Mortgage applications have increased according to the Mortgage Bankers Association’s weekly report while mortgage rates continue to fall. The (MBA) stated that the seasonally adjusted composite index increased 4.7%, and the seasonally adjusted purchase index grew by 4.00% from last week. The average 30-year fixed rate mortgage fell to the lowest rate seen since November of last year, averaging 4.58% while the 15-year fixed-rate mortgage also decreased 0.4%, averaging 3.68%. Experts suggest that the growth in mortgage applications and decrease in rates could be an indicator for a strong spring housing market. More here

New research shows that single-family housing may be decreasing while the rental market continues to grow. Many reports in the U.S. have shown that the rental market is increasing. A large amount of investors are betting on multifamily housing as many younger adults are choosing to rent due to job constraints and other financial factors. Chris Flanagan, MBS/ABS Strategist with Bank of America-Merrill Lynch and MBS Strategist Justin Borst said in their Securitization Weekly Overview, “the December housing starts report provided some confirmation of the theme we discussed last week, which was that it appears as if a structural shift away from getting a mortgage and buying a single-family home to just being a renter is underway.” More here

In the past, reverse mortgages may not have been considered a good idea by many, but as the program grows and continues to improve, the option of a reverse mortgage is becoming more appealing. Amy Hoak, a MarketWatch columnist said, “as people live longer due to medical advances, more of them may need to get at their home equity to pay for their medical costs. Also relevant is that many Americans near retirement age have a considerable amount of wealth in housing equity; 25% of all wealth was held in the form of home equity in 2011, according to the U.S. Census Bureau.”  The program has helped many struggling seniors stay in their homes through financial hardship. Experts advise that all seniors who are considering a reverse mortgage be educated on the program. More here

According to RealtyTrac, foreclosures in the U.S. last year fell 26% from 2012. 2013 saw the lowest level of foreclosures in six years. The total number of foreclosures, scheduled auctions, notices of default and bank repossessions fell to 1.36 million last year, helping the national foreclosure rate decrease to approximately 1.04%. The vice president at RealtyTrac, Daren Blomquist said, “millions of homeowners are still living in the shadow of the massive foreclosure crisis, but the shadow cast by the foreclosure crisis is shrinking as fewer distressed properties enter foreclosure and properties already in foreclosure are poised to exit in greater numbers in 2014.” More here

New research reports that the United States economy is continuing to shape up, and experts expect brighter days to come. Private-sector employment has increased by 200,000 for the last 3 consecutive months, and the trade deficit has decreased to levels that have not been experienced in approximately four years. The chief investment officer at Morgan Stanley’s wealth management arm, Michael Wilson said, “growth appears to be accelerating, we are now five years into the recovery from the financial crisis and the economy may finally be achieving some self-sustaining momentum.” More here

Jumbo loans, loans that exceed $417,000, are on the rise as significant changes have been introduced. The new rules contain both negative and positive aspects, according to many experts. Changes to the program are expected to make credit access more expensive for jumbo borrowers. Experts also suggest that jumbo loan rates will not increase as fast as other home loans, and down payments will be more affordable than in the past. More here

Experts have named 2014 the year of the boomerang buyer. Revised guidelines and updates have made room for many former homebuyers, some of whom foreclosed as recently as one year ago, to be able to buy again. In the past, the wait-period to buy after foreclosure was seven years. Many experts expect the change to help accelerate the housing market and help homeowners previously foreclosed upon once again attain home ownership. More here

Experts largely agree that the recent changes made to the Federal Housing Administration-insured reverse mortgage program should be considered positive for those considering, or about to enter into the HECM process. The modifications made to the program will help protect both the federal government and borrowers, and should also offer a better experience for consumers. Experts have suggested that the HECM changes were necessary to address retirees’ growing needs. Many say that the updates will aid in borrowers feeling better prepared and safer in the face of possible future financial hardships. More here

New data from Freddie Mac states that mortgage rates stayed around the same this week. The 30-year, fixed-rate mortgage for last week averaged 4.51%, up from 3.40% last year, and down 0.2% from the week prior, while the average 15-year, fixed-rate mortgage came in at 3.56% up 0.1% from last week. The chief economist and vice president of Freddie Mac, Frank Nothaft said, “mortgage rates were little changed amid a week of light economic reports.” Additionally, job reports showed a slight improvement, growing by 238,000 from November to December, up from 229,000 in November. More here