Good Morning! Today is Tuesday, September 28. Rocket Mortgage will continue to sponsor the PGA’s Rocket Mortgage Classic through 2027. The presidents of Boston and Dallas’s Federal Reserve banks are resigning following reports of investment trading. Federal Reserve Chairman Jerome Powell will tell Congress today that inflation will stay high for a few months before moderating. Senate Republicans blocked a bill that would prevent a government shutdown. And in mortgage and housing news… Forbearances Keep Falling: The share of loans in forbearance fell yet again, dropping to 2.96%. It’s the first time they’ve dipped below 3% since March 2020. Natural Disasters Cause Concern: More than half of respondents to a Realtor.com survey said they considered natural disasters when choosing where…
Good Morning! Today is Monday, September 27. Government funding is set to expire this week as Democrats push two sweeping legislative packages. States are beginning to roll out booster shots to at-risk Americans. China traded two detained Canadian citizens to bring home a Huawei executive accused of stealing trade secrets. And in mortgage and housing news… What Does Debt-Limit Mean For Mortgage Rates?: Mortgage rates could be impacted by Washington D.C.’s debate over raising the debt ceiling. “LIFT”: Legislation aimed at first-time homebuyers proposes creating a 20-year-fixed-rate mortgage program through Ginnie Mae. FHFA Loan Mods:Fannie Mae and Freddie Mac completed 217,020 foreclosure prevention actions in the second quarter, with 47% of loan modifications lowering monthly payments by more than 20%.…
Freddie Mac and Fannie Mae completed 217,020 foreclosure prevention actions in Q2, bringing the number of homeowners the GSEs have helped during conservatorship to 6.030 million, according to the Federal Housing Finance Authority’s Foreclosure Prevention and Refinance Report. 57% of loan modifications reduced monthly payments by more than 20%, though the number of refinances began to fall in Q2. Forbearance starts dropped 32% to 6,233 in the second quarter, while third-party and foreclosure sales fell 9% to 2,281. The GSEs’ serious delinquency rate dropped from 2.48% to 1.99% by the end of Q2. The total number of loans in forbearance continues to drop from its latest peak in May 2021, though new forbearance plans fell but stayed high through Q2…
Economists and housing industry experts are keeping a close eye on Washington D.C.’s debate over raising the debt ceiling and what it might mean for interest rates. Congressional Democrats are heading into what even Speaker Nancy Pelosi acknowledges is a turbulent week or two, in which her party will attempt to use its narrow majorities to pass two massive spending bills. At the same time, Washington’s about to hit the limit of debt it can issue to keep paying its bills. Treasury Secretary Janet Yellen says the nation will run up against the debt ceiling sometime in October. Democrats are demanding the GOP follow the tradition of previous debt-ceiling votes and support an increase. Republicans, angry over the Democrats’ decision…
New legislation introduced in the Senate, known as the “Low-income First Time Homebuyer (LIFT) Act,” proposes creating a new 20-year-fixed-rate mortgage program through Ginnie Mae, subsidized by taxpayers. First-time, first-generation homebuyers with an income equal to or less than 120% of the area median income would qualify. Ginnie Mae, along with the Department of the Treasury, would subsidize the interest rate and origination fees for these 20-year mortgages. The result would be a monthly bill in line with a new 30-year FHA-insured mortgage. The bill is sponsored by Sens. Mark Warner (D-VA), Tim Kaine (D-VA), Chris Van Hollen (D-MD), Raphael Warnock (D-GA), and Jon Ossoff (D-GA). All except Sen. Kaine are members of the Senate Committee on Banking, Housing, and…
Mortgage rates remained essentially unchanged over the past week, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) reports the 30-year fixed-rate mortgage (FRM) averaged 2.88 percent. A year ago at this time, the 30-year FRM averaged 2.90 percent. “The slowdown in economic growth around the world has caused a flight to the quality of the U.S. financial markets,” said Sam Khater, Freddie Mac’s Chief Economist. “This has led to a rise in foreign investor purchases of U.S. Treasuries, causing mortgage rates to remain in place, despite the increasing dispersion of inflation across different consumer goods and services.” Khater continued, “On the housing front, homebuyers continue to snap up available inventory, which has improved modestly, and home price growth…
Good Morning! Today is Wednesday, September 22. The House passed a bill to keep the government open and prevent a debt default, but Senate Republicans will likely block it. The Taliban asked to participate in the U.N. General Assembly this week to gain international representation. The DOJ and six states are challenging American Airline’s partnership with JetBlue, alleging it violates anti-trust laws. And in mortgage and housing news… Mortgage Loan Apps Up: Mortgage loan application volume rose 4.9% last week, the MBA weekly survey found. Anthony Casa Abuse: The case of Anthony Casa, the AIME Chair who threatened and sexually harassed a competitor’s wife last year, perfectly demonstrates the difficulty of holding individuals accountable, Christine Lenzo writes. August Housing Starts: …
Mortgage loan application volume rose 4.9% last week, the Mortgage Bankers Association’s (MBA) weekly survey reports. Unadjusted, the purchase index increased 16% over last week. Mortgage application volume fell by 1.9%, with purchase applications rising 2%. On an unadjusted basis, purchase applications increased 12% over the week before, 13% lower than the year before. The share of refinance applications rose 7% and was 5% lower year-over-year. The numbers are in line with an upward trend that began last week when loan applications bounced back from a low point. “There was a resurgence in mortgage applications the week after Labor Day, with activity overall at its highest level in over a month, and purchase applications jumping to a high last seen…
Good Morning! Today is Tuesday, September 21. The U.S. is easing travel bans, but will require foreign nationals to show proof of vaccination before entering the country. The Biden administration is raising the cap on refugee admissions to 125,000. A doctor who publicly admitted to performing an abortion after six weeks is being sued, the first case filed under Texas’ controversial abortion law. And in mortgage and housing news… New Home Purchases Down: MBA’s Builder Application Survey data for August 2021 shows mortgage applications for new home purchases increased from July but fell year-over-year. Commissions Under Investigation: Home sale commissions are under investigation by the Biden administration, which has asked the Federal Trade Commission to adopt rules to address any…
Good Morning! Today is Monday, September 19. France recalled its ambassadors from Britain and the U.S. in protest of their secret negotiations with Australia. Natural gas prices are surging, prompting fears about winter shortages. The Biden administration began deporting thousands of Haitians awaiting immigration processing in Texas. And in mortgage and housing news… Will Fed Meeting Affect Interest Rates?: The FOMC is meeting September 21 and 22 to discuss next steps on monetary policy. It probably won’t affect interest rates. Home Sales Down: RE/MAX’s August Annual Housing Report suggests that while the market may still be hot, the busiest months of 2021 may be behind us. Consumer Sentiment Up: Consumer sentiment steadied in September after plunging to its lowest level…
