Good Morning! Today is Tuesday, September 7. Federal pandemic unemployment aid expired yesterday, impacting seven million people. China’s exports unexpectedly expanded at a faster clip in August, shrugging off the impact of a global resurgence of the coronavirus pandemic.The U.S. has evacuated four Americans from Afghanistan into a bordering country, a State Department official said. Disney’s “Shang-Chi” set a box office record of $90 million over Labor Day weekend. And in mortgage and housing news… Light At The End Of The Tunnel: The Fannie Mae Home Purchase Sentiment Index stayed mostly the same in August, as homebuyers express more positivity about homebuying conditions. Wall Street Woes: Wall Street is bankrolling house flippers, but finding properties is a battle. “Investors like…
Good Morning! Today is Friday, September 3. The U.S. economy added just 235,000 jobs in August, far below economists’ expectations. The remnants of Hurricane Ida caused flash flooding in the Northeast, resulting in at least 45 deaths. Democrat Sen. Joe Manchin (W.V.) says he won’t support Biden-backed $3.5 trillion spending plan.And in mortgage and housing news…Market Warming: The housing market is leveling out, with smaller, more affordable homes being listed and sellers pricing more competitively as 423,000 new homes go up for sale, according to Realtor.com’s August Housing Market Trends Report. Heading For Normal: Signs of softening housing market and a leveling of mortgage interest rates have some industry observers asking if America is heading back to a ‘normal’ home-buying market.SimpleNexus Approved: Fannie Mae and Freddie Mac have approved digital mortgage platform SimpleNexus as…
Good Morning! Today is Thursday, September 2. New York Governor Kathy Hochul issued a state of emergency after remnants of Hurricane Ida caused flash flooding and power outages, resulting in at least nine deaths. A Texas law banning abortions after a fetal heartbeat can be detected (appoximately 6 weeks) took effect when the Supreme Court declined to block it. Purdue Pharma will be dissolved and the Sackler family will pay $4.5 billion to settle claims related to the national opioid epidemic.And in mortgage and housing news…Freddie Mac Says Weekly Mortgage Rates Remain Unchanged: The rate on a 30-day fixed rate mortgage averaged 2.87%, the same as last week and lower than the 2.93% average a year ago. Pending Home Sales…
President Joe Biden on Wednesday announced a major initiative to bolster affordable housing in the face of a surge in home prices that is preventing some Americans from becoming homeowners. “The large and long-standing gap between the supply and demand of affordable homes for both renters and homeowners make it harder for families to buy their first home and drives up the cost of rent. Higher housing costs also crowd out other investments families can and should make to improve their lives, such as investments in education,” the White House said in a statement. “President Biden is committed to using every tool available in government to produce more affordable housing supply as quickly as possible, and to make supply available to…
The Federal Housing Finance Agency named Laura Thrift as the new Director of the Office of Congressional Affairs and Communications and Alexei Alexandrov (above) as Chief Economist on Monday. Thrift has more than 15 years of experience on Capitol Hill working for senior members of the House of Representatives. Before joining FHFA, Thrift was the Deputy Chief of Staff for Rep. Earl Blumenauer (D-Ore). Thrift previously served as Senior Policy Advisor to Rep. David Price (D-N.C.) Prior to joining FHFA, Alexandrov, a Ph.D. economist, was the director of Central Algorithms for Wayfair.com. He also worked as a senior manager at Amazon.com. Additionally, he served as a senior economist at the Consumer Financial Protection Bureau, working on mortgage regulations stemming from…
Good Morning! Today is Wednesday, September 1. President Biden defended his Afghanistan withdrawal strategy in a speech Tuesday. Hospitals in New Orleans are operating on backup power after Hurricane Ida left the city powerless. Trustees for the Social Security trust fund said the program is expected to pay benefits that exceed its income in 2021. The S&P 500, Dow Jones, and Nasdaq ended August near record highs.And in mortgage and housing news… Mortgage Applications Down: Mortgage applications decreased 2.4% last week despite continuing low rates, according to the MBA’s Weekly Mortgage Application Survey. FHFA HPI: The FHFA’s Q2 House Price Index saw the largest annual gain in its history, with house prices rising 17.4% year-over-year, up from 12.6% in the…
The FHFA’s Q2 House Price Index (HPI) saw its largest ever annual gain, with house prices rising 17.4% year-over-year, up from 12.6% in the last quarter. This surge in home prices breaks the previous record, set in Q1. The FHFA HPI measures the movement of single-family house prices by reviewing repeat mortgage transactions on homes whose mortgages have been purchased or securitized by Fannie Mae or Freddie Mac since January 1975. “During the second quarter, house prices peaked in June with an 18.8 percent growth rate compared to a year ago,” said Dr. Lynn Fisher, Deputy Director of FHFA’s Division of Research and Statistics. “For the quarter, annual gains surpassed 20 percent in the Mountain, New England, and Pacific census divisions and…
The Federal Housing Finance Agency announced a new refinance option that will provide low-income borrowers with reduced interest rates and lower monthly payments. The new option is available to borrowers with Freddie Mac and Fannie Mae backed loans. It includes: A requirement that the lender provides a savings of at least $50 in the borrower’s monthly mortgage payment, and at least a 50-basis point reduction in the borrower’s interest rate.A maximum $500 credit from the lender for an appraisal if the borrower is not eligible for an appraisal waiver (the Enterprises will provide the lender a credit of $500 upon the loan’s sale to an Enterprise).A waiver of the 50 basis point up-front adverse market refinance fee for borrowers with loan balances…
Fannie Mae released its 2020 financial results Friday, reporting $11.8 billion in net income for the year and $4.6 billion in the fourth quarter. Fannie’s net worth climbed to $25.3 billion at the end of the year, up from $14.6 billion at the end of 2019. The company reported providing a record $1.4 trillion in liquidity to single-family and multifamily mortgage markets. That includes 3.4 million refinanced loans amid historically low interest rates. “2020 presented the nation with an historic test and Fannie Mae rose to the challenge, delivering a record $1.4 trillion in mortgage liquidity to meet home purchase, refinancing, and rental housing needs,” Chief Executive Officer Hugh R. Frater said.…
The Trump Administration announced Thursday that it would not seek to pull Fannie Mae and Freddie Mac out of conservatorship before President Trump leaves office next week. Instead, the Department of Treasury and the Federal Housing Finance Agency announced amendments to their preferred stock purchase agreements that allows Fannie and Freddie to keep more of their earnings as they continue to work to leave conservatorship. “Today’s agreement that allows Fannie Mae and Freddie Mac to continue retaining earnings is a step in the right direction, but more hard work remains,” FHFA Director Mark Calabria said. “Capital at Fannie Mae and Freddie Mac protects the housing finance system and taxpayers. Retained earnings alone are insufficient to adequately capitalize the Enterprises. Until…
