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Leverage Ratios Rise in 2016

By Michael Neal Information provided by the Federal Housing Finance Agency (FHFA) indicates that the loan amount relative to the purchase price of the home, leverage or the loan-to-value (LTV) ratio, rose in 2016 to 79.2 percent, 140 basis points above the rate in 2015, 77.8 percent*/**. The increase over 2016 largely reflected growth in the LTV ratio on purchases …

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Mortgage Rates Rise in February

By Michael Neal Results from the Mortgage Interest Rate Survey (MIRS) administered by the Federal Housing Finance Agency (FHFA) indicate that mortgage rates rose in February 2017*. Over the month, contract rates on mortgages used to purchase single-family newly constructed homes increased by 16 basis points to 4.18 percent. Since reaching a low of 3.54 percent in October 2016, contract …

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Quicken Loans’ Measure of Home Value Perception Shows Appraisals Lagging Owner Estimates

By John Gorecki • Quicken Loans’ National HPPI shows appraised values were 1.69% lower than homeowners estimated in February • Home values rise 0.55% nationally, with a 2.95% year-over-year increase, according to the Quicken Loans HVI DETROIT, March 14, 2017 – Homeowners and appraisers are still not seeing eye-to-eye. Home appraisals were an average of 1.69 percent lower than what …

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Home Equity Reaches A New Peak

By Michael Neal According to the Federal Reserve Board’s fourth quarter of 2016 release of its Financial Accounts of the United States report, household holdings of real estate, measured on a not seasonally adjusted basis, totaled $23.102 trillion in the fourth quarter of 2016, $1.535 trillion higher than its level in the fourth quarter of 2015. Home mortgage debt outstanding, …

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Non-Mortgage Consumer Debt Grows But at a Slower Rate

By Michael Neal The total amount of consumer credit outstanding rose in January 2017 reflecting growth in non-revolving credit, auto loans and student loans. Meanwhile, the outstanding amount of revolving credit, largely composed of credit cards, shrank. According to the Federal Reserve Board’s Consumer Credit release, the total outstanding amount of consumer credit climbed by a seasonally adjusted annual rate …

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Mortgage Rates in January

By Michael Neal Results from a survey administered by the Federal Housing Finance Agency (FHFA) indicate that mortgage rates rose in January 2017*. Over the month, contract rates on mortgages used to purchase single-family newly constructed homes increased by 24 basis points to 4.02 percent. Although the monthly change reported by FHFA contrasted with a report by Freddie Mac, the …

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NAHB Survey: AD&C Financing Standards Continue to Ease

By Michael Neal Builders and developers continue to report easing credit conditions for acquisition, development, and construction (AD&C) loans according to NAHB’s survey on AD&C Financing. However, the pace of easing slowed somewhat from the second quarter. In the 4th quarter of 2016, the overall net tightening index based on the AD&C survey was -7.3. The 4th quarter reading indicates …

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