ConventionalHousingMortgageApplicationsContinueDeclineTraditionalHousingUnaffordabilityRecordMeanwhileManufacturedHomeSalesContinuesToIncreaseMHLivingNews

Conventional Housing Mortgage Applications Continue Decline, Traditional Housing Unaffordability Record; Meanwhile, Manufactured Home Sales Continues to Increase

The Mortgage Bankers Association (MBA) in a press release dated June 8, 2022 said: “Mortgage applications decreased 6.5 percent from one week earlier…for the week ending June 3, 2022.” Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting said that “Weakness in both purchase and refinance applications pushed the market index down to its lowest level in 22 years.” As ZeroHedge framed it, applications for “Purchases fell more than refis, tumbling 6.1% WoW [Week over Week] (refis fell 5.6% WoW).” MBA said that “The FHA share of total applications increased to 11.3 percent from 10.8 percent the week prior. The VA share of total applications increased to 11.4 percent from 10.2 percent the week prior. The USDA share of total applications remained unchanged at 0.5 percent the week prior.” Those FHA loans had “The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 5.30.”

June2022-ZeroHedgeBloombergManufacturedHomeLivingNews

ZeroHedge, citing Bloomberg, said this is “the weakest level for purchase applications since Nov 2016.”

 

WeakestLevelOfPurchaseApplicationsSince2016ManufacturedHomeLivingNewsJune2022

MortgagePaymentMedianNewHomePercentageMediaHouseholdIncomeJanuary2000toApril2022ManufacturedHomeLivingNews

The next chart “confirms the raw affordability of new homes has achieved a new record low.”

RelativeAffordabilityNewHomesU.S.MedianHouseholdIncome17.4PercentMedianHomeSalesPriceApril2022LowestOnRecordMHLivingNews

April 2022’s median household income was just 17.4% of the value of the median new home sold during the month. By this raw measure, new homes have never been less affordable for the period where we have data available.

MBA’s Kan said “The purchase market has suffered from persistently low housing inventory and the jump in mortgage rates over the past two months. These worsening affordability challenges have been particularly hard on prospective first-time buyers.”

 

Meanwhile, in Manufactured Housing Land

The new manufactured home production and shipment data for April 2022 is in. To understand what is occurring, the new facts should be framed against broader U.S. housing data. Just days ago, Tobias Peter for the American Enterprise Institute’s respected AEI Housing Center told MHProNews the following. “Purchase volume for week 20 is down 16% and 1% over 2021 and 2019, respectively, and home price appreciation (HPA) is projected to moderate in June. However, unless supply increases, we expect y-o-y HPA to remain high until mortgage rates are at 6% or more.” So, AEI’s data reflects the same decline in volume that the MBA did, as stated above.

 

FOR IMMEDIATE RELEASE                                                                     Contact: MHARR

 INDUSTRY PRODUCTION INCREASES IN APRIL 2022

Washington, D.C., June 3, 2022 – The Manufactured Housing Association for Regulatory Reform (MHARR) reports that according to official statistics compiled on behalf of the U.S. Department of Housing and Urban Development (HUD), HUD Code manufactured housing industry year-over-year production increased in April 2022. Just-released statistics indicate that HUD Code manufacturers produced 10,165 homes in April 2022, a 10% increase over the 9,244 new HUD Code homes produced during April 2021. Cumulative production for 2022 now totals 39,835 homes, an 11.5% increase over the 35,723 homes produced during the same period in 2021.

A further analysis of the official industry statistics shows that the top ten shipment states from the beginning of the industry production rebound in August 2011 through April 2022 — with cumulative, monthly, current year (2022) and prior year (2021) shipments per category as indicated — are:

MHARRLogoManufacturedHousingAssociationForRegulatoryReformApril2022ReportNewManufacturedHomeIndustryTopTenShipmentStatesReleasedJune2022MHLivingNews

     — 30 –

Manufactured Housing Association for Regulatory Reform (MHARR)
1331 Pennsylvania Ave N.W., Suite 512
Washington D.C. 20004
Phone: 202/783-4087
Fax: 202/783-4075
Email: 
MHARR@MHARRPUBLICATIONS.COM
Website: manufacturedhousingassociation.org

 

Additional Information, MHLivingNews Analysis and Commentary in Brief

The steady increase in manufactured home sales to a 14-year record was previously reported in the report linked below.

PuzzlingFactsWith14YearHighProductionWhyRelativelyFewManufacturedHomesSoldUrbanInstituteManufacturedHousingReduxMarch2022ProductionShipmentNationalStateRegionalDataMHLivingNews
https://www.manufacturedhomelivingnews.com/puzzling-facts-explored-with-14-year-highest-production-levels-why-relatively-few-manufactured-homes-sold-urban-institute-manufactured-housing-redux-march-2022-data/

 

With inflation roaring, and conventional housing costs soaring, it is no surprise that seniors and others are discovering or re-discovering the value found in modern manufactured homes.

InflationRoaringAffordableHousingNeededSpotlightAARPsReportManufacturedHousingAsAnAffordableOptionForOlderAdultsPlusLookElderGuruConservativeAlternativestoAARPMHLivingNewsLogo
https://www.manufacturedhomelivingnews.com/inflation-roaring-affordable-housing-needed-spotlight-aarp-report-manufactured-housing-as-an-affordable-option-for-older-adults-plus-eldergurus-look-conservative-a/

The Tampa Free Press featured a report, see the linked item below, that explained how modern manufactured homes were only about half the cost of a similar sized conventional house.

HalfPricedNewHomesTampaFreePressMHLivingNewsRevealsFederallyCertified3rdPartyInspectedNewAffordableHomesFactsVideoAnalysisSolutionsFesteringAffordableHousingCrisisProblems
  https://www.manufacturedhomelivingnews.com/half-priced-new-homes-tampa-free-press-mhlivingnews-reveals-federally-certified-3rd-party-inspected-new-affordable-homes-facts-video-analysis-solutions-to-festering-affordable-housing-crisi/

Manufactured housing research defies the common beliefs held by numbers. For instance, manufactured homes in numerous states are increasing in value faster than conventional housing.

Unpacking “Manufactured Homes as an Investment” LendingTree “Mobile Home Values Are Rising Faster Than Single-Family Home Values”—When do Mobile and Manufactured Homes Appreciate or Depreciate?

Manufactured homes are also safer than many have been led to believe.

“Preliminary Tornado Data 2021 National Weather Service, III.org–Surprising, Hopeful Facts for Affordable Housing Seekers” – Impact on Conventional Housing, Mobile Home, Manufactured Homeowners

For more insights on manufactured housing related research, see the linked articles above and below.

Research-Data-Stats – Media & Investigator Resources – Mobile Homes, Manufactured Homes, Manufactured Housing Research – HUD, Univ-Studies, CFPB, Nonprofits, GAO, NFPA – Exec Summary, Definitions, Facts, Trends, More

 

 

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That’s a wrap on this installment of “News through the lens of manufactured homes and factory-built housing” © where “We Provide, You Decide.” © ## (Affordable housing, manufactured homes, reports, fact-checks, analysis, and commentary. Third-party images or content are provided under fair use guidelines for media.) (See Related Reports, further below. Text/image boxes often are hot-linked to other reports that can be access by clicking on them.)

CongRepAlGreenDeskTamasKovachLATonyKovachPhoto12.3.2019ManufacturedHomeProNews
All on Capitol Hill were welcoming and interested in the discussion of manufactured housing-related issues in our 12.3.2019 meetings. But Texas Congressman Al Green’s office was tremendous in their hospitality. Our son’s hand is on a package that included a copy of the Constitution of the United States and other goodies. MHProNews has worked with people and politicos across the left-right divide.

By L.A. “Tony” Kovach – for MHLivingNews.com.

Tony earned a journalism scholarship and earned numerous awards in history and in manufactured housing. For example, he earned the prestigious Lottinville Award in history from the University of Oklahoma, where he studied history and business management. He’s a managing member and co-founder of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com. This article reflects the LLC’s and/or the writer’s position, and may or may not reflect the views of sponsors or supporters.

http://latonykovach.com

Connect on LinkedIn: http://www.linkedin.com/in/latonykovach

Recent and Related Reports:

The text/image boxes below are linked to other reports, which can be accessed by clicking on them.

 

 

 

 

‘How the Many Can Defeat Corporate Money’ What Manufactured Home Community Resident Groups Can, Should Consider Doing to Pushback Against Predatory Manufactured Home Community Operators

‘Monopolies Inflict Harm in Many Ways’ ‘Merger Guidelines are a Free Pass’ – Historic Lessons in ‘Sabotaging Monopoly’ Economics in DoJ/FTC Guidelines by Prof James A Schmitz Jr, Sr Economist

 

 

 

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