MND NewsWire MND NewsWire : Housing and Economic News

  • Fannie/Freddie Provide Details on New Refi Options
    by Jann Swanson on May 6, 2021 at 2:47 pm

    Fannie Mae and Freddie Mac (the GSEs) have provided details for their streamlined refinance programs that were originally announced by the Federal Housing Finance Agency (FHFA) last month. The programs, named "RefiNow" by Fannie Mae and "Refi Possible" by Freddie Mac, will be available starting June 5 for Fannie Mae's borrowers but not until August 30 through Freddie Mac. The programs are designed to encourage eligible low-income borrowers to refinance and lower their interest rates and monthly mortgage payments. In its original announcement FHFA said it expected borrowers who refinanced through the initiative to save between $100 and $250 a month.  ...(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

  • Millennials Driving Home Prices; Entry Level Homes See Greatest Gains
    by Jann Swanson on May 6, 2021 at 2:44 pm

    Another home price index shows double digit annual price increases, this time for March, and  the CoreLogic HPI also has the highest month-over-month gain we have seen in the present environment. The company says there was an 11.3 percent national rate of appreciation during the month while prices were up 2.0 percent from February. There were no states in which prices declined year-over-year, and those with the highest rates included Idaho (25 percent), Montana (18.8 percent), and Arizona (18 percent). The company says the 2021 spring homebuying season is on track to outpace trends seen in 2019 and 2018. Millennials are driving the demand, accounting for 54 percent of home purchase applications over the last year. "Older millennials are seeking move-up purchases and younger millennials are entering peak homebuying years. As we look towards the second half of the year, further erosion of affordability may dampen purchase demand as prospective buyers continue to compete for the severely limited supply of for-sale homes. A pick-up in construction and an increase in for-sale listings as more people get vaccinated may help moderate surging home price growth." Frank Nothaft, CoreLogic's chief economist said, "Lower-priced homes are in big demand and short supply, driving up prices faster compared to their more expensive counterparts. First-time buyers seeking a starter home priced 25 percent or more below the local-area median saw prices jump 15.1 percent during the past year, compared with the overall 11.3 percent gain in our national index." The CoreLogic HPI Forecast is for gradually slowing rates of growth. Prices are expected to increase between March and April 2021 by 1.1 percent and drop to 3.5 percent by March 2022. The HPI Forecast also reveals the continued disparity in home price growth across metros. In markets like Houston, which was hit hard by the collapse of the oil industry and the recent hurricane season, home prices are expected to decline 0.5 percent over the next year. Conversely, San Diego saw prices grow 14 percent over the last year and are projected to see additional appreciation of 12.5 percent by March 2022. ...(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

  • CFPB Says Mortgage Complaints Have Spiked
    by Jann Swanson on May 5, 2021 at 2:52 pm

    The Consumer Financial Protection Bureau (CFPB) says the overall mortgage related complaints it has received recently are at their highest level in three years. The report was one of two that the agency says show that more work needs to be done to help mortgage borrowers during the COVID-19 pandemic and its economic fallout. A second report documents that Black and Hispanic mortgage borrowers are much more likely to be delinquent or in a forbearance program than white borrowers. CFPB said consumers submitted more mortgage complaints in March than in any month since April 2018. Those concerning forbearance or related issues also reached their highest monthly average since March and April of 2020. The number of borrowers who report they are struggling to make their payments is also trending upward.  ...(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

  • Mortgage Application Volume Struggles to Keep up With Hot Housing Market
    by Jann Swanson on May 5, 2021 at 12:16 pm

    Mortgage application volume lost ground again last week, although the decline was small and refinancing volume pulled out a sliver of a gain. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of mortgage loan application volume, decreased 0.9 percent on a seasonally adjusted basis during the week ended April 30. On an unadjusted basis, the Index was 1 percent lower than the prior week.   The Refinance Index increased 0.1 percent from the previous week but lagged the Index on the same week in 2020 by 17 percent. The refinance share of mortgage activity increased to 61.0 percent of total applications from 60.6 percent the previous week.  ...(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

  • Fannie and Freddie Told to Write Their Wills
    by Jann Swanson on May 4, 2021 at 8:56 pm

    The GSEs Fannie Mae and Freddie Mac have been given orders to develop so-called living wills. Such wills are credible resolution plans that outline how either GSE could be rapidly and orderly resolved should the Federal Housing Finance Agency (FHFA) be appointed their receiver in the event of another financial crisis. The mandate is in the form of a final rule issued by FHFA on Monday. The rule is similar to those issued by the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) under which many large financial institutes are required to submit such wills. Both the Department of the Treasury and the Financial Stability Oversight Council have endorsed living rules for the GSEs....(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.