all stages of delinquency as well as transition rates that indicate the percent of mortgages moving from one stage of delinquency to the next.
2021 is shaping up to be a very different year for investors than 2020. After pulling back their market activity at the onset of the pandemic, investors had a business-as-usual winter, before capturing the highest market share seen in the last 10 years in the second quarter. Figure 1 shows the share of total purchases that were made by investors in each month. 2019 shows the normal seasonal pattern. Investor purchase shares are highest in the winter months when owner-occupied buyers are less active.
The CoreLogic Home Price Insights report features an interactive view of our Home Price Index product with analysis through August 2021 with forecasts from August 2022. CoreLogic HPI™ is designed to provide an early indication of home price trends. The indexes are fully revised with each release and employ techniques to signal turning points sooner. CoreLogic HPI Forecasts™ (with a 30-year forecast horizon), project CoreLogic HPI levels for two tiers—Single-Family Combined (both Attached and Detached) and Single-Family Combined excluding distressed sales.
National home prices increased 18.1% year over year in August 2021, according to the latest CoreLogic Home Price Index (HPI®) Report. The August 2021 HPI gain was up from the August 2020 gain of 5.9% and was the highest 12-month growth in the U.S. index since the series began in 1976. The increase in home prices was fueled by low mortgage rates, low for-sale supply and an influx in homebuying activity from investors. Projected increases in for-sale supply and moderation in demand as prices grow out of reach for some buyers could slow home price gains over the next 12 months.
An increasing number of millennials, those born from 1981 to 1996, are in or are approaching their first-time homebuying years. Older millennials, meanwhile, are in the age-range for a move-up purchase. According to the CoreLogic® Loan Application Database, millennials made up 67% of first-time home purchase applications and 37% of repeat home purchase applications in 2021. Millennials have made up the largest share of home purchase mortgage applications since 2016, accounting for 51 percent of home-purchase mortgage applications in 2021, up five percentage points from 2019
Home equity – the difference between the value of a home and the amount of mortgage debt on the home – is an important component of overall household wealth. Changes in the amount of home-equity wealth will be primarily affected by growth in home values and pay down of mortgage loan balances. For the last few years, home-value appreciation has been the major creator of wealth.
At the end of September 2021 – 18 months after the passage of the CARES Act which provided millions of homeowners the protection of COVID-19 payment forbearance – many mortgage loans are expected to reach the end of forbearance. That is, of an estimated 1.7 million mortgage loans that are in forbearance at the start of August, more than 1.2 million loans will reach the maximum 18-month term limit at the end of September, representing 73% of the total forbearance plans.
U.S. single-family rent growth increased 8.5% in July 2021, the fastest year-over-year increase in 16.5 years, according to the CoreLogic Single-Family Rent Index (SFRI). The index measures rent changes among single-family rental homes, including condominiums, using a repeat-rent analysis to measure the same rental properties over time. The July 2021 increase was nearly five times the July 2020 increase, and while the index growth slowed last July, rent growth is running well above pre-pandemic levels when compared with 2019.
The pandemic has influenced homebuyers’ decision on where to buy a home. Our previous analysis showed that homebuyers who relocated to another metro in 2020 were often choosing metros that were either adjacent to their current location, had a lower cost of living or both. Although homebuyers were considering affordability and proximity while buying homes even before COVID-19, the migration rate grew during the pandemic. With the combination of low inventory, low interest rates and a shift to a more flexible working environment
The CoreLogic Loan Performance Insights report features an interactive view of our mortgage performance analysis through June 2021. Measuring early-stage delinquency rates is important for analyzing the health of the mortgage market. To more comprehensively monitor mortgage performance, CoreLogic examines all stages of delinquency as well as transition rates that indicate the percent of mortgages moving from one stage of delinquency to the next.
The nation’s overall delinquency rate was 4.4% in June. The serious delinquency rate fell to its lowest level since May 2020. In June 2021, 4.4% of home mortgages were in some stage of delinquency (30 days or more past due, including those in foreclosure), which was a 2.7-percentage point decrease from June 2020 according to the latest CoreLogic Loan Performance Insights Report . However, overall delinquencies were still above the early 2020 pre-pandemic rate of 3.6%.
