Articles Tagged with ''home sales''

MBA lowers rate forecast and boosts lending outlook

Mortgage Bankers group predicts mortgage originations will gain 15% from last year
Mortgage Bankers Association issued a new forecast that predicts the U.S. rate for a 30-year fixed mortgage will average 3.7% in the third and fourth quarters of 2019, down from the 3.9% the group predicted for the same periods a month ago. Lower mortgage rates will boost loan originations 15% compared to last year, according to the forecast issued on Friday.
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July’s home sales ends a nine-month climb of annual inventory growth

Home sales grew 2.4% in July, while inventory fell 1.4%
In July, home sales grew 2.4%, effectively ending a nine month climb of year-over-year inventory growth, according to the RE/MAX National Housing Report. RE/MAX said the number of homes for sale fell 1.4% from 2018's level and 0.2% from the previous month. RE/MAX CEO Adam Contos said July sales snapped back after a tepid June as attractive low interest rates brought more buyers into the mix.
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Fannie Mae lowers existing home forecast, says sales will decline this year

Mortgage giant blames limited supply as builders stay on the sidelines
Fannie Mae lowered its housing forecast on Friday, saying existing home sales will decrease this year compared with 2018. It was the first time the mortgage giant projected a 2019 decline. The projection comes at a time when mortgage rates are near three-year lows and housing optimism is at an all-time high. But, there’s something that trumps low rates and elevated optimism, the mortgage giant said: Supply shortage.
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NAR: Cheap mortgage rates are improving home affordability

Affordability jumped 10% in June from a year earlier as financing costs fell
The cheapest financing in almost three years is making it easier for Americans to buy homes. The Housing Affordability Index from the National Association of Realtors increased to 151.9 in June from 137.7 a year earlier in June. That’s a jump of 10%. A higher reading means homes are getting more affordable, per NAR’s magic sauce that measures prices, incomes and financing costs.
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Real estate startup Flyhomes secures $141 million and promises to buy your house

Proptech company offers "Trade Up" guarantee with Goldman Sachs-backed funding
Flyhomes, the four-year-old startup that lets people make cash offer on homes while they work to secure a mortgage, announced a new round of funding and a new service for buyers on Thursday. The Seattle-based company said it raised $141 million in debt and equity that it’ll use, in part, to grow a new part of its business that targets trade-up buyers. Some of the funding comes from Goldman Sachs’ Genesis Capital.
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Manhattan apartment rents rise as New Yorkers delay home purchases

New purchase taxes has buyers "camping out" in rentals, says Douglas Elliman
The median rent for a Manhattan apartment rose to $3,595 in July, a 5.7% gain from a year earlier, and reached a new high of $3,000 in Brooklyn, up 1.7%, as potential homebuyers waited to see what effect the state’s “mansion tax” would have on New York’s real estate. “This is partly a result of the ongoing uncertainty in the sales market, with potential buyers still camping out,” said Hal Gavzie, executive manager of leasing for Douglas Elliman.
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Eisman, famed for shorting subprime, explains why he’s betting against Zillow

Zillow investors “don’t have a clue,” Eisman tells CNBC
Steve Eisman, the Neuberger Berman portfolio manager who famously profited during the 2008 collapse of the subprime mortgage market, criticized Zillow’s business model in a CNBC interview. Eisman disclosed he’s shorting the stock, which means he makes money if the share price declines. "Zillow has one of the most flawed business models I’ve seen in a very, very long time," Eisman said.
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U.S. housing market is "anemic" and "lackluster," says NY Fed

Economic data indicates "implied path" of Fed rate is downward, economists say
The Federal Reserve Bank of New York describes U.S. home sales as “soft” and “anemic” in a Monday report. Fed economists pointed to June’s existing home sales level, which was 1.7% below a year ago, as part of the reason for their conclusion: “Home sales remain lackluster.”
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Apathetic home sales dampen price growth

Home prices are still rising, but at a much slower pace
Home prices are continuing to appreciate, just not as rapidly as before. Prices rose by 3.4% in June from the year before, according to the latest data from CoreLogic. CoreLogic Chief Economist Frank Nothaft said apathetic home sales are to blame. "Tepid home sales have caused home prices to rise at the slowest pace for the first half of a year since 2011," Nothaft said.
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Mortgage borrowers’ FICO scores rise to a 3-year high

Strong labor market makes borrowers more creditworthy
The average credit score of borrowers who got mortgages in June rose to 731, the highest in almost three years, as a strong labor market helped Americans to pay their bills on time. The rate was the highest since September 2016, according to Ellie Mae.
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