Stewart Information Services (STC)

Management Discussion

• Comparisons of our results of operations for the three months ended March 31, 2022 with the corresponding periods in the prior year are set forth below. Factors contributing to fluctuations in the results of operations are presented in the order of their monetary significance, and we have quantified, when necessary, significant changes. Segment results are included in the discussions and, when relevant, are discussed separately.
• Our statements on home sales and loan activity are based on published U.S. industry data from sources including Fannie Mae, the Mortgage Bankers Association (MBA), the National Association of Realtors® (NAR) and the U.S. Census Bureau as of March 31, 2022. We also use information from our direct operations.
• Operating environment. Existing home sales in March 2022, on a seasonally-adjusted basis, declined 4% and 3% compared to a year ago and February 2022, respectively. According to NAR, the decline in existing homes sales was primarily due to slower demand, impacted by rising mortgage rates and higher inflation affecting consumer purchasing power. Median and average home prices continued to rise, increasing 15% and 10%, respectively, in March 2022 compared to a year ago, which marked the 121st consecutive month of year-over-year median home price increases. With regard to new residential construction, U.S. housing starts in March 2022 improved 4% from March 2021, while newly issued building permits in March 2022 were 7% higher than a year ago. Both March 2022 housing starts and issued building permits were comparable to February 2022.