A good economy and low interest rates contributed to a big jump in pending home sales in January, the National Association of Realtors announced Thursday. This builds on a government report released a day earlier that showed new home sales were significantly higher in January. The Pending Home Sales Index (PHSI) increased 5.2 percent to 108.8 in January – and 5.7 percent over January 2019. An index of 100 is equal to the level of contract activity in 2001. “This month’s solid activity – the second-highest monthly figure in over two years – is due to the good economic backdrop and exceptionally low mortgage rates,” said Lawrence Yun, NAR’s chief economist. Here is a look at pending sales across the…
In a report reflecting the “calm before the storm,” the Mortgage Bankers Association announced Wednesday that mortgage applications increased 1.5 percent last week – adjusted for the shortened Presidents’ Day holiday. On an unadjusted basis, the Market Composite Index – measuring loan application volume – dropped 7 percent from the previous week. “Last week appears to have been the calm before the storm. Weaker readings on economic growth caused a slight drop in mortgage rates, bringing them back to their level two weeks ago, but applications overall moved 1.5 percent higher,” said Mike Fratantoni, MBA’s Senior Vice President and Chief Economist. “Refinance applications for conventional loans dropped a bit, but FHA refinances increased more than 22 percent. Purchase volume remained…
A report from the National Association of Realtors released Tuesday found that the home ownership rate for minorities is significantly lower in the United States than it is for non-Hispanic white residents. The Snapshot of Race & Home Buying in America report found: Homeownership among non-Hispanic White Americans was more than 71 percent from 2016 to 2019.It was 41 percent for African Americans.It was 45 percent for Hispanic Americans.For Asian Americans, the rate was more than 53 percent. Over the last 10 years, homeownership among African Americans increased in just three states: Delaware (by 0.1 percent), South Dakota (17.8 percent) and Vermont (2.2 percent). Click here to see the full report.…
Commercial banks and savings institutions insured by the Federal Deposit Insurance Corporation reported net income totaling $55.2 billion in the fourth quarter of 2019, according to the FDIC’s Quarterly Banking Profile released Tuesday. That is a net income decline of $4.1 billion (or 6.9 percent) from the fourth quarter of 2018, driven mostly by lower interest income and higher expenses. Full year profits declined 1.5 percent to $233.1 billion for the 5,517 banks insured by the FDIC. “The banking industry remains strong, despite declines in full-year and quarterly net income,” FDIC Chairman Jelena McWilliams said. “Loan balances continue to rise, asset quality indicators are stable, and the number of ‘problem banks’ remains low. Community banks reported another positive quarter. Net…
House prices in the United States rose for the 34th consecutive quarter, according to 2019 fourth quarter data released Tuesday by the Federal Housing Finance Authority. “US house prices have risen continuously since 2011,” said Lynn Fisher, Deputy Director of the Division of Research and Statistics at FHFA. “Falling interest rates and steady job growth renewed housing demand in 2019 and may have arrested the resent deceleration in home prices that began in 2018.” House prices were up 1.3 percent for the quarter and 5.1 percent over the fourth quarter of 2018. The FHFA analysis also found: U.S. house prices have increased every quarter since September 2011. House prices rose in all 50 states and the District of Columbia between the fourth quarters of…
The National Association of Home Builders reports that houses continue to get just a bit smaller: New single-family home size trended lower during the final quarter of 2019 as interest rates remained low and builders seek to add additional entry-level supply. According to fourth quarter 2019 data from the Census Quarterly Starts and Completions by Purpose and Design and NAHB analysis, median single-family square floor area ticked down to 2,252 square feet. Average (mean) square footage for new single-family homes increased to 2,511 square feet. Here’s a look at the trend in graphic form: After a large growth, house size is about the same as pre-recession levels. NAHB says this trend is typical, The post-recession increase in single-family home size was consistent with the historical…
Diana Olick appeared on CNBC on Monday to talk about the impact of low interest rates and refinancing has had on the housing market. Watch here: How home refinancing has stagnated the housing market from CNBC.…
Americans are looking to get their move on during the 2020s. A new survey finds that 45 percent of homeowners have plans to move during the coming decade – with 16 percent saying they plan to move within their city, 15 percent heading off to a new city within their state and another 15 percent moving to a new state. An additional 22 percent of homeowners aren’t sure on of their moving plans, according to the survey of 1,552 Americans commissioned by LendingTree. What’s motivating these plans? The top three drivers were: Moving to an area with a lower cost of living (30 percent)Moving to an area with better job prospects (28 percent)Moving to be closer to their children (21…
New York Times economics reporter Conor Dougherty was on CNBC on Thursday to talk about the housing crisis – and what cities are doing to avoid problems like we’ve seen in the Bay Area. Dougherty is the author of the book Golden Gates: Fighting for Housing in America. Watch his interview here:…
Mortgage delinquencies reached a record low in January, as 2 million homeowners are past due on their mortgages or in foreclosure, according to preliminary data released Thursday by Black Knight. Delinquencies dropped by more than 5 percent last month – their lowest level since Black Knight began tracking the data in 2000. Additionally, delinquencies have plummeted 14 percent over the last year. The national foreclosure rate remains unchanged, with foreclosure starts slightly higher in January but 15 percent below January 2019 levels. Data from the monthly report showed: 3.22 percent are 30 days or more past due (but not in foreclosure).0.46 percent of loans are in foreclosure.Mississippi, Louisiana, Alabama, West Virginia and Arkansas are the top five states with the…
