The latest Mortgage Banker Association’s (MBA) Forbearance and Call Survey reports that the total number of loans now in forbearance decreased by 12 basis points from 4.16% of servicers’ portfolio volume in the prior week to 4.04% as of June 6, 2021. According to MBA’s estimate that still 2 million homeowners are in forbearance plans.
News in end use
Demand for Second Homes Continued to Cool in May
According to Redfin, the Seattle-based technology-powered real estate brokerage company, the number of buyers who locked in mortgage rates to purchase a second home nationwide rose 48% year-over-year in May. While that is a lofty number, it is the first time in a year that annual growth rate fell below 80%.
U.S. Real Estate Values Soar Higher in Q1 2021
According to the latest results from the Federal Reserve’s Z.1 Financial Accounts of the United States, also known as the ‘Flow of Funds”, with analysis provided by the National Association of Home Builders (NAHB) in Q1 of 2021, the aggregate market value of all owner-occupied real estate in the US registered the largest numerical quarterly increase in the last 20 years’ worth of data.
Mortgage Credit Availability Eases in May
According to Mortgage Bankers Association’s (MBA) Mortgage Credit Availability Index (MCAI), which analyzes data from the Ellie Mae’s AllRegs® Market Clarity® business information tool, mortgage credit availability increased in May. The MCAI rose by 1.4% to 129.9.
Index of Consumer Sentiment for June up 4.2% Month-Over-Month, 20.5% Year-Over-Year
The University of Michigan today (6-11-21) released its preliminary Index of Consumer Sentiment (ICS) for June. Month-over-month the ICS rose 4.2% from 82.9% in May to 86.4% in June. When compared to June 2020, the ICS increased 10.6% or 78.1% to 86.4%.
Canadian Total Investment in Building Construction Increases 6.3% in April
Statistics Canada (StatsCan) is reporting that total investment in building construction increased 6.3% to $19.9 billion (CAD) in April. Residential construction investment continues to lead the way, rising for the 12th consecutive month.
Consumer Price Index for All Urban Consumers Increases 0.6% in May, 5.0% Year-Over-Year
The U.S. Bureau of Labor Statistics (BLS) announced on Thursday (6-10-21) the Consumer Price Index for all Urban Consumers (CI-U) increased 0.6% in May, on a seasonally adjusted basis, after rising 0.8% in April. Over the last 12 months, the all items index increased 5.0% before seasonal adjustment.
Weekly Jobless Claims Drop in the Week Ending June 5, 2021
The U.S. Department of Labor is reporting that an additional 376,000 Americans made their initial filing for unemployment benefits during the week ending on Saturday, June 5, 2021 — a decrease of 9,000 from the previous week’s unrevised level.
Mortgage Rates Trend Lower in the Week Ending June 10, 2021
Freddie Mac has released its Primary Mortgage Market Survey (PMMS) for the week ending June 10, 2021. The PMMS reports that 30-year fixed-rate mortgage averaged 2.96% with an average 0.7 point, down from last week when it averaged 2.99% percent.
Construction Shift to Suburbs Continued in Q1 2021
According to the latest National Association of Home Builders’ (NAHB) Home Building Geography Index (HBGI), the trend that started in Q2 2020, in response to COVID-19 pandemic, of single-famil home building shifting to lower-density and low-cost markets continued unabated through Q1 2021. The suburban shift, however, has been even more pronounced in the multifamily sector, which is experiencing growth in 2021 after a slight decline in 2020.