Annual single-family home prices rose by 19.4% in Q2 2022. This is down from Q1’s upwardly revised 20.5% but still close to a record high, according to Fannie Mae’s latest Home Price Index. On a quarterly basis, home prices increased by 4.3% between Q1 and Q2. “Home prices maintained a near-historic pace of appreciation in the second quarter, as low levels of housing inventory continued to support price growth,” said Doug Duncan, Fannie Mae Senior Vice President and Chief Economist. “At the end of 2021 and extending into 2022, we believe many homebuyers pulled forward their purchase plans to avoid expected increases in mortgage rates, contributing to demand for homes and strong price appreciation. Given the sharp rise in mortgage…
Good Morning! Today is Wednesday, July 13. Scientists revealed images of stars and galaxies that had been too far away or too dim to see, including 13 billion-year-old light. One U.S. dollar is worth almost as much as a euro for the first time in nearly 20 years. Twitter sued Elon Musk to force him to go through with buying the company. The Mortgage Note Reports CPI Tops Predictions, Again: Inflation jumped by 9.1% YOY in June, more than analysts predicted and the largest gain since 1981. Loan Apps Down: Mortgage loan application volume fell by 1.7% last week, and the average loan size fell to $415,000. And in other mortgage and housing news… UWM CFO: UWM CFO Timothy J Forrester died Sunday at 55 following “a valiant battle against cancer.”…
Mortgage loan application volume fell by 1.7% last week, the Mortgage Bankers Association’s (MBA) weekly survey shows. The adjusted Market Composite Index, a measure of mortgage loan application volume, decreased by 1.7%. The adjusted purchase index dropped 4%, while the unadjusted purchase index increased by 14% and was 18% lower YOY. The refinance index rose by 2% and made up 30.8% of total applications, down 80% from the same time last year. The overall refinance index was 5% lower than the average level reported in June, and refinances are expected to stay low. ARM activity rose to 9.6% of total applications. “Mortgage rates were mostly unchanged, but applications declined for the second straight week. Purchase applications for both conventional and…
Inflation jumped by 9.1% YOY in June, more than analysts predicted and the largest gain since 1981, according to data released by the Labor Department today. The Consumer Price Index showed inflation rising 1.3% month-over-month, its largest jump since 2005. Predictions ahead of the data’s release forecast a 1.1% rise from May and an 8.8% increase YOY. This is the fourth consecutive month that analyst predictions fell short. Another month of skyrocketing inflation suggests that officials will be forced to continue aggressively raising interest rates. But rate hikes have stoked fears of a recession. Strategists at Goldman Sachs recently upgraded their recession probability to 30% from 15%. “We now see recession risk as higher and more front-loaded,” Goldman Sachs Chief…
Good Morning! Today is Tuesday, July 12. A poll found that nearly half of Republican voters want someone other than Trump as the party’s 2024 presidential nominee. The F.D.A. will consider making a birth control pill available without a prescription. Russia has increased attacks on civilian areas in Ukraine. The Mortgage Note Reports Delinquencies Hover Near Record Low: Delinquencies fell for the thirteen consecutive month in April, down 1.8% YOY and unchanged from the month prior. FCM CIO: First Community Mortgage has named Andrew Badstubner as its new CIO. And in other mortgage and housing news… Inflation Boosted: Climbing housing costs will keep inflation elevated this year, as some analysts say any inflation slowdown will have to emanate from other sectors. Layoffs Cont’d: LoanDepot will cut 2,000 more jobs…
Delinquencies fell for the thirteen consecutive month in April, down 1.8% YOY and unchanged from the month prior, according to CoreLogic’s latest Loan Performance Insights Report. Only 2.9% of mortgages across the nation were in some stage of delinquency in April. Serious delinquencies, those which are 90 days or more past due, have seen the most change in the last year. They account for 1.4% of all mortgages, down from 3.3% at the same time last year, and have fallen from a high of 4.3% in August 2020. All states saw annual declines in their overall delinquency rate in April. The states with the largest declines were Nevada (-3.2%), Hawaii (-3%), and New Jersey (-2.7%). Early-stage delinquencies are up 1%…
First Community Mortgage (FCM) has named Andrew Badstubner as its new Chief Information Officer, the company announced in a press release. Badstubner brings two decades of experience in technology management, software development, and product engineering, previously serving as CIO at NewRez and Ditech Holding Corporation. His other experience includes CTO at Kabbage, Inc., VP of Product Development for ista North America, and Senior Director of Information Technology at Cbeyond. Badstubner said he looks forward to supporting FCM as they continue to build their digital capabilities. “We have ambitious growth goals that will allow us to enhance the experience of our customers and business partners, while also improving the experience internally for our loan officers and fulfillment staff,” Badstubner said. Badstubner…
Good Morning! Today is Monday, July 11. Twitter shares fell about 6% in premarket trading ahead of an expected legal fight between Elon Musk and Twitter. A pregnant woman in Texas is arguing that her unborn child should count as a vehicle passenger in an HOV lane. Steve Bannon will testify before the Jan. 6 committee. The Mortgage Note Reports Originations Down: Total mortgage lock volumes fell 11% in May across all types of loans as rising rates kept buyers out of the market. Affordability Worsening: Housing affordability is down across the country, with the monthly mortgage payment up 6.2% month-over-month and 51% year-over-year. Inflation And Housing: Writer Tyrone Townsend dives into how inflation affects the housing market. And in other mortgage and housing news… Jobs Report: The Labor Department…
By TYRONE TOWNSEND The Federal Reserve has indicated that the central bank views inflation as a national emergency, with markets expecting a 0.75 percent interest rate rise. However, the Fed’s policy measures could come at a high cost, notably in the housing market. Low mortgage rates and a lack of housing inventory during COVID-19 lockdowns sent home prices skyrocketing during the last two years. The housing market is cooling as mortgage rates have gone up and even surpassed 6 percent. Although this may be an acceptable short-term price to pay in the fight against inflation, it will cause future supply-chain issues after inflation is under control. Before the pandemic, a six-month supply of homes for sale was considered a sign…
Housing affordability fell across the country in May, with the monthly mortgage payment up 6.2% month-over-month and 51% year-over-year. The National Association of Realtor’s (NAR) Housing Affordability Index showed that in contrast to rapidly rising prices, the median family increase rose only 0.7% from April and 4.5% YOY. Housing affordability fell the most in the South, which saw a 33.8% decline, followed by the West (30%), the Midwest (27.6%), and the Northeast (25%). All of NAR’s Indices but the West posted readings above 100, meaning a family with the median income had more than the income required to afford a median-priced home. The Midwest was the most affordable region, with a reading of 140.5. The South was the second most…
