Mortgage applications dropped 8.4 percent last week as interest rates climbed slightly, according to a report released Wednesday by the Mortgage Bankers Association. The MBA’s Weekly Mortgage Applications Survey for the week ending March 13 found that the refinance index dropped 8 percent from a week earlier – but was 402 percent higher than the same week a year ago. “The ongoing situation around the coronavirus led to further stress in the financial markets late last week, with unprecedented volatility and widening spreads,” said Joel Kan, MBA’s associate vice president of Economic and Industry Forecasting. “This drove mortgage rates back up to their highest levels since mid-February and led to a 10 percent decrease in refinance applications.” The refinance share…
Mortgage applications for new home purchases increased 25.9 percent in February over a year ago – though they were down 1 percent from a month earlier, according to data released Tuesday by the Mortgage Bankers Association. “Despite a monthly decrease in February new applications and estimated new home sales, the year-over-year trends were strong, with new applications increasing 26 percent, and our estimate of new home sales increasing 8 percent,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “Looking ahead, there is significant uncertainty regarding how the coronavirus epidemic will impact the housing market, and some of January’s record-level activity could have been attributed to the warmer winter weather, lower mortgage rates, and the tight inventory…
Confidence levels of builders of newly built single-family homes remained high in March, though it remains to be seen what impact the latest market turmoil will have going forward, according to a report released Tuesday by the National Association of Home Builders. Builder confidence dropped two points to 72 in March, the latest NAHB/Wells Fargo Housing Market Index (HMI) showed. Confidence levels have held steady in the low- to mid-70s for the past six months. “Builder confidence remains solid, although sales expectations for the next six months dropped four points on economic uncertainty stemming from the coronavirus,” NAHB Chairman Dean Mon said. “Interest rates remain low, and a lack of inventory creates market opportunities for single-family builders.” The HMI gauges…
The largest U.S. banks announced Monday night they plan to access the Federal Reserve’s “discount window” to help financial institutions navigate the crisis caused by the coronavirus pandemic. “While Forum member institutions individually have substantial liquidity and multiple sources of funding, they believe it is important to lead by demonstrating the value of the Federal Reserve’s discount window facility and to encourage its use by other financial institutions,” according to a news release from the Financial Services Forum. The Forum is made up of the chief executive officers of the eight largest banks. The Fed’s discount window supports the flow of credit to households and businesses by allowing banks to borrow money from the Fed on a short-term basis to meet…
The coronavirus pandemic is impacting the way homeowners sell their homes. A new survey of realtors from the National Association of Realtors released Thursday found that nearly 25 percent of home sellers in the United States are making changes to how they are selling their houses. Changes include not holding open houses, requiring potential buyers to wash their hands, or asking buyers to remove shoes or wear foot coverings. This is especially true in California and Washington, where the coronavirus outbreak hit earlier than elsewhere in the country. Forty-four percent of home sellers in Washington and 34 percent of sellers in California have made such changes. The Economic Pulse Flash Survey, conducted Monday and Tuesday of this week, also found:…
The largest purchase that most people ever make – a house – prevents many of them from saving more money for retirement. A survey of U.S. homeowners released this week by Bankrate found that 77 percent say their mortgage “negatively impacts their ability save money for retirement.” Of that total, 31 percent say it has a major negative impact, and 46 percent say it has a minor impact. The remaining 23 percent say their mortgage has no negative impact. “Big mortgage payments take a bite out of your monthly income but are also a major obstacle to saving for retirement, emergencies, or other financial goals,” says Greg McBride, CFA, Bankrate chief financial analyst. “Homebuyers, beware of biting off more than…
Lending standards tightened in February, with mortgage credit availability declining slightly in the latest Mortgage Credit Availability Index (MCAI). The report from the Mortgage Bankers Association found that the MCAI fell by 0.3 percent to 181.3 in February. “Mortgage credit supply decreased in February, as both conforming and jumbo segments of the market saw a decline,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “There were also reductions in ARM program offerings, as well as in low credit score programs offered by investors.” Added Kan, “Last month’s activity was the calm before the storm. Mortgage rates dropped steeply in the last week of February and a large surge of refinance activity followed. Investors may adjust their…
Two Wells Fargo board members – including the board chairwoman – resigned their positions following a highly critical report from a U.S. house committee, alleging the board was slow to address the bank’s fake account scandal. Elizabeth A. Duke, the board chair, and James H. Quigley resigned their positions effective Sunday, Wells Fargo announced in a news release Monday. Charles H. Noski, a former chief financial officer of Bank of America, will serve as the new board chairman. Last month, Wells Fargo reached a $3 billion settlement with the Department of Justice, which found the bank’s employees created fake accounts to meet the bank’s “onerous sales goals.” This included using customers’ identities without their consent to open checking, savings, debit card, credit…
Millennials and older Americans have more in common than they think, at least when it comes to buying houses. Homebuyers between the ages of 22 and 29 (“younger millennials”) and 74 to 94 (the “silent generation”) share significant home-hunting behavioral characteristics, according to the National Association of Realtors’ 2020 Home Buyer and Seller Generational Trends report. These include: 53 percent of younger millennials and the silent generation say buying a home near family and friends is a high priority.Younger millennials and silent generation buyers who purchased a new home were the most likely to make the purchase due to the amenities a newly constructed home provides.NAR found those in each generational group began their home search by viewing properties online,…
The National Association of Realtors cancelled two conferences scheduled to take place in California in March due to the emergence of the coronavirus in state. The organization cancelled the Joint AE Institute meeting, scheduled for March 13-16 in San Diego, and its Broker Summit, scheduled for March 31 to April 1 in Los Angeles. NAR said it will decide whether to hold other scheduled events in the coming weeks. “NAR is considering alternatives and potential avenues through which to reschedule, relocate or redesign these conferences later in 2020,” the organization said in a news release. NAR’s legislative meetings and trade expo is scheduled for May 11-16 in Washington, DC, while various state meetings are scheduled across the country throughout the year. Events…
