Shore Mortgage Team Branch's Blog - Greenway Mortgage Funding Corp.

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MarketMinute | Prices and pending sales are on the rise!

Mar 3

7:44

Category | Markets in a Minute

Market Minute - Economy and Housing News - Erin Carvelli

January's manufactured capital goods orders grew by the most in 5 months, ending 2 straight months of declines.

Consumer confidence declined in February, as rising prices and growing recession concerns outweighed the near-term strength of the economy.

The PCE, a key inflation measure, rose more than expected in January, indicating the Fed has more work to do to bring down prices.

Pending home sales jumped 8.1% in January, improving for the second straight month, as mortgage rates fell from 2022 highs.

The FHFA reported home prices advanced 6.6% in 2022, showing prices still increased, though at a slower rate.

Mortgage application volume was 44% lower than the same week one year ago and is now at a 28-year low due to higher rates in February.

MarketMinute | Good News for First-time and Low-income Homebuyers

Feb 24

3:34

Category | Markets in a Minute

Market Minute - Economy and Housing News - Erin Carvelli

The New York Fed reports consumer debt hit a new record at the end of 2022, while delinquency rates rose for several types of loans.

Minutes from last month's Fed meeting showed most officials supported a quarter point hike though "a few” favored a bigger half point hike.

Fed officials stated the signs of slowing inflation are not enough to counter the need for more interest rate increases.

Existing home sales dropped to the lowest level in more than 12 years in January. The pace of decline slowed, though, raising optimism for a shift.

Home purchase applications tumbled last week to the lowest level since 1995, as the highest mortgage rates in 3 months discouraged buyers.

Some good news for first-time and low-income buyers: The FHA announced cuts to its mortgage insurance premiums starting March 20.

MarketMinute | How will the Fed respond to good economic news?

Feb 17

3:10

Category | Markets in a Minute

Market Minute - Economy and Housing News - Erin Carvelli

The inflation rate dropped slightly in January but came in higher than expected. Core inflation without energy and food was up slightly.

Retail sales jumped 3% in January, smashing expectations. No categories saw a decline, following a December in which sales fell 1.1%.

Forecasts for future Fed rate hikes have increased on the stronger economic data, with rate hikes now expected through June.

NAHB’s Homebuilder Sentiment Index improved in February by the largest amount in a decade due to an uptick in demand.

New home construction retreated for a 5th straight month in January, reaching the lowest level since June 2020. Building permits also fell.

Though some home prices are retreating slightly, the NAR reports the typical home price has risen 42% in the past 3 years.

MarketMinute | How are buyers dealing with higher rates?

Feb 10

6:22

Category | Markets in a Minute

Market Minute - Economy and Housing News - Erin Carvelli

Unemployment hit a 53-year low last month, with over 500k new jobs created. The labor market remains strong despite the Fed rate hikes.

Mortgage rates rose as markets began anticipating 2 additional Fed rate hikes that would raise the policy rate to at least 5%.

After constricting in December, the ISM service sector index came in higher than expected in January, a hopeful economic sign.

Although still lower than a year ago, purchase mortgage applications rose 3% for the week. Refi apps were up 18%.

Black Knight reports 57% of recent borrowers accessed lower rates with permanent rate buydowns. Nearly 25% paid 2 or more points.

Housing inventory fell by 8,664 units last week. Continuing inventory declines can help mitigate falling home prices.

MarketMinute | How high did home prices go in 2022?

Jan 27

4:10

Category | Markets in a Minute

Market Minute - Economy and Housing News - Erin Carvelli

Despite recession fears, the economy grew at a pace of 2.9% in the 4th quarter, more than the expected 2.6%.

Business activity contracted for the 7th straight month in January. The downturn moderated across both the manufacturing and services sectors.

Jobless claims declined again last week, this time to 186K. The drop signals labor market strength despite Fed rate hikes and talk of recession.

NAR reports the median home sales price in 2022 was $386,300, up 10.2% from 2021 and the highest on record.

Existing home sales in December fell for the 11th straight month and hit the slowest pace since 2010. Improvements are expected in 2023.

However, new home sales rose 2.3% in December. The 3rd straight monthly increase shows homebuyers are still shopping.