HEALTHY HOUSING The National Association of Realtors (NAR) predicts that the number of home sales will increase next year, but the rate of price appreciation will slow. Speaking at the 2018 Realtors® Conference & Expo, NAR Chief Economist Lawrence Yun rejected speculation about another housing bubble, saying “…people are living within their means and not purchasing homes they cannot afford. This is a stronger, more stable market compared to the loosely regulated market leading up to the bust.”

INTERPRETING INTEREST Mortgage interest rates receded slightly in the week ending November 1 according to Freddie Mac’s Primary Mortgage Market Survey. Even though the 30-year fixed rate mortgage has been rising all year, the government-sponsored entity says, “…the chronic lack of entry-level supply is a larger hurdle than higher mortgage rates because choices are limited and the inventory shortage has caused home prices to rise well above fundamentals.”

SEPTEMBER SLUMP September new home sales were down 13.2% year-over-year, following downward revisions for sales in June, July and August. Economist Elliot Eisenberg, PhD says it’s not necessarily a sinister stat, noting that “…housing sales need to consistently fall about 20% Y-o-Y before a recession follows.”

OWNER UPTICK Homeownership is up according to the Census Bureau. The U.S. homeownership rate reached 64.4% in the third quarter, up from 64.3% in Q2 and 63.9% year-over-year.

Consumer confidence in the housing market slipped slightly according to the latest Fannie Mae Home Purchase Sentiment Index (HPSI). Fannie Mae’s Chief Economist Doug Duncan says, “HPSI remains flat this month as perceptions of high home prices and expectations for rising mortgage rates continue to weigh on potential homebuyers. In September, the average 30-year fixed mortgage rate increased for the second consecutive month to its highest level since May 2011.” Even though the net share of Americans who said it’s a good time to sell remained the same, the number who said it’s a good time to buy rose by 5%.

SMALL STALL

Mortgage interest rates mellowed out after several weeks of rapid increases. The U.S. weekly average for the 30-year fixed rate mortgage dropped .05 for the week ending October 18 according to Freddie Mac’s Primary Mortgage Market Survey.

SOUPED-UP SCORES

A new scoring method could help consumers who are trying to establish their credit for the first time or repair damage from financial distress. Fair Isaac Corporation (FICO), Experian and API provider Finicity will debut the UltraFICO™ Score pilot program early next year and widespread availability is expected by mid-2019. The new credit scoring method requires consumers to grant permission to gather information from banking statements, including the length of time accounts have been open, frequency of activity, and evidence of saving.

FLOURISHING FAKES?

For the second time this year, Fannie Mae has issued a warning to lenders to help them identify an increasing number of companies that appear to be fake being used on mortgage applications. So far this year, Fannie Mae has identified 40 companies alleged to be spread throughout California, including the Los Angeles and Silicon Valley areas.

Sources: Fannie Mae, Freddie Mac, Fair Isaac Corporation, Experian, Finicity

*The views, articles, postings and other information listed on this website are personal and do not necessarily represent the opinion or the position of American Pacific Mortgage Corporation.

 

Mortgage Rates continue in a sideways pattern, just above key technical levels while Stocks retreat after yesterday’s huge rally.

In housing news, both September Housing Starts and Building Permits declined from August while single-family starts also decreased.

The Mortgage Bankers Association reports that the 30-year fixed-rate mortgage rose to the highest level since February 2011. From a historical standpoint, rates are near the lower end of the spectrum.

I am recommending floating but be aware that the Fed minutes will be released this afternoon and could have an impact on the markets.

No matter how many mistakes you make or how slow you progress, you are still way ahead of everyone is isn’t trying. 

-Tony Robbins

*The views, articles, postings and other information listed on this website are personal and do not necessarily represent the opinion or the position of American Pacific Mortgage Corporation.

 

 

 

Mortgage Rates begin the week modestly higher being supported by a weak Retail Sales report along with lower Stock prices.

In housing news, Trulia reports that price cuts for homes on the market in August hit their highest level since 2014.

With the Stock markets lower today, I am recommending floating.

If opportunity doesn’t knock, build a door.

-Milton Berle

*The views, articles, postings and other information listed on this website are personal and do not necessarily represent the opinion or the position of American Pacific Mortgage Corporation.

 

 

Tame consumer prices in September are lifting rates while lowering yields this morning. Stocks have trimmed early morning losses on the lower inflation data.

Freddie Mac reports that mortgage rates rose this week and are now at seven-year highs, similar to what the Mortgage Bankers Association reported on Wednesday.

However, when looking at mortgage rates since 1971, they are on the low end of the spectrum.

I am recommending floating if rates can remain positive.

 

Start by doing what’s necessary; then do what’s possible; and suddenly you are doing the impossible.

-Francis of Assisi

*The views, articles, postings and other information listed on this website are personal and do not necessarily represent the opinion or the position of American Pacific Mortgage Corporation.