The MReport Webcast: Tuesday 3/29/2016

Mortgage contract signings began 2016 on a low note, falling to their lowest level in a year after hitting its highest average year in nearly a decade due to two pressing factors that are keeping buyers out of the market: inventory and home prices. However, despite the rough start to the year, pending home sales recently rose to their highest level in seven months and are still higher than a year ago.

The National Association of Realtors reported Monday that its Pending Home Sales Index rose 3 point 5 percent to 109 point 1 in February from a downwardly revised 105 point 4 in January and is now up 0 point 7 percent from 108 point 3 in February 2015. The NAR noted that although the index has now increased year-over-year for 18 consecutive months, the annual gain last month was the smallest.

As typical mortgage originations falter and fade to black and refinances continue to go untapped, lenders are gearing up for the next big thing among mortgage loans: home equity lines of credit. Banks across the U.S. including J.P. Morgan Chase, PNC Financial Services Group, and TD Bank as well as Bank of America and Wells Fargo are making a valiant marketing effort to encourage homeowners to take cash out on their homes, an unusual move not seen since the housing bust.