Category: Industry News

Demand for houses still grows despite interest rates increasing

curata__LOUedBcG4n60cIs.jpeg

Potential existing-home sales decreased in February as interest rates continue to rise, according to the Potential Home Sales model from First American Financial Corp., a provider of title insurance, settlement services and risk solutions for real estate transactions.

Potential home sales increased to a 5.7 million seasonally-adjusted, annualized rate. While this is down 0.5% from January, or 28,000 sales, it is up 2.4% over the past 12 months.

Potential home sales measures existing-homes sales, which include single-family homes, townhomes, condominiums and co-ops on a seasonally adjusted annualized rate based on the historical relationship between existing-home sales and U.S. population demographic data, income and labor market conditions in the U.S. economy, price trends in the U.S. housing market, and conditions in the financial market.

Read the source article at U.S. Housing Finance News

Fed Announces Rate Hike

curata__oMGhzt6lSbgGSMZ.jpeg

In a statement, the Fed explained its actions: “In view of realized and expected labor market conditions and inflation, the Committee decided to raise the target range for the federal funds rate to 3/4 to one percent. The stance of monetary policy remains accommodative, thereby supporting some further strengthening in labor market conditions and a sustained return to two percent inflation.”

Read the source article at National Mortgage Professional Magazine

New bill threatens CFPB’s freedom as independent agency

curata__DdXCGMBq7mZX5FH.jpeg

The Consumer Financial Protection Bureau’s freedom as an independent agency to enact regulation could soon change due to a new bill working its way through Congress. This bill, “OIRA Insight, Reform, and Accountability Act,” has already made its way through the House and has moved onto the Senate Committee on Homeland Security and Governmental Affairs. Will the industry finally get the regulatory relief it’s been asking for if the bill passes?

Read the source article at U.S. Housing Finance News

Timing is Key for Economic Growth

curata__nlxDEQDQg9taEWI.jpeg

In the February 2017 Economic and Housing Outlook from Fannie Mae released on Thursday, there are moderate growth expectations for the market in 2017, as experts continue to debate on developing policies and regulations from the Trump administration.

According to the report, the full-year economic growth forecast remains unchanged from last month’s projection of 2.0 percent, which is slightly above the 1.9 percent growth registered for all of 2016,”

Doug Duncan, Chief Economist at Fannie Mae, noted that timing will play an integral role in the positioning of policies and regulations from the Trump administration.

“Last month we revealed our theme for the year, ‘Will Policy Changes Extend the Expansion?‘ That question still hovers as the month-old Administration begins enacting its agenda,” he said. “Timing effects make it unlikely that we’ll see materially positive impacts stemming from any fiscal stimulus or deregulation this year, while immigration and trade policy pose downside risk.”

Although job growth was one of the highlights last month, wage growth hindered people from re-entering the workforce. The unemployment percentage rate decreased to 4.7 last month from 5.0 in 2016.

There was also an uptick in home sales, with new single-family home sales saw an increase of 552 from last year and total existing home sales increasing from 5,300 to 5,437.

“Mortgage rates have moderated slightly but remain 60 basis points higher than before the election. Still, leading indicators of home sales are encouraging with pending home sales rebounding and purchase mortgage applications holding up,” the report stated.

Duncan remarked that although a multitude of factors are preventing the economy from moving forward, expansion is on the horizon, and it is coming at a faster rate.

“We expect the housing expansion to continue, albeit at a more moderate pace than last year given continued pressure on affordability. Depressed inventory, particularly in the more affordable segments, will likely constrain sales and push home price gains that outpace income growth. A faster pace of monetary tightening, unless accompanied by a stronger increase in household income, also poses downside risk to housing,” said Duncan.

To read the full report, click here.

Read the source article at theMReport.com

Here Come 59 Million Buyers!

curata__LCmN4iKBliQ1fcV.jpeg

Here Come 59 Million Buyers! | Here Come 59 Million Buyers! Daily Real Estate News | Friday, February 10, 2017 One in four U.S. adults say they are considering buying a home this year, which extrapolates to a whopping 59 million people, according to a recent survey by Bankrate.com. Minorities are expected to be big buyers this year. More than two in five black survey respondents said they were considering buying a home. That is more than double the percentage of potential white buyers.

Read the source article at Realtor Magazine

Case-Shiller: Housing market now officially, completely recovered

curata__ej52Blwzn1TuOZt.jpeg

Home prices increased in November, bringing a chairman of the Index Committee to explain that the housing market is completely recovered from the crisis. Case-Shiller’s top 20 cities all posted monthly increases after seasonal adjustment. One expert explains why the new administration could push home prices even further in the months to come.

Read the source article at U.S. Housing Finance News

Newly inaugurated Trump administration puts mortgage premium cuts on hold

curata__VWSIbctPLuAVFp9.jpeg

The U.S. Department of Housing and Urban Development on Friday suspended a controversial plan that would have slashed the premium rates for certain federally backed mortgages.

The reversal by the Federal Housing Administration came less than two hours after Donald Trump was sworn in as president.

The announcement came in a letter signed by Deputy Assistant Secretary for Housing Genger Charles, which said the reduction in FHA mortgage insurance premiums that was slated to take effect on Jan. 27 would be “suspended indefinitely.”

Read the source article at cnbc.com