Mortgage News Daily

Mortgage News Daily

Home Price Gains Defied The Odds in April; Record Rates For Some, Frustration For Others

House prices continued to be unfazed by the current economic upheaval. The Federal Housing Finance Agency (FHFA) reports that its U.S. House Price Index for April, the first full month that reflects the impact of the pandemic, continued to rise almost unabated. The index increased by 0.2 percent from March compared to a 0.1 percent increase from February to March. …

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April New Home Sales Surge, Rising Over 16%; Debt-to-Income Guideline Change

After its pandemic-related plunge in April, the rapid recovery of the Housing Market Index, a measure of builder confidence, seems justified by today’s Census Bureau report on new home sales. For the second month in a row, sales of newly constructed homes outdistanced expectations, rising by 16.6 percent to a seasonally adjusted annual rate of 676,000 units. However, the original …

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Delinquencies at Nine-Year High; Home Sales Hit By Lockdown; Rates Holding Lows

Black Knight reports another breathtaking increase in mortgage delinquencies in its “first look” at May loan performance data. The rate, which soared by 90 percent in April, grew another 20.4 percent, to 7.76 percent of all active mortgages. This puts the rate, which had been declining continually to near all-time lows before the impact of the COVID-19 pandemic, up by …

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Forbearance Numbers Continue to Retreat

The number of homeowners in active forbearance plans fell again this past week. Black Knight estimates there are now 4.6 million people remaining in the plans which mortgage servicers are required to provide as part of the CARES Act package of COVID-19 economic relief. Those plans allow homeowners who claim a financial impact from the pandemic to temporarily skip or …

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Purchase Applications Hit 11yr High, Refi Boom Continues; Construction Bounces Back

Mortgage Application volumes continued to grow during the week ended June 12 as mortgage rates reached new lows and states allowed more businesses to reopen. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of application volume, increased 8.0 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index was up …

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Builder Confidence Crushes Expectations; Rates Drifting Higher; GSE Competitors?

The COVID-19 outbreak struck a major blow to builder confidence in April. The prospect of widespread shutdowns of businesses and prolonged shelter at home orders sent the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) spiraling down 42 points, its largest monthly change in a more than 30 year history, to a reading of 30. The index, a …

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