The latest release of the Federal Reserve’s Senior Loan Officer Opinion survey reveals that the COVID-19 pandemic and its widespread economic hardship caused many banks to elevate their qualification standards across all credit classes of household and business loans.
News in end use
Federal Housing Finance Agency Adds New 0.5% Fee to Refinance Mortgages Effective September 1st
On Thursday, August 13th, 2020, The Federal Housing Finance Agency (FHFA), along with the two governmental sponsored enterprises, Fannie Mae and Freddie Mac announced that effective September 1st, that any refinance mortgage loan sold Fannie Mae or Freddie Mac will include a new adverse-market refinance fee of 0.5%.
Respondents to FEA’s Weekly Order Survey are Reporting Slightly Slower Sales
Dealers responding to the Weekly Order Survey are reporting that while their businesses remain steady to strong, the pace was slightly slower than in previous weeks.
Builders Struggles with Acquisition, Development and Construction Financing Continued in Q2 of 2020
The results of the latest National Association of Home Builders financing for Acquisition, Development and Construction (AD&C) survey reveals that credit continued to tighten in the second quarter of 2020.
Weekly Jobless Claims Dips Below One Million Claims for the Week Ending August 8th, 2020
The U.S. Department of Labor is reporting that an additional 963,000 Americans made their initial filing for unemployment benefits during the week ending on Saturday August 8th.
Mortgage Loans in Forbearance Decrease for Eighth Week in a Row
The Mortgage Bankers Association’s (MBA) Forbearance and Call Volume Survey for August 10th, revealed that the total number of loans now in forbearance decreased by 23 basis points from 7.67% of servicers’ portfolio volume in the prior week to 7.44% as of August 2, 2020.
Multifamily/Commercial Borrowing Declines -48% in Second Quarter of 2020
According to the Mortgage Bankers Association year-over-year commercial and multifamily mortgage loan originations were -48% lower in the second quarter of 2020. A decline of -31% from the first quarter of 2020.
Mortgage Rates Inch Higher in the Week Ending 13th August 2020
Freddie Mac has released its Primary Mortgage Market Survey (PMMS) for the week ending August 13th, 2020. The PMMS shows that 30-year fixed-mortgage rate averaged 2.96% with an average 0.8 point up from last week when it averaged 2.88%.
Producer Price Index for Final Demand Increases in July
The U.S. Bureau of Labor Statistics (BLS) is reporting that the Producer Price Index (PPI) for final demand increased to a seasonally adjusted 0.6% in July.
A Lack of Available Inventory Continues to Challenge Home Sales
According to Zillow, a Seattle Washington based online real estate database company, in their latest Zillow’s Weekly Market Report (ZWMR), pending home sales remain well above last year’s levels.