In the latest economic report that feels like it is from another age, pending home sales role in February for the second consecutive month. The National Association of Realtors said its Pending Home Sales Index grew 2.4 percent last month – and 9.4 percent over February 2019. The report found there was a monthly and yearly increase in each of the four regions. The report does not capture much, if any, of the economic fallout from the coronavirus pandemic or federal or state efforts to contain it. “February’s pending sales figures show the housing market had been very healthy prior to the coronavirus-induced shutdown,” Lawrence Yun NAR chief economist Lawrence Yun said. “Numbers in the coming weeks will show just…
Pennsylvania State Police notified a real estate firm that it is in violation of Gov. Tom Wolf’s order for non-essential businesses to shut down among the coronavirus pandemic. Berkshire Hathaway HomeServices The Preferred Realty in Wexford was operating in violation of the order, issued on March 29, the Pennsylvania Association of Realtors announced in a blog post. “I know there has been a lot of passionate discussions between some agents who felt the need financially to continue to show homes versus the agents who- felt morally the need to stay home. I saw validity in both opinions,” said Tom Hosack, president and CEO of Berkshire Hathaway HomeServices The Preferred Realty. “Fortunately, that decision has been taken away from me. We were notified…
After two weeks of increases, mortgage rates dropped this week amid a flurry of activity by the Federal Reserve and the federal government. Freddie Mac said 30-year fixed mortgage rates averaged 3.5 percent – down from 3.65 percent last week and 4.06 percent a year ago. Fifteen-year fixed rates dropped to 2.92 percent from 3.06 percent and 5-year adjustable rate mortgages were up 0.23 points to 3.34 percent. “The Federal Reserve’s swift and significant efforts to stabilize the market were much needed and helped mortgage rates drop for the first time in three weeks,” Freddie Mac said in a statement. “Similar to other segments of the economy, real estate demand is softening. However, the combination of the Fed’s actions and…
United Wholesale Mortgage President and CEO Matt Ishbia said his company is purposely avoiding mortgages that serve lower and some middle-income Americans. “We are always on the higher credit score buckets at UWM and the lower rates at UWM. … We want lower rates, best quality borrowers, close them fast, get them to give you three referrals, and let’s keep dominating,” Ishbia said in an interview last week with the Association of Independent Mortgage Experts (AIME). Ishbia made the comments from his office at a time when brokers are working to adjust the way they do business amid the COVID-19 pandemic. Some of the brokers with whom UWM does business have complained on social media and elsewhere that UWM is…
So it begins. Mortgage applications dropped 29.4 percent last week from a week earlier, according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey. MBA’s refinance index dropped 34 percent for the week, though was still 195 percent higher than the same week a year earlier. “Looking ahead, this week’s additional actions taken by the Federal Reserve to restore liquidity and stabilize the mortgage-backed securities market could put downward pressure on mortgage rates, allowing more homeowners the opportunity to refinance,” said Joel Kan, MBA’s associate vice president of Economic and Industry Forecasting. The seasonally adjusted Purchase Index also dropped 15 percent last week. The refinance share of mortgage activity decreased to 69.3 percent of total applications from 74.5 percent the…
House prices in the United States rose 5.2 percent in January over a year earlier, continuing a string of strong housing economic reports from early this year. The Federal Housing Finance Agency’s House Price Index also showed house prices increased 0.3 percent over the previous month. “U.S. house prices continued to increase at a moderate pace in January,” said Dr. Lynn Fisher, Deputy Director of the Division of Research and Statistics at FHFA. “Transactions in January were unlikely to reflect much, if any, influence from the COVID-19 outbreak. House prices in the Pacific and South Atlantic regions grew somewhat faster over the year ending in January 2020 than observed the same time a year ago.” As for regionally, seasonally adjusted…
Wisconsin Gov. Tony Evers issued a “safer at home” order that prohibits non-essential travel and closes non-essential businesses for a month, effective Wednesday morning at 8 a.m. Unlike other states, such as California, Pennsylvania and Washington state, real estate offices are permitted to continue operating under Gov. Evers’ orders, according to the Wisconsin Realtors Association. The different approaches reflects the differences among states in other industries as well, including construction. “Under the order, real estate brokerage services and most services related to real estate transactions are currently allowed to continue during the duration of the executive order,” WRA said. “However, you’re not required to provide these services during the order. If you decide to provide these services, you must continue to maintain social distancing…
Sales of new single-family houses came in at a seasonally adjusted rate of 765,000 for February – down from January but significantly higher than a year earlier. The report from the U.S. Census Bureau and the Department of Housing and Urban Development showed the February numbers were 4.4 percent below January. They also were 14.3 percent above the January 2019 estimate of 669,000. “New home sales are yet another housing indication that show what a bring start we had to 2020,” realtor.com Chief Economist Danielle Hale said. “With both supply and demand reduced as a result of the COVID-19 disruption, we can expect that we’ll see fewer sales in the short run. The open question is how long this will…
Zillow announced Monday that it is suspending buying homes as part of its iBuyer program across the country amid orders to end all non-essential businesses. The company will continue to market and sell homes through Zillow Offers, but will pause making offers to sellers to “protect the safety and health of its employees, customers and partners.” “Our top priority is ensuring the safety and health of our employees, customers, and partners. Given the concerns for public safety and rapid developments by governments that restrict local real estate activities, we determined it was prudent to pause our home buying to preserve our capital,” Zillow Group CEO Rich Barton said. “We plan to restore Zillow Offers full operations once health concerns pass…
Building on an already busy day in the mortgage industry, the Federal Housing Finance Agency ordered Fannie Mae and Freddie Mac to ease appraisal and employment verification requirements for the next two months. Fannie and Freddie will use alternatives to reduce the need for appraisers to inspect the inside of homes at a time when an increasing number of states have issued shelter-in-place directives or ordered the closing of non-essential businesses. This will allow for purchases and homes to be refinanced as the nation deals with the COVID-19 pandemic. Additionally, lenders may now obtain employment verification by email from an employer, a recent year-to-date paystub from the borrower or a bank statement showing a recent payroll deposit. This is instead…
