Underwater Homeowners Effectively Bailed-Out By Equity Surge

Posted To: MND NewsWire

Homeowner equity grew $2.9 trillion nationwide from the second quarter of 2020 to the same quarter this year. CoreLogic’s Homeowner Equity Report shows U.S. homeowners who have mortgages (which account for roughly 63 percent of all residential properties) saw their equity increase by 29.3 percent over that period, an average borrower gain of $51,500. With over 1.5 million homeowners in forbearance and 5 million consumers unemployed, current equity figures have added import. A recent CoreLogic survey found 59 percent of respondents feel extremely confident in their ability to keep current on their mortgage payments in the coming year. CoreLogic says, “Thanks to ongoing government provisions, increased vaccine availability – enabling many to return to work and a steady income – and record homeowner…(read more)

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Underwater Homeowners Effectively Bailed-Out By Equity Surge
Underwater Homeowners Effectively Bailed-Out By Equity Surge

Foreclosure Starts Rise Following Moratorium Expiration

Posted To: MND NewsWire

Delinquencies hit a new post-pandemic low in August as the national delinquency rate fell by 84,000 loans or 3.48 percent compared to July. It was 41.84 percent below the level in August of 2020. Black Knight, in its “first look” at the months loan performance data, said the 1.122 million loans that were 30 or more days past due but not in foreclosure, were down by 1.557 million on an annual basis. In January of 2020, one month before the first cases of COVID-19 were reported, the national delinquency rate was 3.3 percent. Serious delinquencies , those loans 90 or more days past due but not in foreclosure, remain elevated, but even they have been improving steadily. Serious delinquencies fell 108,000 from July and are down more than 1 million from the level in August 2020. Still, 1.339 million…(read more)

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Foreclosure Starts Rise Following Moratorium Expiration
Foreclosure Starts Rise Following Moratorium Expiration

First-Time Buyer Share Slips as Prices Rise for 114th Month

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Existing home sales ended two months of gains in August, falling 2.0 percent on a seasonally adjusted basis from the previous month. The National Association of Realtors® (NAR) said preowned single-family homes, townhomes, condominiums, and cooperative apartments sold at an annual rate of 5.88 million units during the month compared to 6.00 million in July. Sales were 1.5 percent lower on an annual basis. The dip was expected, and sales came in only slightly under the levels predicted by Econoday and Trading Economics. Their respective consensus estimates were 5.90 and 5.89 million. Single-family home sales decreased to a seasonally adjusted annual rate of 5.19 million in August, down 1.9 percent from 5.29 million in July and 2.8 percent fewer than the rate in August 2020. Condominiums…(read more)

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First-Time Buyer Share Slips as Prices Rise for 114th Month
First-Time Buyer Share Slips as Prices Rise for 114th Month

Inventories Pushing Buyers Toward New Homes

Posted To: MND NewsWire

The Mortgage Bankers Association (MBA) estimates that there were 17 percent fewer applications for new home purchases in August than in July, but those applications were 9 percent greater year-over-year. The figures, gathered from MBA’s monthly Builder Application Survey (BAS) are not adjusted to reflect seasonal patterns. “Mortgage applications to purchase new homes were down in August compared to 2020’s late summer surge, but both mortgage applications and MBA’s estimate of new home sales jumped last month compared to July,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “While the new home construction market is a much smaller segment of the overall housing market, prospective buyers are increasingly turning to new homes because of the very low levels…(read more)

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Inventories Pushing Buyers Toward New Homes
Inventories Pushing Buyers Toward New Homes

Mortgage Applications Rise, Reflecting Improved Inventories

Posted To: MND NewsWire

The volume of applications for first mortgages grew by 4.9 percent on a seasonally adjusted basis during the first full week after Labor Day. The Mortgage Bankers Association (MBA) says its Market Composite Index, a measure of mortgage loan application volume increased 16 percent during the week ended September 17. The prior week’s numbers had been adjusted to account for the holiday. The Refinance Index increased 7 percent from the previous week but was 5 percent lower than the same week one year ago. The refinance share of mortgage activity increased to 66.2 percent of total applications from 64.9 percent the previous week. The seasonally adjusted Purchase Index was 2 percent higher week-over-week and up 12 percent unadjusted. Volume was 13 percent lower than the same week one year ago. Refi…(read more)

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Mortgage Applications Rise, Reflecting Improved Inventories
Mortgage Applications Rise, Reflecting Improved Inventories

Construction Numbers Pushed Higher by Multifamily Surge

Posted To: MND NewsWire

Residential construction numbers were a surprise again in August. Permits for construction and housing starts were both higher than expected, however, multifamily numbers were driving the results. Housing permits were issued at a seasonally adjusted annual rate of 1.728 million units, a 6.0 percent increase from the 1.630 million permit rate (revised down from 1.635 million) in July and 13.5 percent higher than the 1.522 million number in August 2020. Analysts had expected permits to pull back from the July pace. Those polled by both Econoday and Trading Economics had projected permits at 1.6 million units. Single family permits were only fractionally higher than the prior month, a 0.6 percent gain from 1.048 million to 1.054 million units. Permits for construction in buildings containing five…(read more)

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Construction Numbers Pushed Higher by Multifamily Surge
Construction Numbers Pushed Higher by Multifamily Surge

Freddie Mac Confirms Heightened Appraisal Gaps in Minority Areas

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A cluster of stories about appraised values of homes in minority areas hit the national news earlier this summer and now Freddie Mac has released an analysis of the smoke/fire variety. The company says it found appraised values are more likely to fall below the contracted sale price of a home in census tracts with a higher share of Black and Latino households, resulting in what is known as an appraisal gap. This is precisely what was alleged in news reports. Further, the extent of that gap increases as the percentage of persons of color living in the census tract grows. Freddie Mac based its analysis on 12 million appraisals it received as part of the home purchase process between 2015 and 2020. “An appraisal falling below the contracted sale price may allow a buyer to renegotiate with a seller…(read more)

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Freddie Mac Confirms Heightened Appraisal Gaps in Minority Areas
Freddie Mac Confirms Heightened Appraisal Gaps in Minority Areas

Builder Sentiment Moves Slightly Higher, but Many Still See Hurdles Ahead

Posted To: MND NewsWire

Builder confidence edged its way higher in September, ending a three-month slump. The National Association of Home Builders (NAHB) reports that the NAHB/Wells Fargo Housing Market Index (HMI) rose a single point to 76 in September. The HMI is a measure of home builder attitudes toward the new home sales market. NAHB chief economist Robert Dietz says, “Builder sentiment has been gradually cooling since the HMI hit an all-time high reading of 90 last November. The September data show stability as some building material cost challenges ease, particularly for softwood lumber. However, delivery times remain extended and the chronic construction labor shortage is expected to persist as the overall labor market recovers.” The HMI is constructed from results of a survey NAHB has conducted among its…(read more)

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Builder Sentiment Moves Slightly Higher, but Many Still See Hurdles Ahead
Builder Sentiment Moves Slightly Higher, but Many Still See Hurdles Ahead

New Forbearance Plans and Reentries Rise

Posted To: MND NewsWire

Black Knight says that the number of active forbearance plans continued to fall over the last week, but also noted an uptick in both new plans and reentries to the program , primarily among VA and FHA loans. The number of active forbearances dropped by 22,000 or 1.4 percent during the week ended September 14, leasing 1.596 million borrowers in active plans. This is 3.0 percent of all mortgaged homeowners. It marks the first time the total number has dipped below 1.6 million. The number of forborne loan in Fannie Mae and Freddie Mac (the GSEs) portfolios and those serviced for FHA and the VA each declined by 15,000, but that was partially offset by an increase of 8,000 in the numbers serviced for bank portfolios and private label securities (PLS). Black Knight said new plans starts have been…(read more)

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New Forbearance Plans and Reentries Rise
New Forbearance Plans and Reentries Rise

Flipping Transactions Increase, Profits Do Not

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The number of homes flipped by investors grew by 3.5 percent in the second quarter of the year. It was the first increase in more than a year. ATTOM says its second quarter U.S. Home Flipping Report shows that 79,733 single-family homes and condominiums in the United States were flipped during that period. Those transactions represented 4.9 percent of all home sales, or one in 20 transactions compared to one in every 29 sales in the first quarter. Flips were down 6.8 percent from one in 15 transactions in the second quarter of 2020. The recent number was lower than the flipping rate through most of the last decade. ATTOM defines a flip as an arms-length transaction involving a single-family home or condo that occurred within 12 months of a previous arms-length transaction on the same property…(read more)

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Flipping Transactions Increase, Profits Do Not
Flipping Transactions Increase, Profits Do Not