06-21-2019

HELPFUL HOUSING

Fannie Mae’s (FNMA) Economic and Strategic Research (ESR) Group downgraded its projections for full-year 2019 and 2020 U.S. economic growth to 2.1 percent and 1.5 percent respectively, due to expected weakness in business investment and global economic conditions. The previous forecast was 2.3% growth for 2019 and 1.8% for 2020. Housing remains healthy according to FNMA Chief Economist Doug Duncan who said, “We expect housing to add to growth for the foreseeable future.”

INTEREST UNCHANGED

Rates for a 30-year fixed rate mortgage held steady last week on news of a deal that would suspend imposition of tariffs on Mexico was being negotiated. In the Primary Mortgage Market Survey for the week ending June 13, analysts at Freddie Mac said, “These historically low rates should provide continued opportunities for current homeowners to refinance their mortgages – which combined with new homebuyer activity – will help sustain the momentum in the housing market in 2019.”

FEWER FORECLOSURES

May marked the 11th consecutive month of declines in foreclosure filings according to ATTOM Data Solutions. ATTOM’s May U.S. Foreclosure Market Report also said that completed foreclosures were down 50% year-over-year. The top three states with the highest foreclosure rates were New Jersey, Maryland and Florida.

HOLD OR FOLD?

Las Vegas is the most over-valued real estate market in the U.S. according to the latest quarterly sustainable home price report from Fitch Ratings. The report estimates that real estate values in Vegas are overvalued by 20-25%. Fitch Managing Director Grant Bailey says prices are still growing, just at a slower rate. “Annual home price growth is now at the slowest rate in seven years,” Bailey said. “But the slowdown should plateau due to the recent drop in interest rates and the limited supply of new homes.”

*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.

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