Mortgage Credit Availability Lower Again In August

Mortgage credit availability fell to its lowest level in more than six years in August as the industry manages its way through the coronavirus pandemic, the Mortgage Bankers Association announced. The Mortgage Credit Availability Index dropped by 4.7 percent to 120.9 in August, indicating that lending standards are tightening. The conventional loan MCAI decreased 8.7 percent, while the government MCAI dropped by 1.4 percent. “Mortgage credit supply fell to its lowest level since March 2014, driven by a reduction in supply from both conventional and government segments of the market,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. Kan added jumbo credit availability has fallen about 59 percent since before the pandemic.…

Housing Recovery Keeps Chugging Along

The housing market remains strong and is resisting the typical fall slowdown, realtor.com’s Weekly Recovery Report released Thursday showed. Realtor.com’s Housing Market Recovery Index increased 1.5 points to 107.7 in the United States for the week ending September 5, which means the market is 7.7 percent stronger than the pre-COVID baseline. “Sellers are calling the shots in today’s market; prices are rising and housing inventory is vanishing almost as fast as it appears,” according to realtor.com®‘s Chief Economist, Danielle Hale. “But this week’s report revealed two indicators worth keeping an eye on. Housing demand cooled slightly, while new listings showed a smaller decline than previous weeks. This could be a hiccup in weekly activity, or if these trends continue, they could…

Mortgage Rates Plunge To New Record

Another week, another new record. The 30-year fixed-rate mortgage dropped to 2.86 percent this week, the lowest rate in history, according to Freddie Mac’s weekly Primary Mortgage Market Survey released Thursday. Freddie Mac has been tracking mortgage rates since 1971. The survey found: The 30-year rate dropped from 2.93 percent last week to 2.86 percent with an average 0.8 point. A year ago at this time, the average was 3.56 percent.The 15-year fixed-rate mortgage averaged 2.37 percent with an average 0.7 point, down from last week’s 2.42 percent and last year’s 3.09 percent.  The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.11 percent with an average 0.2 point, up from last week’s 2.93 percent and last year’s 3.36 percent. “Mortgage rates have…

3.6 Million US Mortgages Remain In Forbearance

The share of mortgages in forbearance in the United States dipped slightly last week, though 3.6 million homeowners continue to have their payments paused, according to the latest survey released by the Mortgage Bankers Association. MBA reports that 7.16 percent of mortgages were in forbearance as of August 30, down from 7.20 percent the week before. The survey also found: The share of Ginnie Mae loans in forbearance increased from 9.58 percent to 9.62 percent.The share of Fannie Mae and Freddie Mac loans in forbearance decreased from 4.88 percent to 4.80 percent.The share of independent mortgage bank loans in forbearance held steady at 7.41 percent.Bank loans in forbearance dropped from 7.49 percent to 7.40 percent. “The labor market continued to…

Mortgage Applications Edge Upward For Week

Mortgage applications increased slightly for the week while remaining significantly higher than last year’s levels, according to the weekly Mortgage Applications Survey released Wednesday by the Mortgage Bankers Association. Overall, mortgage applications were up 2.9 percent for the week ending September 4. Refinances were up 3 percent from the previous week and were 60 percent higher than last year at this time. Purchase applications were up 0.2 percent for the week and 40 percent for the year.  “There continues to be resiliency in the purchase market,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “Applications were up almost 3 percent on a weekly basis and the average loan size continued to increase, hitting a survey high…

Redfin: More Than Half Of Offers Face Bidding Wars

Buying a house? More often than not, you may face some competition. Redfin reports that 54.5 percent of offers on its homes faced bidding wars last month – down slightly from 57.3 percent in July. It is the fourth straight month with more than half of offers facing competition. “The market is on fire. There just isn’t enough on the market to supply the huge demand for homes,” San Diego Redfin agent Lisa Padilla said. “A lot of military buyers are trying to take advantage of the low interest rates for VA loans. Anything on sale for less than $600,000 has multiple offers, and sometimes they’re getting more than 20 offers. Only condos are a little slow, as most buyers…

Home Prices Surge In August As Inventory Tightens

Median listing prices surged 10 percent to a record $350,000 in the United States in August as houses on the market remain scarce this summer, according to the Monthly Housing Trends report released by realtor.com. The report found: The inventory of houses on the market was down 36 percent in August from a year ago, while new listings were down 12 percent.There were nearly 500,000 fewer homes for sale in the United States than a year ago.Homes are selling in an average 56 days, five days faster than last year.Of the top 50 markets, Miami was the only one to experience a decline in listing prices. “It’s difficult to imagine that the housing market will be able to sustain the…

Six Weeks And Counting: Mortgage Rates Under 3%

Mortgage rates increased slightly this week but remained under 3 percent for the sixth straight week, Freddie Mac announced Thursday in its Primary Mortgage Market Survey. The survey found: The 30-year fixed-rate mortgage averaged 2.93 percent with an average 0.8 point for the week ending September 3, up from last week’s 2.91 percent and down from 3.49 percent at this time last year. The 15-year fixed-rate mortgage averaged 2.42 percent with an average 0.8 point, down from last week’s 2.46 percent and last year’s 3.00 percent.   The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.93 percent with an average 0.2 point, up from last week’s 2.91 percent and last year’s 3.30 percent. “Mortgage rates have remained effectively flat or at near…

Mortgage Applications End August Down Slightly

Mortgage applications dipped ever so slightly in the last week of August but remained significantly higher than a year ago, according to the weekly survey released Wednesday by the Mortgage Bankers Association. Overall, applications were down 2 percent for the week ending August 28. Refinance applications were down 3 percent for the week but were still 40 percent higher than the same week a year ago, while purchase applications were down 0.2 percent for the week but 28 percent higher than 2019 levels. The refinance share of mortgage activity decreased to 62.5 percent of total applications from 62.6 percent the previous week. The adjustable-rate mortgage (ARM) share of activity remained unchanged at 2.6 percent of total applications.  “Both conventional and…

Home Prices Boom In July

Home price growth accelerated considerably in July, as the housing market proved strong and resilient even as the coronavirus pandemic continued to impact other parts of the economy, according to a report released Tuesday by CoreLogic. Home prices nationwide increased 5.5 percent from July 2019 to July 2020 – and increased 1.2 percent from June to July, according to the CoreLogic study, which also predicts that prices will increase by just 0.1 percent in August and 0.6 percent by July 2021. “On an aggregated level, the housing economy remains rock solid despite the shock and awe of the pandemic,” CoreLogic President and CEO Frank Martell said. “A long period of record-low mortgage rates has opened the flood gates for a…