MND NewsWire MND NewsWire : Housing and Economic News
- MBA Expects 2022 Plunge in Refis to Offset Purchase Gainsby Jann Swanson on October 18, 2021 at 4:21 pm
Members of the Mortgage Bankers Association (MBA) are holding their annual convention in San Diego this week and the opening day was accompanied by the usual flurry of press releases including forecasts from the association's economists for the coming year. The projections, from Mike Fratantoni, Chief Economist and Senior Vice President for Research and Industry Technology; Joel Kan, Associate Vice President of Economic and Industry Forecasting; and Marina Walsh, CMB, Vice President of Industry Analysis, are rooted in expectations of robust homebuyer demand from millennial households and those seeking more space. These factors and still-low mortgage rates will provide favorable tailwinds for the housing market next year. Headlining the forecast is growth of 9.0 percent in purchase mortgage originations in 2022. This would bring those originations to a new record of $1.73 trillion. ...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
- Supply Issues Aren't Hurting Builder Sentiment - Yetby Jann Swanson on October 18, 2021 at 4:19 pm
Home builders apparently pushed aside current concerns about supply chain disruptions to display increased confidence in the new home market in October. The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) which gauges that confidence rose 4 points this month to 80. However, NAHB economist Robert Dietz says that, despite the increase, "builders are getting increasingly concerned about affordability hurdles ahead for most buyers. Building material price increases and bottlenecks persist and interest rates are expected to rise in coming months as the Fed begins to taper its purchase of U.S. Treasuries and mortgage-backed debt." He urged policymakers to focus on fixing supply chain issues to spur more residential construction and help ease upward pressure on home prices. ...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
- Forbearances Declining Faster, Plans Drop by 10%by Jann Swanson on October 15, 2021 at 5:32 pm
The number of homeowners in forbearance receded at a brisk clip last week as the first wave of final expirations continues. Black Knight reports the number of active plans dropped by about 10 percent during the week ended October 12, a reduction of 143,000. This comes on the heels of a 177,000 drop the prior week. The declines were seen across all investor classes with the largest, 88,000, in the number of loans serviced for bank portfolios and private label securities (PLS). This lowered the forborne share of those loans by 19 percent. Twenty-two thousand FHA and VA loans exited the program along with 33,000 loans serviced for Fannie Mae and Freddie Mac, the GSEs. At the end of the reporting period 1.25 million loans remained in COVID-19 related plans, representing 2.4 percent of the nation's 53 million active mortgages. The breakdown is 376,000 GSE loans, 1.3 percent of those totals, 485,000 FHA and VA loans (4.0 percent) and 386,000 portfolio/PLS loans (3.0). The loans have a combined unpaid principal balance of $233 billion....(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
- Foreclosure Filings Reflect End of Moratoriumby Jann Swanson on October 15, 2021 at 3:18 pm
As was probably inevitable, foreclosure files rose significantly in the third quarter of 2021 and appeared to accelerate in the last month of that quarter. The moratorium on foreclosures which was put in place in March 2020 in response to the COVID-19 pandemic expired on July 31.ATTOM, in its Q3 2021 U.S. Foreclosure Market Report says there were 45,517 foreclosure filings - default notices, scheduled auctions or bank repossessions - during the quarter, a 34 percent increase from Q2 and 68 percent more than in the third quarter of last year. Over 19,000 of those filings occurred in September, 24 percent more than in August and slightly more than double (102 percent) the volume in September 2020. "Despite the increased level of foreclosure activity in September, we're still far below historically normal numbers," said Rick Sharga, executive vice president at RealtyTrac, an ATTOM company. "September foreclosure actions were almost 70 percent lower than they were prior to the COVID-19 pandemic in September of 2019, and Q3 foreclosure activity was 60 percent lower than the same quarter that year. Even with similar increases in foreclosures over the next few months, we'll end the year significantly below what we'd see in a normal housing market." ...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
- "Good Time to Buy" Sentiment Erodes Furtherby Jann Swanson on October 15, 2021 at 2:55 pm
Consumers continue to have divergent opinions about the current environment for buying and selling a home. Fannie Mae says its September National Housing Survey (NHS) found a slightly higher number of respondents who think it is a good time to sell while opinions about buying have grown increasingly negative. The company's Home Purchase Sentiment Index (HPSI), based on responses to six questions on the survey, declined 1.2 points from August to 74.5 in September. Three of the survey components were down from the previous month and the index is 6.5 points lower than in September 2020....(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.