Low mortgage rates may also be helping to keep elevated delinquencies in check, according to a new report from CoreLogic.

“Our analysis of CoreLogic public records shows that more than one-half of all home mortgage loans created since the onset of the pandemic have been no-cash-out refinance,” says Frank Nothaft, chief economist at CoreLogic. “By reducing their mortgage rate with these types of loans, homeowners have been lowering both their interest expense and risk of delinquency.”

As the COVID-19 pandemic rages on and hampers the economy, many homeowners may be looking for greater mortgage relief. Foreclosure moratoriums are in place and many lenders are offering assistance to those struggling.

Regardless, the rate of non-current loans is significantly higher this year due to the impact of COVID-19 on the economy. The national delinquency rate—loans that are 30 or more days past due or are in foreclosure—stands at 6.3%, which is higher than the 3.8% rate from a year ago, according to CoreLogic’s Loan Performance Report.

“Although delinquencies remain high, it’s clear the economy has passed an initial stress test,” says Frank Martell, president and CEO of CoreLogic. “High home equity balances and structural protections put in place as a result of the Great Recession contributed to surviving the test. Housing demand remains strong, and rates low, which provides optimism that the housing market will continue to be a bright spot in this COVID-ravaged economy.”

The foreclosure inventory rate—the share of mortgages in some stage of foreclosure—is at the lowest rate since at least January 1999. In response to the pandemic, Congress issued a foreclosure moratorium as part of the CARES Act to help homeowners who may be struggling to make payments.

Still, every state saw its delinquency rate increase in September compared to a year earlier. States that rely heavily on tourism have been hit hardest, such as Nevada, Hawaii, and Florida, CoreLogic’s report shows.

Consumers crave digital connection from small businesses, including from real estate firms, a new study finds. The COVID-19 outbreak has sparked a greater reliance on digital and mobile tech to do jobs and complete transactions.

Moxtra, a firm that offers digital solutions, recently surveyed 1,500 small business personnel and 1,500 small business customers across industries, including real estate, about digital offerings and sentiment.

Thirty percent of consumers say digital capabilities are a “primary requirement” when searching for a small business to work with nowadays. Eighty-four percent of consumers said they’d look to other companies if a firm was lacking in technology use or did not offer a good experience. Further, consumers say that disjointed digital experiences remain a top pain point in working with companies.

“This year, businesses learned that digital resilience was critical to surviving the pandemic—however, digital resilience is also critical to surviving in today’s digital age, period,” says Leena Iyar, chief brand officer for Moxtra. “However, the findings of this report indicate that consumers are demanding that businesses provide a simpler, more streamlined and more effective digital experience, or else they’ll move on to a competitor who will.”

Forty-eight percent of consumers said they prefer to engage with small businesses digitally as much as possible and only conduct in-person business when necessary. For example, 89% of small business customers agreed that it was important for them to be able to reach out digitally to small businesses instead of scheduling an appointment or phone call.

But the technology must be simple to use as well. Sixty-three percent of survey respondents said that the number of digital tools and technologies their company uses is making some tasks more complex.

“The use of a wide array of third-party tools can be confusing for both customers and internal personnel,” the report notes. “Offering a multitude of third-party channels might seem like the best method to allow every customer to reach you, but it actually puts the burden of disjointed communication on the customer, which can be overwhelming and frustrating for them.”

Many companies during the pandemic may have adopted a patchwork of technology to enable greater remote work as soon as the pandemic hit. But such “band-aid” solutions won’t suffice over the long haul without a more comprehensive strategy that streamlines and digitally manages business activities, the report adds.

“Small businesses are making headway with new technology,” Iyar says. “But just like the consumers they engage with, these businesses are also struggling to streamline interactions with the prevalence of disparate, disconnected technologies. By leveraging a high-touch, comprehensive portal, businesses will be able to provide holistic virtual experiences that mirror customers’ natural behavior.”

The appraisal can be a stressful process and may threaten to derail transactions. Twenty-one percent of REALTORS® say “appraisal issues” delayed their sales contracts in October, according to the most recent REALTORS® Confidence Index. Appraisal issues led to 13% of contracts being terminated. The appraiser evaluates the home’s lot size, condition (both inside and out), foundation, neighborhood, and any other amenities that add or decrease value.

Source: REALTOR® Confidence Index

Real estate professionals should prepare their sellers for the appraiser’s visit. Advise your clients to do a deep cleaning inside and outside the home, touch up paint, fix any minor maintenance issues, and have relevant paperwork—such as details about the home and comps—ready to hand over to the appraiser.

Appraisals can come in below a property’s sale price for several reasons. For example, buyers in competitive markets may have driven up a home’s sale price in a bidding war, or an appraiser may find a property defect. Perhaps an addition to the house didn’t have a construction permit, which the appraiser would label as “cost to cure,” according to an article from HomeLight.

If an appraisal comes in low, the seller likely will have to negotiate with the buyer over the price again. Homeowners can challenge a low appraisal, but success is likely limited, Bill Gassett, a real estate pro with RE/MAX Executive Realty in Hopkinton, Mass., writes for RISMedia. Homeowners will have to prove a mistake was made during the appraisal, such as incorrectly recorded square footage. The seller could request another appraisal, but that isn’t a guarantee of a higher price.

Homeowners are enjoying their property’s outdoor space more during the pandemic, and house hunters are paying particular attention to outdoor features as they evaluate homes to purchase. Landscape design firm Tilly Design predicts the top trends for outdoor space in 2021.

1. “Social” front yards. You can still bond with neighbors while observing social distancing guidelines. Maximizing the front porch or front yard, where you can communicate with neighbors from a distance, likely will become an even bigger trend next year. “In an effort to maximize your property and feel more connected to neighbors, social front yards will continue to be a priority,” Tilly Design’s forecast notes. “Move over hedges, and move in bistro seating and chairs to watch the neighbors pass you by.”

2. Enhancing seasonal views. Outdoor views are increasingly important as people spend more time at home. Leafless trees don’t make for an inviting view, even in the winter. Expect homeowners to pay greater attention to their seasonal views, creating focal points outside the window that combine evergreens, perennials, and ornamental grasses. It’s an effort to showcase green surroundings all year.

3. Gardening spots. Homeowners are turning to gardening as a therapeutic pastime. Even in small areas, vertical outdoor gardens can not only serve as a great hobby but also as a statement piece, Tilly Design’s report notes. Veggies, fruit, and herb gardens are in high demand. Raised garden beds and potted herbs will continue to trend in 2021, the landscaping company notes.

4. Seamless indoor and outdoor spaces. Emphasizing a natural flow between the indoors and outdoors likely will continue to drive renovation concepts in 2021, the report notes. This could include installing large sliding or folding glass doors, drop-down screens on the porch, outdoor heating lamps, and outdoor fire pits. This will help homeowners enjoy their outdoor spaces more anytime of the year.

Faced with more expensive home prices, home buyers are bringing more money to closing. The median down payment on a single-family home and condo purchased in the third quarter increased by nearly 67% compared to a year ago. Median down payments are at the highest level recorded since at least 2000, according to a new analysis from ATTOM Data Solutions, a real estate data firm.

The median down payment of $20,775 was 6.6% of the median sales price for homes purchased with financing in the third quarter. The median loan amount was $275,500, the highest level since 2000.

ATTOM’s research shows the following 10 metros saw the highest median down payments in the third quarter:

• San Francisco-Oakland-Hayward, Calif.: $243,000
• Los Angeles-Long Beach-Anaheim, Calif.: $154,000
• Oxnard-Thousand Oaks-Ventura, Calif.: $138,300
• Boulder, Colo.: $123,600
• Santa Rosa, Calif.: $118,550
• San Diego-Carlsbad, Calif.: $112,000
• Bridgeport-Stamford-Norwalk, Conn.: $106,600
• Boston-Cambridge-Newton, Mass.-N.H.: $76,000
• Naples-Immokalee-Marco Island, Fla.: $76,000
• Fort Collins, Colo.: $69,125

Down payments can be among home buyers’ chief obstacle to achieving homeownership. The Federal Housing Administration offers loans with lower down payment requirements catered to first-time home buyers. Mortgages backed by FHA comprised 10.3% of all residential property loans originated in the third quarter, ATTOM Data Solutions reports.