The Days Of Overpaying Are Over
A report from the Orange County Register in California. “What’s up with mortgage rates? Jeff Lazerson of Mortgage Grader in Laguna Niguel gives us his take. Last weekend, I spent four hours sitting an open house with a Realtor on a cute entry-level condo in La Habra selling for $400,000. About 15 groups came through. Six months earlier, there were 50 groups coming through. One of my mortgage loan originators sat a similarly priced property in beachy Oceanside and had a similarly sparse attendance.”
“Are we seeing an emerging buyers’ market? If so, how should buyers and sellers react? Here are some signs of a slowdown and even rising mortgage defaults. According to Steven Thomas of Reports on Housing, every week somewhere between 11 and 15 percent of Orange County homes in the multiple listing service reduced their asking prices. That compares to about 7 percent last year.”
“Average days on market in 2018 is 43 compared to 33 last year. Listing cancellations are 13 percent higher this year than last year. Earlier this week, the National Association of Realtors announced U.S. home sales subsided for four straight months and are at their slowest pace in two years. A report out earlier this week from Irvine-based Attom Data Solutions indicated notices of default jumped 20 percent from last year in July in the Los Angeles-Orange County metro area as well as in San Diego County.”
“Cowering homebuyers should recover their backbone. In other words, stand your ground. Do not chase overpriced properties. Walk away from unreasonable sellers who won’t fix the more expensive property repair items. Sellers, decide just how badly you want to sell your palace. If you are not serious, don’t list. Other than the Brady Bunch house, the days of overpaying are over.”
The Sacramento Bee in California. “Wells Fargo Bank announced Thursday that 190 employees have been cut from its Rancho Cordova mortgage loan division as part of a nationwide staff reduction. The local cutbacks were just a portion of the 683 mortgage lending employees who were laid off nationally. All of those employees received 60-day notices on Thursday, Wells Fargo spokeswoman Yahaira Garcia-Perea said, adding that some may be offered other positions within Wells Fargo Home Mortgage.”
“The layoffs coincide with a nationwide slowdown in housing sales, a drop in the number of people who can afford a median-priced home in California and rising interest rates on mortgages.”
The Colorado Springs Gazette. “Wells Fargo & Co. is laying off 55 employees from its home mortgage call center in the Briargate area as part of nationwide cutback that is eliminating 683 jobs, the company said Thursday. In an email statement from Denver- based spokeswoman Nicole Schwab, the San Francisco-based financial giant attributed the cutbacks to ‘continuing market changes’ that have resulted in ’several team member staff reductions in various markets since the beginning of 2018. We continue to adjust capacity within our lines of business to meet customer needs — and to ensure we’re operating as efficiently and effectively as possible.’”
“Schwab declined further comment on the layoff, but said the move came after ‘carefully evaluating market conditions and consumer needs.’ Wells Fargo’s center in the Springs focused mostly on home-equity lending, employing underwriters, processors and others to help borrowers tap the equity in their homes.”
“The Orlando Sentinel reported Thursday that 137 of the layoffs are planned at the company’s call center in Orlando, Fla. Wells Fargo told the paper it was providing 60 days of notice and was working with employees for other opportunities in the company.”