Mortgage rates ticked up in the past week amid a modestly brighter economic outlook, the first time rates have increased in weeks even as signs of a housing cooldown have persisted elsewhere. The 30-year fixed rate “increased by ten basis points week over week” after a six-week decline, Freddie Mac said in its weekly interest rate report. Specifically, the 30-year rate jumped from 2.77 percent last week to 2.87 percent this week; the rate still remains lower than where it stood a year ago, at 2.96 percent. The 15-year rate, meanwhile, rose five basis points to 2.15 percent, while the 5-year ARM rose from 2.40 percent to 2.44 percent. Freddie Mac Chief Economist Sam Khater said the jumps follow “broad…
One possible explanation for the sharp decrease in housing stock throughout the U.S.? Demographics. Some analysts believe a wave of Millennial homebuyers are at least partially responsible for the severe housing crunch that has sent U.S. home prices skyrocketing and launched a seemingly endless frenzy in which buyers are competing in a cutthroat market for a dwindling supply of homes. Data indicate that Millennials form the largest share of current homebuyers: Older and younger members of that group make up nearly 40 percent of all homebuyers today, according to data from the National Association of Retailers. Millennials still make up the smallest share of U.S. homeowner demographics, but data from Apartment List show that, among major U.S. age groups, their…
Housing stock jumped notably throughout the country over the past month, signaling a possible turning point in the red-hot housing market that has kept prices elevated for well over a year. Realtor’s July 2021 housing data release “reveals signs of a positive change in the market for homebuyers,” the company said, with lower prices and higher stock offer potential signs of relief for buyers who have been frustrated by ever-rising prices. “Median listing prices are continuing to cool,” Realtor said, while “newly listed homes grew by 6.5% on a year-over-year basis, and remained stable on a month-over-month basis.” The total number of active listings is still significantly down year-over-year, but “new sellers are beginning to enter the market at close…
The share of U.S. mortgages in forbearance fell again this week, continuing a months-long trend of declining dire straits for American homeowners. The Mortgage Bankers Association said in a press release on Monday the number of mortgage forbearances—in which banks agree to put collection and enforcement of loans temporarily on hold—decreased by seven basis points, from 3.47 percent to 3.40 percent. The decrease comes after several months of similar decline in forbearance rates, an indication of the U.S.’s steady albeit at-times limping economic recovery over the first half of 2021. “Forbearance exits increased as August began, and new forbearance requests declined, resulting in the largest decrease in the share of loans in forbearance in three weeks,” MBA Senior Vice President…
The federal government is deploying millions of dollars to help older Americans make repairs and modifications to their homes as part of a targeted “age-in-place” initiative. The federal Department of Housing and Urban Development has awarded “$30 million to 32 nonprofit organizations, state and local governments, and public housing authorities to assist in undertaking comprehensive programs that make safety and functional home modifications and limited repairs to meet the needs of low-income elderly homeowners that allow them to age in place,” the agency said in a press release. The initiative, administered through the department’s Older Adults Home Modification Program, will facilitate “low-cost home modifications” that “reduce the risk of falling” for older Americans. The project will “improve their general safety,…
Virtually every industry in the modern economy has been subject to intense scrutiny over its approach to gender equity and inclusivity. The mortgage industry is no different. While mortgage lending may not be the sector of the economy that immediately springs to mind when the issue of gender equity is raised — Industries such as art, entertainment, media, and politics tend to be more subject to cultural and political trends — a growing chorus of voices is demanding change in mortgage lending. Specifically, they’re calling for an increase of women in leadership roles, along with accountability for men who reportedly abuse their authority within the industry. “It is imperative for all of us to focus on inclusion at every level,”…
The number of homeowners missing housing payments dropped in the second quarter of this year, an improvement that comes as the U.S. economy progresses through a limping but steady recovery. “Slightly fewer renters and homeowners missed payments in the second quarter of 2021 compared to the first quarter,” the Mortgage Bankers Association said in a press release this week. MBA’s Research Institute for Housing America said in a report released this week that the aggregate of missed rental payments in the second quarter was $7.10 billion, down from $7.48 billion in the first quarter. The “aggregate number of rental households with missed payments” was down overall, though it was higher in June than in March. “Homeowners’ employment situation and ability…
The Biden administration this week extended the eviction moratorium in areas that it deems have “high” SARS-Cov-2 transmission, a targeted measure the White House is putting forth after the expiration of the broader mandate at the end of last month. The U.S. Centers for Disease Control and Prevention said on Tuesday that the order “applies in United States counties experiencing substantial and high levels of community transmission levels of SARS-CoV-2.” It is set to expire on Oct. 3. “The emergence of the delta variant has led to a rapid acceleration of community transmission in the United States, putting more Americans at increased risk, especially if they are unvaccinated,” CDC Director Rochelle Wallensky said in the release. “This moratorium is the…
Mat Ishbia appears to be the odd man out when it comes to handling fees from customers the feds are no longer collecting. On July 16, the Federal Housing Finance Agency (FHFA) announced it was ending the adverse market refinancing fee for loan deliveries effective August 1, 2021. The fee, designed to address risk from anticipated losses due to COVID-19, was always unpopular. Proposed by the Trump administration last summer, it was repeatedly delayed before going into effect in December. It was welcome news to the entire industry — data show a surge in mortgage applications in the week after the 50 basis point fee was lifted — but it may have been exceptionally good news for United Wholesale Mortgage…
Democrats in the U.S. House of Representatives on Sunday night urged President Joe Biden to restart the recently expired eviction moratorium, calling it a “moral imperative” to avoid a wave of foreclosures and evictions. Claiming that “science and reason” demand an extension of the moratorium, the House joint leadership statement said the pause “must be extended, and the funds Congress allocated to assist renters and landlords must be spent.” The moratorium has been in place since last year but was allowed to expire on July 31. Experts and advocates have warned that the country may be facing a looming eviction and foreclosure crisis with the ban’s expiration. Both federal and state governments have reportedly been struggling to distribute critical rental…
