Housing starts have performed below expectations in August, signaling lesser construction of apartments. This does not bode well for the broader economy because the housing industry is one of the few ignitions it has in the corona-infested 2020. Residential starts have come down by 5.1% compared to July, says a government report. Bloomberg had anticipated 1.49 million but all we have managed to get in August is 1.42 million. Fewer permits, to the tune of 0.9%, have been granted in August for multifamily homes. July’s surge of 17.9% was a first of its…
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Mortgage News
Mortgage Credit Availability Hits Lowest Point in Six Years
Mortgage credit availability has declined considerably, reaching the lowest point it has reached in six years, according to the Mortgage Bankers Association (MBA). The Mortgage Credit Availability Index (MCAI) dropped to 120.9 in August, which is a 60.8 point decrease from August 2019 (181.7). MCAI Trend (Source: Mortgage Bankers Association) Joel Kan, the MBA’s Vice President of economic and industry forecasting, remarked that uncertainty around the job market and its future was likely to be the reason behind tightening credit. When lending standards become tighter, fewer mortgages are available and fewer still borrowers…
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Pandemic Changes Homebuyers’ Preferences
TD Bank surveyed 380 borrowers from the South, 240 from the West, 210 from the Northeast, and 170 from the Midwest. To add, 6% of those surveyed were born in or before 1945. 39% were Millennials, and 27% from the Gen X, and 28% Baby Boomers. The 1000 borrowers, surveyed in June, provided revealing insights into how the pandemic was shifting homebuyers’ preferences. It was interesting that 7% of the respondents were keen to raise their housing expenses while 29% wished to bring down the housing payments. 64% of the respondents were just…
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Price Hikes can Signal which Way Demand is Going
One way to form an opinion about demand is to look at the number of listings that have seen a price hike. One reason for such increases is real estate flipping. Investors buy a property, do some work on it, and sell it at a better price. It is done quickly enough. Property prices generally rise to a range where the shopper demand is at the maximum level. This task is accomplished through adequate marketing and sales strategy. Another way this works is via the big institutions. They buy property at a discounted…
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Mortgage Applications Reverse Month-Long Drop in Numbers
For the first time in four weeks, mortgage applications saw a hike, rising by 2.9% over the last week. The housing demand is atypically strong as we come to the end of summer, says the Mortgage Bankers Association. The MBA's associate vice president of economic and industry forecasting, Joel Kan, stated in a press release that “Purchase applications were 40% higher than the same week last year, but the increase is skewed higher by being compared to Labor Day 2019. Nevertheless, there continues to be resiliency in the purchase market. Applications were up…
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Active Listing is a Crucial Index For Judging Demand
The housing market is in hot momentum. The median price of America’s single-family home is sitting at $354,000 this week. This is 9% higher than at the same time last year, and fractionally more than the week prior. As the things are spread out, it is likely that we will be 8-9% gainers on the yearly chart till October for sure. Holidays should restore some normalcy because sustained 8-9%, honestly, is too intense to be managed. The inventory has been terribly short and buyers, pressed back for long by the pandemic, are on…
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Nonbank Mortgage Firms Increase Hiring Rate
The payrolls of the nonbank mortgage bankers and brokers cumulatively increased by roughly 2% on the monthly chart and 9% on the yearly chart, divulges the latest report of the Bureau of Labor Statistics. While the expectations were rather mute, given the traditionally lackluster buying numbers in fall, many nonbank mortgage houses are hiring at a decent rate, believing that it is the time to execute ambitious plans. For instance, Mr. Cooper proposes to hire 2,000 employees. AmeriSave Mortgage Corp. is looking for the same number of recruits. As early as in July, Freedom…
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Forbearance Plateaus after a 10-Week Long Fall
The coronavirus-related forborne rate of mortgages plateaued between Aug. 17 and Aug. 23, says the Mortgage Bankers Association. On the heels of a 10-week long fall, the rate finally held at 7.2% for the above mentioned week. In figures, this is equivalent to 3.6 million mortgages. Over the same period, the forborne rate of mortgages fell to 7.41% from 7.43% for the independent mortgage servicers. Mike Fratantoni, Senior VP and Chief Economist for MBA, issued in a press release that "The share of loans in forbearance was unchanged, as the decline in the share…
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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,…
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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…
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