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

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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.

MarketMinute | How Much Did Mortgage Application Volume Jump?

Jan 20

7:20

Category | Markets in a Minute

Market Minute - Economy and Housing News - Erin Carvelli

A recent Fed survey showed the economy held steady in early January. Some regions experienced modest declines in activity.

Prices for wholesale goods and services fell sharply in December, providing another sign that inflation is beginning to ease, though still high.

December's retail sales fell by the most in a year, and business equipment production slumped, indicating the economy may be losing momentum.

Homebuilder sentiment posted an unexpected gain in January, rising for the first time in 12 months.

Single-family homebuilding rebounded with an 11.3% increase in December. Total new home construction fell for a 4th straight month.

Mortgage application volume jumped nearly 28% for the week, with purchase apps rising 25% over the previous week.

Investment Funds May Be Hiding In Your Mortgage

Jan 16

2:51

Category | General

Did you know that investment funds may be hiding in your mortgage? It's true! You may have more to invest than you think.

A mortgage is the single largest liability most people ever assume. Do your realize its proper management is as important as for any investment?

30-Year vs 15-Year Loan

Which is best the best option? A 30-year or a 15-year loan? Many homeowners want to pay their home loan off as soon as possible, but the value of putting their money into long-term savings and investments often trumps a rapid amortization of principal.

Why pay down the balance on a home loan, only to borrow again later to pay for the kids' college?

The differential savings of a 30-year loan vs. a 15-year option can be put in a 529 plan instead. The result is tax-advantaged growth over time and no uncertainty of borrowing at a potentially high rate later.

Have questions or want to learn more. Reach out! The Greenway Team would love to help and answer any questions you may have.

MarketMinute | Looking For Rate Predictions?

Jan 13

2:17

Category | Markets in a Minute

Market Minute - Economy and Housing News - Erin Carvelli

More new jobs than forecast were created in December. However, wage growth was lower than expected, helping mortgage rates.

Inflation continued to slow in December, signaling prices have peaked and giving markets hope the Fed will slow the pace of interest rate hikes.

Weakening demand in December led to the first services industry contraction in more than 2-1/2 years, signaling a slowing economy.

Mortgage applications rose 1.2% last week over the previous week, although purchase applications were down 1% on the week.

NAR's Nadia Evangelou, director of forecasting, predicts mortgage rates likely will settle below 6% and experience less volatility this year.

In December, 21% of survey respondents told Fannie Mae now is a good time to buy a home, up from 16% in November.

MarketMinute | How Does 2023 Look for Refinances?

Jan 6

3:22

Category | Markets in a Minute

Market Minute - Economy and Housing News - Erin Carvelli

Demand for employment remained high in November as companies looked for workers to fill positions despite worries of a looming recession.

Minutes from last month's Fed meeting showed officials were still focused on stamping out inflation but gave few clues about future rate hikes.

A December reading of the manufacturing sector showed factory activity slowing down. The prices producers paid their suppliers fell.

A large drop in mortgage applications last week made headlines. Higher rates were blamed, though apps typically fall some at year’s end.

Cash-out refinances will cost consumers more in 2023 due to higher fees from the FHFA. Refis still make up almost one third of mortgage apps.

Beginning in March, Freddie Mac will require a first lien mortgage to be at least 12 months old before it can be paid off by a cash-out refinance.