SCEpK

Southern California Edison Company 5.45% Fixed-to-Floating Rate Trust Preference Securities

21.9700
USD
0.92%
21.9700
USD
0.92%
21.7500 26.3200
52 weeks
52 weeks

Mkt Cap 263.64M

Shares Out 12.00M

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Will the Red-Hot Housing Market Cool Off in 2022?

January was the most competitive month for home buyers with the bidding-war rate hitting 70%. This is the highest on record according to Redfin. If an agent receives at least one competing bid, then an offer is considered part of a bidding war. U.S. home values continue to grow at a record pace, up 20.9% in the past year. Even though inventory remains 48% below pre-pandemic levels, the housing market is beginning to show some signs of cooling down. Home buyers getting priced out "Fewer people are starting online home searches and applying for mortgages than this time last year, and year-to-date growth in home tours remains far below 2021 levels. An increasing share of sellers are also reducing their prices after putting their homes on the market," per Redfin's research. "The share of homes that sell quickly (within 14 days) continues to grow, but at a slower pace than earlier this year." The rate on a 30-year fixed-rate mortgage now averages 5.25%, the highest since August 2009. Mortgage rates have climbed over 2 percentage points since the beginning of the year. The combination of the largest spike in mortgage prices in nearly four decades and rising home prices means the monthly mortgage payment is 52.5% higher than it would have been a year ago. This dramatic increase equates to a $500 increase for a typical monthly mortgage compared to earlier this year. Many borrowers, due to debt-to-income ratios, are unable to qualify for loans now. Many others are balking at the high prices. The higher costs will translate into slower rates of home price growth for the rest of the year. Inventory beginning to rise According to the Commerce Department, U.S. homebuilding starts unexpectedly rose in March by 3.9% from the previous year. Building permits, which are a leading indicator for residential construction, increased by 6.7% from the previous year. These numbers show that homebuilders are increasing supply to meet demand and may be the break that prospective homeowners need. Existing home inventory has continued to rise as well, up 5.5% from March, the second straight month of growth. The inventory deficit compared to a year ago has also shrunk in each of the past three months. More inventory leads to a more balanced housing market: With more homes to choose from, it limits the number of buyers bidding on each home and prompts sellers to price their home competitively. While home prices are still expected to rise, the combination of high prices and more inventory has led to Zillow revising its future forecasts from 14.9% growth for the next year down to 11.6%. Its forecast for existing home sales has been lowered as well, now predicting 5.73 million sales for this year, a 6.4% decrease from 2021. The Ascent's Best Mortgage Lender of 2022 Mortgage rates are on the rise — and fast. But they’re still relatively low by historical standards. So, if you want to take advantage of rates before they climb too high, you’ll want to find a lender who can help you secure the best rate possible. That is where Better Mortgage comes in. You can get pre-approved in as little as 3 minutes, with no hard credit check, and lock your rate at any time. Another plus? They don’t charge origination or lender fees (which can be as high as 2% of the loan amount for some lenders). We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has positions in and recommends Zillow Group (A shares) and Zillow Group (C shares). The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

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