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

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MarketMinute | How are the markets finishing the year?

Dec 30

6:56

Category | Markets in a Minute

Market Minute - Economy and Housing News - Erin Carvelli

The dollar is ending the year on the defensive, having given back roughly half of its 2022 gains, as investors bet inflation is slowing.

Jobless claims rose only modestly last week and held near prepandemic levels, suggesting the labor market remains historically tight.

Purchasing power of middle-income household paychecks fell 2.9% in 2022, as inflation hit middle earners harder than other groups.

Month-over-month house prices were flat in October, changing 0.0%, according to FHFA. Prices rose 9.8% over October 2021.

Pending home sales fell 4% in November, more than expected. Higher mortgage rates and tight inventory continue to affect the housing market.

Mortgage applications rose 0.9% last week. Refinance apps were up 6% week over week, and purchase apps were down 0.1% for the week.

Great News for Homebuyers | New Loan Limits for 2023

Dec 19

7:25

Category | Mortgage Industry Updates & Announcements

There could be savings on the table for home buyers in 2023!

The Federal Housing Finance Agency (FHFA) has just increased the amount of money that can be borrowed through a standard home loan to more than $726K. In some areas, the limit is even higher. The new limits will take effect in 2023.

This is great news for buyers and owners alike.

Buyers may be able to borrow more money through a conventional, typically lower-rate loan.
Owners may be able to refinance their "jumbo" loan to a lower rate conforming loan and possibly drop mortgage insurance, too.
Combining (or avoiding) smaller 1st and 2nd mortgages may now be an option.
The increase reflects the growth in values over the past year and reaffirms your decision to invest in a home.

Here are the specifics about the change:

The standard loan limit, also known as the conforming loan limit, rose by just over 12% to a maximum of $726,200 in most areas.
The percentage increase is equal to the national appreciation average over the last year.
This is the 7th year in a row that the FHFA has raised the limit, after a decade of no increases. The limit has risen more than $310K over seven years.

Curious about limits in your county or other areas? Follow the link below to check. We'll update it as limits change, so bookmark it for future reference if you'd like.

If you have questions about what this change could mean for you, please reach out. And if you have friends who may benefit from the news, please pass it along. The Greenway Team would be honored to help them too!

MarketMinute | How Much Did The Fed Raise Policy Rates?

Dec 16

3:00

Category | Markets in a Minute

Market Minute - Economy and Housing News - Erin Carvelli

Consumer prices came in better than expected in November, up just 0.1% from October and up 7.1% over last year, signaling inflation is ebbing.

Consumers pulled back on spending in November, with retail sales for the month declining 0.6%, more than the expected 0.3% drop.

The Fed raised policy rates 0.5% this week and signaled more rate hikes to come in 2023 as it continues to fight inflation.

Although still lower than a year ago, purchase mortgage applications were up 4% last week. Refinance applications rose 3%.

Home office updates and induction cooktops are in for 2023, while high pile carpet, subway tiles, and open shelves are losing popularity.

NAR predicts a total of 4.78 million existing home sales in 2023, down from the 5.13 million existing home sales expected to close in 2022.

The FHA Raises Loan Limits 2023

Dec 13

1:45

Category | Mortgage Industry Updates & Announcements

The Federal Housing Agency (FHA) has just increased the amount of money that can be borrowed through its mortgage programs by more than $51k in most areas. In high cost locations, the increase is even greater. New limits will take effect in 2023.

The increases will allow more borrowers to take advantage of FHA’s benefits:

Low down payment options
Lower total cash-to-close requirements with gift or seller contributions
More lenient and streamlined refinancing
Ability to combine purchase and rehab financing
In some high-cost areas, higher loan limits than conventional mortgages

Here are the specifics:

In most areas, the FHA loan limit will be $472,030, a 12% increase over 2022’s limit of $420,680.
In high-cost areas, the limit moves to $1,089,300, a 12% increase over 2022’s $970,800.
In some lower-cost areas or those with higher costs of construction, limits will vary.

Contact your Greenway Mortgage loan officer today for more details about how the increase can impact you.

New 2023 Loan Limits Effective January 2023

MarketMinute | What's Supporting Home Prices?

Dec 9

4:19

Category | Markets in a Minute

Market Minute - Economy and Housing News - Erin Carvelli

Nonfarm payrolls rose 263K in October, well above the expected 200K. Wages jumped 0.6%, double the estimate, which could fuel inflation.

Money supply growth fell in October to a 39-month low, continuing a 7-month decline and signaling a slowdown in economic activity.

After 4 consecutive 0.75% interest rate hikes, the Fed is widely expected to increase rates by 0.50% at its December meeting next week.

Black Knight reports the pace of home price declines slowed by 0.43% in October, the smallest drop this year, due to inventory shortages.

According to a recent Wall Street Journal article, almost 70% of households with mortgages have rates below 4% and are reluctant to sell.

Despite steadily improving rates, purchase mortgage applications fell 1.9% week to week and were 40% lower than the same week a year ago.