Fannie Mae’s second quarter 2016 Mortgage Lender Sentiment Survey found that lenders reported a 70 percent on net increase in purchase mortgage demand in the second quarter, compared with 20 percent in the first quarter and 71 percent a year ago.
According to the report, lenders expect purchase mortgage demand to remain near levels observed last year for the next three months. Lenders said that demand will fall slightly for GSE eligible and non-GSE eligible mortgages to 60 percent and 43 percent, respectively, but ticking up to 58 percent for government loans.
This month, something unexpected happened in Quicken Loans' national Home Price Perception Index. According to the report, western homeowners went against the nationwide trend of homeowners overvaluing their homes. Instead, their estimates came in much lower than appraised values.
Quicken Loans found that home appraisals in May were an average of 1 point 89 percent lower than what homeowner expectations, a slight shift toward the point of equilibrium compared to 1 point 95 percent in April.