A $1,000 increase in the cost of a median-priced newly-built home, pushes 127,560 prospective buyers out of the market, notes a survey.

These households would be able to qualify for a mortgage to purchase the home before the price increase, but not afterward, according to a recent study by the National Association of Home Builders.

The numbers are even more startling when looking at the impact of potential interest rate increases. Just a quarter-point rise in the rate for a 30-year fixed-rate mortgage would price out around 1 million households.

“Even a relatively small increase in price or interest rates can dramatically impact housing affordability,” said Chairman Randy Noel, chairman of NAHB, and a custom home builder from LaPlace, La. “Housing affordability is a serious problem right now in communities across the country. Rising interest rates, regulatory barriers, higher building materials costs and labor shortages all add to the cost of a home and are preventing households from achieving the goal of homeownership.”

The number of priced out households varies across both states and metropolitan areas, largely affected by the sizes of local population and the affordability of new homes. The study examines priced out estimates for every state and more than 300 metropolitan areas.

Among all the states, Texas had the largest number of home buyers that would be priced of the market. The $1,000 price increase would push 11,152 households out of the market in Texas, followed by California, 9,897, and Ohio, 7,341.

The metropolitan area with the largest priced out effect, in terms of absolute numbers, is Chicago, Naperville Ind., and Elgin, Wisc., where 4,499 households are squeezed out of the market if prices increase by $1,000.

The National Association of Mortgage Brokers and Lender Price unveil the NAMB Marketplace, providing brokers with easy access to dozens of lenders and vendors.

The marketplace is a new feature of the NAMB Toolbox that delivers access to an interface through which originators can interact with prospects and have access to thousands of loan programs. Lender Price provides a digital interface technology as well as product-pricing and eligibility solutions. The NAMB Toolbox was introduced at the trade group’s national conference.

NAMB Marketplace offers members real-time pricing and eligibility, built upon a modern technology stack. The Lender Price PPE displays pricing and eligibility from more than 150 lenders and integrations to over 45 vendors, ensuring visibility to the marketplace. A single click enables brokers to invite their prospect to begin an application, using the Lender Price PPE in a single platform gives brokers the digital tools they need to fund their loans more cost effectively than was possible up to now.

[caption id="attachment_9049" align="alignright" width="272"] NAMB's Bettencourt[/caption]

“NAMB is thrilled to make this announcement with Lending Price, a true visionary in digital lending,” said Richard Bettencourt, president of NAMB’s board. “Current NAMB members, along with future members, will enjoy this new tool as it is the very best solution offered to brokers to connect with their customers and prospects while aligning their operations in an easy to use, web-based solution.”

NAMB Marketplace provides mortgage brokers a modern technological solution to price a loan, engage prospects in a streamlined digital experience and ensure accurate digital delivery to wholesale lenders.

"We are excited to be partnering with NAMB to provide The NAMB Marketplace. By seamlessly combining our pricing engine with our state-of-the-art digital lending platform, we have created an open solution for brokers to find the best rate and loan program for their borrowers, while providing the best digital experience on the market," stated Dawar Alimi, president and co-founder of Lender Price.

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The Cooksey Team, a Dallas-based retail branch of Mid America Mortgage Inc., has achieved year-over-year growth in volume and profitability for the sixth year running. In 2018, The branch increased overall volume by 27 percent compared with the previous year and increased the number of loan units closed by 28 percent. In addition, the branch decreased its cost to originate by 14 percent, resulting in a 35 percent increase in branch profitability, according to the company.

“At a time when volumes are down and the cost to originate is up, we’ve been able to buck industry trends, and that’s due in large part to Mid America’s commitment to utilizing technology to make our operations more efficient,” said Michael Cooksey, founder of the team. “With the adoption of our eClosing process and top-notch CRM system, as well as utilizing Fannie Mae’s Day 1 Certainty program, Mid America has modernized its operations, and our loan originators are reaping the benefits.”

More than 80 percent of Cooksey Team loan originators increased their production in 2018, with some achieving as much as 100 percent growth compared with 2017. In addition, several loan officers have achieved top-tier status in their respective markets, including Wesley Ryan Grubbs, Brandon Findley and Darren Lovell.

“When you have the proper technology and resources in place, along with support from the executive level down, it is possible to thrive in a down market,” Cooksey said. “LO and branch success has always been a top priority at Mid America, and not only has the firm’s investment in the tools and support paid off tremendously this year, but we expect to see that success continue into 2019 as we look to bring on more top-tier talent.”