On Monday (10-18-21) Freddie Mac issued a statement in support of an announcement by the Federal Housing Finance Agency (FHFA) that Freddie Mac and Fannie Mae’s low-income refinance program will be expanded to include those making at or below 100% of the areas median income (AMI) — up from 80% AMI.
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Mortgage Rates Climb Higher in the Week Ending October 21, 2021
Freddie Mac has released its Primary Mortgage Market Survey (PMMS) for the week ending October 21, 2021. The PMMS reports that 30-year fixed-rate mortgage averaged 3.09% with an average 0.7 point, up from last week when it averaged 3.05% percent. A year ago, at this time, the 30-year FRM averaged 2.80%.
Weekly Jobless Claims Decline in the Week Ending October 16, 2021
The U.S. Department of Labor is reporting that an additional 290,000 Americans made their initial filing for unemployment benefits during the week ending on Saturday October 16, 2021. This is a decrease of 6,000 from the previous week’s revised level and the lowest level for initial job claims since March 14, 2020, when it was 256,000.
Housing Market Continues to Cool as the Year Winds Down
According to the latest U.S. Zillow Home Value Index (ZHVI) report, the quieting that started in housing market in late summer has rolled over into the early fall. Prospective buyers are finding slightly more selection, an increase in price cuts, and a bit more time to evaluate a home before it goes under contract.
Canadian Consumer Price Index Increases in September
Statistics Canada (StatsCan) reported today (10-20-21) that the Canadian Consumer Price Index (CPI) increased 4.4% year-over-year in September. The September increase was at the fastest pace since February 2003. Prices rose year-over-year in every major component.
Mortgage Applications Dip in the Week Ending October 15, 2021
According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey (WMAS), for the week ending October 15, 2021, the Market Composite Index, a measure of mortgage loan application volume, decreased -6.3% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased -6% compared with the previous week.
U.S. Housing Starts, Permits, and Completions All Move Lower in September
On Tuesday, the U.S. Census Bureau reported that privately‐owned housing starts in September were at a seasonally adjusted annual rate (SAAR) of 1,555,000. This is -1.6% below the revised August rate of 1,580,000 but is 7.4% above the September 2020 rate of 1,448,000. Single-family housing starts in September were at a rate of 1,080,000, virtually unchanged from the revised August figure.
Mortgage Applications for New Home Purchases Declined -16.2% Year-Over-Year in September
The Mortgage Bankers Association (MBA) announced today (10-19-21) the results of their Builder Application Survey (BAS) data for September 2021. The BAS reveals that mortgage applications for new home purchases declined -16.2% compared to September 2020. When compared to August 2021, applications decreased by -4%.
As the Program Winds Down, Share of Loans in Forbearance Continued to Decline in the Week Ending October 10, 2021
The latest Mortgage Banker Association’s (MBA) Forbearance and Call Survey reports that the total number of loans now in forbearance decreased by 34 basis points from 2.62% of servicers’ portfolio volume in the prior week to 2.28% as of October 10, 2021. According to MBA’s estimate, 1.1 million homeowners are in forbearance plans.
Canadian Housing Starts Decline Month-Over-Month in September
The Canada Mortgage and Housing Corporation (CMHC) announced today (10-18-21) that the trend, which is a six-month moving average of the monthly seasonally adjusted annual rates (SAAR) of housing starts, in September was 271,068 units, down from 284,757 units in August 2021. The standalone monthly SAAR of housing starts for all areas in Canada was 251,151 units in September, a decrease of -4.4% from 262,754 units in August.