Ellie Mae Chief Sees "Very Robust" Summer Sales

Posted To: MND NewsWire

Loans originated in May carried lower mortgage rates t han the previous month for the 5 th consecutive time according to Ellie Mae’s Origination Insight Report . The average rate for the 30-year fixed-rate mortgage was 4.52 percent, down from 4.61 percent in April, and 5.01 percent at the first of the year. The share of originations intended for home purchase reached the highest level of the year, 68 percent, up 3 points from the previous month. Nineteen percent of all originations were FHA loans, down 1 point from April. Other shares were unchanged; conventional loans at 66 percent and VA loans at 10 percent. “As the 30-year note rate declines for yet another month, we are seeing purchase and refinance activity on the rise,” said Jonathan Corr, President and CEO of Ellie Mae. “Closing rates…(read more)

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Ellie Mae Chief Sees "Very Robust" Summer Sales
Ellie Mae Chief Sees "Very Robust" Summer Sales

Moderating Home Prices Stoke 'Time to Sell' Sentiment

Posted To: MND NewsWire

The second quarter HOME (Housing Opportunities and Market Experience) survey from the National Association of Realtors® (NAR) appears to indicate that a period of softening price increases and lower interest rates have only slightly improved the sentiment of potential homebuyers. Survey respondents who say it is a good time to buy a home remained at 65 percent although those who strongly felt so dipped by one point to 27 percent and those with a moderate opinion rose 1 point to 38 percent. Opinions about selling were more fluid. Seventy-three percent of respondents said it was a good time to sell, up from 65 percent in the Q1 survey and those with a strong opinion increased from 37 to 46 percent. The good time to buy sentiment was shared by two-thirds of respondents in three of the country…(read more)

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Moderating Home Prices Stoke 'Time to Sell' Sentiment
Moderating Home Prices Stoke 'Time to Sell' Sentiment

Mortgage Apps Give a Little Back From Last Week's Rally

Posted To: MND NewsWire

Despite appearances, the low-rate spurred rally in mortgage applications reported last week didn’t really go “poof” this week. Activity was still strong even as the Mortgage Bankers Association’s (MBA’s) Market Composite Index gave back some of its previous outsized gains. The Index, a measure of mortgage loan application volume, decreased 3.4 percent on a seasonally adjusted basis during the week ended June 14 after gaining nearly 27 percent the prior week. On an unadjusted basis, the Index lost 4 percent. The Refinance Index decreased 3.5 percent, only a fraction of its previous 47 percent surge . The share of applications that were for refinancing continued to gain ground, rising from 49.8 percent to 50.2 percent. While it didn’t match the refi enthusiasm last week the seasonally adjusted…(read more)

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Mortgage Apps Give a Little Back From Last Week's Rally
Mortgage Apps Give a Little Back From Last Week's Rally

Construction Numbers Better Than Percentages Indicate

Posted To: MND NewsWire

Residential construction figures had been expected to, at a minimum, hold the fort in May after a mixed report in April. While revisions to the April report somewhat skewed the numbers changes to both permits and starts were only fractional. The Census Bureau and the Department of Housing and Urban Development said permits for privately owned housing units were issued at a seasonally adjusted annual rate of 1,294,000 units, an increase of 0.3 percent from April’s revised (from 1,296,000) rate of 1,290,000. The May estimate is 0.5 percent below the permitting rate in May of last year, estimated at a rate of 1,301,000 units. Analysts were about on target with their projections. Those polled by Econoday had forecast permits at a rate of 1,290,000 units within a range of 1,270,000 to 1,309,000…(read more)

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Construction Numbers Better Than Percentages Indicate
Construction Numbers Better Than Percentages Indicate

Gloomier Economic Outlook Brightens Housing Outlook

Posted To: MND NewsWire

Freddie Mac’s forecast for June sees more dark clouds than usual , but few of those are on the housing front. The company’s Economic and Housing Research Group notes that some of those gathering clouds, concerns about global growth and the lingering trade problems, have pushed long-term interest rates to their lowest level since the fall of 2017, 3.82 percent as of the first week of June. That is good news for the industry and consumers. The downturn is not viewed as a flash-in-the-pan and Freddie’s economists have revised downward some of their earlier Treasury rate forecasts. The 10-year note yield is expected to decline to 2.4 percent and 2.5 percent in 2019 and 2020, respectively. They also lowered the 1-year Treasury rate forecast to 2.2 percent this year before increasing to 2.3 percent…(read more)

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Gloomier Economic Outlook Brightens Housing Outlook
Gloomier Economic Outlook Brightens Housing Outlook

May Uptick in Builder Confidence Proves Fleeting

Posted To: MND NewsWire

The National Association of Home Builders’ (NAHB’s) measure of builder confidence broke out of its multi-month slump in May, rising 3 points. Much of that gain was reversed this month as the NAHB/Wells Fargo Housing Market Index (HMI) dropped by 2 points to 64, returning to the low- to-mid-60s range it has occupied since the first of the year. “While demand for single-family homes remains sound, builders continue to report rising development and construction costs , with some additional concerns over trade issues,” said NAHB Chairman Greg Ugalde. “Despite lower mortgage rates, home prices remain somewhat high relative to incomes, which is particularly challenging for entry-level buyers ,” said NAHB Chief Economist Robert Dietz. “And while new home sales picked up in March and April, builders…(read more)

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May Uptick in Builder Confidence Proves Fleeting
May Uptick in Builder Confidence Proves Fleeting

Calabria and Carson: Housing Leaders Talk Reform, Accomplishments

Posted To: MND NewsWire

Attendees at the Ginnie Mae Summit commemorating the agencies 50 th anniversary on Thursday heard from both Dr. Ben Carson, Secretary of the Department of Housing and Urban Development (HUD) and Dr. Mark A. Calabria, newly confirmed director of the Federal Housing Finance Agency (FHFA). Each addressed their plans for updating their respective housing finance components. Calabria spoke first to the increasing role of non-bank mortgage originators. In 2013, he said, non-banks originated 30 percent of the mortgages sold to one of the government guarantee programs. By February of this year, that footprint had doubled to 60 percent. In 2018 those companies originated roughly 50 percent of all mortgages sold to Fannie Mae and Freddie Mac (the GSEs) and they are now Ginnie Mae’s main counterparties…(read more)

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Calabria and Carson: Housing Leaders Talk Reform, Accomplishments
Calabria and Carson: Housing Leaders Talk Reform, Accomplishments

Two FHA Premium Changes, An End to MI Requirement?

Posted To: MND NewsWire

The House Financial Services Committee (FSC) passed a clutch of bills this week, several of which will assist homebuyers and homeowners. Two directly affect the cost of an FHA loan. The FHA Loan Affordability Act (H.R. 3141), introduced by Dean Phillips (D-MN) would repeal the requirement that borrowers with FHA loans pay premiums on FHA mortgage insurance for the life of their loan. The bill would reinstate the previous policy which allowed borrowers to drop the insurance when the outstanding balance of their loan is reduced to 78 percent of the original value of the home. The wording of the bill appears to specifically disallow consideration of equity accrued through home price appreciation. The bill passed the committee 34 to 25. Another FHA related bill, The Housing Financial Literacy Act…(read more)

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Two FHA Premium Changes, An End to MI Requirement?
Two FHA Premium Changes, An End to MI Requirement?

MBA Announces Affordable Housing Initiative, Sees New Home Sales Rising

Posted To: MND NewsWire

The Mortgage Bankers Association (MBA) released its regular monthly estimates for new home sales on Thursday and also announced a new initiative to promote affordable housing. The initiative, to be headed by Steven O’Connor, MBA’s Senior Vice President for Public Policy and Industry Relations, is intended “to help develop stronger and more effective affordable housing partnerships in both the policy and business arenas.” The partnership in turn will hopefully “promote more sustainable, affordable homes for purchase and rental for underserved people and communities, especially minorities and low-to-moderate-income Americans.” “Housing affordability is an issue facing millions of Americans, both those who rent and those who want to buy a home,” said O’Connor. “There is no easy solution. The only…(read more)

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MBA Announces Affordable Housing Initiative, Sees New Home Sales Rising
MBA Announces Affordable Housing Initiative, Sees New Home Sales Rising

Lenders Sentiment Shines, Rising Profits and a Positive Outlook

Posted To: MND NewsWire

Lenders are singing a happier tune when it comes to their profit margin outlook with those hopes driven by rising confidence in mortgage demand. The net share of lenders’ perceptions about both recent and upcoming demand has turned positive for the first time in nearly three years. Fannie Mae’s Q2 Mortgage Lender Sentiment Survey saw net positive responses rise across all three loan types (government, GSE-eligible, and non-GSE-eligible loans) when lenders reported on increases in demand for both purchase and refinance mortgages over the previous three months. In all three cases, these measures had reached survey lows in the first quarter of the year. Net positive responses in the second quarter rebounded to reach the highest readings for any second quarter since 2016 for GSE-eligible and government…(read more)

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Lenders Sentiment Shines, Rising Profits and a Positive Outlook
Lenders Sentiment Shines, Rising Profits and a Positive Outlook