Builder Confidence is Good, But it Could be Better

Posted To: MND NewsWire

The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) moved one point higher this month. However, at 66, NAHB’s measure of builder confidence in the new home market stayed within the 64 to 66 range where it has been now for four months. “While 30-year mortgage rates have dropped from 4.1 percent down to 3.6 percent during the past four months, we have not seen an equivalent higher pace of building activity because the rate declines occurred due to economic uncertainty stemming largely from growing trade concerns,” said NAHB Chief Economist Robert Dietz. “Although affordability headwinds remain a challenge, demand is good and growing at lower price points and for smaller homes.” The HMI is derived from a survey of its new home builder members that NAHB has conducted…(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.


Builder Confidence is Good, But it Could be Better
Builder Confidence is Good, But it Could be Better

New Home Sales Expected to Reflect Interest Rate Trend

Posted To: MND NewsWire

New home purchases are expected to be significantly higher in July according to data released by the Mortgage Bankers Association (MBA). Its monthly Builder Application Survey (BAS), indicates that applications for new home purchase mortgages increased by 11 percent month-over-month and were up 3.2 percent from July 2018. These estimates do not include any adjustment for typical seasonal patterns. “July’s strong new home sales increase on a monthly and annual basis was driven by the ongoing decline in mortgage rates, combined with steady housing demand and a still-healthy job market,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “The average loan size decreased last month, likely influenced by the increase in the first-time homebuyer share, as these buyers…(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.


New Home Sales Expected to Reflect Interest Rate Trend
New Home Sales Expected to Reflect Interest Rate Trend

New FHA Rule Will Ease Condo Approval Process

Posted To: MND NewsWire

The long-waited Federal Housing Administration (FHA) rule regulating condominium lending was finalized Wednesday afternoon. The Department of Housing and Urban Development (HUD), the parent agency of FHA, published the final regulation and the policy implementation guidance establishing a new condominium approval process. As a way of background, under existing rules, to obtain an FHA mortgage a borrower must not only satisfy the lender and the FHA that he or she is a qualified buyer but must purchase a unit that is itself qualified for financing. According to the National Association of Realtors®, FHA has put its stamp of approval on many complexes, but given the universe, not nearly enough. Of the more than 150,000 condominium projects in the U.S., only 6.5 percent are approved to participate…(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.


New FHA Rule Will Ease Condo Approval Process
New FHA Rule Will Ease Condo Approval Process

Refinance Spree Continues with Rates at Near 3-Year Lows

Posted To: MND NewsWire

The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of mortgage application volume, rose 21.7 percent on a seasonally adjusted basis during the week ended August 9. MBA attributed the substantial decline in interest rates at the beginning of the week for the surge of applications which were concentrated on mortgage refinancing. The Composite Index rose 20 percent before seasonal adjustment. Purchase mortgage applications were only slightly affected by the tsunami; that index rose only 1.9 percent from the previous week on an unadjusted basis and 1 percent before adjustment. The unadjusted index was 12 percent higher than during the same week in 2018. The Refinance Index however was up 37 percent from the previous week to its highest level since July 2016 and was…(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.


Refinance Spree Continues with Rates at Near 3-Year Lows
Refinance Spree Continues with Rates at Near 3-Year Lows

Loan Performance Responds to Slowing Economy, Natural Disasters

Posted To: MND NewsWire

Both the Mortgage Bankers Association (MBA) and CoreLogic issued data on recent loan performance on Tuesday. For CoreLogic the Monthly Loan Performance Report covered May, MBA’s National Delinquency Survey is for the second quarter of this year. MBA notes an increase in the overall seasonally adjusted delinquency rate to 4.53 percent of all loans outstanding at the end of the quarter. This is an increase of 11 basis points (bps) from the first quarter of this year and 17 bps from the second quarter of 2018. The share of loans that were 30 days or more past due increased by 4 bps to 2.62 percent, the 60-day rate was unchanged at 0.81 percent and the 90-day rate was up 7 bps to 1.10 percent. Those numbers do not include loans in the process of foreclosure. Those loans, the foreclosure inventory…(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.


Loan Performance Responds to Slowing Economy, Natural Disasters
Loan Performance Responds to Slowing Economy, Natural Disasters

Fannie/Freddie Universal MBS Launch Has Been Seamless So Far

Posted To: MND NewsWire

After years of planning, the two government sponsored enterprises (GSEs) Fannie Mae and Freddie Mac launched their uniform mortgage-backed security (UMBS) in early June. So far, the Urban Institute (UI) likes what it sees. UI analysts Karan Kaul and Laurie Goodman say the early reaction of investors to the new instrument is encouraging. The UMBS is actually issued by the common securitization platform (CSP) which was developed jointly by the GSEs under the direction of their conservator and regulator the Federal Housing Finance Agency (FHFA). The security is backed by mortgages guaranteed by one or the other of the GSEs. Prior to the advent of the new security, each of the GSEs issued their own securities, each with its own securitization practices, terms, and prices. This was a situation that…(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.


Fannie/Freddie Universal MBS Launch Has Been Seamless So Far
Fannie/Freddie Universal MBS Launch Has Been Seamless So Far

Recent Rate Cuts Bolster Refinance Pool

Posted To: MND NewsWire

Ever since mortgage rates began to move lower, Black Knight has devoted a big portion of its Mortgage Monitor , a monthly report on loan performance and other mortgage issues, to tracking the ebb and flow of the refinanceable loan population. The company defines refinanceable as a loan where the borrower can qualify for a new loan with a credit score of 720 or higher and a maximum of an 80 percent loan to value (LTV) ratio AND could s have at least 75 basis points off of their current loan through refinancing. The company put the refinanceable population at 8.2 million in June. At the end of that month rates stabilized at around 3.75 percent and the most recent Monitor, published this past Monday only mentioned the refinanceable population in passing. But Thursday Freddie Mac’s weekly published…(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.


Recent Rate Cuts Bolster Refinance Pool
Recent Rate Cuts Bolster Refinance Pool

Jumbo Credit Access Increased in July

Posted To: MND NewsWire

The availability of jumbo mortgage loans increased in July, but not enough to offset tightening in credit access for other types of loans. The Mortgage Bankers Association (MBA) said its Mortgage Credit Availability Index (MCAI) dipped 0.4 percent compared to June to a reading of 189.0. A decline in the MCAI, which was benchmarked to 100 in March 2012, indicates that lending standards are tightening , while increases in the index are indicative of loosening credit. Two major component indices and two sub-indices make up the MCAI. The Government Index declined 1.0 percent month over month and the Conventional Index eked out a 0.1 percent gain. That index is composed of the Jumbo Index which jumped by 0.7 percent and the Conforming Index which fell 0.8 percent. “Credit availability in July decreased…(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.


Jumbo Credit Access Increased in July
Jumbo Credit Access Increased in July

Home Purchase Sentiment Hits Record High

Posted To: MND NewsWire

There was an unusually large bump in Fannie Mae’s Home Purchase Sentiment Index (HPSI) in July. The company said strong positive responses to questions on the National Housing Survey (NHS) about job security and interest rate declines sent the index up 2.2 points compared to June. The HPSI, at a 93.7 reading, is up 7.2 points compared to the same time last year. Five of the six components of the NHS rose on a month over month basis and four were higher year-over-year. The increase in the Index was primarily driven by an 8-percentage point increase in net positive responses to the question regarding confidence in job security. Net positive responses were at 81 percent, 16 points higher than in July 2018. Net positive responses to whether it is a good time to buy a house increased by 3 points…(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.


Home Purchase Sentiment Hits Record High
Home Purchase Sentiment Hits Record High

Home Price Picture Grows More Complex

Posted To: MND NewsWire

Anyone trying to make sense out of current data on the direction of home prices needs more than a calculator. Every new report seems to dump more mud in the water, show price growth slowing, stabilized or driven higher by falling interest rates. This is understandable given the two-month lag-time of most price indices, but Wednesday’s slightly more timely report from the National Association of Realtors® (NAR) doesn’t add any clarity. The report on second quarter metropolitan home prices shows that most of those areas saw price gains during the reporting period with single-family median prices increasing in 91 percent or 162 of the 178 markets tracked. That is up from 86 percent that saw increases in the first quarter. The median price of a single-family home gained 4.13 percent on an annual…(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.


Home Price Picture Grows More Complex
Home Price Picture Grows More Complex