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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.

Conforming Loan Limits Increase for 2023

Dec 6

2:38

Category | Mortgage Industry Updates & Announcements

On November 29, 2022, the Federal Housing Finance Agency (FHFA) announced an increase in the maximum conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac in 2023.

The maximum loan limit for one-unit properties will be $726,000, an increase from $79,000 from $647,200 in 2022. Release.

The decision was based on the recovery of housing prices under the Housing and Economic Recovery Act of 2008 (HERA). They require that the baseline conforming loan limit be adjusted each year for Fannie Mae and Freddie Mac to reflect the change in the average U.S. home price.

FHFA third quarter 2022 House Price Index (HPI) reported that house prices increased 21.21%, on average, between the third quarters of 2021 and 2022. The baseline maximum conforming loan limit in 2023 will increase by the same percentage.

For areas in which 115 percent of the local median home value exceeds the baseline conforming loan limit, the maximum loan limit will be higher than the baseline loan limit.

A list of the 2023 maximum conforming loan limits for all counties and county-equivalent areas in the country can be found here.

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

2023 Conforming Loan Limits Effective January 2023

MarketMinute | Is Inflation Cooling?

Dec 2

2:18

Category | Markets in a Minute

Market Minute - Economy and Housing News - Erin Carvelli

A gauge of consumer spending posted the 2nd smallest increase this year, offering hope that the Fed's policy rate hikes are cooling inflation.

Consumer confidence fell in November to the lowest level since July, a sign the economy could be slowing, which could help rates.

Jobless claims rose last week to the highest number since February. A cooling labor market could also help rates and inflation.

Home prices rose 10.6% year over year in September, according to Case Shiller, though prices fell 0.8% from the previous month.

Pending home sales fell for a 5th straight month in October, down 4.6%. However, buyers are expected to return in the coming months.

Conforming loan limits increased from $647,200 to $726,200 for 2023. High-cost areas now break 7 figures with limits of $1,089,300.