Archive for April 2014

Home Loan Application Demand Rises Again

April 10, 2014 Housing Market Comments Off on Home Loan Application Demand Rises Again

As the spring home buying season gets under way, demand for loans to purchase homes has been increasing. In fact, according to the Mortgage Bankers Association’s Weekly Applications Survey, purchase application volume was up 3 percent last week from the week before. It was the third consecutive week the Purchase Index – which is an indicator of future home sales – has increased. Despite the rising demand for loans to buy homes, total mortgage loan application volume was down 1.6 percent, due to a 5 percent drop in refinance demand. The refinance share of total mortgage activity is now at 51 percent, down from 53 percent one week earlier. Industry forecasts have predicted a slowing of refinance demand this year, as the market shifts to one dominated by increased sales activity. Also in the report, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances was unchanged from the previous week. Interest rates for jumbo loans rose slightly and the average rate for loans backed by the FHA fell from the week before. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

Local Markets Return To Normal Nationwide

April 9, 2014 Housing Market Comments Off on Local Markets Return To Normal Nationwide

The National Association of Home Builders Leading Markets Index measures the number of metropolitan housing markets nationwide that have returned to or exceeded their last normal levels of economic and housing activity based on current permit, price, and employment data. According to the most recent release, the overall housing market is now running at 88 percent of normal activity, with 83 percent of local markets having improved over the past year. In fact, just since last month’s report, nearly 28 percent of metro areas saw their score rise. Kevin Kelly, NAHB’s chairman, said things are getting better overall and, with the housing market now entering the spring buying season, the fact that the nation’s economy is headed in the right direction is a very promising sign. Though the improved markets are dominated by smaller metros in the middle of the country experiencing growth due to an energy boom, regions outside of the energy states are starting to post gains as well, with areas like Los Angeles and San Jose joining the list of major metros showing a recovery. David Crowe, NAHB’s chief economist, said 2014 should be a strong year for housing and the overall economic rebound. More here.

69% Of Americans Say Now Is The Time To Buy

April 8, 2014 Housing Market Comments Off on 69% Of Americans Say Now Is The Time To Buy

Though the housing market’s momentum slowed over the winter, Americans’ attitudes about buying and selling homes continues to move in a positive direction. In fact, according to Fannie Mae’s March 2014 National Housing Survey, 69 percent of Americans say now is a good time to buy a house and the number who say it’s a good time to sell increased 4 percent from the month before. Doug Duncan, senior vice president and chief economist at Fannie Mae, said there are several positive signs going into this year’s spring home buying season. Compared to last year, consumers are less pessimistic about their personal finances and more optimistic about the current selling environment and their ability to get a mortgage, Duncan said. For example, in the most recent survey, 52 percent of respondents said they thought it would be easy for them to get a home mortgage, which is an all-time survey high. The share of participants who said they’d prefer to buy rather than rent was also up, reaching 68 percent. Still, there is lingering uncertainty about economic conditions and many Americans continue to believe the economy is on the wrong track. Fannie Mae, however, expects a pickup in economic growth this year, which may boost the confidence of those still pessimistic about economic conditions and the housing market. More here.

Spring Selling Season Off To Promising Start

April 7, 2014 Housing Market Comments Off on Spring Selling Season Off To Promising Start

In 2013, home prices rose significantly but the number of homes on the market did not. This year, most industry analysts believe that home prices will continue to rise, but at a slower pace. The expected slowdown is due to the fact that as home prices increase, homeowners who have been reluctant to sell, will gain confidence in the housing market and begin putting their homes up for sale, boosting inventory and moderating the sharp price gains seen last year. This moderation will have a stabilizing effect on housing and will make for a much less volatile market this year. Until now, there hasn’t been data to support the predicted boost in for-sale inventory but new numbers from Realtor.com’s National Housing Trend Report show that the spring selling season is off to a promising start, with inventory up 10 percent over last year. This indicates that more homeowners have decided that now is the time to sell. Steve Berkowitz, CEO of Move Inc., said seller confidence is the factor to watch and that these are very encouraging indicators. According to Berkowitz, these figures indicate a continued reinforcement of the gains and market stabilization that began late last summer. More here and here.

Housing Market Continues To Gain Strength

April 4, 2014 Housing Market Comments Off on Housing Market Continues To Gain Strength

Freddie Mac’s new Multi-Indicator Market Index measures the stability of the nation’s housing market based on home purchase applications, payment-to-income ratios, proportion of on-time mortgage payments, and the local employment picture. Based on these components, the Index determines how each market is trending and whether it’s becoming more or less stable. Overall, the housing market is in better shape than it has been at any point since the beginning of the Great Recession. Since June 2009, for example, home sales are up 13 percent, housing starts are up 55 percent, serious delinquencies are down 32 percent, and the unemployment rate has fallen from 9.5 percent to 6.7 percent. Still, there is room for improvement. Len Kiefer, Freddie Mac’s deputy chief economist, said – in many markets – a better employment picture, along with some income growth, makes it possible for people considering buying a home to stay within reasonable payment-to-income ratios. But, according to Kiefer, some high-cost markets are starting to feel an affordability pinch. Of the 50 states included in the Index, 25 plus the District of Columbia are improving based on three-month trends. Among the 50 metropolitan areas included, 35 are improving. Freddie Mac expects more markets to move closer to their long-term stable range as we enter the spring home buying season. More here.

Home Loan Demand Rises For 2nd Straight Week

April 3, 2014 Housing Market Comments Off on Home Loan Demand Rises For 2nd Straight Week

According to the Mortgage Bankers Association’s Weekly Applications Survey, demand for loans to buy homes rose for the second consecutive week. The seasonally adjusted Purchase Index – which is an indicator of future home sales – was up 1 percent from the week before, providing further evidence of a shift from a refinance dominated market to one with increasing purchase activity. The Market Composite Index, which measures total mortgage application volume, fell 1.2 percent, however, due to a 3 percent drop in the Refinance Index. The refinance share of total mortgage activity was down for the eighth straight week, slipping to 53 percent of all applications. Mortgage rates, on the other hand, were largely unchanged. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances held steady, while jumbo loans and loans backed by the FHA saw a slight increase from the week before. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

Confidence In Economy Holds Steady In March

April 2, 2014 Housing Market Comments Off on Confidence In Economy Holds Steady In March

Americans’ confidence in the economy showed little change in March from the month before, according to Gallup’s Economic Confidence Index. The index – which is based on the results of interviews conducted with more than 15,000 U.S. adults – hasn’t moved much since rebounding following last October’s government shutdown, which sent confidence plummeting. In March, 19 percent of Americans rated the economy as excellent or good, while 36 percent felt current conditions were poor. Participants who make more than $90,000 in annual household income and those between the ages of 18 and 29 were the most confident in economic conditions. Older Americans and middle to lower income respondents were less confident. According to Gallup, Americans’ level of confidence in the economy reflects a number of mixed economic signals. Positive developments, such as declining unemployment and the recovering housing market, are balanced by limited economic growth and a job market that still finds more Americans out of work than before the recession. More here.

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