Fire, Flood Threats Impact Home Values

Natural disasters are impacting home values in high-risk areas at a time when home prices are soaring across the United States, according to a realtor.com analysis released Monday. The value of homes in high-risk flood areas grew at 5 percentage points lower than homes in similar areas with less flood risk, while the values of homes in high risk fire areas increased at 3 percentage points lower. In 78 flood-risk counties across the country, realtor.com found that homes with hurricane-related disaster declarations experienced a cumulative sales price per square foot growth of 25 percent, compared to 29 percent for homes with a moderate or major risk, and 30 percent for homes with a minimal or low risk.  Realtor.com also found…

Mortgage Rates Stuck At Record Low

Mortgage rates in the United States didn’t budge from record-low levels this week, Freddie Mac reported Thursday in its weekly Primary Mortgage Market Survey. The survey found: The 30-year fixed-rate mortgage averaged 2.71 percent with an average 0.7 point for the week, unchanged from last week and down from last year at this time when it averaged 3.73 percent.The 15-year fixed-rate mortgage averaged 2.26 percent with an average 0.6 point, also unchanged from last week and down from last year’s 3.19 percent.The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.79 percent with an average 0.3 point, down from last week’s 2.86 percent and last year’s 3.36 percent. “Mortgage rates remain at record lows, resisting their typical correlation to Treasury yields, which…

Mortgage Applications Dip After Holiday

Mortgage applications dropped slightly last week, while remaining significantly higher than 2019 levels, according to a report released Wednesday by the Mortgage Bankers Association. For the week ending December 4, applications overall decreased 1.2 percent. The Refinance Index increased 2 percent for the week and was 89 percent higher than a year ago, while the Purchase Index decreased 5 percent – and was 22 percent higher than the same week a year ago. The refinance share of mortgage activity increased to 72 percent of total applications from 69.5 percent the previous week. The adjustable-rate mortgage share of activity decreased to 1.7 percent of total applications. “Refinance activity increased last week in response to mortgage rates for 30-year, 15-year, and FHA…

Mortgage Credit Loosens In November

Mortgage credit freed up in November to its highest level since July, according to a new report released by the Mortgage Bankers Association. Overall, the Mortgage Credit Availability Index has fallen significantly since the start of the Covid-19 pandemic – down 30 percent below pre-pandemic levels. After months of decline, the MCAI rose by 0.7 percent to 122.2 in November. Source: Mortgage Bankers Association “Mortgage credit availability increased slightly in November to its highest level since July, as the job market improved, and the housing sector continued to show strong borrower demand,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “There was an increase in credit availability for jumbo loans, as well as loan products with…

Forbearance Levels Steady In US

The number of US mortgages in forbearance held steady to close out November, with about 2.8 million homeowners still pausing their mortgage payments amid the Covid-19 pandemic, the Mortgage Bankers Association announced Monday. MBA’s weekly survey found: Total loans in forbearance remained unchanged for the week ending November 29 at 5.54 percent.The share of Ginnie Mae mortgages in forbearance increased from 7.83 percent to 7.89 percent.The share of Fannie Mae and Freddie Mac loans in forbearance decreased from 3.36 percent to 3.34 percent.Independent mortgage bank loans in forbearance dropped from 6.03 percent to 6.02 percent.Bank-managed mortgages climbed from 5.47 percent to 5.48 percent. “After two weeks of increases, the share of loans in forbearance was unchanged for the week that…

Home Buying, Selling Mood Sours A Bit

Home buyers and sellers weren’t feeling overly optimistic in November. The Fannie Mae Home Purchase Sentiment Index fell 1.7 points in November to 80.0, the first decline after three months of increases. The HPSI is down 11.5 points from last year at this time, Fannie Mae announced Monday. “The HPSI appears to have peaked for now as consumers continue to consider how COVID-19 impacts their ability to buy or sell a home,” said Doug Duncan, Senior Vice President and Chief Economist. “This follows the HPSI’s recovery of slightly more than half of the loss experienced during the first few months of the pandemic.” Fannie Mae’s findings include: The percentage of respondents who say it is a good time to buy a home decreased…

Home Prices Reach Record High In November

Home sales are up and prices continue to be up across the nation, according to the latest monthly report released by Redfin. “Sellers took the week off for Thanksgiving, but buyers were still out there searching for homes despite the lack of new listings,” Redfin chief economist Daryl Fairweather said. “Sellers continue to be in the driver’s seat when it comes to pricing. And with mortgage rates hitting new record lows nearly every week recently, buyers are tolerant of higher prices.” Redfin’s survey of more than 400 US metro areas found: The median home sale price increased 16 percent year over year to $322,828, the highest on record.Pending home sales were up 28 percent over last year.New listings of homes for…

Mortgage Rates Inch Down To New Record

New month, another new record. The 30-year fixed-rate mortgage dropped to its lowest level in history again this week, according to Freddie Mac’s weekly Primary Mortgage Market Survey released Thursday. The survey found: The 30-year fixed-rate mortgage averaged 2.71 percent with an average 0.7 point for the week ending December 3, 2020, down from last week’s 2.72 percent and last year’s 3.68 percent.The 15-year fixed-rate mortgage averaged 2.26 percent with an average 0.6 point, down from last week’s 2.28 percent and last year’s 3.14 percent.The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.86 percent with an average 0.3 point, down from last week’s when it averaged 3.16 percent and last year’s 3.39 percent. “Despite persistently low mortgage rates, home sales have…

Mortgage Applications Show Mixed Bag

Mortgage applications decreased slightly Thanksgiving week, once adjustments are made for the long holiday weekend, according to the Mortgage Bankers Association’s weekly report released Wednesday. Overall, applications for the week dropped 0.6 percent on an adjusted basis but down 32 percent on an unadjusted basis. The Refinance Index decreased 5 percent from the previous week and was 102 percent higher than the same week one year ago. Seasonally adjusted purchases increased 9 percent from one week earlier. Unadjusted purchases decreased 28 percent compared with the previous week and was 28 percent higher than the same week one year ago.  The refinance share of mortgage activity decreased to 69.5 percent of total applications from 71.1 percent the previous week. The adjustable-rate…

Forbearance Levels Rise Before Holiday

The share of mortgages in forbearance in the United States increased for the second week in a row before Thanksgiving, according to the weekly report released by the Mortgage Bankers Association. MBA’s survey found for the week ending November 22: Total loans in forbearance increased from 5.48 percent to 5.54 percent.     The share of Ginnie Mae loans in forbearance increased from 7.73 percent to 7.83 percent.The share of Fannie Mae and Freddie Mac loans in forbearance increased from 3.35 percent to 3.36 percent.Independent mortgage bank loans in forbearance climbed from 5.48 percent to 5.54 percent.Bank-managed mortgages in forbearance climbed from 5.44 percent to 5.47 percent. “For the second week in a row, the share of loans in forbearance has…