Single-tenant Net Lease Cap Rates at Historic Lows: Data

Originally published on April 13, 2022 by John Feeney for the Boulder Group.

Cap rates in the single-tenant net lease sector reached historic lows in all three asset classes during the first quarter, The Boulder Group reported April 7 in its Q1 2022 Net Lease Market Report. Cap rates compressed for the retail, office and industrial categories by 13, 10 and 17 basis points, respectively.

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Proposed Bill Would Scrap The Appraisal Foundation, Release GSE Appraisal Data

Originally published on March 31, 2022, by Georgia Kromrei, for HousingWire.com.

Congress hopes to supplant the appraisal governing body at the center of the industry’s self-regulated framework and make public the trove of appraisal data held by the government-sponsored enterprises.

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Mortgage Rates Increase Alongside Rising Inflation, Freddie Mac Survey Shows

Originally published on March 5, 2022, by Freddie Mac.

Mortgage rates rose in the past week amid rising inflation and the expectation of strong demand for goods, Freddie Mac reported on March 31 in its Primary Mortgage Market Survey. While purchase demand has weakened slightly, it has continued to outperform expectations.

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Retail Foot Traffic Falls Amid Spike in Gas Prices, Report Shows

Originally published on March 30, 2022, by Dees Stribling for BisNow National.

The sudden surge in the price of gas in the United States, up an average of more than 70 cents a gallon from a month ago, has had an adverse impact on retail foot traffic, Placer.ai reports.

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Mortgage Demand Plummets as Rates, Prices Surge, Supply Hits Record Low: MBA

Originally published on March 30, 2022, by Diana Olick for the Mortgage Banker's Association and CNBC.

Total mortgage application volume decreased 6.8% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. This, as the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) increased to 4.80% from 4.50%.

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AI Offers White House Input on Task Force Action Plan

Originally published on March 23, 2022, by President Joseph R. Biden for the White House.

Following the release of the Property Appraisal and Valuation Equity Task Force Action Plan on appraisal bias, the Appraisal Institute on March 23 sent a letter to the White House stating that it looks forward to working with the Task Force to implement several of their regulatory initiatives and reiterating that the majority of appraisers strive to uphold high standards and maintain independence and objectivity in their work.

Read Message from the President

CRE Executives Express Concern About Economy, Pandemic and World Affairs: Report

Originally published on March 22, 2022 by Michael Tucker for Mortgage Bankers Association.

After a challenging two years, the real estate industry again faces more uncertainty–and not just for the short term, a new report from the Urban Land Institute and PwC said.

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White House Issues Action Plan on Bias in Appraisals

Originally published on March 30, 2022 by the White House.

The Property Appraisal and Valuation Equity Task Force on March 23 published an Action Plan to address concerns about lower appraisals for properties owned by individuals of color. The Appraisal Institute provided input to the Task Force, whose Action Plan covers appraisal standards, diversity within the valuation profession, and reporting requirements for violations of federal law.

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45-Day Notice on Proposed Amendments to Bylaws, Regs, Code of Professional Ethics

Originally published on March 30, 2022, by the Appraisal Institute

The Appraisal Institute Board of Directors on March 28 sent to 45-Day Notice proposed amendments to Bylaws, Regulation Nos. 1, 2, 3, and 8 and the Code of Professional Ethics. Read the 45-Day Notice (AI log in required).

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Freddie Mac Phasing Out Automated Appraisal Waivers

Originally published on March 16, 2022, by Danny Gardner for Freddie Mac.

TO: Freddie Mac Sellers
SUBJECT: AUTOMATED COLLATERAL EVALUATION (ACE) ELIGIBILITY

This Guide Bulletin announces:

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Welcome New NCAI Members

We’d like to welcome to our newest members who joined in early 2022:

  • Andrew Cypcar
  • Angie Green
  • Cynthia P Thomas
  • Dana Vickers
  • David Wortman, Jr.
  • Jackye Morla
  • Joshua Ray Marr
  • Kandis Joy Alston
  • Kate Hicks
  • Kimberly Hines
  • Kirstin A Kramlich
  • Monica S. Long
  • Natalie Fields Lathan
  • Nicholas Kirkland
  • Paula Rozer
  • Peter J. Kapetanakis
  • W. Chris Morris
  • Zachary Northcott

NC Chapter Off To A Busy 2022

Members and nonmembers wasted no time kicking off the new year and starting completing their 2-year USPAP requirement with an in-person USPAP class in Raleigh this past January. The Chapter has held 4 education classes so far and has 5 upcoming classes planned for the Spring and Summer.

 Earlier this month, members met up for a breakfast meeting with NCDOT Area 5 Appraiser Randy Guess who spoke with attendees about eminent domain appraising and working for the NCDOT as a fee appraiser. And last week, over 80 members and guests gathered via zoom to hear Residential Certified Appraiser, Joyce Pusey, SRA, AI-RRS, go over the basics of the ANSI requirements and rules that will be required on April 1 by Freddie Mac and Fannie Mae. 

Conflict in Ukraine Likely to Effect US Housing: Fannie Mae

Originally published on March 17, 2022, by Matthew Classick for Fannie Mae.

The Russian invasion of Ukraine, and its implications for the global economy, have added to growing inflation pressures and ongoing supply chain difficulties as monetary policy tightening begins, according to the March 2022 commentary from the Fannie Mae (FNMA/OTCQB) Economic and Strategic Research (ESR) Group. The ESR Group now projects full-year 2022 real GDP growth of 2.3 percent, down from last month’s projected 2.8 percent, but acknowledges that many of its forecast’s base assumptions, including a near-term resolution to the acute global economic effects of the Russian invasion of Ukraine, represent substantial downside risks to both the macroeconomic and housing outlooks. Prior to the conflict, inflation, as measured by the Consumer Price Index, hit a 40-year high and the Federal Reserve was poised to begin a course of significant monetary tightening. According to the ESR Group, the central bank’s already difficult task of enacting a “soft landing” – that is, raising rates to combat inflation without precipitating economic contraction – has been further complicated by the recent geopolitical developments. Despite the substantial uncertainty, the ESR Group continues to expect the Federal Reserve to raise the federal funds rate five times in 2022 and eight times total through 2023.

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Negative Equity for US Homeowners Hits 12-year Low, CoreLogic Report Reveals

Originally published on March 10, 2022, by MBA NewsLink Staff for Mortgage Bankers Association.

CoreLogic, Irvine, Calif., said just 2.1% of U.S. homeowners with a mortgage were underwater as of the fourth quarter, the lowest level since 2010, as borrowers gained more than $3.2 trillion in equity in 2021.

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Lenders Concerned About Profits Amid Higher Rates, Fewer Refis: Fannie Mae Survey

Originally published on March 10, 2022 by Matthew Classick for Fannie Mae.

A majority of mortgage lenders continue to expect near-term profitability to decrease amid rising mortgage rates and declining refinance activity, according to Fannie Mae's (FNMA/OTCQB) Q1 2022 Mortgage Lender Sentiment Survey® (MLSS). According to the survey, 75% of mortgage lenders believe profit margins will decrease in the next three months, up from 65% in the prior quarter, while 17% believe profits will remain the same and 9% believe profits will increase. Competition from other lenders, market trend changes, and consumer demand were the top reasons cited for the decline in profitability expectations. Mortgage lenders also grew more pessimistic about the larger economy in Q1 2022, with 59% now reporting that the economy is on the wrong track, compared to 29% in Q1 2021.

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CRE Prices Soar; Industrial Properties Set Record: Report

Originally published on March 6, 2022 by Michael Tucker for Mortgage Bankers Association.

Real Capital Analytics, New York, reported U.S. commercial property price growth continued to appreciate at a double-digit pace in January.

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'Alarming' Obsolescence Drives Office Building Repricing: Data

Originally published on March 9, 2022 by Randall Zisler, Ph.D. for Zisler Capital Associates.

A new economic analysis of the state of U.S. office buildings reveals that as much as 70% of the total inventory faces an alarming period of repricing due to fast-paced obsolescence, accelerated by COVID but exacerbated by evolving environmental and health standards. The underlying factors, that will get stronger over the long term, are strict new government standards for energy efficiency and growing tenant demands for healthy, safe, and energy-efficient office environments with ample modern amenities.

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Many Homes Sell for More than $100,000 Over Asking: Redfin

Originally published on March 8, 2022, by Isabelle Novak for Redfin.

Nationwide, 5,897 homes sold for at least $100,000 over asking price at the beginning of this year, up from 2,241 during the same period last year, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.

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Appraisal Institute Seeks Nominations for Annual Awards; Submissions Due May 31

Originally published on March 2, 2022 by the Appraisal Institute.

The Appraisal Institute announced March 9 that it is accepting nominations for its J. Scott Robinson Lifetime Achievement, Outstanding Service Award and Women’s Initiative SPOTLIGHT Award, three ways that AI recognizes some of its brightest and most deserving professionals.

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FHFA Allots Record $1.1B for Affordable Housing Programs

Originally published on February 28, 2022, by Adam Russell for the FHFA.

 Today, FHFA Acting Director Sandra L. Thompson announced that the Housing Trust Fund and Capital Magnet Fund will receive a total of $1.138 billion for affordable housing initiatives from Fannie Mae and Freddie Mac (the Enterprises). This is the largest amount ever provided to these programs from the Enterprises.

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