Despite home improvement retailer shares rising to a record high, homebuilder stocks have fallen more than 20% on signs that some investors are too pessimistic and that high mortgage rates could derail new construction.
Homebuilders are driving into their peak season, with more than 75% of annual homebuilder returns historically generated in the November-to-January time frame due to growth in demand in advance of the upcoming spring selling season.
A flurry of economic data released Thursday pushed homebuilder stocks higher, while other mortgage firms suffered from the pains of rising rates and uncertainty about the Fed's commitment to quantitative easing.
It doesn't look good for homebuilders share prices in the near term. Recent action in the iShares Dow Jones US Home Construction fund indicates weakness in the sector and these stocks are starting to break down.
The CFPB left the grace period open-ended and most in the industry interpreted that to mean that it will last throughout the rest of 2015, at least. Unfortunately, as welcome as that grace period is, TRID remains a costly and complicated fix that has enormous implications for the whole industry..
“Bad letters damage the brand,” Katherine Porter says. “There’s a contagion effect of this. I think bad letters are unjust. They disproportionately harm the borrowers we need to help the most.” Read More
The answer may be found somewhere between commandeering the entire process and “throwing it over the fence.” For lenders, paying more attention to the source of the data and information used in finalizing settlement (title searching, valuation and the like) could hold the key. This means data reporting collected in a more robust, accurate and verifiable fashion. Read More