The U.S. Department of Housing and Urban Development (HUD) is asking for mortgage industry input on a proposed rule change that it offered late last week, which would change repayment provisions for FHA borrowers. The change would allow lenders to recast a borrower’s total unpaid loan for an additional 120 months.
News in end use
Canadian Building Permits Increase 21% in February
On Monday (4-4-22), Statistics Canada (StatsCan) reported that the total value of building permits climbed 21.0% in February, with British Columbia leading the way with a 130.2% increase. On a constant dollar basis (2012=100), the total value of building permits increased 22.1% in February.
Americans Still Want to Own a Home Despite Rising Prices and Mortgage Rates, Survey Says
According to a survey between March 1-4, 2022, housing prices are still soaring. The growth seen by the typical single-family home over the past two years has been scorching and surprisingly consistent. At some point, something must give way, and it seems that affordability has been the first to fall.
Increasing Home Prices and Mortgage Rates Move Would-Be Homebuyers to the Sidelines
In a new report released on Thursday (3-31-22), Redfin, the Seattle-based, technology-powered real estate company, reported that mortgage rates continue to rise at the fastest pace in history. As a result, the typical monthly mortgage payment for a homebuyer has increased more than $500 since the start of 2022.
Construction Spending Increases Month-Over-Month and Year-Over-Year in February 2022
On Friday (4-1-22), the U.S. Census Bureau reported that total construction spending during February 2022 was estimated at a seasonally adjusted annual rate (SAAR) of $1,704.4 billion, 0.5% above the revised January estimate of $1,695.5 billion. The February figure is 11.2% above the February 2021 estimate of $1,533.3 billion.
U.S. Nonfarm Payroll Increases by 431,000 in March; Unemployment Declines to 3.6%
The U.S. Bureau of Labor Statistics (BLS) reported today (4-1-22) that total nonfarm payroll employment increased by 431,000 in March, following revised increases of 750,000 in February and 504,000 in January. In 2022 Q1, job growth averaged 562,000, the same average monthly gain as seen in 2021 Q1.
Personal Income, Disposable Income, and Personal Consumption Expenditures All Increased in February 2022
The U.S. Bureau of Economic Analysis (BEA) reported on Thursday (3-31-22) that, according to their estimates, personal income (PI) increased $101.5 billion (0.5%) in February. Disposable personal income (DPI) increased $76.1 billion (0.4%) in February. Personal consumption expenditures (PCE) increased $34.9 billion (0.2%) in February.
Canadian Real GDP Increased in January 2022, Marking Eighth Consecutive Months of Growth
Statistics Canada (StatsCan) reported today (3-31-22) that real gross domestic product (GDP) increased 0.2% in January, marking the eight consecutive month of growth. Goods-producing industries increased 0.8% in January, while the effects of the Omicron variant continued to take the wind out of the sails of services-producing industries.
Mortgage Rates Push Higher in the Week Ending March 31, 2022—The Fourth Consecutive Increase
Freddie Mac has released its Primary Mortgage Market Survey (PMMS) for the week ending March 31, 2022. The PMMS reports that the 30-year fixed-rate mortgage averaged 4.67% with an average 0.8 point, up from last week when it averaged 4.42%. A year ago, at this time, the 30-year FRM averaged 3.18%.
Weekly Jobless Claims Increased in the Week Ending March 26, 2022
The U.S. Department of Labor is reporting that an additional 202,000 Americans made their initial filing for unemployment benefits during the week ending on Saturday, March 26, 2022. This is an increase of 14,000 from the previous week’s revised level. The 4-week moving average was 208,500—a decrease of 3,500 from the previous week’s revised average.