Can’t stop, won’t stop. Housing market presses on.

Market Perspective: 2017 Saw the Most Home Sales Since 2006
More Americans are achieving the goal of homeownership as credit standards loosen.
Single women make up 2nd largest share of buyers.
Appreciation: A double-edged sword
Sources:
[1] National Association of Realtors® (NAR) Existing-Home Sales, December 2017.
[2] U.S. Census Bureau, Monthly New Residential Sales, December 2017.
[3] Ellie Mae© Origination Insight Report, November 2017.
[4] Ellie Mae Millennial Tracker, November 2017.
[5] NAR 2017 Profile of Home Buyers and Sellers.
[6] Federal Housing Finance Agency (FHFA), Quarterly Purchase-Only Index.

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Jason R. Richardson Photo Jason R. Richardson
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Economic Observer
This letter is for information purposes only and is not an advertisement to extend customer credit as defined by Section 12 CFR 1026.2 Regulation Z. Program rates, terms and conditions are subject to change at any time.

Reduced Demand for Bonds Means Higher Rates

Economic Observer
Reduced Demand for Bonds Means Higher Rates

Overview: Despite weaker than expected labor market data, it was a tough week for mortgage rates. Investors have favored stocks over bonds so far this year, and China said that it may reduce its U.S. bond purchases. As a result, mortgage rates ended the week higher.

The U.S. stock market began the year with its strongest start in decades. However, the high demand for stocks has reduced the current demand for bonds, including mortgage-backed securities (MBS). In addition, a report released on Wednesday said that Chinese officials are considering scaling back or stopping their purchases of U.S. bonds in response to trade tensions with the U.S. This caused investors to become concerned about the potential for less demand in the future. Since mortgage rates are set based on MBS prices, lower demand for MBS is negative for mortgage rates.

The U.S. economy added just 148,000 jobs in December, below the consensus for an increase of 190,000. Despite the downside miss, however, the economy added over two million jobs in 2017. The unemployment rate remained at 4.1%, the lowest level since 2000. Wages were 2.5% higher than a year ago, up from an annual rate of 2.4% last month. Since slower growth reduces the outlook for future inflation, the weaker than expected data on job gains was positive for mortgage rates, offsetting a small portion of the increase seen over the past week.

Week Ahead
Looking ahead, the Retail Sales report and core Consumer Price Index (CPI) will be released on Friday. Consumer spending accounts for about 70% of economic activity in the U.S., and the retail sales data is a key indicator. CPI is a widely followed monthly inflation report that looks at the price change for goods and services. The New Residential Construction report (also known as Housing Starts) will come out on January 18. In addition, investors will be looking for additional news about China’s bond purchasing plans.


Chart

 
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Jason R. Richardson Photo Jason R. Richardson
NMLS# 256859
Mid America Mortgage, Inc.
27413 Tourney Road Suite #150
Valencia, CA 91355
(866) 575-9993
EMAIL ME
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Economic Observer
Commentary provided by MBSQuoteline. For live MBS pricing visit www.mbsquoteline.com.

This letter is for information purposes only and is not an advertisement to extend customer credit as defined by Section 12 CFR 1026.2 Regulation Z. Program rates, terms and conditions are subject to change at any time.

Home Sales Round Out the Year On a High Note

Market Perspective - Fast Facts About the Housing Market
Market Perspective - Fast Facts About the Housing Market
Market Perspective - Fast Facts About the Housing Market
Market Perspective - Fast Facts About the Housing Market
Need help finding qualified buyers for 
today’s purchase market? Let’s talk!
Sources:
[1] National Association of Realtors® (NAR) Existing-Home Sales, November 2017.
[2] U.S. Census Bureau, Monthly New Residential Sales, November 2017.
[3] Federal Housing Finance Agency, Monthly Purchase-Only Index.

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Jason R. Richardson Photo Jason R. Richardson
NMLS# 256859
Mid America Mortgage, Inc.
27413 Tourney Road Suite #150
Valencia, CA 91355
(866) 575-9993
EMAIL ME
Visit my website

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Mid America Mortgage, Inc. Logo
Economic Observer
This letter is for information purposes only and is not an advertisement to extend customer credit as defined by Section 12 CFR 1026.2 Regulation Z. Program rates, terms and conditions are subject to change at any time.

Is Renting Still Trendy? Millennials Say Otherwise

Market Perspective - Fast Facts About the Housing Market

More Americans Choosing to Buy Than Rent 1

In Q3 2017, the national homeownership rate reached its highest level since 2014. What’s more, homeownership rates among those under age 35 increased for the third month in a row to 35.6%, signaling that more millennials are shifting from renting to owning.

National Homeownership Rates

National Homeownership Rates

Rental Vacancies Up for Fifth Consecutive Quarter 1

Rental Vacancies Chart

Today’s Mortgages by the Numbers 4

Veterans Administration Purchase
Mortgage Originations

While VA loans represent only 10% of mortgage business4, their popularity grew significantly over the past decade. Between 2007 and 2016, total VA purchase mortgage originations grew from 110,000 to 365,000 loans per year5.
 
Need help finding qualified buyers for 
today’s purchase market? Let’s talk!
Sources:
[1] U.S. Census Bureau, Quarterly Residential Vacancies and Homeownership, Q3 2017.
[2] U.S. Census Bureau, Monthly New Residential Sales, October 2017
[3] National Association of Realtors® (NAR) Existing-Home Sales, October 2017.
[4] Ellie Mae® Origination Insight Report, October 2017.
[5] Mortgage Bankers Association, November 2017.

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Jason R. Richardson Photo Jason R. Richardson
NMLS# 256859
Mid America Mortgage, Inc.
27413 Tourney Road Suite #150
Valencia, CA 91355
(866) 575-9993
EMAIL ME
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Shadow
This letter is for information purposes only and is not an advertisement to extend customer credit as defined by Section 12 CFR 1026.2 Regulation Z. Program rates, terms and conditions are subject to change at any time.

Housing Market Update | Latest Trends

Market Perspective - Fast Facts About the Housing Market

New Home Sales Climb to Highest Level In a Decade1

Increased 19% from Aug to Sep (Up 17% YOY), 667,000 new houses sold (Seasonally adjusted annual rate), Highest level since Oct 2007

After months of low inventory and downturn from hurricanes, surge in new homes signals a healthy recovery.

Home Prices Up Across All Regions2

West: $362,700, Midwest: $195,800, South: $215,100, Northeast: $274,100

Out West, Listings See Shortest Time on Market 2

Hurricane Harvey and Irma have driven down mortgage applications and closings in the South

Seller’s Market Driving Up Home Prices for Millennial Borrowers

Average Loan Amount: Sep 2016, $182,505 | Sep 2017, $186,591 | First-Time Buyers 29% of sales in September

 

Many of today’s homebuyers may be faced with paying a premium for the same home they might have bought for less last year.

— Joe Tyrrell, EVP of Corporate Strategy, Ellie Mae

 

Mortgage Origination Highlights4

Refinances Rose Slightly in September

38% Sept 2017

Credit Risk Factors Remain Steady for Fourth Consecutive Month

FICO

724

LTV

79

DTI

25/39

Figures represent averages on all closed loans

Looking for ways to grow your business in today’s housing market? Let’s discuss how we can work together!
Sources:
[1] U.S. Census Bureau, HUD, New Residential Sales, September 2017.
[2] National Association of Realtors® (NAR) Existing-Home Sales, September 2017.
[3] Ellie Mae® Millennial Tracker, September 2017.
[4] ] Ellie Mae® Origination Insight Report, September 2017.

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Jason R. Richardson Photo Jason R. Richardson
NMLS# 256859
Mid America Mortgage, Inc.
27413 Tourney Road Suite #150
Valencia, CA 91355
(866) 575-9993
EMAIL ME
Visit my website

FacebookTwitterLinkedIn Google+YouTube channel

Mid America Mortgage, Inc. Logo
Economic Observer
This letter is for information purposes only and is not an advertisement to extend customer credit as defined by Section 12 CFR 1026.2 Regulation Z. Program rates, terms and conditions are subject to change at any time.

Housing Market Update | Latest Trends [INFOGRAPHIC]

Market Perspective

Sources:
[1] Ellie Mae® Millennial Tracker, April-July 2017.
[2] CoreLogic, a data and analytics company, Loan Performance Insights, May 2017.
[3] Federal Housing Finance Agency, U.S. House Price Index Report – 2Q 2017.
[4] U.S. Census Bureau, HUD, New Residential Sales, July 2017.
[5] Mortgage Bankers Association, Builder Applications Survey, July 2017.

 
 

S

Looking for ways to grow your business in today’s housing market? Let’s discuss how we can work together!

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Jason R. Richardson Photo Jason R. Richardson
NMLS# 256859
Mid America Mortgage, Inc.
27413 Tourney Road Suite #150
Valencia, CA 91355
(866) 575-9993
EMAIL ME
Visit my websiteFacebookTwitterLinkedIn Google+YouTube channel
Mid America Mortgage, Inc. Logo
Economic Observer
This letter is for information purposes only and is not an advertisement to extend customer credit as defined by Section 12 CFR 1026.2 Regulation Z. Program rates, terms and conditions are subject to change at any time.

Summer Housing Market Remains Strong [INFOGRAPHIC]

Market Perspective
Looking for ways to grow your business in today’s housing market? Let’s discuss how we can work together!
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Jason R. Richardson Photo Jason R. Richardson
NMLS# 256859
Mid America Mortgage, Inc.
27413 Tourney Road Suite #150
Valencia, CA 91355
(866) 575-9993
EMAIL ME
Visit my website

FacebookTwitterLinkedIn Google+YouTube channel

Mid America Mortgage, Inc. Logo
Economic Observer
This letter is for information purposes only and is not an advertisement to extend customer credit as defined by Section 12 CFR 1026.2 Regulation Z. Program rates, terms and conditions are subject to change at any time.

June Market Perspective [Infographic]

Market Perspective
Need help finding qualified buyers for today’s
purchase market? Let’s talk!

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Jason R. Richardson Photo Jason R. Richardson
NMLS# 256859
Mid America Mortgage, Inc.
27413 Tourney Road Suite #150
Valencia, CA 91355
(866) 575-9993
EMAIL ME
Visit my website

FacebookTwitterLinkedIn Google+YouTube channel

Mid America Mortgage, Inc. Logo
Economic Observer
This letter is for information purposes only and is not an advertisement to extend customer credit as defined by Section 12 CFR 1026.2 Regulation Z. Program rates, terms and conditions are subject to change at any time.

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