FDIC-Insured Banks Report Decline in Q4, Yearly Profits

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 Continue To Rise In US – And All 50 States

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…

NAHB Analysis: U.S. Houses Getting (A Little Bit) Smaller

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…

Survey: 45% of Americans Plan To Move This Decade

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…

CNBC Video: Too Many Jobs, Too Few Houses in Some Communities

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:…

Report: Mortgage Delinquencies Reach Record Lows in January

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…

Census, HUD Report: New Housing Permits Soar in January

Housing starts fell slightly in January, while new permits jumped to a nearly 13-year high, reflecting a sustained strong housing market in the United States. Building permits in January increased by 9.2 percent above the revised December rate of 1,420,000 – and was 17.9 percent above the January 2019 rate, according to a monthly report released by the Census Bureau and the Department of Housing and Urban Development. Housing starts in January were at a seasonally adjusted rate of 1,567,000 – or 3.6 percent below the revised December rate but still 21.4 percent above the January 2019 rate. “The latest month’s decline in housing starts is nothing to be concerned about,” said Lawrence Yun, chief economist for the National Association of Realtors.…

Weekly Report: Mortgage Applications Decline

Mortgage applications fell by 6.4 percent last week, though remain higher than a year ago at the same time, the Mortgage Bankers Association announced Wednesday. Highlights from the weekly report include: The Market Composite Index, a measure of mortgage loan application volume, decreased 6.4 percent on a seasonally adjusted basis from one week earlier.On an unadjusted basis, the Index decreased 5 percent compared with the previous week.The Refinance Index decreased 8 percent from the previous week and was 165 percent higher than the same week one year ago.The seasonally adjusted Purchase Index decreased 3 percent from one week earlier.The unadjusted Purchase Index increased 2 percent compared with the previous week and was 10 percent higher than the same week one year ago. …

Builders Have Historically High Confidence in Housing Market

Reflecting a strong market and low interest rates, builder confidence in the housing market remained high though slightly lower this month, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) released Tuesday. Builder confidence dropped a point in February to 74, a number reflects nearly historically high confidence in the housing market. “Steady job growth, rising wages and low interest rates are fueling demand but builders are still grappling with increasing construction and development costs,” NAHB Chairman Dean Mon said in a news release. The NAHB/Wells Fargo HMI measures builder perceptions of current single-family home sales and expectations for sales over the next six months as “good,” “fair” or “poor.” Any number over 50 indicates that…