Share Of GSE Loans In Forbearance Decreases

The percentage of Fannie Mae and Freddie Mac loans in forbearance decreased for the first time since the start of the COVID-19 pandemic, according to the weekly forbearance survey released Monday by the Mortgage Bankers Association. The percentage of Fannie and Freddie mortgages in forbearance decreased from 6.4 percent to 6.38 percent. The share of all mortgages in the United States in forbearance increased slightly from 8.53 percent to 8.55 percent – or 4.3 million loans – as of June 7, the MBA said. “MBA’s survey results from the first week of June showed a slight uptick in the overall share of loans in forbearance, but this increase was primarily driven by a larger share of portfolio and PLS loans…

Housing Market Recovers In Face Of Pandemic, Unrest

In an attempt to measure housing’s comeback from the coronavirus pandemic, realtor.com created the Housing Recovery Index – with the initial report showing the U.S. housing market is recovering even in the face of COVID and civil unrest across the country. The report uses realtor.com search traffic, media list prices, new listings and median time on the market to compare it to a baseline of 100 – established based on January 2020 market trends. The higher a market’s index value, the bigger the recovery and vice versa. For the week ending June 6, the Housing Recovery Index was 88.8 nationwide, 11.2 points below the January baseline and up 1 point over the week before. The slight increase in this week’s overall…

Mortgage Rates Increase Slightly

Mortgage rates hovered near record lows again this week, with the 30-year fixed-rate mortgage averaging 3.21 percent, according to Freddie Mac’s Primary Mortgage Market Survey released Thursday. “The rebound in homebuyer demand continued this week, driven by mortgage rates that hover near record lows,” said Sam Khater, Freddie Mac’s Chief Economist. “This turnaround in demand, particularly by those who have higher incomes than the typical household, also reflects deferred sales from the spring.” The survey found that for the week ending June 11: 30-year fixed-rate mortgage averaged 3.21 percent with an average 0.9 point, up slightly from last week when it averaged 3.18 percent and down from 3.82 percent a year ago.15-year fixed-rate mortgage averaged 2.62 percent with an average…

8 Weeks Straight: Mortgage Applications Up Again

Mortgage applications for home purchases increased for the eighth straight week as the housing market continues to take steps forward from the depths of the coronavirus pandemic. For the week ending June 5, purchase applications increased 15 percent on unadjusted basis over the week before and 13 percent than a year ago. Overall, all mortgage applications increased 20 percent for the week on an unadjusted basis – and 13 percent over the same week a year ago. “Fueled again by low mortgage rates, pent-up demand from earlier this spring, and states reopening across the country, purchase mortgage applications and refinances both increased. The recovery in the purchase market continues to gain steam, with the seasonally adjusted index rising to its…

Mortgage Credit Availability Down 32% Since November

Mortgage credit keeps getting tighter, but the decrease in credit availability leveled off in May, the Mortgage Bankers Association reported Tuesday. May marked the sixth straight month that saw mortgage credit tighten, falling 3.1 percent in the month. Mortgage credit availability has decreased by nearly 32 percent over the last six months, according to MBA’s Mortgage Credit Availability Index (MCAI). The MCAI fell to 129.3 in May. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit. The index was benchmarked to 100 in March 2012.  “Mortgage lenders in May responded accordingly to the increased risk and uncertainty in the economy,” said Joel Kan, MBA’s Associate Vice President of…

Number Of Bank Mortgages In Forbearance Declines

The percentage of mortgages in forbearance in the United States barely increased last week, with the number bank-managed mortgages in forbearances actually decreasing for the first time since the COVID-19 pandemic took hold. The latest Mortgage Bankers Association report released Monday found that 8.53 percent of U.S. mortgages were in forbearance as of May 31 – up from 8.46 percent a week earlier. By contrast, the percentage increased by 1 to 2 percentage points during some weeks in April. That equates to about 4.3 million homeowners whose mortgages are in forbearance. “With the job market beginning to gradually improve, more homeowners are exiting forbearance, and we are seeing declines in forbearance volume among some servicers,” said Mike Fratantoni, MBA’s Senior…

COVID: 4+ Years For Millennials To Recover Savings

The economic shutdowns in reaction to the COVID-19 pandemic are forcing people to dip into their savings to cover basic necessities – and that will put a crimp in people’s ability to save for a down payment for a home. That is especially true for millennials, as a new realtor.com analysis reports that it will take “nine months of saving to recoup a single month’s worth of expenses” for the average millennial. The report found it would take the average millennial 53 months to recover that value back into their savings, if they had no income for six months.  “Millennials may largely escape the worst of COVID-19, but with an unemployment rate of 13.4 percent, this age group is not…

Sales, Listings Dip Slightly In Late May

Zillow’s Weekly Market Report shows that newly pending sales and new listings fell in the seven days ending May 25 after sustained growth since mid-April – perhaps a function of the Memorial Day holiday. Even with the dip, pending sales and new listings remain well up from the previous month when the market was bouncing back from a slowdown in the early days of the coronavirus pandemic. Zillow reports that experts expect the sales lost during that period to be recouped in full over the next few years.  The report found: Newly pending sales fell 5.2 percent from the previous week.Month-over-month, newly pending sales are up 24.5 percent nationally.New listings are up 19.3 percent from a month ago, they fell…

Interest Rates Climb Slightly

Interest rates didn’t set yet another new record this week, but they are still hovering at historically low levels. Freddie Mac’s Primary Mortgage Market Survey found that the 30-year fixed-rate mortgage increased to 3.18 percent this week. “While the economy is slowly rebounding, all signs continue to point to a solid recovery in home sales activity heading into the summer as prospective buyers jump back into the market. Low mortgage rates are a key factor in this recovery,” said Sam Khater, Freddie Mac’s Chief Economist. “While homebuyer demand is up and has been broad-based across most geographies, supply has been slower to improve. In fact, the gap between supply and demand has widened even further than the large gap that…

Signs Pointing Up In Monthly Housing Report

All signs seem to be pointing up for the U.S. housing market. Realtor.com’s May Monthly Housing Trends report released Thursday found that the market likely reached its low point in mid-April – with signs of recovery beginning late in the month followed by a stronger May. The report found: The national median listing price hit a new all-time high of $330,000 in May, despite rising just 1.6 percent year-over-year.The median list price began the month up 1.4 percent and strengthened throughout the month, increasing 3.1 percent during the last week of May.New listings were down 29.1 percent the week ending May 9 but recovered to down 22.9 percent by the week of May 30.While still well-below last year’s levels, the rate of decline in…