Tag Archives: First-Time Homebuyers

Rising mortgage rates led to 15-year lows for mortgage application volume last week, with lower purchases following uncertain macroeconomic activity and a rush to rentals by prospective first-time homebuyers. In releasing the Weekly Mortgage Applications Survey, the Mortgage Bankers Association found purchase applications plunging by 8.8 percent from the week earlier ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô the lowest on record since 1996. The trade group reported declines in overall loan volume by 14.9 percent on both a seasonally adjusted and seasonally unadjusted basis.

In a rare move, 37 state attorneys general backed Consumer Financial Protection Bureau director-nominee Richard Cordray in a recent letter of support to Senate party leaders.

Rising homebuilder confidence seen Tuesday coupled with news of a surge in multifamily housing development ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô the sector typical for rental construction ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô reported Monday. Mortgage giant Freddie Mac offered up the data and analysis in an October 2011 Economic and Housing Market Outlook, with the consensus that tenant-occupied properties are on track to continue outpacing homeownership rates. New construction starts rose this year with a minimum 20 dwellings.

Mortgage giant Fannie Mae gives the U.S. economy equal chances for a second recession and recovery by the end of next year. Podcasting the 2011 October Economic Outlook, titled Economy at a Crossroads, the company forecasted that GDP will stay below 2 percent for the remainder of 2011 into next year. Among other reasons, the GSE's internal think tank cited trouble in the financial and labor markets, given the euro debt crisis, weak jobs reports, and low consumer confidence. The outlook follows several other similar reports.

Minorities and seniors are growing their share of the national population more than ever, William H. Frey, senior fellow at the Brookings Institute, told attendees at the Mortgage Bankers Association's annual convention and expo Chicago Wednesday. There is also a continuing population shift out of the heartland states to what Frey classifies as the new Sunbelt.

After hitting rock bottom last week, mortgage rates returned to previous lows on a somewhat tenuous climb this week as European central bankers seemed to reach a deal and a U.S. jobs report netted better-than-expected results. Leaping forward from a history-making 3.94 percent last week, interest rates for the 30-year fixed-rate mortgage rose to 4.12 percent, according to Freddie. Bankrate.com offered up similar results, showcasing a 4.37-percent 30-year loan rate this week, up from 4.21 percent.

Homeownership rates remain at depths not seen since the Great Depression, according to new Census Bureau numbers. Market watchers chalk up the lows to tight lending conditions, concerns about the regulatory environment, and fears about a double-dip recession. Releasing Housing Characteristics: 2010 Thursday, the bureau found homeownership rates deflating by some 1.1 percent to 65.1 percent over the last decade ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô the biggest decline since between the years 1930 and 1940.

Following a better-than-expected jobs report Friday, emerging news reports suggested that the Obama administration could submit in full a controversial refinance proposal that sources say would allow eligible homeowners to refinance their mortgages at current rates. Government officials remain mum about exactly when officials and policymakers will see the proposal, but continue to offer snippets about their intentions for it. The one stumbling block for the proposal: the Federal Housing Finance Agency.

The U.S. economy bucked low expectations Friday with news that it added over 100,000 jobs over September, masking other figures that continued to confirm the rising appeal of rental properties alongside a decline in homeownership. Nonfarm payroll employment tacked on 137,000 new faces in the private sector, alongside 103,000 for the nonfarm jobs payroll overall ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô a solid forward step in lieu of pale figures from August, which saw the number of lost jobs eclipsing new ones.

Mortgage rates slammed into a new, record-setting low Thursday, with mortgage giant Freddie Mac reporting that figures for the benchmark 30-year fixed-rate mortgage fell below 4 percent for the first time in history. Finance Web site Bankrate.com noted a similarly record-smashing low for the loan. Making the biggest waves, the GSE found the 30-year loan dropping on average to 3.94 percent nationally, down from 4.01 percent last week and 4.27 percent over the same time last year.