Digital mortgages aren’t new – and in light of recent events, demand is higher than ever. Technology and regulatory changes are removing adoption barriers and enabling new entrants into the market. In today’s virtual world, we are leveraging technology to move faster, become more productive, and stay connected. In the current climate amidst COVID-19, weRead more
New home sales rallied again in July, rising 13.9% to an annual rate of 901k, after substantial gains of 15.1% and 20.5% in June and May. New home sales are mow at their highest since 2006, supported by pent-up demand and rock bottom rates. The current sales pace is 36.3% above the July 2019 annualizedRead more
Existing home sales surged 24.7% higher in July to an annual rate of 5.86 million, well above expectations for an annual rate of 5.40 million. The sizable gain in July follows a huge gain of 20.2% in June; existing home sales are now up 8.7% over last year and hitting their highest level since lateRead more
At the time of writing this article, 4.1 million homeowners had requested a forbearance plan from their mortgage loan servicer. Under the Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act, homeowners can suspend their mortgage payments if they have a federally backed mortgage. Forbearance does not erase what the borrowerRead more
MONDAY, July 27th The S&P CoreLogic Case-Shiller 20-city home price index rose 3.7% year-over-year in May, down from a 3.9% annual gain in the previous month. Phoenix, Seattle and Tampa reported the highest year-over-year gain in among the 19 cities (excluding Detroit). Phoenix led the way with an 9.0% annual gain, followed by Seattle withRead more
The Mortgage Bankers Association (MBA) Builder Application Survey (BAS) data for June 2020 shows mortgage applications for new home purchases increased 54.1% compared from a year ago. Compared to May 2020, applications increased by 20%. This change does not include any adjustment for typical seasonal patterns. “The new home purchase market continues to recover –Read more
The depth and duration of the pandemic is unknown. While some economies overseas are already recovering, the contours of the recovery vary by country, which makes forecasts of economic activity much more uncertain than usual. We assume that most of the economic damage from the virus is contained to the first half of the year.Read more
Existing home sale plunged 17.8% in April to an annual rate of 4.33 million, roughly matching expectations for an annual rate of 4.325 million. The decline last month follows a sharp drop of 8.5% in March and an annual rate of 5.27 million. Sales are trending much lower because of pandemic restrictions and are nowRead more
The Federal Reserve’s efforts to stabilize the agency MBS market have been critically important. In its absence, mortgages would have been much more costly, perhaps unavailable altogether. However, given the scale of the intervention, it caused some unavoidable dislocation. On March 12 and 13, a Thursday and Friday, the mortgage-treasury spread widened to approximately 160Read more
It’s important to not lose perspective as we navigate these uncertain times together. Clearly, many of us feel unease as to what the future holds when it comes to our future economic outlook. Instead of feeling like we cannot control what happens to us during these uncertain times, it is crucial that we remember whatRead more