Cramer says ‘the housing sector’s a disaster,’ knocks the Fed as ignoring the data

“The housing sector’s a disaster,” Cramer said on “Closing Bell.” “We’re building about half the houses we did when the country had half the people, and we still can’t sell them. Existing home sales also dropped the most in over two years as rising material costs crimped supply and rising mortgage rates deterred prospective buyers. The Fed’s interest rate hikes have contributed to the surge in mortgage rates, which in October jumped above 5 percent. And they’re unsophisticated, and they’re non-r


“The housing sector’s a disaster,” Cramer said on “Closing Bell.” “We’re building about half the houses we did when the country had half the people, and we still can’t sell them. Existing home sales also dropped the most in over two years as rising material costs crimped supply and rising mortgage rates deterred prospective buyers. The Fed’s interest rate hikes have contributed to the surge in mortgage rates, which in October jumped above 5 percent. And they’re unsophisticated, and they’re non-r
Cramer says ‘the housing sector’s a disaster,’ knocks the Fed as ignoring the data Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-16  Authors: elizabeth gurdus
Keywords: news, cnbc, companies, data, housing, knocks, fed, cramer, rigor, rates, disaster, ignoring, rising, mortgage, rate, sectors, sell, theyre


Cramer says 'the housing sector's a disaster,' knocks the Fed as ignoring the data

The U.S. housing sector is falling apart, and the Federal Reserve is all but ignoring the damage as it prepares for what many expect to be three rate hikes in 2019, CNBC’s Jim Cramer warned Friday.

“The housing sector’s a disaster,” Cramer said on “Closing Bell.” “We’re building about half the houses we did when the country had half the people, and we still can’t sell them. KB Home does a huge amount of housing in California. They can’t sell them.”

U.S. homebuilding fell more drastically than expected in September, according to the Commerce Department. Housing starts dropped 5.3 percent after rising slightly in August. Existing home sales also dropped the most in over two years as rising material costs crimped supply and rising mortgage rates deterred prospective buyers.

The Fed’s interest rate hikes have contributed to the surge in mortgage rates, which in October jumped above 5 percent. The central bank has said it plans to hike rates in December of this year — a move Cramer supports — and three more times in 2019.

“I favor a rate hike, and then I’d like to wait. In what world is that irrational?” Cramer said Friday. “Affordability’s gotten out of control. [The Fed members] know that. We have affordability data. But they don’t want to focus on the things they should.”

That lack of rigor is leading the Fed to make decisions that are “not safe” and “irresponsible” when it comes to the U.S. economy, the “Mad Money” host said, echoing his earlier point that the Fed needs to do more homework.

“We shouldn’t look upon them as if they have great information. They had such bad information in 2007,” Cramer said. “They have this judgment that the economy’s great. It’s an irresponsible, non-empirical judgment. It’s anecdotal. It has not a lot of homework. And I favor rigor. I think rigor is what matters, sophistication and rigor. And they’re unsophisticated, and they’re non-rigorous, and I would rip up their homework and tell them to go home.”


Company: cnbc, Activity: cnbc, Date: 2018-11-16  Authors: elizabeth gurdus
Keywords: news, cnbc, companies, data, housing, knocks, fed, cramer, rigor, rates, disaster, ignoring, rising, mortgage, rate, sectors, sell, theyre


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Weekly mortgage applications drop 3.2%, hit by tanking stocks and rising rates

That may be part of why potential buyers pulled back last week, worried about rising interest rates and about what was behind big daily drops in the U.S. stock market. Mortgage application volume fell 3.2 percent last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. “Both home purchase and mortgage refinance applications decreased over the week, driven largely by declines in conventional applications.” While tight supply of homes fo


That may be part of why potential buyers pulled back last week, worried about rising interest rates and about what was behind big daily drops in the U.S. stock market. Mortgage application volume fell 3.2 percent last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. “Both home purchase and mortgage refinance applications decreased over the week, driven largely by declines in conventional applications.” While tight supply of homes fo
Weekly mortgage applications drop 3.2%, hit by tanking stocks and rising rates Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-14  Authors: diana olick, mike kane, bloomberg, getty images
Keywords: news, cnbc, companies, rising, interest, week, drop, compared, purchase, applications, volume, weekly, tanking, rate, 32, rates, lower, hit, stocks, mortgage, refinance


Weekly mortgage applications drop 3.2%, hit by tanking stocks and rising rates

Buying a home is generally a person’s single largest investment, and it is therefore an incredibly emotional decision. That may be part of why potential buyers pulled back last week, worried about rising interest rates and about what was behind big daily drops in the U.S. stock market.

Mortgage application volume fell 3.2 percent last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Volume was 22 percent lower compared with the same week one year ago.

“Recent volatility in the financial markets and increasing rates continue to adversely impact mortgage application activity, even as the general economic outlook remains positive,” said Joel Kan, an MBA economist. “Both home purchase and mortgage refinance applications decreased over the week, driven largely by declines in conventional applications.”

Mortgage applications to purchase a home fell 2.3 percent for the week to the lowest level since February 2017. Purchase volume was 3 percent lower compared with a year ago. While tight supply of homes for sale had been plaguing buyers for much of this year, listings are increasing, but so are prices and interest rates, weakening affordability.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) increased to 5.17 percent from 5.15 percent, with points increasing to 0.55 from 0.51 (including the origination fee) for loans with 20 percent down payments. That is the highest level since 2010.

Applications to refinance a home loan, which are highly rate sensitive, fell 4.3 percent for the week and were 40 percent lower compared with a year ago — the lowest level in nearly 18 years. While homeowners now have more collective home equity than they ever have in history, thanks to higher home values, fewer are willing to tap that equity through a refinance, because it would require giving up their rock-bottom interest rate. Since rates sat so low for so long, there is a shrinking pool of borrowers who could now benefit from a refinance, cash-out or not.

Mortgage rates have not moved so far this week, as the bond market, which rates follow, was closed Monday for the Veteran’s Day holiday. New economic data Wednesday on inflation and consumer prices could change that.

“If inflation comes in much stronger than expected, it should put noticeable upward pressure on rates,” said Matthew Graham, chief operating officer of Mortgage News Daily. “Conversely, weaker inflation could help the recent trend of improvement continue, unless the stock market is staging a huge comeback for an unrelated reason.”


Company: cnbc, Activity: cnbc, Date: 2018-11-14  Authors: diana olick, mike kane, bloomberg, getty images
Keywords: news, cnbc, companies, rising, interest, week, drop, compared, purchase, applications, volume, weekly, tanking, rate, 32, rates, lower, hit, stocks, mortgage, refinance


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Here’s a temperature for the current mortgage rate environment


Here’s a temperature for the current mortgage rate environment Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-14
Keywords: news, cnbc, companies, heres, rate, current, temperature, environment, mortgage


Here's a temperature for the current mortgage rate environment


Company: cnbc, Activity: cnbc, Date: 2018-11-14
Keywords: news, cnbc, companies, heres, rate, current, temperature, environment, mortgage


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US sues UBS over alleged crisis-era mortgage securities fraud

The U.S. government on Thursday filed a civil fraud lawsuit accusing UBS Group, Switzerland’s largest bank, of defrauding investors in its sale of residential mortgage-backed securities leading up to the 2008-2009 global financial crisis. While UBS was not a big originator of U.S. residential home loans, U.S. Attorney Richard Donoghue in Brooklyn said investors suffered “catastrophic losses” from the bank’s failure to fully disclose the risks of mortgage securities it helped sell. A UBS spokesma


The U.S. government on Thursday filed a civil fraud lawsuit accusing UBS Group, Switzerland’s largest bank, of defrauding investors in its sale of residential mortgage-backed securities leading up to the 2008-2009 global financial crisis. While UBS was not a big originator of U.S. residential home loans, U.S. Attorney Richard Donoghue in Brooklyn said investors suffered “catastrophic losses” from the bank’s failure to fully disclose the risks of mortgage securities it helped sell. A UBS spokesma
US sues UBS over alleged crisis-era mortgage securities fraud Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-09  Authors: fabrice coffrini, afp, getty images
Keywords: news, cnbc, companies, investors, sues, crisisera, lawsuit, securities, alleged, mortgage, loans, sale, bank, talks, ubs, fraud, residential


US sues UBS over alleged crisis-era mortgage securities fraud

The U.S. government on Thursday filed a civil fraud lawsuit accusing UBS Group, Switzerland’s largest bank, of defrauding investors in its sale of residential mortgage-backed securities leading up to the 2008-2009 global financial crisis.

UBS was accused of misleading investors about the quality of more than $41 billion of subprime and other risky mortgage loans backing 40 securities offerings in 2006 and 2007, the Department of Justice said in a complaint filed with the federal court in Brooklyn.

The lawsuit came after UBS rejected a government proposal that it pay nearly $2 billion to settle, according to a person familiar with the talks who was not authorized to speak publicly about them.

While UBS was not a big originator of U.S. residential home loans, U.S. Attorney Richard Donoghue in Brooklyn said investors suffered “catastrophic losses” from the bank’s failure to fully disclose the risks of mortgage securities it helped sell.

A UBS spokesman and a Justice Department spokeswoman declined to comment on the settlement talks, but the bank said it will fight the lawsuit.

“The DOJ’s claims are not supported by the facts or the law,” it said in a statement. “UBS is confident in its legal position and has been fully prepared for some time to defend itself in court.”

U.S. officials are seeking unspecified fines against UBS under a federal law allowing it to pursue penalties up to the amounts the bank gained or others lost from alleged misconduct.

The case is one of the last addressing alleged misconduct in the pooling and sale by large banks of mortgage securities that were a major cause of the financial crisis.

Bank of America, Barclays, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, JPMorgan Chase, Morgan Stanley and Royal Bank of Scotland previously settled.


Company: cnbc, Activity: cnbc, Date: 2018-11-09  Authors: fabrice coffrini, afp, getty images
Keywords: news, cnbc, companies, investors, sues, crisisera, lawsuit, securities, alleged, mortgage, loans, sale, bank, talks, ubs, fraud, residential


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UBS expects to be sued by US Justice Department over crisis-era mortgage securities

The U.S. Department of Justice did not immediately respond to a request for comment. UBS said it had been advised by the Justice Department that the law enforcement agency intends to file the civil complaint. It anticipates the Justice Department will seek unspecified monetary penalties regarding the mortgage securities, which date back to 2006 and 2007. The lawsuit would be among the last actions over misconduct in the sale and pooling of mortgage securities which helped to cause the financial


The U.S. Department of Justice did not immediately respond to a request for comment. UBS said it had been advised by the Justice Department that the law enforcement agency intends to file the civil complaint. It anticipates the Justice Department will seek unspecified monetary penalties regarding the mortgage securities, which date back to 2006 and 2007. The lawsuit would be among the last actions over misconduct in the sale and pooling of mortgage securities which helped to cause the financial
UBS expects to be sued by US Justice Department over crisis-era mortgage securities Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-08  Authors: fabrice coffrini, afp, getty images
Keywords: news, cnbc, companies, justice, sued, group, expects, sale, sought, bank, ubs, law, mortgage, department, crisisera, settled, securities


UBS expects to be sued by US Justice Department over crisis-era mortgage securities

UBS Group, Switzerland’s largest bank, said it expects to be sued by the U.S. Department of Justice as early as Thursday on civil charges related to the sale of mortgage-backed securities in the run-up to the 2008-2009 financial crisis, according to a company statement.

The bank said the claims were not supported by the facts or the law and it would contest any such complaint “vigorously.”

The U.S. Department of Justice did not immediately respond to a request for comment.

UBS said it had been advised by the Justice Department that the law enforcement agency intends to file the civil complaint.

It anticipates the Justice Department will seek unspecified monetary penalties regarding the mortgage securities, which date back to 2006 and 2007.

The lawsuit would be among the last actions over misconduct in the sale and pooling of mortgage securities which helped to cause the financial crisis.

The Department of Justice has settled similar claims with Citigroup, Deutsche Bank, JPMorgan Chase, Credit Suisse Group, Morgan Stanley, Goldman Sachs, Bank of America and Barclays.

Barclays settled for $2 billion in March after resisting a penalty the U.S. government sought near the end of the Obama administration in 2016. Justice had sought a much higher fine at the time and, when the two sides could not come to terms, the department filed a lawsuit.

More recently, HSBC Holdings agreed to pay $765 million last month to settle with the Justice Department over its sale of defective mortgage securities before the crisis, while major player Royal Bank of Scotland Group reached a $4.9 billion deal in May.


Company: cnbc, Activity: cnbc, Date: 2018-11-08  Authors: fabrice coffrini, afp, getty images
Keywords: news, cnbc, companies, justice, sued, group, expects, sale, sought, bank, ubs, law, mortgage, department, crisisera, settled, securities


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This couple paid $100,000 of their mortgage with a credit card and earned $2,000 in rewards

Holly Johnson and her husband Greg, founders of the blog Club Thrifty, took their children on a Mediterranean cruise funded, in part, with credit card points earned by paying off their home. “Instead of funneling cash via paper checks or online banking, we charged our mortgage payments to a credit card,” Johnson writes in GOBankingRates. And they didn’t have to pay any fees or interest on the card, either. Then, by using their card to pay for a portion of what it cost to build a new patio and fa


Holly Johnson and her husband Greg, founders of the blog Club Thrifty, took their children on a Mediterranean cruise funded, in part, with credit card points earned by paying off their home. “Instead of funneling cash via paper checks or online banking, we charged our mortgage payments to a credit card,” Johnson writes in GOBankingRates. And they didn’t have to pay any fees or interest on the card, either. Then, by using their card to pay for a portion of what it cost to build a new patio and fa
This couple paid $100,000 of their mortgage with a credit card and earned $2,000 in rewards Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-08  Authors: yoni blumberg, source, club thrifty
Keywords: news, cnbc, companies, earned, pay, writes, mortgage, paying, couple, card, 2000, credit, 100000, worth, johnson, points, rewards, able, paid


This couple paid $100,000 of their mortgage with a credit card and earned $2,000 in rewards

Holly Johnson and her husband Greg, founders of the blog Club Thrifty, took their children on a Mediterranean cruise funded, in part, with credit card points earned by paying off their home.

“Instead of funneling cash via paper checks or online banking, we charged our mortgage payments to a credit card,” Johnson writes in GOBankingRates. And they didn’t have to pay any fees or interest on the card, either.

By paying off the final $100,000 on their house in Noblesville, Indiana, with their Barclaycard Arrival Plus World Elite Mastercard, they were able to earn 200,000 points, which were worth $2,000 when used on travel. Then, by using their card to pay for a portion of what it cost to build a new patio and family room, they earned even more points.

The average cardholder would have a hard time doing exactly what they did. The Johnsons were able to make use of advantages that aren’t available to everyone.

Still, thanks to their creativity, the renovated home is now worth $250,000-$300,000 and they own it free and clear.


Company: cnbc, Activity: cnbc, Date: 2018-11-08  Authors: yoni blumberg, source, club thrifty
Keywords: news, cnbc, companies, earned, pay, writes, mortgage, paying, couple, card, 2000, credit, 100000, worth, johnson, points, rewards, able, paid


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Manafort was in default on Trump Tower condo when he forfeited it

Ex-Trump campaign chief Paul Manafort was in default on a multimillion-dollar mortgage for his Trump Tower condo at the time he forfeited that property to the U.S. government as part of his guilty plea, lawyers for Manafort’s lender said in court papers. If UBS prevails in its request, the government could be forced to give the bank its share of the proceeds of any sale of the Trump Tower property. UBS did not say in its filing when Manafort fell into default on the mortgage or how much the cond


Ex-Trump campaign chief Paul Manafort was in default on a multimillion-dollar mortgage for his Trump Tower condo at the time he forfeited that property to the U.S. government as part of his guilty plea, lawyers for Manafort’s lender said in court papers. If UBS prevails in its request, the government could be forced to give the bank its share of the proceeds of any sale of the Trump Tower property. UBS did not say in its filing when Manafort fell into default on the mortgage or how much the cond
Manafort was in default on Trump Tower condo when he forfeited it Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-08  Authors: dan mangan, yuri gripas
Keywords: news, cnbc, companies, tower, default, mortgage, court, ubs, filing, forfeited, trump, bank, manafort, manaforts, interest, property, condo


Manafort was in default on Trump Tower condo when he forfeited it

Ex-Trump campaign chief Paul Manafort was in default on a multimillion-dollar mortgage for his Trump Tower condo at the time he forfeited that property to the U.S. government as part of his guilty plea, lawyers for Manafort’s lender said in court papers.

And now the lender, UBS Bank, is asking a federal judge for a hearing to recognize and adjudicate that bank’s interest in Manafort’s condo in the landmark building owned by President Donald Trump on Fifth Avenue in New York, according to a filing in U.S. District Court in Washington, D.C.

UBS, which said Manafort owes about $3,110,000 on the mortgage, claims to have a “vested or superior interest in the Property,” the court filing said. The bank said the U.S. government notified the bank on Oct. 11 that the judge in Manafort’s case had signed off on the forfeiture of the property the day before.

On Thursday, the judge, Amy Berman Jackson, told prosecutors in special counsel Robert Mueller’s office to answer the bank’s filing by Nov. 21.

If UBS prevails in its request, the government could be forced to give the bank its share of the proceeds of any sale of the Trump Tower property.

UBS did not say in its filing when Manafort fell into default on the mortgage or how much the condo is believed to currently be worth.

A spokesman for Mueller declined to comment, as did Manafort’s spokesman, Jason Maloni. Lawyers for UBS and Manafort did not immediately respond to a request for comment.

Manafort, 69, pleaded guilty on Sept. 14 in Washington court to conspiracy charges related to income he earned from consulting work on behalf of pro-Russia politicians in Ukraine.

The plea came a month after he was convicted at trial in a related case in Virginia federal court. Both cases were being prosecuted by Mueller’s office.

As part of his guilty plea, made right before he was due to face a second trial in Washington, Manafort agreed to forfeit an estimated $46 million worth of assets and cash.

The assets Manafort originally agreed to surrender included his home in Arlington, Virginia; a condo in lower Manhattan; a townhouse in Brooklyn, New York; and a house in the Hamptons section of Long Island, New York, as well as four bank accounts.

Manafort soon afterward told prosecutors he would give up another lower Manhattan property instead of his Virginia home. And he said he would give up his Trump Tower condo instead of one of the bank accounts.

In its court filing, UBS said it holds a mortgage for the Trump Tower property that Manafort and his wife, Kathleen, granted in April 2015.

The mortgage was granted in exchange for a variable-interest, 25-year loan in the original amount of $3 million, according to the bank. Manafort and his wife originally were paying an interest rate of just 2.055 percent per year.

Under the terms of the loan, the Manaforts were only obligated to pay interest — and not any principal — until April 2025. After that, the couple is required to pay principal and interest on the loan through May 2040.

“The Mortgage and Note are in default,” UBS said in its filing. The bank said that in addition to the principal balance of $3 million, the Manaforts owe interest in the amount of $108,437.49, late fees of $4,848.75, other fees totaling $995, as well as unspecified attorneys’ fees.

As of this month, the interest rate on the note is 4.125 percent, or daily interest of $343.75.


Company: cnbc, Activity: cnbc, Date: 2018-11-08  Authors: dan mangan, yuri gripas
Keywords: news, cnbc, companies, tower, default, mortgage, court, ubs, filing, forfeited, trump, bank, manafort, manaforts, interest, property, condo


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Zillow sheds as much as a quarter of its market value as rising interest rates weigh on home sales

Earlier this year, Zillow launched a new strategy of buying and selling homes directly to users, expanding its offerings beyond real estate brokers. The company in August bought a mortgage lender to assist with sales. But the company’s core agent-backed services rang in below revenue estimates amid rising interest rates, a stalling housing market and tweaks to the company’s Premier Agent business that pairs brokers with real estate leads. Zillow plans to adjust the new system, but risks to the b


Earlier this year, Zillow launched a new strategy of buying and selling homes directly to users, expanding its offerings beyond real estate brokers. The company in August bought a mortgage lender to assist with sales. But the company’s core agent-backed services rang in below revenue estimates amid rising interest rates, a stalling housing market and tweaks to the company’s Premier Agent business that pairs brokers with real estate leads. Zillow plans to adjust the new system, but risks to the b
Zillow sheds as much as a quarter of its market value as rising interest rates weigh on home sales Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-07  Authors: sara salinas, david a grogan
Keywords: news, cnbc, companies, revenue, najarian, housing, sheds, weigh, rates, company, mortgage, zillow, market, interest, rising, premier, value, sales, quarter, real


Zillow sheds as much as a quarter of its market value as rising interest rates weigh on home sales

Earlier this year, Zillow launched a new strategy of buying and selling homes directly to users, expanding its offerings beyond real estate brokers. The company in August bought a mortgage lender to assist with sales.

The new business segment appears to be taking off, posting quarterly revenue of $11 billion, compared with company expectations of between $2 billion and $7 billion.

But the company’s core agent-backed services rang in below revenue estimates amid rising interest rates, a stalling housing market and tweaks to the company’s Premier Agent business that pairs brokers with real estate leads.

“The negative feedback received over the past several months has been far greater than the company had anticipated. Management found many Premier Agents were displeased with the lower lead volume, despite leads being higher quality,” analysts for Stifel wrote in a note.

Zillow plans to adjust the new system, but risks to the broader housing market could still weigh on transaction leads.

Last week, total mortgage applications dropped to a 4-year low, according to the Mortgage Bankers Association’s seasonally adjusted index, as the average contract interest rate hit an 8-year high.

“People aren’t shopping for homes because they become less affordable as rates rise,” trader Jon Najarian, of the Najarian Family Office, told CNBC on Wednesday. “What [the Federal Reserve and Chairman Jerome Powell] meant to do, slowing down the growth of the economy, they have accomplished. And now if they keep basically putting their foot on the brake, they’re going to hurt it.”

— CNBC’s Michael Sheetz and Diana Olick contributed to this report.


Company: cnbc, Activity: cnbc, Date: 2018-11-07  Authors: sara salinas, david a grogan
Keywords: news, cnbc, companies, revenue, najarian, housing, sheds, weigh, rates, company, mortgage, zillow, market, interest, rising, premier, value, sales, quarter, real


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Housing sentiment falls to lowest in a year: Fannie Mae

Housing sentiment fell to its lowest level in a year in October, according to a monthly survey by Fannie Mae. The data are a sharp turnaround from last spring, when confidence in the U.S. housing market was soaring, mortgage rates were relatively low and the economy was flying high. Housing sentiment has been falling for the past several months, despite the fact that more consumers think the economy is on the right track. Fewer people now believe mortgage rates will fall back to recent lows. Add


Housing sentiment fell to its lowest level in a year in October, according to a monthly survey by Fannie Mae. The data are a sharp turnaround from last spring, when confidence in the U.S. housing market was soaring, mortgage rates were relatively low and the economy was flying high. Housing sentiment has been falling for the past several months, despite the fact that more consumers think the economy is on the right track. Fewer people now believe mortgage rates will fall back to recent lows. Add
Housing sentiment falls to lowest in a year: Fannie Mae Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-07  Authors: diana olick, kate sprague
Keywords: news, cnbc, companies, economy, sentiment, rates, housing, fannie, mortgage, mae, survey, rise, surveys, week, falls, lowest, investment


Housing sentiment falls to lowest in a year: Fannie Mae

What a difference a few seasons make.

Housing sentiment fell to its lowest level in a year in October, according to a monthly survey by Fannie Mae. Consumer attitudes toward both buying and selling homes dropped, with the former falling the most of all the six survey components — a sizable 5 percentage points. That tied the survey’s second lowest reading in its history.

The data are a sharp turnaround from last spring, when confidence in the U.S. housing market was soaring, mortgage rates were relatively low and the economy was flying high.

Fewer consumers now expect home prices to rise, echoing other surveys that have shown a drop in the number of people who think owning a home is currently a good investment. Home prices are still gaining, but those increases have been shrinking each month: They’ve fallen below 6 percent annually for the first time in a year, according to the much-watched S&P CoreLogic Case-Shiller home price index.

Housing sentiment has been falling for the past several months, despite the fact that more consumers think the economy is on the right track. That component of the survey reached a new high.

“The contrast between the survey’s findings of weak homebuying sentiment and overall economic optimism mirrors what we’re seeing in the broader economy,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “While economic growth posted the fastest back-to-back pace in four years in the third quarter, residential investment declined for the third consecutive quarter, a first for the current expansion.”

Fewer people now believe mortgage rates will fall back to recent lows. In fact, rates have continued to rise over the last week, putting pressure on mortgage application volume.

Last week it fell to the lowest level in four years, as rates hit an eight-year high. Not only are potential buyers faced with weakening affordability, but there are still very few entry-level homes for sale. While supplies are finally rising for the first time in more than a year, they are coming off near-record lows, so there is still not a lot to choose from.

Adding insult to the supply injury, as mortgage rates rise, fewer homeowners may want to list their properties for sale.

“Who wants to give up a mortgage with a 3 handle on it?,” said Peter Boockvar, chief investment officer at Bleakley Advisory Group, as he referenced interest rates at or near 3 percent.

WATCH: Renting vs. buying a home – here are the numbers you need to decide


Company: cnbc, Activity: cnbc, Date: 2018-11-07  Authors: diana olick, kate sprague
Keywords: news, cnbc, companies, economy, sentiment, rates, housing, fannie, mortgage, mae, survey, rise, surveys, week, falls, lowest, investment


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Buying a house can send your credit score down. Here’s how long it takes to recover

The way a mortgage affects your credit score is like a kick in the shin. You make sure your score is good enough to qualify for a home loan, and then the purchase pushes your number down. That drop averages 15 points, although some consumers can see their score slide by as much as 40 points, according to a new study by LendingTree. “If you have high utilization on credit cards or other credit lines, and then take a relatively large mortgage relative to your income and credit history, you can hav


The way a mortgage affects your credit score is like a kick in the shin. You make sure your score is good enough to qualify for a home loan, and then the purchase pushes your number down. That drop averages 15 points, although some consumers can see their score slide by as much as 40 points, according to a new study by LendingTree. “If you have high utilization on credit cards or other credit lines, and then take a relatively large mortgage relative to your income and credit history, you can hav
Buying a house can send your credit score down. Here’s how long it takes to recover Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-06  Authors: sarah obrien, gary burchell, getty images
Keywords: news, cnbc, companies, house, way, long, send, recover, points, study, score, heres, buying, tendayi, takes, utilization, credit, mortgage, slide, sure


Buying a house can send your credit score down. Here's how long it takes to recover

The way a mortgage affects your credit score is like a kick in the shin.

You make sure your score is good enough to qualify for a home loan, and then the purchase pushes your number down. That drop averages 15 points, although some consumers can see their score slide by as much as 40 points, according to a new study by LendingTree.

“If you have high utilization on credit cards or other credit lines, and then take a relatively large mortgage relative to your income and credit history, you can have a bigger decline,” said Tendayi Kapfidze, chief economist for LendingTree.


Company: cnbc, Activity: cnbc, Date: 2018-11-06  Authors: sarah obrien, gary burchell, getty images
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