How Much Can You Save By Refinancing?

Mortgage rates are sitting at record lows and US homeowners are taking advantage by refinancing their mortgages. For those who haven’t refinanced, Zillow is offering a look at how much they could save on the typical house in markets across the country. “Choosing whether to refinance your mortgage is ultimately a personal choice, but recent moves in mortgage rates have probably made that decision a whole lot easier for those who qualify,” Zillow economist Matthew Speakman said. “Mortgage rate declines have allowed many to lower their monthly mortgage payment or tap into the equity they’ve built in their home by refinancing their loan – offering some financial stability to many in a time of great economic uncertainty. With rates poised to…

Forbearance Levels Drop In US

Nearly seven months into the pandemic, 3.4 million homeowners in the United States remain in forbearance plans as they cope with the economic impacts of the shutdowns across the country. The share of mortgages in forbearance dropped again, with 6.87 percent remaining paused. The MBA survey found for the week ending September 20: Total loans in forbearance decreased from 6.93 percent to 6.87 percent.The share of Ginnie Mae loans in forbearance remained flat at 9.15 percent.The share of Fannie Mae and Freddie Mac loans in forbearance decreased from 4.55 percent to 4.46 percent.Independent mortgage bank-managed loans in forbearance dropped from 7.26 percent to 7.23 percent.Bank-managed mortgages dropped from 7.18 percent to 7.11 percent. “The share of loans in forbearance continues…

Zillow: Market Expected To Stay Strong

Home sales are expected to stay hot through the fall before easing back during 2021 – but stay above pre-pandemic levels, according to a new forecast from Zillow. “Zillow’s predictions for seasonally adjusted home prices and pending sales are more optimistic than previous forecasts because sales and prices have stayed strong through the summer months amid increasingly short inventory and high demand,” Zillow forecasts. “The pandemic also pushed the buying season further back in the year, adding to recent sales. Future sources of uncertainty including lapsed fiscal relief, the long-term fate of policies supporting the rental and mortgage market, and virus-specific factors, were incorporated into this outlook. “ Zillow says seasonally adjusted home prices are expected to increase another 1.2 percent…

Commercial, Multifamily Mortgage Debt Rises

Commercial and multifamily mortgage debt in the United States increased to $3.76 trillion at the end of the second quarter, according to a report released Monday by the Mortgage Bankers Association. The level of commercial and multifamily debt increased by $43.6 billion in the quarter – or 1.2 percent. “Despite a drop off in new commercial and multifamily mortgage originations in the second quarter, the total amount of mortgage debt outstanding continued to rise,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “The pandemic is having different impacts on various property types and capital sources. Loans backed by multifamily properties accounted for almost three-quarters of the total growth, and Fannie Mae, Freddie Mac, and FHA accounted for…

Suburban Home Demand Surges Post-Lockdown

The Great Re-Suburbanization of America is underway. “In one of the most seismic shifts to the U.S. workforce since the introduction of the Internet, many U.S. workers now have the flexibility to work remotely and choose where they want to live,” realtor.com Chief Economist Danielle Hale said. “Data shows in our post-COVID world there’s a strong preference towards a suburban lifestyle with its bigger houses, backyards, and quiet streets. But American cities are not becoming ghost towns anytime soon; in fact, they are also seeing an uptick of homebuyers. It’s just not as strong as the surge we’re seeing in the suburbs.” New data from realtor.com shows that Americans are looking for more space and affordable homes in the suburbs. The…

Mortgage Rates Up A Bit For A Week

Mortgage rates ticked up slightly for the week but remained near historic lows, Freddie Mac announced Thursday in its Primary Mortgage Market Survey. The 30-year fixed-rate mortgage averaged 2.90 percent with an average 0.8 point for the week ending September 24, up from last week’s 2.87 percent and last year’s 3.64 percent.The 15-year fixed-rate mortgage averaged 2.40 percent with an average 0.7 point, up from last week’s 2.35 percent and last year’s 3.16 percent.The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.90 percent with an average 0.2 point, down from last week’s 2.96 percent and last year’s 3.38 percent. “Mortgage rates set several record lows over the last few months and have remained low into September,” said Sam Khater, Freddie Mac’s…

Mortgage Applications Up Again Last Week

Applications for home mortgage purchases increased 13 percent from the previous week and 25 percent over a year ago, according to a report released Wednesday by the Mortgage Bankers Association. Adjusted for the Labor Day holiday, purchase applications were up 3 percent for the week. Overall, applications were up 6.8 percent for the week – including a 9 percent increase for refinance applications. Compared to a year ago, refinance applications were 86 percent higher. The refinance share of mortgage activity increased to 64.3 percent of total applications from 62.8 percent the previous week. The adjustable-rate mortgage share of activity decreased to 2.2 percent of total applications. “Mortgage applications activity remained strong last week, even as the 30-year fixed-rate mortgage and…

Feds Report Big Increase In Home Prices

House prices increased 1 percent in July from the previous month – while jumping 6.5 percent from July 2019, according to a report released Wednesday by the Federal Housing Finance Agency. Monthly increases ranged from 0.6 percent in the West North Central division to 2 percent in New England. The yearly increases ranged from 5.4 percent in the West South Central division to 7.7 percent in the Mountain and East South Central divisions. “The dramatic increase in prices this summer can be attributed to the historically low interest rate environment and rebounding housing demand even as the supply of homes for sale remains constrained,” said Dr. Lynn Fisher, FHFA’s Deputy Director of the Division of Research and Statistics.…

Housing Market: Escape From New York

Coming to a pandemic near you: Escape From New York. Of the top 10 markets that have cooled down since last year, four are New York City boroughs – the Bronx, Queens, Brooklyn and Staten Island, according to a new study released Tuesday by Redfin. Manhattan was excluded from the study due to a lack of data. “People want out of New York City,” local Redfin agent Ken Wile said. “This pandemic has changed everybody’s lives. People who had to commute to the city no longer have to, so they want more space, more value and more nature.” The rankings are based on year-over-year change in home prices, home sales, the share of homes that sold above their list price,…

Loans In Forbearance At Lowest Level In 5 Months

The share of US mortgage borrowers whose loans are in forbearance dropped below 7 percent for the first time since mid-April, the Mortgage Bankers Association announced Monday in its weekly forbearance report. There are 3.5 million American homeowners in forbearance plans as of September 13 – which works out to 6.93 percent of all mortgages, down from 7.01 percent the week before. The MBA survey found: The share of Ginnie Mae loans in forbearance increased from 9.12 percent to 9.15 percent.The share of Fannie Mae and Freddie Mac loans in forbearance decreased from 4.65 percent to 4.55 percent.7.26 percent of independent mortgage bank loans were in forbearance, down from 7.33 percent.71.8 percent of bank-managed mortgages were in forbearance, down from…