FHFA: Home Prices Surge In August

The official numbers are in – and home prices continue to surge in the United States. The Federal Housing Finance Agency reported Tuesday that home prices increased 1.5 percent in August from the previous month – and a whopping 8 percent from August 2019 amid historically low interest rates and a shortage of homes on the market during the Covid-19 pandemic. For the nine census divisions, monthly house price increases ranged from 0.9 percent in the East South Central division to 1.9 percent in the West South Central division.  The annual increases changes ranged from 7.2 percent in the West North Central division to 9.7 percent in the Mountain division. “This large month-over-month gain contributes to an already strong increase…

Forbearance Cases Level Off At 3 Million

About 3 million homeowners in the United States remain in forbearance plans as the Covid-19 pandemic stretches into its eighth month, according to a new report released Monday by the Mortgage Bankers Association. MBA’s weekly forbearance survey found as of October 18: The share of loans in forbearance decreased from 5.92 percent to 5.90 percent (and down from 6.32 percent two weeks earlier).Ginnie Mae loans in forbearance increased from 8.14 percent to 8.17 percent.Fannie Mae and Freddie Mac loans in forbearance decreased from 3.77 percent to 3.72 percent.Independent mortgage bank mortgages in forbearance climbed from 6.33 percent to 6.35 percent.Bank-managed mortgages dropped from 5.93 percent to 5.86 percent. “The share of loans in forbearance declined only slightly in the prior…

Survey: Home Offices Replacing Dining Rooms

Suburbs. High sales prices. And fewer dining rooms. Another survey released Monday found that the housing market remains hot during the Covid-19 pandemic – with buyers moving to the suburbs and sellers continuing to get above asking price. The survey, conducted on behalf of United Wholesale Mortgage, found: Nearly half of those surveyed who moved to a new home since March 1 moved to the suburbs.70 percent of the people surveyed who purchased a new primary home also sold their old home, with nearly 3 in 4 consumers selling their home above asking price.Nearly 60 percent of those surveyed are starting or continuing home renovations in the coming year.Of those who are creating office space for working from home, 46…

30-Year Fixed Mortgage Rate Drops To 2.80%

Mortgage rates have hit yet another record low. Freddie Mac announced Thursday that the 30-year fixed-rate mortgage averaged 2.80 percent for the week, the lowest rate in the history of the Primary Mortgage Market Survey dating back to 1971. The survey found: The 30-year fixed-rate mortgage averaged 2.80 percent with an average 0.6 point for the week ending October 22, down from last week’s 2.81 percent and last year’s 3.75 percent.The 15-year fixed-rate mortgage averaged 2.33 percent with an average 0.6 point, down from last week’s 2.35 percent and last year’s 3.18 percent.The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.87 percent with an average 0.3 point, down from last week’s 2.90 percent and last year’s 3.40 percent. “Mortgage rates remain…

Mortgage Applications Hold Steady For Week

Mortgage applications largely held steady in mid-October, while the number refinances remained dramatically higher than a year ago, according to a report released Wednesday by the Mortgage Bankers Association. Overall, applications dropped 0.6 percent for the week ending October 16 – with refinances increasing 0.2 percent from the previous week and purchase applications declining 2 percent. On a year over year basis, refinance applications were up 74 percent and purchase applications were up 26 percent. The refinance share of mortgage activity increased to 66.1 percent of total applications from 65.6 percent the previous week. The adjustable-rate mortgage share of activity decreased to 1.9 percent of total applications. “Homebuyer demand remains strong this fall, but purchase applications did decrease 2 percent,…

Bidding Wars Still Common In US Housing Market

There’s still a ton of competition if you want to buy a house. Redfin released a report Tuesday that finds 56.3 percent of Redfin offers on homes in the United States faced competition in September, down a bit from the 59.1 percent in August. A majority of offers still faced bidding wars for the fifth month in a row. “The slight decline in bidding wars is largely a reflection of a seasonal cooldown, which typically starts in the late summer but was delayed by a few months this year,” Redfin chief economist Daryl Fairweather said. “But homebuyers are still sweating as they navigate what remains an unseasonably hot seller’s market.” Salt Lake City was the most competitive market with 81.1…

SWBC’s Susan Stewart Named MBA Chairman

SWBC Mortgage Corporation CEO Susan Stewart was sworn in as chairman of the Mortgage Bankers Association on Monday at the group’s virtual annual convention. Additionally, Wells Fargo Executive Vice President Kristy Fercho was named chairman-elect and Grandbridge Real Estate Capital CEO Matt Rocco was named vice chairman of the association. “It is a privilege to serve as MBA’s 2021 Chairman,” Stewart said. “I look forward to working with Kristy and Matt to address the challenges facing our industry, as well as help MBA members deal with the issues most affecting their businesses.” Fercho joined Wells Fargo in 2020 from Flagstar Bank, where she had served as president of the company’s mortgage division since 2017. Rocco joined Grandbridge, a subsidiary of…

US Home Prices Soar In September

Home prices soared by 14.4 percent in September, the largest annual increase of any month since Redfin began tracking prices in 2012, according to a report released Monday by the real estate brokerage. The increases are being driven by three converging factors, Redfin concludes: record-low mortgage rates, a historic housing supply shortage and a demand for bigger homes in pandemic times. “2020 will be known for a lot of things and a record-breaking year for real estate will certainly be one of its more unexpected legacies,” Redfin chief economist Daryl Fairweather said. “Demand typically abates in late summer and early fall, but seasonal patterns don’t stand a chance against the other factors motivating homebuyers this year. Homebuyers are seeking spacious…

Q3: $58B In Missed Housing, Student Loan Payments

More than 6 million households in the United States missed rent or mortgage payments and 26 million missed student loan payments in September as the economic effects of the Covid-19 pandemic stretched into their seventh month. The Mortgage Bankers Association’s Research Institute for Housing America report released Friday found that 8.5 percent of renters – or 2.82 million households – missed, delayed or made a reduced payment. Another 7.1 percent of homeowners – or 3.37 million – missed mortgage payments. Overall, the missed payments accounted for than $58 billion in revenue during the third quarter, the report found. “Rent and mortgage payment collections improved over the summer as more people went back to work, but high unemployment continues to place…

Mortgage Rates Hit Record Low – Again

Mortgage rates dropped to 2.81 percent this week, another new record and the 12th straight week rates have stayed under 3 percent, Freddie Mac reported Thursday in its weekly mortgage market survey. The survey found: The 30-year fixed-rate mortgage averaged 2.81 percent with an average 0.6 point for the week ending October 15, 2020, down from last week’s 2.87 percent and last year’s 3.69 percent.The 15-year fixed-rate mortgage averaged 2.35 percent with an average 0.5 point, down from last week’s 2.37 percent and last year’s 3.15 percent.The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.90 percent with an average 0.2 point, down from last week’s when it averaged 2.89 percent and last year’s 3.35 percent. “Low mortgage rates have become a regular…