On Monday (11-8-21), Fannie Mae released their Home Purchase Sentiment Index (HPSI) for October. The October HPSI increased one point to a reading of 75.5, with consumers expressing mixed feeling on the current homebuying and home selling markets. In addition, a good majority of those polled felt pessimistic toward the overall financial landscape of the U.S. economy.
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NFIB’s Small Business Optimism Index Moves Lower in October
The National Federation of Independent Business (NFIB), one of the largest small business associations in the U.S., reported today (11-9-21) that their NFIB Small Business Optimism Index dropped -0.9 points to a reading of 98.2 in October. The NFIB Uncertainty Index dropped -7 points to a reading of 67, the lowest level since January 2016.
Mortgage Credit Availability Increased Slightly in October
The Mortgage Banker Association (MBA) today (11-9-21) released their Mortgage Credit Availability Index (MCAI), which analyzes data from Ellie Mae’s AllRegs® Market Clarity® business information tool, for October. According to the MBA, the MCAI rose 0.1% to 125.7.6 in October. Increases in the index are indicative of loosening credit.
The Fed Says China’s Real Estate Issues Could Impact the U.S.
On Monday (11-8-21), the U.S. Federal Reserved released its latest Financial Stability Report (FSR), which is released twice a year. In the report, the Fed said, “Stresses in China’s real estate sector could strain the Chinese financial system, with possible spillovers to the United States.” The report pointed to the size of China’s economy and financial system, and global trade links.
Producer Price Index for Final Demand Increases 0.6% in October
The Bureau of Labor Statistics (BLS) reported today (11-9-21) that the Producer Price Index (PPI) for final demand, seasonally adjusted, increased 0.6% in October. Final demand prices previously rose 0.5% in September and 0.7% in August.
Shares of Loans in Forbearance Continued to Decline in the Week Ending October 31, 2021
The latest Mortgage Banker Association’s (MBA) Forbearance and Call Survey reports that the total number of loans now in forbearance decreased by 9 basis points from 2.15% of servicers’ portfolio volume in the prior week to 2.06% as of October 31, 2021. According to MBA’s estimate, 1 million homeowners are in forbearance plans.
Consumer Credit Expands in Q3 2021
On Friday (11-5-21), the Federal Reserve released their G.19 report for Q3 2021. With further analysis provided by the National Association of Home Builder (NAHB), the report shows that non-real estate-secured consumer credit increased at a seasonally adjusted annual rate (SAAR) of 5.6% in Q3 of 2021, with revolving debt increasing by 7.4% and nonrevolving debt increasing by 5.1%.
Higher Mortgage Rates and Tight Supply of Homes For Sale Increase Buyer Urgency
According to the latest report from Redfin, the technology-powered real estate brokerage firm, home prices moved unseasonably higher and quicker sales became more common in October. In the 4-week period ending October 31, the national median sale price increased 13% year-over-year to $357,007 and 1.5% from just 3-weeks earlier. This is compared to a 0.1% increase during the same time period in 2019.
Number of Affordable Homes Posts Record Gain in Q3 as Mortgage Forbearance Programs End
According to Redfin, the Seattle-based, technology-powered real estate brokerage firm, the supply of America’s most affordable homes for sale jumped 13% year-over-year in Q3 2021. This occurred as mortgage forbearance programs came to an end, prompting many owners of low-cost homes to put their properties on the market.
Total Nonfarm Payroll Increases by 531,000 in October; Unemployment Drops to 4.6%
The U.S. Bureau of Labor Statistics (BLS) reported today (11-5-21) that total nonfarm payroll employment increased by 531,000 in October, following a disappointing 194,000 in September, an increase of 235,000 in August, a revised 1.1 million in July, and a revised 962,000 increase in June.