Keller Williams expands in New Jersey through market center merger with Clearview Realty

Keller Williams has dramatically expanded its presence in New Jersey. The brokerage announced Wednesday that the KW Integrity market center has merged with Sparta, New Jersey-based Clearview Realty, bringing 25 agents and tens of millions of dollars in annual sales volume to KW Integrity.“This merger between Clearview Realty and KW Integrity signifies a strategic union that will bring enhanced resources, expertise and opportunities to our leadership and agents as stakeholders,” Keller Williams regional director Christopher Stevens said in a statement.Since the beginning of 2022, Clearview has sold 635 units totaling $225.7 million in sales volume. So far in 2024, the group has sold 198 units for $79.5 million in sales volume, which is already the most Clearview has generated in a single year.Clearview owner and broker John Schlaffer was appointed as team leader of the KW Integrity market center effective Dec. 1.“This new partnership with KW Integrity represents a fantastic opportunity for us to expand our resources, enhance our capabilities, and provide even greater value to our agents,” Schlaffer said in a statement. “Together, we’ll be able to leverage Keller Williams’ global brand name, technology, comprehensive training programs, and extensive networks to elevate each of our successes to an even higher level.”Keller Williams has had more than a few staffing changes this year. In July, the brokerage added four new people to its executive team, including Cody Gibson as vice president of KW MAPS Coaching and Rachel Elder as vice president of KW Cares.In June, independent brokerage TJ Lewis Real Estate affiliated with Keller Williams. The Austin-based team brought 31 agents to KW. In 2023, the group closed 141 transactions for a total of $39.5 million in sales volume.

Mortgage demand rises slightly, reversing a recent streak

For the first time in seven weeks, mortgage demand rose as applications were up 0.5% during the week ending Nov. 8, the Mortgage Bankers Association (MBA) reported Wednesday.Purchase loan demand drove the slight increase in the MBA’s Market Composite Index, which measures loan application volumes. The purchase index rose 2% from the prior week on a seasonally adjusted basis. Refinances, however, were down 2% as mortgage rates continue to climb close to 7%, according to HousingWire‘s Mortgage Rates Center.On a year-over-year basis, the purchase index was up 1% and the refi index was up 43%.“Mortgage rates continued to increase last week, driven by higher Treasury yields as financial markets digested the likely impacts of a Trump presidency,“ Joel Kan, the MBA’s deputy chief economist, said in a statement. “The Federal Reserve’s 25-basis-point rate cut was already anticipated and did little to move the markets.“The 30-year fixed rate was at 6.86 percent last week, its highest since July 2024. However, despite the increase in rates, applications increased for the first time in seven weeks.”The refinance share of mortgage applications remained unchanged during the week at 39.9%, while adjustable-rate mortgages (ARMs) saw their share decrease to 6.5%.Government lending activity was another bright spot in the report as applications for Federal Housing Administration (FHA) loans increased their share to 16%, up from 15.5% a week ago, while applications for U.S. Department of Veterans Affairs (VA) loans grew their share from 12.5% to 13.3% during the week.“Purchase applications picked up and remained close to levels from a year ago,“ Kan said. “FHA and VA purchase applications drove the stronger overall purchase activity, increasing 3 percent and 9 percent, respectively. FHA mortgage rates bucked the overall trend and were lower over the week, which likely helped some borrowers. Conventional purchase applications were also up slightly. Meanwhile, the upward climb in rates led to refinance activity falling to its lowest level since May 2024.”  The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of $766,550 or less shed 5 basis points to finish the week at 6.81%. Rates for 30-year jumbo loans (balances above $766,550) increased by 2 bps to 7%. FHA loan applications also saw declining interest rates during the week, falling by 6 bps to 6.69%. Rates for 5/1 ARMs grew by 1 bps to an average of 6.06%, while those for 15-year fixed loans were unchanged at 6.21%The MBA’s weekly mortgage applications survey is benchmarked at 100 in March 1990. It covers all closed-end residential mortgage applications originated through the retail and consumer direct channels.

More Homes, Slower Price Growth – What It Means for You as a Buyer

There are more homes on the market right now than there have been in years – and that could be a game changer for you if you’re ready to buy. 

Rocket’s origination volume jumps 28% in Q3

Detroit-based Rocket Companies, the parent of Rocket Mortgage, saw its strategy of investing in technology and expanding its servicing portfolio start to pay off in the third quarter of 2024. It originated $28.5 billion in loans during the period — up 28% year over year.Short-lived relief in mortgage rates led to a double-digit increase in mortgage production and gains in market share during the period, executives said. But the company delivered a GAAP net loss of $481 million from July through September, a figure that was driven by a loss of $878.3 million in the fair value of its mortgage servicing rights (MSRs).“Over the past few months, the market has thrown our industry almost every curve ball imaginable,” Varun Krishna, CEO and director of Rocket Companies, told analysts during an earnings call on Tuesday. “With inflation easing, the Federal Reserve cut rates for the first time in four years. But in an interesting twist, while the Fed lowered rates, mortgage rates did not follow suit. Instead, both the 10-year Treasury yield and the 30-year fixed mortgage rate actually increased.“In my experience, it’s always important to take the long view and put things in perspective. Despite the housing market being challenging, we are seeing signs of rejuvenation. The 30-year fixed mortgage rate has declined from nearly 8% a year ago. This is helping improve purchase affordability and opening up refinancing opportunities to lower monthly payments, plus housing inventory has increased from 3.4 months to 4.3 months.” Rocket’s GAAP net loss of $481 million from July to September was a reversal from its $178 million profit in the second quarteer of 2024, per filings with the Securities and Exchange Commission (SEC). Adjusted earnings, which excludes non-cash expenses and one-time charges, reached $166 million in Q3 2024, lower than the $255 million figure in Q2. The GAAP net loss also stemmed from a decline in total revenue, which reached $647 million in Q3, down from $1.3 billion in Q2. Meanwhile, expenses rose to $1.14 billion, up from $1.1 billion in the second quarter.Operationally, a two-week dip in mortgage rates created a brief window for refinancing in Q3 2024, pushing Rocket’s total origination volume to $28.5 billion from July to September — up from $24.6 billion in the previous quarter and $22.1 billion in Q3 2023. Its direct-to-consumer channel remained the primary driver, generating $14 billion in volume during the period, compared to $12.4 billion from its third-party originator channel.Gain-on-sale margins for Q3 2024 were 278 basis points, a decrease from 299 bps in the previous quarter but nearly unchanged from 276 bps in Q3 2023. This was driven by a margin of 410 bps in the direct-to-consumer channel and 147 bps in the third-party origination (TPO) channel. Executives anticipate margin expansion in the fourth quarter, a period when competitors typically adjust pricing strategies around the holidays. According to Rocket leadership, current margins are approaching the historically healthy levels seen before the pandemic.Rocket’s playbookWhile the company doesn’t provide a detailed breakdown of purchase versus refinance business, executives reported market share growth in both areas during the quarter. Refinancing opportunities are largely coming from Rocket’s servicing portfolio, which reached an unpaid principal balance (UPB) of $546.1 billion at the end of Q3. With 2.6 million loans, Rocket’s servicing operations generated approximately $1.5 billion in annual fee income.Rocket, like its peers, has been actively acquiring servicing assets. In Q3 alone, it invested $311 million to add $22.4 billion in UPB, bringing its total UPB acquisitions from January to October to $70 billion. Executives anticipate that portfolio acquisitions will remain a key capital deployment strategy alongside opportunities from subservicing agreements, such as Rocket’s partnership with real estate investment trust Annaly Capital Management. The company’s total liquidity was $8.3 billion as of Sept. 30, including $1.2 billion of cash on the balance sheet. Rocket reported an 85% recapture rate on its servicing portfolio. The company is leveraging technology to navigate mortgage market cycles more effectively. Chief financial officer Brian Brown told analysts that the company can “support $150 billion in origination volume without adding a single dollar in fixed costs.”Additionally, Krishna said Rocket Logic, the company’s proprietary loan origination system, now saves more than 800,000 team member hours per year — a 14% increase in just two months — that result in more than $30 million in annual savings.Looking ahead, Rocket projects adjusted revenue between $1.05 billion and $1.2 billion in Q4 2024, a seasonally slower period due to the holidays. Executives said higher mortgage rates have also dampened application volumes. Rocket shares fell 11.3% in the after market, following the earnings call, to $13.78.