Blog – Page 437 of 891 – Mike Pfefferman

06

Apr

Financial Reports

What’s Ahead For Mortgage Rates This Week – April 6th, 2020

What’s Ahead For Mortgage Rates This Week – April 6th, 2020 Last week’s economic reporting included readings on pending home sales, Case-Shiller Home Price Indices, and Bureau of Labor Statistics reports on national unemployment. Weekly readings on mortgage rates and first-time jobless claims were also released.

Pending Home Sales Slow in February Before Coronavirus Took Hold

The National Association of Realtors® reported fewer pending home sales in February as the coronavirus gained traction. Pending sales rose by 2.40 percent in February as compared to January’s growth rate of 5.30 percent. Before the outbreak, pending home sales gained momentum in all U.S. regions.

Pending home sales are sales for which signed purchase contracts were signed, but sales were not completed. Nationally, year-over-year pending sales in February were 9.40 percent higher than in 2019. Regional pending home sales all posted higher growth; The West reported 4.60 percent growth in February.

Pending home sales rose 4.50 percent in the Midwest and 2.80 percent in the Northeast. The South posted 0.10 percent growth in pending home sales.

Pending home sales typically indicate future completed sales, but the coronavirus pandemic was expected to suppress home sales as state and local authorities implemented “shelter in place” rules and all but essential business operations shut down.

Mortgage Rates Mixed as New Jobless Claims Skyrocket

Freddie Mac reported lower fixed mortgage rates last week. Rates for 30-year fixed-rate mortgages averaged 3.33 percent and were 17 basis points lower. Mortgage rates for 15-year fixed-rate mortgages averaged 2.82 percent and were 10 basis points higher. Rates for 5/1 adjustable rate mortgages averaged 3.40 percent and were six basis points higher.

New jobless claims were unprecedented at 6.60 million first-time claims filed. Analysts expected 4 million new claims as compared to the prior week’s reading of 3.30 million initial jobless claims. The coronavirus pandemic negatively impacted job growth with the government’s Non-Farm Payrolls reporting 701,000 fewer public and private-sector jobs in March as compared to 214,000 jobs added in February.

ADP reported 27,000 fewer private-sector jobs in March as compared to 179,000 private-sector jobs added in February. The national unemployment rate rose from 3.50 percent in February to 4.40 percent in March. Analysts expect new jobless claims to rise in months ahead as the coronavirus spreads and more employers close their doors.

What’s Ahead

This week’s scheduled economic news includes readings on job openings, inflation, and consumer sentiment. Weekly readings on mortgage rates and new jobless claims will also be released. Please note that reporting may not appear as scheduled due to work stoppages caused by the pandemic.

03

Apr

By First Rate Financial Group

Mortgage

The Department Of Veterans Affairs Is Allowing Drive-by Appraisals Because Of COVID-19

The Department Of Veterans Affairs Is Allowing Drive-by Appraisals Because Of COVID-19 The COVID-19 (Coronavirus) pandemic has impacted every industry across the country. Many people are being asked to shelter in place and everyone has been asked to practice social distancing to try to curtail the spread of this deadly virus.

The Federal Housing Finance Agency (FHFA) has asked both Freddie Mac and Fannie Mae to make some changes in the manner they conduct property appraisals and employment verification.

Shortly after the move by the FHFA, The Veteran’s Administration (VA) and Federal Housing Administration (FHA) followed suit by relaxing property appraisal requirements. Due to the unusual circumstances that are facing the country right now, these changes are necessary to keep people safe while minimizing the blow to the economy.

Exterior Inspection Appraisals

One of the critical parts that must happen during the purchase of a home is something called an appraisal. Typically, these appraisals involve an on-site inspection of the home, taking a close look at everything inside to try to make sure the price is as accurate as possible. Now, appraisals can be done on something that is called an exterior-only or “drive-by” basis. This means that appraisers might drive by to confirm that the property exists, but will not physically inspect it.

In some cases, they might just use the computer, find comparable properties, and appraise it in this manner. This is normally referred to as a “desktop appraisal”. This is important for everyone, including those who are Department of Veterans Affairs (VA) home loan borrowers.

Why Appraisals Are Needed Now

Even though fewer people may be currently looking at houses, there are other reasons why an appraisal might be necessary. Many people are looking for sources of emergency funding, particularly as hours get cut and people get laid off.

There are still bills that need to be paid, including utility bills and mortgages. Therefore, many people are looking at taking out a second mortgage as a source of immediate liquidity. Sometimes, an appraisal might be needed to make this happen.

Other Measures Are Being Taken By The FHFA

In addition to the notice about drive-by appraisals, the FHFA has also suspended any foreclosures and evictions in many cases. People who are facing hardship due to the pandemic can also apply for forbearance, which can take a lot of stress off of the shoulders of individuals and families.

If you have questions about your mortgage and financing options available to you during the Coronavirus pandemic, contact your trusted mortgage professional. They will be best able to analyze your personal situation and provide the most accurate feedback.

02

Apr

By First Rate Financial Group

Financial Crisis

Case-Shiller: January Home Price Growth Strong; Pandemic Impact Unknown

Case-Shiller: January Home Price Growth Strong; Pandemic Impact Unknown United States home prices increased by 3.90 percent year-over-year in January as compared to December’s growth rate of 3.70 percent according to Case-Shiller’s National Home Price Index. Home prices also rose in Case-Shiller’s 20-City Home Price Index.

20-City Home Price Index: Phoenix Arizona Leads in Home Price Growth

The Case-Shiller 20-City Home Price Index is followed closely by real estate pros and its trends are used to gauge home price growth within cities included in the index. Phoenix, Arizona led home price growth rates for the eighth consecutive month with a year-over-year growth rate of 6.90 percent.

Seattle, Washington followed with year-over-year home price growth of 5.10 percent; Tampa, Florida also reported home price growth of 5.10 percent.

Seattle replaced Las Vegas, Nevada in second place, which showed a comeback for coastal housing markets that lost ground in recent months.

Case-Shiller’s 10-City, 20-City, and National Home Price Indices all posted higher home price growth rates in January. 14 of 20 cities in the 20-City Home Price Index showed faster growth rates for home prices in January than in December. Home price growth was strongest in the South and West; home price growth was weaker in the Midwest and Northeast.

FHFA Reports 5.20 Percent Yearly Home Price Growth in January

The Federal Housing Finance Agency, which oversees mortgage giants Fannie Mae and Freddie Mac, reported 5.20 percent annual home price growth for homes owned or financed by Fannie Mae and Freddie Mac.

While home prices have been fueled by limited supplies of available homes, demand for homes will likely fall as the coronavirus spreads throughout the U.S.

Local and statewide requirements to limit nonessential activities caused businesses and schools to close and many workers were laid off. Prospective homebuyers could be sidelined for months if not indefinitely.

Analysts had mixed opinions on how the coronavirus outbreak could impact home prices; if companies and jobs reopen after the virus has passed, housing markets are expected to recover. Because the ultimate length and impact of the pandemic remain unknown, it’s currently impossible to know how housing markets will be impacted.