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

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MarketMinute | Can middle-income borrowers afford a home today?

Jun 16

8:31

Category | Markets in a Minute

Market Minute - Economy and Housing News - Erin Carvelli

Inflation rose at a 4% rate in May, the lowest in 2 years. However, it remains stubbornly high after excluding volatile food and energy prices.

Wholesale inflation fell more than expected in May, dropping 90% year over year and falling below pre-pandemic levels.

The Fed paused hiking its policy rate for the first time in 14 months at its June meeting but signaled more hikes could be coming.

Of roughly 1.1 million homes listed for sale in April, only 25% were affordable to households earning the national median income of $75K.

NAR reports the housing market is short more than 300K homes in price points middle-income buyers can afford, creating fierce competition.

Mortgage demand remains strong despite tight inventory. Purchase applications were up 8% for the week, though down 24% from last year.

MarketMinute | FHA Proposes Help For Delinquent Borrowers

Jun 2

6:25

Category | Markets in a Minute

Market Minute - Economy and Housing News - Erin Carvelli

Fed speakers this week hinted at pausing interest rate hikes at their June meeting, with future rate changes based on new data at that time.

A deal to suspend the debt ceiling until 2025, preventing payment default, was good for rates.

June's ADP report showed labor market strength but slowing pay growth. Dwindling concern about wage-driven inflation could be good for rates.

The FHFA House Price Index reported nationwide 1st quarter price growth of 4.3% year over year, the 45th consecutive increase.

Mortgage apps dropped to the lowest level in 3 months last week, after rates jumped in May. Purchase apps were down 3% for the week.

The FHA is proposing a new partial claim option, which would allow delinquent borrowers to get current and keep their low interest rate.

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.