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

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MarketMinute | How did last week's rates impact mortgage apps?

May 26

5:38

Category | Markets in a Minute

Market Minute - Economy and Housing News - Erin Carvelli

Minutes from last month's Fed meeting show officials were divided on the topic of pausing policy rate hikes at the June meeting.

Concerns about the U.S. defaulting on debt payments dominate headlines. A default could be devastating for rates.

Unemployment claims were revised lower for a 2^nd week after fraud was detected. A strong labor market could support a Fed rate increase.

Pending home sales remained steady in April, after dropping in March. Sales were down 20% from last year due to the lack of inventory.

Builders are attempting to abate the shortage. April new home sales jumped 4.1% for the month and 11.8% for the year to a 13-month high.

Purchase mortgage applications were down 4% for the week and 30% year over year due to rate increases. Refi apps also fell.

MarketMinute | Demand still outweighs supply

May 19

9:13

Category | Markets in a Minute

Market Minute - Economy and Housing News - Erin Carvelli

Retail sales increased in April for the first positive reading since January. They still fell short of expectations, as consumers struggled with inflation.

Unemployment claims fell by the most since 2021 after fraudulent claims in at least one state boosted the previous week’s numbers.

Total consumer debt hit a fresh new high in the 1st quarter of 2023, at just over $17 trillion. Debt increased in all categories.

New mortgage originations, including refinances, totaled just $323.5 billion for the 1st quarter, the lowest level since the 2nd quarter of 2014.

Despite strong demand, April’s existing home sales fell 3.4% for the month and 23.2% year over year. Tight inventory remains a problem.

However, April's single-family building permits increased 3.1% to a 7-month high, while single-family housing starts rose 1.6%.

MarketMinute | How many millennials own homes?

May 12

7:45

Category | Markets in a Minute

Market Minute - Economy and Housing News - Erin Carvelli

Consumer inflation continued its slow-but-steady deceleration last month to the lowest level since April 2021, slightly better than March.

Wholesale inflation is also cooling, coming in better than expected. Producer prices increased at the slowest pace since early 2021.

The labor market is showing signs of fatigue as well. New unemployment claims hit a 1-1/2-year high. Continuing claims also rose.

According to NAR, home prices are still rising in most areas of the country. However, prices fell in 31% of metro areas, some as much as 10%.

Purchase mortgage applications rose 5% last week despite still being lower than a year ago. Refi apps were up 10% for the week.

A recent BOFA survey reports that 58% of millennials are homeowners. Of those who don’t yet own a home, 66% plan to buy within 2 years.

MarketMinute | The Fed Has Spoken Again

May 5

5:13

Category | Markets in a Minute

Market Minute - Economy and Housing News - Erin Carvelli

The Fed raised its policy rate by 0.25% this week. This 10th consecutive hike puts the rate above 5% for the first time since 2007.

Job openings fell more than expected in March to the lowest level in nearly two years, a sign the job market is loosening.

Applications for unemployment benefits also rose by the most in six weeks, while continuing claims fell by the most since July.

Purchase mortgage applications dropped 2% last week and were down 32% from a year ago. Tight inventory continues to hamper sales.

However, mortgage applications to refinance were up 1% on the week, despite being down 51% from the year before.

Overall construction spending was up in March, although single-family homebuilding remained depressed amid higher mortgage rates.

MarketMinute | How do consumers really feel about the housing market?

Apr 14

1:23

Category | Markets in a Minute

Market Minute - Economy and Housing News - Erin Carvelli

The Consumer Price Index's annual inflation rate dropped for the 9th consecutive month in March, reaching its lowest level since May 2021.

Wholesale inflation also fell in March, hitting its lowest annual level since January 2021. Slowing inflation can be good for rates.

Newly released minutes from the Fed's last meeting indicated officials appear on track to raise policy rates one more time in May.

Purchase mortgage applications rose 8% last week, as buyers took advantage of a dip in interest rates.

Realtor.com reports a 44% increase in active listings over last year, though the rate of growth had slowed with last week’s report.

Despite moderating rate increases, only 20% of consumers surveyed by Fannie Mae in March thought now was a good time to buy a home.