Low mortgage rates are giving Lowe’s a boost, Piper Jaffray says in upgrading the stock

An employee organizes buckets for sale inside a Lowe’s Cos. store in Burbank, California. Low mortgage rates and increased home improvement spending are going to help lift Lowe’s stock, according to Piper Jaffray.


An employee organizes buckets for sale inside a Lowe’s Cos. store in Burbank, California. Low mortgage rates and increased home improvement spending are going to help lift Lowe’s stock, according to Piper Jaffray.
Low mortgage rates are giving Lowe’s a boost, Piper Jaffray says in upgrading the stock Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-15  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, mortgage, piper, lowes, organizes, upgrading, giving, stock, store, lift, low, jaffray, boost, spending, rates, sale


Low mortgage rates are giving Lowe's a boost, Piper Jaffray says in upgrading the stock

An employee organizes buckets for sale inside a Lowe’s Cos. store in Burbank, California.

Low mortgage rates and increased home improvement spending are going to help lift Lowe’s stock, according to Piper Jaffray.


Company: cnbc, Activity: cnbc, Date: 2019-10-15  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, mortgage, piper, lowes, organizes, upgrading, giving, stock, store, lift, low, jaffray, boost, spending, rates, sale


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Low mortgage rates are giving Lowe’s a boost, Piper Jaffray says in upgrading the stock

An employee organizes buckets for sale inside a Lowe’s Cos. store in Burbank, California. Low mortgage rates and increased home improvement spending are going to help lift Lowe’s stock, according to Piper Jaffray.


An employee organizes buckets for sale inside a Lowe’s Cos. store in Burbank, California. Low mortgage rates and increased home improvement spending are going to help lift Lowe’s stock, according to Piper Jaffray.
Low mortgage rates are giving Lowe’s a boost, Piper Jaffray says in upgrading the stock Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-15  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, mortgage, piper, lowes, organizes, upgrading, giving, stock, store, lift, low, jaffray, boost, spending, rates, sale


Low mortgage rates are giving Lowe's a boost, Piper Jaffray says in upgrading the stock

An employee organizes buckets for sale inside a Lowe’s Cos. store in Burbank, California.

Low mortgage rates and increased home improvement spending are going to help lift Lowe’s stock, according to Piper Jaffray.


Company: cnbc, Activity: cnbc, Date: 2019-10-15  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, mortgage, piper, lowes, organizes, upgrading, giving, stock, store, lift, low, jaffray, boost, spending, rates, sale


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Lower mortgage rates are causing an epic housing shortage

Then a sharp drop in rates this summer brought demand back and has depleted that supply dramatically. Roughly five million mostly entry-level homes have been turned into single-family rentals, and strong demand for those rentals means investors are unlikely to put the homes up for sale anytime soon. The demand is being fueled by lower mortgage rates. Demand also surged in the move-up market, causing supplies there to fall as well. The supply of homes priced between $200,000 and $750,000, which m


Then a sharp drop in rates this summer brought demand back and has depleted that supply dramatically. Roughly five million mostly entry-level homes have been turned into single-family rentals, and strong demand for those rentals means investors are unlikely to put the homes up for sale anytime soon. The demand is being fueled by lower mortgage rates. Demand also surged in the move-up market, causing supplies there to fall as well. The supply of homes priced between $200,000 and $750,000, which m
Lower mortgage rates are causing an epic housing shortage Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-15  Authors: diana olick, in dianaolick
Keywords: news, cnbc, companies, summer, inventory, epic, lower, homes, rates, housing, surged, supply, demand, sales, market, rentals, mortgage, shortage, strong, causing


Lower mortgage rates are causing an epic housing shortage

Anyone out hunting for an affordable home today knows that the pickings are slim – and they are about to get slimmer.

Housing inventory hit a record low about two years ago, but a lull in home sales over the past year helped build back much-needed supply, especially in the mid-priced range. Then a sharp drop in rates this summer brought demand back and has depleted that supply dramatically.

National housing inventory fell 2.5% annually in September, a sharper decline than August’s 1.8% decrease, according to realtor.com

Supply has always been leanest on the low end, as investors have been very active in that price range since the foreclosure crisis.

Roughly five million mostly entry-level homes have been turned into single-family rentals, and strong demand for those rentals means investors are unlikely to put the homes up for sale anytime soon.

In addition, an unseasonably strong surge in demand at the end of summer and into this fall now has the supply of homes priced below $200,000 down 10% compared with a year ago.

The demand is being fueled by lower mortgage rates. The average rate on the 30-year fixed surged over 5% last November and stayed above 4.5% through March, according to Mortgage News Daily. That made for a lackluster spring housing market, traditionally the busiest time for buying.

Rates then began falling in May and particularly sharply in July and August. By the start of September the average rate was around 3.5%, and sales of both new and existing homes were surging back. Clearly there was substantial pent-up demand from the spring.

Demand also surged in the move-up market, causing supplies there to fall as well. The supply of homes priced between $200,000 and $750,000, which make up 60% of the market, flat-lined in September, after 18 months of strong inventory growth. Supply is now expected to decline in the months ahead.


Company: cnbc, Activity: cnbc, Date: 2019-10-15  Authors: diana olick, in dianaolick
Keywords: news, cnbc, companies, summer, inventory, epic, lower, homes, rates, housing, surged, supply, demand, sales, market, rentals, mortgage, shortage, strong, causing


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The salary you need to buy a house in 10 of the largest cities in the US

If you’re in the market for a house, you might want to look outside of California. According to a new report from HSH.com, a site that tracks mortgage rates, the four most expensive metro areas in the country are in the Golden State. HSH.com’s quarterly report estimates the annual income needed to qualify for the median mortgage in the 50 largest metro areas in the U.S. It uses data from the National Association of Realtors, the Mortgage Bankers Association and available property tax and insuran


If you’re in the market for a house, you might want to look outside of California. According to a new report from HSH.com, a site that tracks mortgage rates, the four most expensive metro areas in the country are in the Golden State. HSH.com’s quarterly report estimates the annual income needed to qualify for the median mortgage in the 50 largest metro areas in the U.S. It uses data from the National Association of Realtors, the Mortgage Bankers Association and available property tax and insuran
The salary you need to buy a house in 10 of the largest cities in the US Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-10  Authors: alicia adamczyk
Keywords: news, cnbc, companies, metro, mortgage, annual, house, association, median, payment, largest, national, areas, need, report, cities, price, salary, buy


The salary you need to buy a house in 10 of the largest cities in the US

If you’re in the market for a house, you might want to look outside of California. According to a new report from HSH.com, a site that tracks mortgage rates, the four most expensive metro areas in the country are in the Golden State.

HSH.com’s quarterly report estimates the annual income needed to qualify for the median mortgage in the 50 largest metro areas in the U.S. It uses data from the National Association of Realtors, the Mortgage Bankers Association and available property tax and insurance information to make its calculations.

It also assumes a down payment of 20%, a fixed-rate, 30-year mortgage and an industry standard 28% debt-to-income ratio for buyers.

Across the U.S., the median home price in the second quarter of 2019 — which is what the report is based on — was $279,600, requiring an annual salary of at least $61,123 to afford and a monthly mortgage payment of $1,426.21. But the median price in individual metro areas can be much higher or lower than that national median.


Company: cnbc, Activity: cnbc, Date: 2019-10-10  Authors: alicia adamczyk
Keywords: news, cnbc, companies, metro, mortgage, annual, house, association, median, payment, largest, national, areas, need, report, cities, price, salary, buy


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Weekly mortgage refinances jump 10% as rates drop to the lowest level since August

An unexpected decline in mortgage interest rates had homeowners calling their lenders last week, looking to save money on their monthly payments. Refinance demand surged, pushing total mortgage application volume up 5.2% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Volume was 69% higher than the same week one year ago, when interest rates were considerably higher. “This in turn caused a flight to safety by investors, result


An unexpected decline in mortgage interest rates had homeowners calling their lenders last week, looking to save money on their monthly payments. Refinance demand surged, pushing total mortgage application volume up 5.2% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Volume was 69% higher than the same week one year ago, when interest rates were considerably higher. “This in turn caused a flight to safety by investors, result
Weekly mortgage refinances jump 10% as rates drop to the lowest level since August Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-09  Authors: diana olick, in dianaolick
Keywords: news, cnbc, companies, previous, week, turn, mortgage, level, jump, applications, weekly, lowest, interest, drop, economic, volume, higher, rates, refinances


Weekly mortgage refinances jump 10% as rates drop to the lowest level since August

An unexpected decline in mortgage interest rates had homeowners calling their lenders last week, looking to save money on their monthly payments.

Refinance demand surged, pushing total mortgage application volume up 5.2% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Volume was 69% higher than the same week one year ago, when interest rates were considerably higher.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) decreased to 3.90% from 3.99%, with points falling to 0.37 from 0.38 (including the origination fee) for loans with a 20% down payment. That rate was 115 basis points higher the same week one year ago.

“U.S. Treasury rates moved sharply lower last week, as data showing weakness in the services sector was a sign that slowing economic growth is not confined to the manufacturing sector,” said Joel Kan, associate vice president of economic and industry forecasting at the MBA. “This in turn caused a flight to safety by investors, resulting in mortgage rates dropping across the board.”

In response, rate-sensitive refinance applications jumped 10% from the previous week and were 163% higher than the same week one year ago. The refinance share of mortgage activity increased to 60.4% of total applications from 58.0% the previous week.

Mortgage applications to purchase a home, which are less rate-sensitive week to week, decreased 1% from one week earlier but were 10% higher than the same week one year ago.

“Despite low rates, the cloudier economic outlook and ongoing market uncertainty may be keeping some potential homebuyers away from the market this fall,” Kan said.

Consumer sentiment on housing fell in September, according to another survey from Fannie Mae. More Americans said they were concerned about losing their job, and that in turn pulled housing sentiment down.


Company: cnbc, Activity: cnbc, Date: 2019-10-09  Authors: diana olick, in dianaolick
Keywords: news, cnbc, companies, previous, week, turn, mortgage, level, jump, applications, weekly, lowest, interest, drop, economic, volume, higher, rates, refinances


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Bidding wars are taking a strange turn in the fall housing market

Cooler weather historically means a cooling off period in the housing market, but that is not the case this fall. After dropping to the lowest level in 8 years, bidding wars are creeping back. In September, 11% of offers written by Redfin, a national real estate brokerage, faced a bidding war. That might not seem like a big deal, but in the past four years, the bidding war rate has dropped—not increased—from August to September. The least competitive market in September was Miami, with a 2% bidd


Cooler weather historically means a cooling off period in the housing market, but that is not the case this fall. After dropping to the lowest level in 8 years, bidding wars are creeping back. In September, 11% of offers written by Redfin, a national real estate brokerage, faced a bidding war. That might not seem like a big deal, but in the past four years, the bidding war rate has dropped—not increased—from August to September. The least competitive market in September was Miami, with a 2% bidd
Bidding wars are taking a strange turn in the fall housing market Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-08  Authors: diana olick, in dianaolick
Keywords: news, cnbc, companies, housing, mortgage, rates, season, market, war, taking, turn, wars, fall, bidding, percentage, rate, strange


Bidding wars are taking a strange turn in the fall housing market

Cooler weather historically means a cooling off period in the housing market, but that is not the case this fall. After dropping to the lowest level in 8 years, bidding wars are creeping back.

In September, 11% of offers written by Redfin, a national real estate brokerage, faced a bidding war. That is down dramatically from 41% a year ago, but up from the 10% reading in August.

That might not seem like a big deal, but in the past four years, the bidding war rate has dropped—not increased—from August to September.

The bidding war rate usually falls about 15 percentage points from the height of the housing season in March to the beginning of the slow season in September, at least according to seasonal patterns from 2013 to 2018.

That has not been the case this year. The rate fell just 4 percentage points during that same period. Part of the reason for that is that the spring season was unusually slow, so there was no great height from which to decline. High home prices, higher mortgage rates, and low supply kept competition at bay, even though housing demand is still high.

“After the coolest spring home-selling season in at least eight years, homebuying competition didn’t have far to fall, but low mortgage rates ultimately drove a modest uptick in bidding wars in late summer when they typically become less common,” said Redfin chief economist Daryl Fairweather. “With mortgage rates likely to remain near historic lows, I expect the bidding war rate to continue to level off—rather than follow its typical end-of-year descent—as 2019 comes to a close.”

The increased heat in housing is also showing up in prices, where the gains had been decreasing all year. Now some reports have home price gains increasing again, or at least flat-lining.

Low mortgage rates are fueling that heat, giving buyers more purchasing power and more incentive to hurry into a home before rates rise again. The average rate on the 30-year fixed is now more than a full percentage point lower than it was last fall.

San Francisco continues to be the most competitive market, with a 28% bidding war rate. Las Vegas and Phoenix tied for second with 21% of offers facing a bidding war.

The least competitive market in September was Miami, with a 2% bidding war rate and then Dallas and Austin at 3%.


Company: cnbc, Activity: cnbc, Date: 2019-10-08  Authors: diana olick, in dianaolick
Keywords: news, cnbc, companies, housing, mortgage, rates, season, market, war, taking, turn, wars, fall, bidding, percentage, rate, strange


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Confidence in housing weakens just as homes become more affordable

Lower mortgage rates are making buying a home slightly more affordable, but financial concerns are outweighing that benefit and lowering overall confidence in housing. “Consumers who are pessimistic about current housing market conditions are more likely to cite unfavorable economic conditions than the prior month,” said Doug Duncan, Fannie Mae’s chief economist. The drop in mortgage rates has pushed the average monthly payment down by about $124 from November of last year. Low mortgage rates co


Lower mortgage rates are making buying a home slightly more affordable, but financial concerns are outweighing that benefit and lowering overall confidence in housing. “Consumers who are pessimistic about current housing market conditions are more likely to cite unfavorable economic conditions than the prior month,” said Doug Duncan, Fannie Mae’s chief economist. The drop in mortgage rates has pushed the average monthly payment down by about $124 from November of last year. Low mortgage rates co
Confidence in housing weakens just as homes become more affordable Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-07  Authors: diana olick, in dianaolick
Keywords: news, cnbc, companies, lower, housing, weakens, rates, low, mortgage, confidence, homes, interest, affordable, payment, income, monthly, market


Confidence in housing weakens just as homes become more affordable

Lower mortgage rates are making buying a home slightly more affordable, but financial concerns are outweighing that benefit and lowering overall confidence in housing.

Consumer sentiment in housing fell in September from its August high, according to a monthly survey from Fannie Mae. While more respondents think now is both a good time to buy and sell a home, there was a much larger drop in the share of those who said they were not concerned about losing their jobs. It was the second straight month that the component of the survey fell.

“Consumers who are pessimistic about current housing market conditions are more likely to cite unfavorable economic conditions than the prior month,” said Doug Duncan, Fannie Mae’s chief economist. “Job confidence remains high but still well shy of its July reading.”

The share of those saying their household income is significantly higher than it was a year ago was unchanged at just 21%. Although there was improvement in both buying and selling sentiment, far more consumers think now is a good time to buy rather than sell.

The survey comes as mortgage rates sit at the lowest level in over a month and are significantly lower than they were a year ago. While rates did jump in September, they were back down by the end of the month.

With the average rate on the 30-year fixed mortgage around 3.64%, only about 21% of the national median income is required to make the monthly principal and interest payment on the average-priced home. This is the second lowest payment to income ratio in 20 months, according to a new report from Black Knight, Inc.

The average monthly payment on the average priced home is now 10% lower than it was last November, when mortgage rates peaked around 5%. That even includes a 4% home price increase since then.

“Back in November 2018, we were reporting on home affordability hitting a nine-year low,” said Black Knight Data & Analytics president Ben Graboske. “Interest rates were nearing 5%, pushing the share of national median income required to make the principal and interest (P&I) payments on the purchase of the average-priced home to 23.7%. While still below long-term averages, that made housing the least affordable it had been since 2009, spurring a noticeable and extended slowdown in home price growth.”

The drop in mortgage rates has pushed the average monthly payment down by about $124 from November of last year. That in turn boosts buying power by $46,000. In other words, lower rates today mean a buyer can purchase a home that costs $46,000 more and pay the same monthly payment as they would have last November on the cheaper home.

Home prices are still rising, but the growth eased throughout much of this year and then flatlined in August.

“It remains to be seen if this is merely a lull in what could be a reheating housing market, or a sign that low interest rates and stronger affordability may not be enough to muster another meaningful rise in home price growth across the U.S.,” noted Graboske.

The key factor fueling prices continues to be low supply, and it has not increased meaningfully in a few years now. Low mortgage rates could help, giving homeowners who already have low rates more incentive to move and not lose that rate. As rates rise, more owners tend to stay in place, unwilling to pay higher interest rates for the same debt.

Of course all real estate is local, and affordability varies market to market. California continues to be the worst, with seven of the ten least affordable housing markets in the nation. In Los Angeles, it currently takes 43% of the median household income to be able to purchase the average-priced home. That’s an improvement from the 48% required at the end of last year, but it still ranks as the lease affordable market in the nation.


Company: cnbc, Activity: cnbc, Date: 2019-10-07  Authors: diana olick, in dianaolick
Keywords: news, cnbc, companies, lower, housing, weakens, rates, low, mortgage, confidence, homes, interest, affordable, payment, income, monthly, market


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New plunge in mortgage rates could save borrowers thousands of dollars

The sell-off in the stock market is causing an unexpected turnaround in mortgage rates. Mortgage rates fell throughout much of the summer but then made a sharp jump higher in September. The average rate on the popular 30-year fixed mortgage was at 3.75% last Friday. At an open house in Atlanta last weekend, buyers definitely had mortgage rates in mind. Mortgage rates generally follow the yield on the 10-year Treasury, which is now the lowest in about a month.


The sell-off in the stock market is causing an unexpected turnaround in mortgage rates. Mortgage rates fell throughout much of the summer but then made a sharp jump higher in September. The average rate on the popular 30-year fixed mortgage was at 3.75% last Friday. At an open house in Atlanta last weekend, buyers definitely had mortgage rates in mind. Mortgage rates generally follow the yield on the 10-year Treasury, which is now the lowest in about a month.
New plunge in mortgage rates could save borrowers thousands of dollars Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-03  Authors: diana olick, in dianaolick
Keywords: news, cnbc, companies, market, price, plunge, average, rate, mortgage, thousands, lower, low, happen, dollars, rates, borrowers, save, solid


New plunge in mortgage rates could save borrowers thousands of dollars

Fall homebuyers are getting a bonus. The sell-off in the stock market is causing an unexpected turnaround in mortgage rates.

Mortgage rates fell throughout much of the summer but then made a sharp jump higher in September. Now rates are headed back down, along with the Dow Jones Industrial Average, which fell more than 800 points total on Tuesday and Wednesday, the two first days of October.

The average rate on the popular 30-year fixed mortgage was at 3.75% last Friday. By Thursday, it had dropped to 3.62%, according to Mortgage News Daily. This is an average for borrowers with solid credit scores and at least a 20% down payment.

More dramatic is the comparison with a year ago. Rates are now about 1.25 percentage point lower than they were at this time last year. For the average borrower taking out a $300,000 mortgage, that is a savings of about $225 on the monthly payment, or $2,700 per year. That is big savings for borrowers refinancing their loans, and it gives buyers significantly more purchasing power in an already pricey housing market.

Lower rates are already boosting sales for the nation’s homebuilders. Lennar posted higher-than-expected new orders in the third quarter as interest rates dropped.

“The market for new homes has been improving from last year’s pause, as lower interest rates have stimulated demand and improved affordability, while the overall fundamentals of the economy have remained strong,” Lennar Executive Chairman Stuart Miller said on a call with analysts.

He also said low rates outweighed concern over a potential recession.

“I know that there is a lot of question about upcoming potential recession and things like that. Our customers don’t seem to be viewing it that way, and I think that the housing market in general seems solid and strong and continuing to improve,” Miller added.

At an open house in Atlanta last weekend, buyers definitely had mortgage rates in mind. The home was listed at $215,000, just below the national median price. That made it ripe for both first-time buyers and investors.

“You can’t beat a good rate, especially with the speculating of a pending bubble burst. I think now is a good time to get in if you’re looking to purchase a property,” said Andrew Hughes, a real estate investor touring the home.

Nadia and Bryant Mormon want to stop wasting money on their rental and make a solid investment. They see an opportunity with low rates and a slight cooling in home price appreciation.

“If you’re waiting, waiting, oh this might happen, or that might happen, it would be a year, 2 years from now, and this beautiful home that’s at a very affordable price point now will be $300,000, and then it’s out of your budget,” said Bryant. “You can’t be paralyzed by what may happen and what may not happen.”

“You can’t be paralyzed by fear, that’s for sure,” added Nadia.

Home prices are still rising, but the gains have been cooling. More demand could reheat those gains again, especially given the low supply of homes for sale.

Mortgage applications to refinance a home loan jumped 14% last week, according to the Mortgage Bankers Association. That was before the move even lower this week. Most lenders recommend that if a borrower can lower their rate by at least 75 basis points, a refinance is probably worth the work and the fees.

Mortgage rates generally follow the yield on the 10-year Treasury, which is now the lowest in about a month. Friday’s monthly employment report could push it even lower or just the reverse, depending on what the report says about the strength of the economy.


Company: cnbc, Activity: cnbc, Date: 2019-10-03  Authors: diana olick, in dianaolick
Keywords: news, cnbc, companies, market, price, plunge, average, rate, mortgage, thousands, lower, low, happen, dollars, rates, borrowers, save, solid


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Weekly mortgage refinance applications rebound 14% on tiny rate dip

After a rough month for mortgage rates, borrowers saw a sign of hope and pounced: A small dip in the 30-year fixed rate lit a fire under refinances. That pushed total mortgage application volume up 8% for the week, according to the Mortgage Bankers Association’s seasonally adjusted index. The rate reversal was enough to push refinance volume 14% higher for the week and 133% higher from one year ago. Mortgage applications to purchase a home rose just 1% for the week but were 10% higher annually.


After a rough month for mortgage rates, borrowers saw a sign of hope and pounced: A small dip in the 30-year fixed rate lit a fire under refinances. That pushed total mortgage application volume up 8% for the week, according to the Mortgage Bankers Association’s seasonally adjusted index. The rate reversal was enough to push refinance volume 14% higher for the week and 133% higher from one year ago. Mortgage applications to purchase a home rose just 1% for the week but were 10% higher annually.
Weekly mortgage refinance applications rebound 14% on tiny rate dip Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-02  Authors: diana olick, in dianaolick
Keywords: news, cnbc, companies, rate, refinance, dip, applications, weekly, mortgage, higher, volume, tiny, week, market, lower, rates, rebound


Weekly mortgage refinance applications rebound 14% on tiny rate dip

After a rough month for mortgage rates, borrowers saw a sign of hope and pounced: A small dip in the 30-year fixed rate lit a fire under refinances.

That pushed total mortgage application volume up 8% for the week, according to the Mortgage Bankers Association’s seasonally adjusted index. Volume was 58% higher than a year ago, when refinances were incredibly weak.

After rising sharply over the previous two weeks, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) decreased to 3.99% from 4.02%, with points remaining at 0.38 (including the origination fee) for loans with a 20% down payment. The rate was 97 basis points lower than a year ago.

The rate reversal was enough to push refinance volume 14% higher for the week and 133% higher from one year ago. The gain may have been less about the tiny dip and more about borrowers seeing rates move higher in the previous weeks and worrying that they would miss out on the lowest rates. Lenders say they often see more refinance applications just as rates start to rise, because borrowers who had been waiting for rates to move even lower decide to get off the fence.

“Although refinance activity slowed in September compared to August, the months together were the strongest since October 2016. The slight changes in rates are still causing large swings in refinance volume, and we expect this sensitivity to persist,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting.

Mortgage applications to purchase a home rose just 1% for the week but were 10% higher annually. The fall housing market is benefiting from lower rates but suffering from a lack of homes for sale, especially at entry-level prices.

While the number of purchase applications was 10% higher annually, the dollar volume of those applications was nearly 17% higher, suggesting that the action in the purchase market is at a higher price than a year ago. Sales of homes priced at the lower end of the market fell in August compared with last year, according to the National Association of Realtors, but sales of homes priced above $500,000 saw big gains. There is simply more for sale in the move-up market than at the entry level, and buyers there are less sensitive to small changes in mortgage rates.

Mortgage rates started this week even lower, but that could change with the release of the all-important monthly employment report on Friday as well as other economic data in the days before then.


Company: cnbc, Activity: cnbc, Date: 2019-10-02  Authors: diana olick, in dianaolick
Keywords: news, cnbc, companies, rate, refinance, dip, applications, weekly, mortgage, higher, volume, tiny, week, market, lower, rates, rebound


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Lending to house flippers hits a 13-year high as prices and competition heat up

Home prices are high, there are very few distressed or foreclosed properties available to buy cheaply, and the competition among investors is fierce. So investors are more cash-strapped and have to use more financing to flip their homes. “We have been seeing a steady incline in total financed purchase dollar volume every quarter since about 2015 and now we are reaching pre-recession dollar volume highs,” said Todd Teta, chief product officer at ATTOM Data. “It’s always smarter to use a mortgage


Home prices are high, there are very few distressed or foreclosed properties available to buy cheaply, and the competition among investors is fierce. So investors are more cash-strapped and have to use more financing to flip their homes. “We have been seeing a steady incline in total financed purchase dollar volume every quarter since about 2015 and now we are reaching pre-recession dollar volume highs,” said Todd Teta, chief product officer at ATTOM Data. “It’s always smarter to use a mortgage
Lending to house flippers hits a 13-year high as prices and competition heat up Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-27  Authors: diana olick
Keywords: news, cnbc, companies, profit, prices, 13year, hits, volume, mortgage, homes, quarter, heat, motwani, flip, house, lending, flippers, high, dollar, investors, competition


Lending to house flippers hits a 13-year high as prices and competition heat up

It is getting much harder to profit on house flipping today. Home prices are high, there are very few distressed or foreclosed properties available to buy cheaply, and the competition among investors is fierce.

So investors are more cash-strapped and have to use more financing to flip their homes. The good news is, mortgage rates are historically low for bank lending, and private lenders are eager to invest their cash somewhere other than the volatile stock and bond markets.

As a result, the dollar volume of financed flip purchases in the second quarter of this year jumped 31% annually, from $6.4 billion to $8.4 billion, according to ATTOM Data Solutions.That is the highest level since the third quarter of 2006.

“We have been seeing a steady incline in total financed purchase dollar volume every quarter since about 2015 and now we are reaching pre-recession dollar volume highs,” said Todd Teta, chief product officer at ATTOM Data. “With profit margins dropping on home flips, an increase in financing could up the risk for investors who have to factor interest payments into their deals.”

Vipin Motwani is an investor with Iron Gate Development in the Washington, D.C. area. He expects to flip about 15 homes this year.

“It’s always smarter to use a mortgage because you get leverage, you can do many more deals, right?” said Motwani. “Also the banks have become a little bit more easy in lending on this flip business. It used to be a lot tougher.”


Company: cnbc, Activity: cnbc, Date: 2019-09-27  Authors: diana olick
Keywords: news, cnbc, companies, profit, prices, 13year, hits, volume, mortgage, homes, quarter, heat, motwani, flip, house, lending, flippers, high, dollar, investors, competition


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