"Homeowners are in Great Shape," Delinquencies Improve Across the Board

Posted To: MND NewsWire

Mortgage loan delinquencies were down from the third quarter of 2018 in the fourth quarter. The Mortgage Bankers Association (MBA) said the improvements held across all loan types and all stages of delinquency although there was a slight uptick in foreclosure starts. The delinquency rate for mortgage loans on one-to-four-unit residential properties decreased to a seasonally adjusted rate of 4.06 percent of all loans outstanding, down 41 basis points (bps) from the third quarter and 111 bps from the fourth quarter of 2017 according to MBA’s National Delinquency Survey. The percentage of loans on which foreclosure actions were started in the fourth quarter rose by 2 bps to 0.25 percent but MBA said that was probably due to the expiration of foreclosure moratoria in states affected by natural…(read more)

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"Homeowners are in Great Shape," Delinquencies Improve Across the Board
"Homeowners are in Great Shape," Delinquencies Improve Across the Board

GSEs Continue Financial Winning Streaks

Posted To: MND NewsWire

Freddie Mac and Fannie Mae (the GSEs) reported solid financial results for both the fourth quarter and the entirety of the 2018 fiscal year on Thursday. The annual income was higher for both GSEs , although each posted a decrease quarter-over-quarter. Fannie Mae’s total comprehensive income for the fourth quarter was $3.2 billion compared to $4.0 billion in the third quarter, and it reported a $16.0 billion total for the year. Because of ramifications from the 2017 tax act , its comprehensive income for the 2017 year was only $2.6 billion. Freddie Mac’s total comprehensive income for the year was $8.6 billion compared to $5.6 billion in 2017 (it too had unusually high tax obligations that year.) For the fourth quarter comprehensive income dropped from $2.6 billion to $1.5 billion. Fannie Mae…(read more)

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GSEs Continue Financial Winning Streaks
GSEs Continue Financial Winning Streaks

Fewer Plan to Buy, But Others Aren't Giving Up

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The perceptions, expectations, and plans of prospective homebuyers appear to be undergoing a transition according to results from the most recent Housing Trends survey report from the National Association of Homebuilders (NAHB). Rose Quint writes about the fourth quarter 2018 survey in a five-part series in the association’s Eye on Housing Blog. She says that, for starters, there has been a steady erosion in the percentage of adults who said they planned to purchase a home within a year. That share slipped quarterly from 24 percent in the fourth quarter of 2017 to 13 percent in both the third and fourth quarters of 2018. Quint says the decline provides additional evidence that housing affordability has become a serious concern. Its deterioration has been driven by several years of strong home…(read more)

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Fewer Plan to Buy, But Others Aren't Giving Up
Fewer Plan to Buy, But Others Aren't Giving Up

Mortgage Bankers Estimate 29% Surge in New Home Sales

Posted To: MND NewsWire

While we have not yet seen figures from the Census Bureau for December let alone January, the Mortgage Bankers Association (MBA) is reporting a surge in new home sales last month. Information from MBA’s Builder Application Survey (BAS) indicates that those sales, while unchanged from January 2018, increased by 43 percent compared to December 2018. The change does not include any adjustment for typical seasonal patterns. On a seasonally adjusted basis, MBA estimates sales were at an annual rate of 713,000 units. This is an increase of 29.2 percent from the December estimate of 552,000 units. Before adjustment MBA estimates that there were 54,000 new home sales in January 2019, up 45.9 percent from 37,000 new home sales in December. Joel Kan, MBA’s Associate Vice President of Economic and Industry…(read more)

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Mortgage Bankers Estimate 29% Surge in New Home Sales
Mortgage Bankers Estimate 29% Surge in New Home Sales

NAHB Takes a Detailed Look at First-Time and Trade-up Buyers

Posted To: MND NewsWire

A total of 8.8 million households bought homes in the two years preceding the most recent American Housing Survey (AHS). The survey, sponsored by the Department of Housing and Urban Development, is conducted by the Census Bureau every two years. The AHS is a nationally representative survey of residential structures in the US and of the households that occupy them. Results of the 2017 survey were released last year and the National Association of Home Builders (NAHB) has taken a detailed look at the findings, publishing several blog entries. Carmel Ford of NAHB’s Economics and Housing Policy Group has now published a paper on the characteristics of those recent buyers and their transaction. The 8.8 million homebuyers are the highest tallied by any AHS since the Great Recession. There were 11…(read more)

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NAHB Takes a Detailed Look at First-Time and Trade-up Buyers
NAHB Takes a Detailed Look at First-Time and Trade-up Buyers

Global Concerns Slow Mortgage Apps, Even With Lower Rates

Posted To: MND NewsWire

Mortgage applications have now fallen in six of the last eight weeks. The Mortgage Bankers Association (MBA) said its seasonally adjusted Market Composite Index, a measure of application volume, fell lost another 3.7 percent on a seasonally adjusted basis during the week ended February 8. On an unadjusted basis the composite was down 4.0 percent. The Refinance Index decreased 0.1 percent from the previous week although the refinancing share of applications submitted rose to 43.2 percent. During the week ended February 1 refinancing had a 41.6 percent share. Both the seasonally adjusted and the unadjusted Purchase Indices were down 6.0 percent from the prior week and the unadjusted version came in 5.0 percent below its level during the same week in 2018. Applications for both FHA and VA loans…(read more)

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Global Concerns Slow Mortgage Apps, Even With Lower Rates
Global Concerns Slow Mortgage Apps, Even With Lower Rates

NAR: Home Price Gains at a "Healthier" Pace

Posted To: MND NewsWire

An asset bubble can burst, or it can develop a slow leak, and float more or less gradually back to normal levels. The National Association of Realtors’® (NAR’s) quarterly report on existing homes and metro home sales seems to indicate that the housing market, where skyrocketing prices were a concern not that long ago, is following the latter pattern. Not only are sales slowing, but inventories are growing, and appreciation appears to be gradually decelerating. The NAR said the median price of a single-family home sold in the fourth quarter of 2018 was $257,600, a 4.0 percent increase from the median of $247,800 a year earlier. The year-over-year gain in the fourth quarter of 2017 was 5.3 percent. Home prices increased on an annual basis in 163 of the 178 metropolitan statistical areas …(read more)

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NAR: Home Price Gains at a "Healthier" Pace
NAR: Home Price Gains at a "Healthier" Pace

Delinquencies and Foreclosures at 10-Year Lows

Posted To: MND NewsWire

According to CoreLogic, loan performance continues to improve on a national basis, with delinquencies dropping more than 1 percentage point over the 12 months ended in November 2018. Frank Nothaft, CoreLogic’s Chief Economist, said the decline was driven by solid income growth, a record amount of home equity and an absence of high-risk loan products. “This put the U.S. homeowner on solid ground. All of this has helped push delinquency and foreclosure rates to the lowest levels in almost two decades, and will provide a cushion if the housing market should turn down ,” he said. In November 2018 4.1 percent of outstanding mortgages nationwide were 30 or more days past due, including those in foreclosure. The previous November the percentage was 5.2 percent. Rates of longer-term delinquencies also…(read more)

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Delinquencies and Foreclosures at 10-Year Lows
Delinquencies and Foreclosures at 10-Year Lows

NAR's Proposal to Restructure Fannie/Freddie

Posted To: MND NewsWire

The second proposal for reform of the housing finance system in a week was just introduced by the National Association of Realtors® (NAR). Their “vision” for reform is centered on Fannie Mae and Freddie Mac (the GSEs). The future of the two companies, in federal conservatorship since 2008, barely got a mention in the outline for reform legislation released a few days ago by Mike Crapo (R-ID), chair of the Senate Bankin Committee. NAR unveiled its proposal, developed in collaboration with Susan Wachter, the Albert Sussman Professor of Real Estate and Professor of Finance at The Wharton School of the University of Pennsylvania, and Richard Cooperstein, head of Risk Management at Andrew Davidson and Company, Inc., before a sold-out forum audience of 400 on Thursday. The proposal says the GSEs…(read more)

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NAR's Proposal to Restructure Fannie/Freddie
NAR's Proposal to Restructure Fannie/Freddie

Housing Sentiment May Be Bouncing Back

Posted To: MND NewsWire

Respondents to Fannie Mae’s January National Housing Survey adopted a new outlook to go along with the new year, primarily in responses about their personal financial situation. As a result, the Home Purchase Sentiment Index (HPSI) increased 1.2 point to 84.7, taking back some of the 2.3 points it shed in December. The improvement was driven by an 8-point increase in the net share of respondents reporting higher income than 12 months earlier. At 27 percent, that net is 11 points higher than in January 2018. This was partially offset by a 6-point decline in the net percentage of those who said they were not concerned about losing their job. The net of 73 percent is unchanged from a year ago. A net of 15 percent of respondents said it is a good time to buy a home, an increase of 4 percentage…(read more)

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Housing Sentiment May Be Bouncing Back
Housing Sentiment May Be Bouncing Back