2021 Could See First Decline in Home Prices in 9 Years

Posted To: MND NewsWire

Did the housing happy talk just get a little less so? CoreLogic’s Housing Price Index Forecast (HPI) over the May 2020 to May 2021 window is seeing more rapid price deceleration in the face of the COVID-19 situation than did their previous 12-month forecast t hat ended in April of next year. In its report last month CoreLogic said it expected that “the housing market may be equipped to lead the broader economy through the recovery” but that home prices increases would slow and that the gain from April to May would be only 0.3 percent. They went on to predict that 2021 would bring the first decline in nine years, and by April 2021 the national price gain would turn negative, down 1.3 percent. Today the company says that pent-up demand and tightening supply continued to prop up home prices in…(read more)

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2021 Could See First Decline in Home Prices in 9 Years
2021 Could See First Decline in Home Prices in 9 Years

Construction Spending Showing Promise

Posted To: MND NewsWire

Despite any impact from the COVID-19 pandemic, construction spending is still largely managing to stay ahead of its 2019 levels . The U.S. Census Bureau said total spending in May was at a seasonally adjusted annual rate of $1.356 trillion, down 2.1 percent from April’s $1.386 trillion rate. The April rate was revised significantly higher from the $1.346 trillion originally reported. On an annual basis, spending was 0.3 percent above the level in May of 2019. On a non-adjusted basis, total spending was $116.215 billion compared to $112.912 billion in April. For the year-to-date (YTD) spending is up 5.7 percent over the same period last year at $543.181 billion compared to $513.705 billion. Unadjusted spending has increased each month this year after starting at $101.121 billion in January….(read more)

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Construction Spending Showing Promise
Construction Spending Showing Promise

More Covid Data Rolls in, Are Refis are Here to Stay?

Posted To: MND NewsWire

Black Knight has again taken a look at the number of Americans who could benefit significantly from refinancing their first mortgages, but the facts are shifting almost faster than they can report them. In its current Mortgage Monitor , the company reports that 90 percent of homeowners who have sufficient equity in their homes and the qualifying credit to refinance could improve their current interest rate. Sufficient, or what the company calls “tappable” equity is defined as allowing a refinance while keeping the loan-to-value (LTV) ratio at 80 percent or lower. That equity rose 8.0 percent from the first quarter of 2019 to the same quarter this year. The total is a record high of $6.5 trillion. Despite rising mortgage delinquencies, about 13.6 million homeowners still meet broad eligibility…(read more)

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More Covid Data Rolls in, Are Refis are Here to Stay?
More Covid Data Rolls in, Are Refis are Here to Stay?

Forbearance Plans Resume Downtrend After Last Week's Uptick

Posted To: MND NewsWire

The number of homeowners in COVID-19 forbearance dropped sharply this week, to the lowest level since the first week of May. The number of plans which hit a peak on May 22 then declined slowly over the next three weeks but shot up by nearly 80,000 loan plans during the week ended June 23. Black Knight’s survey of mortgage loan servicers found a resumption of the downward trend this week, with plans falling by 104,000, the largest decline so far. As of June 30, there were 4.58 million homeowners in forbearance due to pandemic related financial problems, down 183,000 from the peak. This is 8.6 of the nation’s active mortgages, compared to 8.8 last week and represents $995 billion in unpaid principal. The declines were across all portfolios. Forbearance plans among loans serviced for the GSEs…(read more)

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Forbearance Plans Resume Downtrend After Last Week's Uptick
Forbearance Plans Resume Downtrend After Last Week's Uptick

CFPB Proposes New Escrow Rule

Posted To: MND NewsWire

The Consumer Financial Protection Bureau (Bureau) today issued a notice of proposed rulemaking (NPRM) that would amend Regulation Z of the Truth-in-Lending (TIL) Act. The rule would provide a new exemption for some insured depository institutions and insured credit unions from the requirement to establish escrow accounts for certain higher-priced mortgage loans (HPMLs). Under Regulation Z, some insured depository institutions and credit unions are required to set up escrow accounts for specified higher-priced mortgage loans (HPMLs). These are closed-end residential loan transactions with an annual percentage rate that exceeds the current average prime offer rate for a comparable transaction by specific amounts. In setting up this escrow requirement, the 2008 Dodd-Frank Act generally adopted…(read more)

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CFPB Proposes New Escrow Rule
CFPB Proposes New Escrow Rule

Freddie Mac's Growth Slowed, Delinquencies Spiked in May

Posted To: MND NewsWire

Freddie Mac reported this week that its total mortgage portfolio increased at an annualized rate of 5.5 percent in May compared to a 14.3 percent gain in April. The portfolio balance at the end of the period was $2.407 trillion compared to $2.396 trillion at the end of April and $2.230 trillion a year earlier. The growth rate for the year to date is 7.8 percent. Purchases and Issuances totaled $78,329 billion and Sales were ($2.799) billion. The April numbers were $80,879 billion and ($0.770) billion, respectively. Single-family refinance loan purchase and guarantee volume was $54.500 billion in May compared to $52.100 billion in April and representing a 76 percent share of total single-family mortgage portfolio purchases and issuances compared to 69 percent the previous month. Purchases in…(read more)

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Freddie Mac's Growth Slowed, Delinquencies Spiked in May
Freddie Mac's Growth Slowed, Delinquencies Spiked in May

Purchase Apps Retreat Again as Inventory Dries Up

Posted To: MND NewsWire

Applications for both refinancing and purchase mortgages retreated last week , pulling the Mortgage Bankers Associations (MBA’s) Market Composite Index lower for the second time in as many weeks. MBA said the index, a measure of application volume, declined by 1.8 percent on a seasonally adjusted basis during the week ended June 26 and was down 2.0 percent on an unadjusted basis. While the Refinance Index ticked down 2 percent from the week ended June 19, low interest rates kept the refinancing volume 74 percent higher than the same week one year ago. The refinance share of mortgage activity decreased to 61.2 percent of total applications from 61.3 percent the previous week. The seasonally adjusted Purchase Index dipped 1 percent and the unadjusted version was down 2 percent compared with the…(read more)

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Purchase Apps Retreat Again as Inventory Dries Up
Purchase Apps Retreat Again as Inventory Dries Up

Home Prices "Remarkably Stable" in April

Posted To: MND NewsWire

Home prices continued to hold up on a national basis in April. The S&P CoreLogic Case-Shiller U.S. National Home Price Index, covering all nine U.S. census divisions, reported a 4.7 percent annual gain in April, up from 4.6 percent in March. The National Index posted a 1.1 percent month-over-month increase before seasonal adjustment and an 0.5 percent gain after it. The 10-City Composite appreciated at an annual rate of 3.4 percent, unchanged from the March rate while the 20-City Composite’s annual increase rose to 4.0 percent from 3.9 percent the previous month. The 10-City and 20-City measures had monthly increases of 0.7 percent and 0.9 percent respectively before seasonal adjustment and both posted 0.3 percent increases after adjustment. In April, all 19 cities (excluding Detroit for…(read more)

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Home Prices "Remarkably Stable" in April
Home Prices "Remarkably Stable" in April

Supreme Court Rules Single CFPB Director Unconstitutional

Posted To: MND NewsWire

The Supreme Court, in a 5-4 decision along partisan lines, took a chunk out of the intentions the Dodd-Frank Act had for the Consumer Financial Protection Bureau (CFPB) when it created it. The court ruled that the single-director structure of the agency is unconstitutional as is its limits on the President’s ability to replace its occupant. When Congress established CFPB it set up its funding mechanism independent of the House appropriations process, ruling its budget should come from the Federal Reserve. It also established a single director to head the agency and protected the occupant from being fired except for “inefficiency, neglect of duty or malfeasance in office” during a five-year term, Each stricture was a bid to insulate the agency from political interference. FHFA which regulates…(read more)

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Supreme Court Rules Single CFPB Director Unconstitutional
Supreme Court Rules Single CFPB Director Unconstitutional

Record Surge in Pending Home Sales

Posted To: MND NewsWire

Lawrence Yun, chief economist for the National Association of Realtors® (NAR), predicted last month that April’s home sales contract activity “will be the lowest point for pending sales.” That turns out to have been a huge understatement–at least for now. This morning’s release of NAR’s Pending Home Sales Index (PHSI) showed the number of those contracts for purchasing existing single-family houses, condos, townhomes, and cooperative apartments did indeed explode in May, soaring by 44.3 percent to 99.6. It was the greatest single month increase since NAR started tracking pending sales in 2001. Every major region recorded an increase in month-over-month activity, while the South also had a year-over-year increase in pending transactions. The PHSI had suffered two straight months of declines…(read more)

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Record Surge in Pending Home Sales
Record Surge in Pending Home Sales