Tag Archives: Mortgage

Home prices accelerate in September

1 Dec

Reblogged from Scotsman Guide: http://www.scotsmanguide.com/News/2017/11/Home-prices-accelerate-in-September/?utm_source=TopNews120117&utm_medium=email&utm_campaign=TopNews

U.S. home prices rose at the fastest pace in three years in September, picking up steam across several major cities, according to the S&P CoreLogic Case-Shiller Indices.

Case-Shiller’s national home price index rose 6.2 percent year over year in September, up from the 5.9 percent annual gain in August. This was the highest annual gain since June 2014.

Prices gains also accelerated in several major cities.

The 10-city composite index posted an annual gain of 5.7 percent, up from 5.2 percent in August. The 20-city composite rose 6.2 percent year over year, up from 5.8 percent in August.

Home prices in Seattle outpaced all other cities, with a 12.9 percent annual gain, followed by Las Vegas and San Diego, at 9 percent and 8.2 percent, respectively. Case-Shiller reported that 16 cities saw prices accelerate in September. Eight cities have surpassed their past peak for housing prices.

There is little in the economy to suggest that home prices will ease up in the near future, said David Blitzer, chairman of the Index Committee at S&P Dow Jones Indices. He cited low interest rates and unemployment, tight inventories and the growing economy as factors pushing up home prices.

“One dark cloud for housing is affordability — rising prices — means that some people will be squeezed out of the market,” Blitzer said.

Affordability pressures?

The National Association of Realtors (NAR) once again raised alarm bells about the rising prices. Throughout this year, housing analysts have bemoaned the lack of houses for sale in the lower-price points. NAR says that for-sale inventories of existing homes have fallen year-over-year for 29 consecutive months, and the supply was at the lowest point since 1999.

“This fast appreciation over income growth is not sustainable over many years,” NAR Chief Economist Lawrence Yun said.

“Either demand will [be] choked off from weakening affordability, or more robust construction needs to take place to calm home prices,” Yun said.

Earlier this week, Black Knight also reported that annual home-price gains accelerated to 6.4 percent in September, up from 6.2 percent in August. The Federal Housing Finance Agency reported that prices for homes purchased with Fannie Mae and Freddie Mac loans rose 6.5 percent year over year in the third quarter.

Not all the tracking studies, however, indicate that home prices are close to becoming unaffordable. The title company First American Corp. reported that home prices, when adjusted for income growth and interest rates, declined between August and September.

First American’s index suggests that real home prices are roughly 39 percent below their peak in the last housing boom in July 2006 and nearly 18 percent lower than prices in January 2000.

“Consumer house-buying power improved in September due to a combination of slightly lower rates and rising wages compared with August,” First American Chief Economist Mark Fleming said. “However, over the past 12 months, affordability has declined by 8 percent as nominal prices have increased faster than buying power.”

The views expressed are my own and do not necessarily reflect the views of my employer.

Visit my website at: www.juliecnichols.com or contact me with any of your home loan questions.

#MortgageBlog, #BestMortgageLender, #GMFS, #JulieNichols, #NicholsTeam, #ChangingLives

Advertisements

Mortgage Time

1 Dec
Political Headlines
Political headlines were the main influence on mortgage rates this week and caused a great deal of volatility. Stronger than expected economic data also was a factor. The positive and negative news was offsetting, however, and mortgage rates ended the week with little change.
On Friday, it was reported that former National Security Advisor Michael Flynn would plead guilty to one charge and would cooperate fully with the Special Prosecutor. There is speculation that he will testify about President Trump. The resulting uncertainty caused investors to shift from riskier assets such as stocks to safer assets such as bonds, including mortgage-backed securities (MBS). The added demand for MBS was positive for mortgage rates.
In recent weeks, signs of progress of tax reform have been viewed as negative for mortgage rates and good for stocks. This is because tax reform is expected to stimulate economic activity, which would raise the outlook for future inflation. On Tuesday, the Senate Finance Committee passed its tax reform plan, which was unfavorable for mortgage rates.
A series of stronger than expected economic reports released this week also was negative for mortgage rates. Third quarter gross domestic product (GDP), the broadest measure of economic activity, was revised higher from 3.0% to 3.3%. The Consumer Confidence index jumped to the highest level since 2000.

Sales of new homes in October rose 6.2% from September, reaching the highest level since 2007. One of the few pieces of good news for mortgage rates in the recent data was that current levels of inflation have been holding steady at low levels, as indicated by Thursday’s reading for the core PCE price index.
This week, the FHFA, the regulator for Fannie Mae and Freddie Mac, announced new conforming loan limits for 2018. The baseline limit, which affects most markets, will increase by 6.8% to $453,100. Loan limits in markets designated as " high cost areas" will increase to $679,650.
Looking ahead, investors will be focused on political news. News on Flynn, tax reform, and government funding could influence mortgage rates. To avoid a government shutdown on December 8, Congress must pass legislation to extend funding for the government. On the economic front, the important monthly Employment report will be released on Friday. As usual, this data on the number of jobs, the unemployment rate, and wage inflation will be the most highly anticipated economic data of the month.

>> View the newsletter online here: https://www.mbsquoteline.com/newsletter/view/288/21342/0/3

The views expressed are my own and do not necessarily reflect the views of my employer.

Visit my website at: www.juliecnichols.com or contact me with any of your home loan questions.

#MortgageBlog, #BestMortgageLender, #GMFS, #JulieNichols, #NicholsTeam, #ChangingLives

Mortgage Time

10 Nov
Tax Plan in Focus
As expected, market moving news was scarce this week. It was a very light week for economic data. The primary source of volatility was Thursday’s release of additional details about the Senate tax plan, but this had just a minor net effect. Mortgage rates finished the week a little higher.
On Thursday, the Senate released more information about its plans for tax overhaul. Of note, the Senate plan would delay a corporate tax cut until 2019. The House and the Senate now will work to reconcile their differences to come up with a plan that both will support. Investors will be keeping a close eye on progress on this front. In general, tax reform is expected to be inflationary and negative for mortgage rates. As a result, news indicating that the package will be larger or will go into effect sooner will be viewed as worse for mortgage rates, and vice versa.

Friday’s report on Consumer Sentiment revealed that consumers remain very optimistic about current and future economic conditions. Last month, the index reached the highest level since 2004. While it dropped a little this month to 97.8, this was still the second highest reading of the year. In October 2016, prior to the election, the index was at a level of just 87.2.
With the stock market near record levels, the unemployment rate the lowest in decades, and hopes for tax cuts high, it makes sense that consumers are feeling good about the economy.
Looking ahead, Wednesday will be the big day with Retail Sales and the Consumer Price Index (CPI). Consumer spending accounts for about 70% of economic activity in the U.S., and the retail sales data is a key indicator. CPI is a widely followed monthly inflation report that looks at the price change for goods and services. Industrial Production, another important indicator of economic activity, will come out on Thursday. Housing Starts will be released on Friday. In addition, investors will be watching for any changes in the tax reform plans.

>> View the newsletter online: http://www.mbsquoteline.com/newsletter/view/285/21342/0/3

The views expressed are my own and do not necessarily reflect the views of my employer.

Visit my website at: www.juliecnichols.com or contact me with any of your home loan questions.

#MortgageBlog, #BestMortgageLender, #GMFS, #JulieNichols, #NicholsTeam

Congrats Jared and Trista!

9 Nov

Great customers make great mortgage loans go easy! Congrats Jared and Trista

The views expressed are my own and do not necessarily reflect the views of my employer.

Visit my website at: www.juliecnichols.com or contact me with any of your home loan questions.

#MortgageBlog, #BestMortgageLender, #GMFS, #JulieNichols, #NicholsTeam, #cashoutrefinance, #refinance

Another 5-star review from a happy Customer

31 Oct

The views expressed are my own and do not necessarily reflect the views of my employer.

Visit my website at: www.juliecnichols.com or contact me with any of your home loan questions.

#MortgageBlog, #BestMortgageLender, #GMFS, #JulieNichols, #NicholsTeam

Mortgage Time

27 Oct
ECB Announces Taper
The most highly anticipated event of the week, the European Central Bank meeting, contained no surprises and caused little reaction. Reports about President Trump’s favored pick for the next U.S. Fed Chair caused some volatility during the week but had only a small net effect. The key GDP report also was not much of a market mover. In the end, mortgage rates finished the week slightly higher.
At Thursday’s meeting, the European Central Bank (ECB) announced future plans for its bond purchase program which closely matched investor expectations. The ECB will extend its bond purchase program from its current end date in December by nine months to September and will reduce its monthly purchases from its current level of 60 billion euros to 30 billion euros beginning in January.
President Trump is expected to soon announce his nominee to serve the next term as Fed Chair. On Tuesday, it was reported that the two leading contenders out of the many people under consideration were Jerome Powell and John Taylor. The report that Taylor is one of the two finalists caused some concern for investors. Taylor is viewed as the candidate most in favor of a more rapid increase in the federal funds rate. The news caused mortgage rates to move higher. On Friday, however, another report named Powell as the top choice. Under Powell, it is expected that the Fed would maintain a course for monetary policy similar to the current one. Following the news, mortgage rates offset the increase from the report on Tuesday.

The first estimate for third quarter Gross Domestic Product (GDP) growth released on Friday was 3.0%, well above the consensus forecast of 2.5%. However, an increase in inventories accounted for 0.7% of the growth. An increase in inventories is typically viewed similar to a one-time event and is discounted when evaluating the underlying strength of the economy.
Due to the large influence of inventory levels on the results, investors considered the GDP data to be close to the expected levels and showed little reaction.
Looking ahead, it will be a big week. Investors expect President Trump to announce his nominee for Fed Chair sometime next week. The next Fed meeting will take place on Wednesday. Investors do not expect any policy changes to be announced. There will be several major economic reports released as well, capped by Friday’s important monthly Employment data. In particular, the Core PCE price index will be released on Monday and the ISM national manufacturing index on Wednesday.

>> Read the article online: http://www.mbsquoteline.com/newsletter/view/283/21342/0/3

The views expressed are my own and do not necessarily reflect the views of my employer.

Visit my website at: www.juliecnichols.com or contact me with any of your home loan questions.

#MortgageBlog, #BestMortgageLender, #GMFS, #JulieNichols, #NicholsTeam, #ChangingLives

Mortgage Time

20 Oct
Budget Plan Passes
The passage of a budget plan was negative for mortgage rates this week. The economic data had little impact. As a result, mortgage rates ended the week higher.
Late Thursday, the Senate voted in favor of a 2018 budget plan. This was a key early step along the path to tax reform. Investors viewed the progress on tax reform as negative for mortgage rates for a couple of reasons. First, a new tax plan likely would boost economic growth, which would raise the outlook for future inflation. In addition, it would increase the budget deficit. The added supply of bonds needed to fund the deficit would push yields higher.
The headline figures released on Wednesday for housing starts in September were disappointing. However, digging deeper it was clear that the data was heavily influenced by the impact of the recent hurricanes, and the market reaction was small.

After three months of strong results, single-family housing starts in September fell 5% from August, which was a much larger than expected drop. While starts rose in the Northeast, the West, and the Midwest, they suffered a massive 15% decline in the South, where the bulk of the hurricane damage took place.
Looking ahead, the big event next week likely will be Thursday’s meeting of the European Central Bank (ECB). Investors expect that the ECB will announce its future plans for its bond purchase program. In the U.S., Durable Orders and New Home Sales will be released on Wednesday. Pending Home Sales will come out on Thursday. The first estimate for third quarter GDP, the broadest measure of economic growth, will be released on Friday.

>> View the newsletter online: http://www.mbsquoteline.com/newsletter/view/282/21342/0/3

The views expressed are my own and do not necessarily reflect the views of my employer.

Visit my website at: www.juliecnichols.com or contact me with any of your home loan questions.

#MortgageBlog, #BestMortgageLender, #GMFS, #JulieNichols, #NicholsTeam, #ChangingLives

MORTGAGE TIME

13 Oct
Core Inflation Steady
The two big economic reports this week were released on Friday. Investors placed more weight on tame inflation data than on strong retail sales figures, causing mortgage rates to improve. Wednesday’s minutes from the September 20 Fed meeting contained little new information and the reaction was small. As a result, mortgage rates ended the week a little lower.
In September, the Consumer Price Index (CPI), a widely followed monthly inflation indicator, posted its largest monthly increase since June 2009. This was mostly due to a hurricane-related 13% increase in gas prices during the month.

However, most investors prefer to look at core CPI for a clearer indication of the underlying trend. Core CPI, which excludes food and energy, rose less than expected in September. While several other recent indicators have pointed to rising inflation, core CPI has held steady at an annual rate of 1.7% for five straight months. The tame core inflation data was good for mortgage rates.
Retail sales posted better than expected results in September, rising 1.6% from August. Car sales, in particular, were strong as people replaced vehicles lost in the hurricanes. Overall, though, it was difficult to determine the impact of the hurricanes. According to the Commerce Department, companies reported that "the hurricanes had both positive and negative effects on their sales data." Consumer spending accounts for about 70% of economic activity in the U.S., and the retail sales data is a key indicator, so this report was good news for the economy.
Looking ahead, it will be a light week for economic data. The housing sector reports will be featured. Housing Starts will be released on Wednesday and Existing Home Sales on Friday. Beyond that, Industrial Production will be released on Tuesday.

>> Read the newsletter online: http://www.mbsquoteline.com/newsletter/view/281/21342/0/3

The views expressed are my own and do not necessarily reflect the views of my employer.

Visit my website at: www.juliecnichols.com or contact me with any of your home loan questions.

#MortgageBlog, #BestMortgageLender, #GMFS, #JulieNichols, #NicholsTeam, #ChangingLives

Thank you Sue for the wonderful review!

5 Oct

Nothing makes my day better than receiving another 5-star review from a happy customer!

The views expressed are my own and do not necessarily reflect the views of my employer.

Visit my website at: www.juliecnichols.com or contact me with any of your home loan questions.

#MortgageBlog, #BestMortgageLender, #GMFS, #JulieNichols, #NicholsTeam, #FiveStarReview

Congrats Jordan on your beautiful new condo!

29 Sep

Superb closing with great people! Congrats on your amazing condo Jordan! Great realtor you have there, Christie Deaton.

The views expressed are my own and do not necessarily reflect the views of my employer.

Visit my website at: www.juliecnichols.com or contact me with any of your home loan questions.

#MortgageBlog, #BestMortgageLender, #GMFS, #JulieNichols, #NicholsTeam, #ChangingLives, #dallascitycenterrealtors, #condo, #dallas, #victorypark