Lawrence H. Summers, who served as Bill Clinton’s Treasury Secretary and was one of Barack Obama’s chief economic advisors, says “housing inflation is almost certain to soar in coming months,” and he’s taking the current Treasury chief to task over her rosy view of inflation. Former Treasury Secretary Summers has been sounding the alarm over inflation for months, even as current Treasury Secretary Janet Yellen has claimed the problem is “transitory” and not a significant threat to the economy. In response, Summers has criticized the Biden administration’s economic response to the pandemic, warning that rising inflation isn’t a temporary concern but a long-term problem the Fed will have trouble reining in. “We are printing money, we are creating government bonds,…
Good Morning! Today is Monday, October 25. FDA regulators said vaccine benefits outweigh risks in children aged 5 through 11, and an emergency authorization could come next week. Set workers on “Rust” warned of unsafe working conditions days before the film’s cinematographer was fatally shot. The Houston Astros will play the Atlanta Braves in the World Series. And in mortgage and housing news… “If You Haven’t Re-fi’d, Do So Now”: A growing consensus among housing and banking analysts is that the real force impacting mortgage rates in the coming months will be inflation. Black Knight First Look: Delinquencies, active foreclosures, and foreclosure starts all dropped to serious lows in September, Black Knight’s “first look” report shows. DOJ To Address Redlining: Attorney General Merrick Garland announced a DOJ…
Good Morning! Today is Friday, October 22. The CDC endorsed a “mix and match” strategy for distributing Covid-19 vaccine boosters. President Biden said he was open to ending the filibuster in order to pass bills on the debt limit and voting rights. A woman was killed on a Western film set when Alec Baldwin fired a prop gun. And in mortgage and housing news… Black Knight: The number of loans in active forbearance fell 0.6% since last Tuesday, entering an expected, mid-month period of “lull”. “Eviction Tsunami” Still Elusive: As federal protections ended, housing activists warned a “tsunami” of evictions would follow. Where is it? Counties Face Pandemic Damage: Some housing markets at the county level are still susceptible to damage from the pandemic, according to a new report from…
As the end of the federal government’s eviction moratorium approached this summer, housing activists warned a “tsunami” of evictions and homelessness would follow. The country is on the cusp of a “tsunami of evictions,” John Parvensky of the nonprofit organization Colorado Coalition for the Homeless told NBC News. “We will likely see more people unable to pay rent and end up being evicted and turning to the streets.” But nearly two months after the Supreme Court ruled against the moratorium, the predicted avalanche of evictions has not materialized—leaving experts scrambling trying to explain why a factor of such certainty could have been so wrong. The moratorium’s legal status was always hazy: The ban on evictions was never issued through Congress…
The number of loans in active forbearance fell 0.6% since last Tuesday, entering an expected, mid-month period of “lull,” according to Black Knight’s blog, Vision. Only 7,300 homeowners exited forbearance plans this week. The slowdown is significant compared to the two weeks prior, during which forbearance rates were dropping at break-neck speed. Forbearance rates have been improving at the fastest pace since the pandemic began, with 432,000 homeowners exiting their plans in the first weeks of October alone. But Black Knight noted that the dip is unremarkable, mimicking “the same mid-month lull in removal activity that we’ve been reporting on for many months now.” Portfolio and PSLs plans rose by 6,000, lowering the average set by declines of 10,500 for…
Despite the pandemic receding and a housing market cooldown, some housing markets at the county level are still susceptible to damage from the pandemic, according to a new report from ATTOM. The Q3 2021 Special Coronavirus Report showed that New Jersey, Illinois, and Delaware had the highest concentrations of at-risk markets, totaling 26 of the 50 counties whose housing markets might be most impacted by Covid-19. To determine risk to the market, the report looked at the percentage of homes facing possible foreclosure, the portion with mortgage balances exceeding property values, and the percentage of average local wages required to pay for homeownership expenses on median-priced houses or condos. Included on the list are eight counties in the Chicago metro…
Good Morning! Today is Thursday, October 21. U.S. unemployment claims fall to a new pandemic low of 290,000. The gunman in the Parkland school shooting pleaded guilty to 17 counts of murder. Donald Trump is launching a new social media platform, TRUTH Social. And in mortgage and housing news… Freddie Mac: Mortgage rates continued climbing, hitting 3.09% over the past week, Freddie Mac reported. “In Front Of Every Fight”: MBA President and CEO Bob Broeksmit said that “aggressive” federal regulation is back but that the MBA would fight tax hikes on mortgage servicing. Advocates Rally For “Robust” Spending: Housing stakeholders gathered at the capitol to call for the budget reconciliation package being negotiated in Congress to substantially represent housing. Runaway Demand: …
Mortgage rates continued their upward trajectory, hitting 3.09% over the past week, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 3.09%, up from last week’s 3.05%. A year ago at this time, the 30-year FRM averaged 2.80% “Mortgage rates continued to rise this week due to the trajectory of both the economy and the pandemic,” said Sam Khater, Freddie Mac’s Chief Economist. “Even as the availability of existing homes is improving, prices remain high due to homebuyer demand and limitations on housing starts and permits resulting from the ongoing labor and material shortages. Despite these countervailing forces, we expect the housing market to remain strong as we head into the end of the…
Good Morning! Today is Wednesday, October 20. The White House announced a plan to vaccinate 28 million children between the ages of 5 and 11. Kidnappers in Haiti are demanding $1 million per person for 17 members of a U.S.-based missionary group. Southwest Airlines has dropped its plan to put unvaccinated workers on unpaid leave starting in December. And in mortgage and housing news… Applications Down: Mortgage loan application volume fell 6.3% last week while refis hit their lowest level since July. Rocket Enhancements: Rocket Mortgage’s Rocket Pro TPO announced tech changes to help brokers grow and strengthen their businesses. Ex-UWM Exec Joins Scott Griffin: Scott Griffin Financial has announced that former UWM exec Judie Levitt has joined its senior…
Mortgage loan application volume fell 6.3% last week, the Mortgage Bankers Association’s (MBA) weekly survey reported. The Market Composite Index, which measures application volume, fell 6.3% on an adjusted basis. The Refinance Index fell 7% and was 22% lower than a year ago. It’s the Refinance Index’s lowest level since July 2021. The seasonally adjusted Purchase Index fell 5%, while the unadjusted Purchase Index dropped 5% compared to the week before, down 12% from the previous year. “Refinance applications declined for the fourth week as rates increased, bringing the refinance index to its lowest level since July 2021. The 30-year fixed rate has increased 20 basis points over the past month and reached 3.23% last week – the highest since…
