While there is anecdotal evidence of people moving from urban environments to the suburbs and beyond, it could take several years before a full data picture to show whether the COVID-19 pandemic led to an urban flight. And even if there was a mass migration out of cities, an American University professor said it’s likely that a vaccine and an economic recovery would lead to people moving back to the urban areas. “The urban equation has shifted,” said Derek Hyra, a professor in the school’s Department of Public Administration and Policy. “It was mass amenities for small, expensive square footage, and that works for people for a long time. That’s not necessarily the case anymore.” Hyra, who is also director…
The share of US homeowners whose mortgages are in forbearance dropped for the fifth straight week, now sitting at 7.8 percent of all mortgages in the country, according to estimates released Monday by the Mortgage Bankers Association. The MBA said that as of July 12 about 3.9 million homeowners were still in forbearance plans that allow them to pause their mortgage payments during the coronavirus pandemic. The percentage dropped from 8.18 percent the week before. “The share of loans in forbearance dropped to its lowest level in over two months, driven by an increase in the pace of exits as more homeowners have been able to get back to work,” said Mike Fratantoni, MBA’s Senior Vice President and Chief Economist.…
Mortgage rates crashed through the 3 percent floor for the first time since Freddie Mac began tracking rates. The 30-year fixed-rate mortgage 2.98 percent for the week ending Thursday, Freddie Mac announced in its Primary Mortgage Market Survey. It is the lowest rate in the survey’s history dating back to 1971. “The drop has led to increased homebuyer demand and, these low rates have been capitalized into asset prices in support of the financial markets,” said Sam Khater, Freddie Mac’s Chief Economist. “However, the countervailing force for the economy has been the rise in new virus cases which has caused the economic recovery to stagnate, and this economic pause puts many temporary layoffs at risk of ossifying into permanent job…
The housing market is almost all the way back. That’s according to realtor.com’s Housing Market Recovery Index, which reached 98.5 in the weekly report released Thursday. An index of 100 is the pre-coronavirus pandemic baseline level. “Today’s market remains tipped in favor of sellers as would-be spring buyers are shopping well into what would normally be summer vacation season,” said Danielle Hale, chief economist for realtor.com. “Home buyers, trying to take advantage of record-low mortgage rates and make up for lost time, are finding limited and more expensive options. Although sellers are slowly acclimating to this unexpected surge in buyer interest, inventory is still lagging behind demand which is driving quick time on market and listing price growth on par with…
Mortgage applications increased 5.1 percent from the week before as rates continue to sit at historic lows and the housing market pushes its way through the coronavirus pandemic, according to a report released Wednesday by the Mortgage Bankers Association. For the week ending July 10, the seasonally adjusted Market Composite Index showed a 12 percent increase in refinances and a 5 percent increase in purchase applications (on an unadjusted basis, while it was down 6 percent on an adjusted basis). The Purchase Index was 16 percent higher than the same week a year ago. “The drop in rates led to a jump in refinance activity to the highest level in a month, with refinance loan balances also climbing to a…
New home mortgage applications jumped 54.1 percent in June over a year ago, according to a report released Tuesday by the Mortgage Bankers Association. The MBA’s Builder Application Survey found that applications for new home purchases also increased 20 percent over May as the housing market moved forward from the absolute lows of the coronavirus pandemic. “The new home purchase market continues to recover … (and is) another piece of data indicating that homebuying activity that was delayed by the pandemic in March and April is just being realized later in the season,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. MBA estimates new single-family home sales were running at a seasonally adjusted annual rate of…
The share of mortgage loans in forbearance in the United States dropped for the fourth straight week, falling to 8.18 percent of all loans for the week ending July, according to a report released Monday by the Mortgage Bankers Association. There are an estimated 4.1 million homeowners in forbearance plans, which allow borrowers to pause making mortgage payments due to economic hardship caused by the coronavirus pandemic. A week earlier, there had been 4.2 million loans in forbearance – or 8.39 percent. “The share of loans in forbearance continues to decrease, as more workers are brought back from temporary layoffs,” said Mike Fratantoni, MBA’s Senior Vice President and Chief Economist. Fratantoni said the survey showed a “a notable shift in…
A shortage of homes on the market and pent-up demand continue to drive bidding wars for homes across the country even in the face of a resurgent coronavirus pandemic, according to a report released by Redfin. In June, 53.7 percent of Redfin offers faced competing offers – up from 51.8 percent in May and 44.4 percent in April. “Bidding wars continue to be fueled by historically low mortgage rates and fewer homes up for sale than almost any time in the last two decades,” Redfin economist Taylor Marr said. “It’s like a game of musical chairs where only the best bidders get a seat. Both renters and move-up buyers who have held onto their jobs are vying for the small…
Mortgage rates are flirting with dropping below 3 percent for the first time in history. The 30-year fixed-rate mortgage averaged 3.03 percent for the week ending Thursday, the lowest rate in Freddie Mac’s mortgage survey that started nearly 50 years ago. “The summer is heating up as record low mortgage rates continue to spur homebuyer demand,” said Sam Khater, Freddie Mac’s Chief Economist. “However, it remains to be seen whether the demand will continue if COVID cases rise to the point that it hinders economic growth.” Even with the low rates, mortgage credit remains extremely tight. The Mortgage Bankers Association also announced Thursday that credit availability fell to its lowest level since April 2014. Also Thursday, realtor.com announced that housing supply “remains the…
Low rates, scarce credit. With mortgage rates at historically low levels, mortgage credit availability in the United States decreased even further in June, according to a report released Thursday by the Mortgage Bankers Association. MBA’s Mortgage Credit Availability Index fell by 3.3 percent to 125 in June – reflecting a 30 percent drop in credit availability since February, the month before the coronavirus pandemic gripped the nation. The index reached its lowest level since April 2014. “Mortgage credit supply dropped again in June, as investors further reduced their willingness to purchase jumbo loans and those with lower credit scores. Lenders are navigating a gradual economic and housing market recovery that is still facing headwinds from the ongoing COVID-19 pandemic,” said…
