The American Land Title Association (ALTA) recently reported a significant monthly decrease in title premium volume during the second quarter of 2023. This 37% annual decrease was mainly attributed to high mortgage rates and a continued decline in housing inventory levels.
A number of factors are driving this drop in title premium volume. Mortgage rates are at an all-time high, with the average rate in April of 2023 being higher than any previous Aprils in the past decade. This is making it difficult for many people to qualify for a mortgage, pushing potential buyers away from the market. In addition, housing inventory has been on a steady decline since 2022. The national supply of homes for sale is at its lowest point since late 2020, meaning that house sales are slower due to a lack of options in the market.
These key factors have pushed title premium volume down substantially. The ALTA’s report indicates that this trend is likely to continue until mortgage rates begin to drop and housing inventory levels are able to recover.
Key Points:
• 37% annual decline in title premium volume during Q2 2023
• High mortgage rates and low housing inventory drive decrease in title premium volume
• Housing inventory is at lowest point since late 2020
• Mortgage rates higher than any previous Aprils in past decade
• Likely trend to continue until mortgage rates drop and housing inventory recovers
You can read this full article at: https://www.housingwire.com/articles/title-insurance-premium-volume-dropped-37-in-q2-2023/(subscription required)
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