SURGING SENTIMENT

The Home Purchase Sentiment Index (HPSI) reached its highest point since June 2018 last month. Fannie Mae’s March HPSI showed a 5.5 point increase over February; 56% of survey respondents said it’s a good time to buy a home and 66% said it’s a good time to sell.

ANOTHER ADJUSTMENT

Interest rates for a 30-year fixed rate mortgage trended upward for a second week according to the Freddie Mac Primary Mortgage Market Survey (PMMS) for the week ending April 11. Freddie analysts still expect a strong summer market, saying, “Despite the recent rise, we expect mortgage rates to remain low…boosting home buyer demand in the next few months.”

MARKET METRICS

February’s Realtors® Confidence Index Survey shows that first-time buyers accounted for 32% of sales – a 3% increase year-over-year. The survey also said that average time on market was 44 days, sellers received an average of 2.2 offers and 23% of home sellers offered incentives such as paying closing costs, warranties and repairs.

TRUE TV?

Three out of five home shoppers under age 55 are considering properties that need renovation. Commenting on Realtor.com’s Spring Home Buyer Survey, Chief Economist Danielle Hale said, “…various home renovation TV shows [make] some home shoppers comfortable tackling home renovation jobs to find a home that balances their needs with their budget.” DIY television appears to be a big influence: Nearly 60% of home shoppers considering fixer-uppers said home renovation television has made them more optimistic about tackling projects. However, major overhauls presented in 30-minute segments don’t necessarily portray the mess, cost and inconvenience accurately.

HOUSING HEALTH

Serious mortgage delinquency rates declined in every state but North Dakota last year according to CoreLogic’s Loan Performance Insights through December 2018. CoreLogic’s Chief Economist Frank Nothaft said, “Our latest home equity report found that the average homeowner saw a $9,700 increase in their equity during 2018. Rising equity reduces the chances of a foreclosure, helping to push the foreclosure rate down to its lowest level since at least 2000.”

TREND END

After weeks of trending downward, mortgage interest rates showed a slight uptick for the week ending March 7 according to Freddie Mac’s Primary Mortgage Market Survey (PMMS). The PMMS reported U.S. weekly averages for a 30-year fixed rate mortgage retreated to early February levels.

ABUSE ACCUSATIONS

A $52,000 steak and lobster dinner and $2,500 for a speech titled “Motivation by Chocolate” are just two disallowed expenses listed in a report released by federal Special Inspector General Christy Goldsmith Romero. Romero called out housing officials in several states for misusing taxpayer money, saying, “Flying around the country, staying at luxury hotels, attending conferences beachside and at other vacation destinations are not ‘must have’ costs for a local foreclosure prevention program.” President Obama established the $9.6-billion dollar Hardest Hit Fund® in 2010 to provide targeted aid to families in 17 states deeply impacted by the economic and housing market downturn.

DELAYED D-I-Y

More than half of U.S. homeowners describe their homes as “a work in progress” according to Porch.com’s “America’s To-Do List” poll. The survey of 2,000 Americans found the average homeowner has nine repairs to make, and only 10% felt they were current with necessary repairs and maintenance. Painting topped the project list for 55% of respondents, followed by bathroom remodels and flooring.

DOWN DECEMBER

Existing home sales fell 6.4% between November and December and 10.3% year-over-year according to the latest National Association of Realtors’ (NAR) Confidence Index. NAR Chief Economist Lawrence Yun cited interest rate activity as the cause. “The housing market is obviously very sensitive to mortgage rates,” he said. “Softer sales in December reflected consumer search processes and contract signing activity in previous months when mortgage rates were higher than today. Now, with mortgage rates lower, some revival in home sales is expected going into spring.”

STAYING STABLE

Though mortgage interest rates are nearly 1/2% higher than a year ago, Freddie Mac is reporting that they were unchanged for the week ending January 17. The Primary Mortgage Market Survey credits a manufacturing slowdown and signals that the Federal Reserve may back off the pace of its own rate increases.

FORECLOSURES FLAT

The national delinquency rate dipped to its lowest rate since 2000 last month, according to Black Knight Financial Services (BKFS). December’s 3.9% U.S. mortgage delinquency rate was the lowest year-end number since the turn of the century, and 17.55% below 2017’s closing total.

PRE-APPROVED PEOPLE?

The answer to a whimsical question posed by creative market research agency Atomik Research in the December 2018 Homebuyer Sentiments Survey provides interesting insight into modern dating. Nearly half – 48% – of survey respondents answered “Yes” to this question: “Just like with getting a loan for buying a home, do you wish finding a dating partner also required a pre-approval letter?”

SELLING SEASON

The December 2018 Fannie Mae Home Purchase Sentiment Index® (HPSI) shows an array of opinions. Fannie Mae Senior Vice President and Chief Economist Doug Duncan said, “Consumer attitudes regarding whether it’s a good time to buy a home worsened significantly in the last month, as well as from a year ago, to a survey low.” The December survey also revealed that the net share of Americans who said it is a good time to sell a home increased, along with those who say they are not concerned about losing their jobs.

RECESSIVE RATES

Rates for a 30-year fixed rate mortgage dropped back again for the week ending January 3, according to Freddie Mac’s Primary Mortgage Market Survey. Rates have trended mostly downward since the middle of November, but they’re still over a half a percent higher year-over-year.

RISKY RELEASE?

A concept called “equity release” is gaining momentum in the financial world, promising homeowners the ability to tap equity without incurring debt. There’s a growing number of companies offering cash in exchange for the ability to share in a home’s appreciation over time, as well as some who offer sale and leaseback options. Dubbed “innovative” by market watchers, these new finance vehicles seek to capitalize on future property value increases by providing homeowners with cash in hand today.

WILD WEALTH

In 2017, the wealthiest 1% of the global population (77 million people) was estimated to hold 50% of world wealth. Due to better data and estimates, it’s now estimated that they only hold 47% of global wealth. To be in this group, your net worth must exceed $870,000. Thirty-one million of these lucky folks live in the US, followed by 7 million in China.