Mortgage applications in the United States have continued to increase. Last week, The Mortgage Bankers Association stated that their seasonally adjusted index of mortgage application activity jumped 0.4%, averaging 405.2 in the last week of January. Interest rates have also fallen with the 30-year mortgage averaging approximately 4.47%. Additionally, the MBA’s seasonally adjusted index of refinancing applications increased 2.9%. More here
Reverse mortgage endorsements have picked up speed this year according to Reverse Market Insight. Last month, reverse mortgage volume increased 19.8%, averaging 5,061 loans, the highest average seen since August 2013. According to data, reverse mortgage activity was significantly down in November and December, and many experts think the boost in endorsements could be due to the recent rule changes made to the program. The New England region saw a 59% increase and the Pacific/ Hawaii region experienced a 27% increase, the largest monthly endorsement volume gains in the nation. More here
Mortgage rates fell this week from last week as new housing data was revealed. The 30-year fixed-rate mortgage averaged approximately 4.23%, down 0.10% from the previous week. The 15-year fixed-rate mortgage averaged 3.33%, down from 3.4% that was reported last week. The vice president and chief economist at Freddie Mac, Frank Nothaft said, “mortgage rates fell further this week following the release of weaker housing data. The pending home sales index fell 8.7% in December to its lowest level since October 2011. Fixed residential investment negatively contributed to GDP in the fourth quarter for the first time since the third quarter of 2010.” Additionally, the 5-year and 1-year Treasury-indexed ARM also fell this week with an average 0.5 point. More here
Mortgages costs fell this week, and according to data from Fannie Mae, Freddie Mac, and Ginne Mae, it could be due to a recent increase in agency mortgage bonds last week. Experts say that bond values are ascending due to the falling long-term Treasury rates, helping the cost of mortgages to decline. Sterne Agee analyst, Henry Coffey said, “the expected gains in agency bond values and related boost in book values should show up in the March period if treasury rates remain low and bond values hold at current levels.” More here
House flipping jumped last year, averaging a 16% increase from 2012, and a significant 114% jump from 2011 according to RealtyTrac’s year-end 2013 Home Flipping Report. Last year 156,862 homes were purchased, flipped and sold within a six month time frame. Data shows that the average house flipping gross profit in 2013 was approximately $58,081, almost a $13,000 gain from 2012. Daren Blomquist, vice president of RealtyTrac said, “strong home price appreciation in many markets boosted profits for flippers in 2013 despite a shrinking inventory of lower-priced foreclosure homes to purchase. For the year, 21% of all properties flipped were purchased out of foreclosure, but that is down from 27% in 2012 and 32% in 2011.” More here
According to new data released by the National Reverse Mortgage Lenders Association and Riskspan, home equity among seniors has improved over the last few years, and hit a five-year high in the third quarter of last year. Total home equity among seniors jumped 3.4%, averaging $3.46 trillion and increasing 165.7 points on the NRMLA/Riskspan Reverse Mortgage Market Index, which measures home equity among individuals who qualify for reverse mortgages. Home values continue to increase throughout the U.S., with values up in 72% of the nation’s metropolitan statistical areas. More here
Foreclosure sales and short sales made up approximately 16.2% of residential sales in the United States last year, according to RealtyTrac’s 2013 U.S. Residential and Foreclosure Sales Report. That percentage is up 14.5% from 2012, and up 15.2% from what was reported in 2011. Foreclosure activity has been decreasing, falling to a seven-year low last year. Experts say that these sales are due to foreclosures during the recession that are just now getting off of the market. Daren Blomquist, RealtyTrac Vice President said, “it may surprise some to see distressed sales rising in 2013, given that new foreclosure activity dropped to a seven-year low, Why? Most of the increases in 2013 are recession-era foreclosures still in the system. Banks are repossessing more homes as higher prices are making it easier for them to sell, he says, but the recovery has strengthened most local markets enough to withstand blows from these nagging foreclosures.” More here
According to the 30th annual ARM Survey released by Freddie Mac, ARM initial-period rates have jumped from the previous year but are still considered historically low. Adjustable-rate mortgages have grown more popular as rates on 30-year fixed-rate mortgages have become higher. The Vice President of Freddie Mac, Frank Nothaft said, “homebuyers have preferred fixed-rate mortgages the past few years because of the low interest rates and the certainty of the monthly principal and interest payment.” More here
According to newly released data, U.S. home prices increased from November to December by 0.3% and 8.5% from one year prior. The average November home price was up approximately $18,000 from November 2012, averaging $232,000. The state of Florida led the U.S. in monthly home price increases while Las Vegas home prices jumped almost 24% from the end of 2012. Colorado and Texas also showed annual home price gains. Additionally, national U.S. home prices averaged 13.9%. More here
Previously owned home sales jumped last month for the first time in approximately five months, making 2013 the best year for home sales since 2006. Data suggests that the housing market is beginning to adjust to higher borrowing costs. According to the National Association of Realtors, purchases increased 1%, averaging a 4.87 million annual pace. Employment growth is also on the rise giving more buyers confidence to buy a home. More here
