Demand-Supply Rift Causes Bay Area Home Prices to Soar

Lack of housing inventory and buyer rush have created a demand-supply rift, resulting in high median prices for the Bay Area. For single homes, the Bay area median prices have risen by 8.6% (sitting at $950,000) in July, piggybacking on price surge in Contra Costa and San Mateo.  The performance is largely due to the first home buyers sitting out the pandemic and luxury buyers grabbing the high-price deals. Freddie Mac believes that the Bay Area is among the top housing markets in the country and its notable performance can be put down…continue reading →

Forborne Mortgages Fall Below 4 Million

Not since April end had mortgage forbearance dipped below 4 million. Well, it did just that for the week ending Aug 10, reports Black Knight. On August 3, the mortgage forbearance number was 1,000 over 4 million. This week, it has come down to 3.93 million, representing a fall of 71,000. Forborne conforming mortgages backed by Fannie Mae and Freddie Mac came down by 27,000. It sat at 1.515 million on Aug 10. The drop corresponds to 1.8%. FHA and VA forbearance mortgages saw a dip of roughly 8,000.  According to Black Knight,…continue reading →

Foreclosures Fall, Starts Pick up in a Few States

The Coronavirus-related moratorium has resulted in mortgage foreclosure activity posting an 83% deficit over its performance a year ago, says Attom Data Solutions. Compared to June, the numbers reveal a 4% decline. Over the first 6 months of the current year, the mortgage foreclosure activity has been 44% lesser than the same time last year. Compared to the same duration in 2018, the fall is 54%. In numbers, what this says is that one out of every 15,337 properties in America has filed for foreclosure in 2020. This number was one in every…continue reading →

Mortgage Application Volumes Rise Again

Riding on the back of continuing low interest rates, mortgage application volumes saw a spurt after a two-week fall, reports Mortgage Bankers Association. The MBA's Weekly Mortgage Applications Survey reveals that there has been a hike of 6.2% in mortgage application volumes over a week and a 37.1% rise, when compared on the year-to-year chart. The refinance index has leapt up most with 9.1% over the week, which incidentally is its best show since April. On the year-to-year chart, it has posted a 46.7% leap. The purchase index didn’t do anything phenomenal over…continue reading →

Mortgage Rates Slip Again after Making Symbolic Recovery

Having slipped below 3% for the first time in retrievable memory, the 30-year fixed-rate mortgage had made a symbolic return to 3.01% before slipping once again to 2.99% (for the week ending July 30). Sam Khater, Freddie Mac’s chief economist believes that "It's Groundhog Day in the mortgage market as rates continue to remain near historic lows, driving purchase demand over 20% above a year ago," He further stated in a press release that "Real estate is one of the bright spots in the economy, with strong demand and modest slowdown in home…continue reading →

Fannie Mae Touches Refinancing Highs in Q2

Fannie Mae has posted its best refinancing figures in the last 17 years and its Q2 earnings have put in shade its Q1 earnings, demonstrating that it is having a decent time despite the setback faced by the broader economy. ‘Fannie’ believes that its performance can be put down to spiked mortgage purchase activity as well as its ability to tackle credit-related expenses.  Fannie Mae’s CEO Hugh Frater stated in a conference call that "Our performance during this period benefited from strong underwriting practices that we've had in place for the last 10…continue reading →

Pending Home Sales Index Posts Surprising Numbers

Riding on the declining mortgage rates, pending home sales have come around really well, beating all expectations. This further asserts that the housing market is the only silver lining in the Coronavirus-affected economy.  The National Association of Realtors  (NAR) has an index that puts the contract signings into perspective. According to it, the signings to buy previously owned houses have shot up 16.6% once again, building on the excellent show in May (44.3% rise). Lawrence Yun, the chief economist for NAR is surprised. In his statement, he suggested, “It is quite surprising and…continue reading →

Not since 2008 has the Homeownership Rate been this High

The rate of homeownership in America has reached a level untouched since 2008. Spearheaded by the young population, the housing boom that had been stalled by the Coronavirus seems to have found its feet back. The Census Bureau puts the Q2 rate at 67.9%. This is the fourth quarterly increase in succession, building on the 65.3% posted in Q1. Young buyers, specifically those below 35 years have registered a homeownership rate of 40.6%, which is the highest it has been in the last 12 years.  It is not hard to recall that businesses…continue reading →

Forborne Mortgage Numbers Drop Again; Albeit at a Lower Rate

The number of mortgages hitting forbearance has come down for a 6th consecutive week. The speed of fall has slowed down though. Forbearances triggered by the Coronavirus declined by 6 basis points  (7.8% to 7.74%) between 13th and 19th July, confirms the Mortgage Bankers Association. For the independent mortgage providers, the loans sitting in forbearance climbed to 7.85% from 7.83%. The MBA’s senior vice president (and chief economist) Mike Fratantoni suggested, "Although the GSE portfolio of loans in forbearance should continue to improve, Ginnie Mae's portfolio saw an uptick of both loans in…continue reading →

Mortgage Rates Up After Falling for 6 Weeks

Having fallen below 3% for the first time since Freddie Mac started recording, the mortgage rates have risen above 3% once again, thus arresting a fall which began 6 weeks ago. At this point, it is only symbolic though. From 2.98% on July 16, we are at 3.01% (July 23). On the year-to-year chart, the 30-year fixed-rate mortgage traded at 3.75%. To quote Freddie Mac’s chief economist, Sam Khater, "While housing demand continues to rebound, the month-long swoon in economic activity has caused the 10-year Treasury benchmark to drop," He added, "In the…continue reading →