Demand For Home Purchase Loans Spikes

According to the Mortgage Bankers Association’s Weekly Applications Survey, the seasonally adjusted Purchase Index surged last week, gaining 8.2 percent over the week before. But despite the spike, a dip in refinance volume kept the Market Composite Index, which measures total loan application demand, relatively flat. Total mortgage applications decreased 0.3 percent from the previous week, though the four-week moving average is up 0.33 percent. Michael Fratantoni, MBA’s vice president of research and economics, said mortgage rates remained near survey lows last week but refinance volume fell slightly. The week’s results were adjusted for the Presidents Day holiday. The average contract interest rate for 30-year fixed-rate mortgages dropped to 4.07 percent from 4.09 percent the week before. More here.

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Pending Home Sales Rise To Nearly Two Year High

Pending home sales measure contract signings, not closings, and are a good indicator of future sales. In January, the National Association of Realtors’ Pending Home Sales Index reached its highest level since April 2010. The index was up 2.0 percent from December and 8.0 percent over the year before. Lawrence Yun, NAR’s chief economist, said the report offers hope of a healthy spring homebuying season. According to Yun, the upward trend implies home sales will see further gains this year and declining inventory could also mean broader price stabilization and growth. In January, the index was higher than anytime since the expiration of the homebuyer tax credit. More here.

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Homes More Affordable Than Anytime In 20 Years

Homes are more affordable now than anytime in the past 20 years, according to the National Association of Home Builders Housing Opportunity Index. The index measures the percentage of homes affordable to a family making the national median income of $64,200. During the fourth quarter of last year, more than 75 percent of all the new and existing homes sold nationwide were affordable, the highest percentage in the index’s 20-year history. Barry Rutenberg, chairman of the National Association of Home Builders, said that report indicates that homeownership is within the reach of more households than it has been for more than two decades. More here.

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New Home Sales Mainly Flat In January

The U.S. Census Bureau and the Department of Housing and Urban Development’s New Residential Sales report for January shows sales of new single-family homes were 0.9 below December’s upwardly revised annual rate of 324,000. The revision to December’s rate, previously reported to be 307,000, put that month’s sales pace at a year-long high. And, despite slipping from last month, January’s sales pace exceeded economists’ expectations and were 3.5 percent above last year. The median sales price of new houses sold in January was $217,000, up from $210,300 in December. At the end of the month, there was a 5.6-month supply of new homes for sale at the current sales pace. More here.

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Mortgage Rates Tick Up, Loan Demand Slows

According to the Mortgage Bankers Association’s Weekly Applications Survey, mortgage applications decreased 4.5 percent last week from the week before. Despite the decline, the Market Composite Index, which measures mortgage applications volume, is relatively flat over the past four weeks due to previous spikes in purchase and refinance activity. Last week, both the Refinance and Purchase Index were down, primarily due to a slight uptick in mortgage rates. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances moved to 4.09 percent from 4.08 percent the previous week. The average rate for 30-year jumbo loans increased to 4.32 percent. More here.

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Continued Gains For Existing Home Sales In January

The National Association of Realtors reports that existing-home sales rose again in January, the third improvement in the past four months. Sales of previously owned homes, including single-family, townhomes, condominiums, and co-ops, increased 4.3 percent to an seasonally adjusted annual rate of 4.57 million. Lawrence Yun, NAR’s chief economist, said the trend upward is in line with the underlying fundamentals including pent-up household formation, record-low mortgage rate, low prices, sustained job creation, and rising rent. The national median existing-home price was $154,700. More here.

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Inventory Levels Continue To Fall, Market Stabilizing

The number of homes for sale nationwide fell for the eighth-straight month in January and is now 23.2 percent below last year’s levels. According to data from Realtor.com, inventory dropped 6.59 percent from the month before which, along with stabilizing prices, is a positive sign for the housing market. Inventory fell in 145 of 146 markets tracked and the average age of the for-sale housing stock has also fallen. Median list prices, though down month-over-month, are still nearly 4.0 percent above year ago levels and recent dips could be due to seasonal factors. Decreasing inventory levels and stabilizing prices, along with gains in the labor market and low mortgage rates, are positive indicators that housing will continue to improve and recover this year, according to the report. More here.

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Housing Starts, Permits Increase In January

The U.S. Census Bureau and the Department of Housing and Urban Development’s new residential construction statistics for January show privately-owned housing starts rose to a seasonally adjusted annual rate of 699,000, exceeding economists’ expectations. The increase put starts 1.5 percent above December and 9.9 percent above the year before, when the annual rate was 636,000. Permits to build rose 0.7 percent over December and are 19.0 percent above January 2011. More here.

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Builder Confidence Hits Four Year High In February

:startBuilder sentiment rose for the fifth consecutive month in February, according to the National Association of Builders’ Housing Market index. The index measures builder confidence in the market for newly built, single-family homes on a scale where any number over 50 means more builders view the market as good than poor. In February, the index rose from 25 to 29 and reached its highest level in more than four years. David Crowe, NAHB’s chief economist, said this is the longest sustained improvement the index has seen since 2007 but cautioned that the HMI is still low. Still, builder confidence has now doubled since last September. The gauges measuring current sales and expectations for the next six months both rose by five points in February. More here.:end

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Mortgage Loan Volume Holds After Last Week’s Gains

According to the Mortgage Bankers Association’s Weekly Applications Survey, demand for home loans was flat last week, with the Market Composite Index dipping just 1.0 percent after surging 7.5 percent the week before. The drop was caused by declines in the Purchase Index, while the Refinance Index increased 0.8 percent. The refinance share of all mortgage activity was 81.1 percent. The average loan size in January was $226,000, up from $225,000 in December 2011 and $207,000 a year ago. Also, average mortgage rates rose, with the interest rate for 30-year fixed-rate mortgages increasing to 4.08 percent from 4.05 percent the week before. The average 30-year rate for jumbo loans was 4.30 percent. More here.

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