Eye On Housing
Author Archives
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Rates Steady in October as Increases Expected
Nationally, the contract interest rate on conventional mortgages for home purchase held steady in October 2016. Over the month, the rate on conventional mortgages for home purchase was unchanged at 3.60%, according to data released by the Federal Housing Finance Agency (FHFA). Rates on the purchase of previously occupied homes ticked up 1 basis point to 3.62% while rates on new homes… Read More ›
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Serious Delinquency Rates Improve Across Most Household Debts
A recent release by the Federal Reserve Bank of New York indicates that, in aggregate, 90 or more day delinquency rates are falling on most household debt products. However, serious delinquency on student loans remains elevated while a greater portion of auto debt held by households with low credit scores is entering serious delinquency. The results indicate that household balance… Read More ›
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NAHB Survey: AD&C Financing Standards Continue to Ease
Builders and developers continue to report easing credit conditions for acquisition, development, and construction (AD&C) loans according to NAHB’s survey on AD&C Financing. However, the pace of easing slowed somewhat in the third quarter of 2016 from the rate in the second quarter. In the third quarter of 2016, the overall net tightening index based on the AD&C survey was… Read More ›
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Construction of Affordable Rental Housing under the USDA 538 Program
A recent NAHB study based on new data from the U.S. Department of Agriculture (USDA) shows that, in 2014, $93 million in loans were closed and used to finance the construction of 77 new multifamily projects, under USDA’s Multifamily Housing Loan Guarantee Program (also known as the 538 Guaranteed Rural Rental Housing program). The data were provided by USDA in… Read More ›
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Share of Past Due Mortgages Reaches Post-Recession Low
Information released by the Mortgage Bankers’ Association (MBA) indicates that the share of all 1-4 family mortgage loans past due has returned to a level of normality. According to the MBA’s National Delinquency Survey, the share of all 1-4 family mortgages considered past due fell by 14 basis points to 4.52 percent. One year ago 4.99 percent of loans were… Read More ›
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Non-Mortgage Consumer Debt Accelerates
The Federal Reserve Board reported that consumer credit outstanding grew by a seasonally adjusted annual rate of 7.0% over the third quarter of 2016, 0.6 percentage point faster than the 6.4% rate of growth in the second quarter. There is now $3.71 trillion in outstanding consumer credit. Growth in the outstanding amount of consumer credit overall reflected an increase in both revolving and non-revolving… Read More ›
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Mortgage Market Dynamics Largely Improve over Quarter
The most recent iteration of the Federal Reserve Board’s Senior Loan Officer Opinion Survey (SLOOS) finds stronger supply of and demand for most mortgage products across commercial bank respondents. On the mortgage supply side, net credit standards eased on 5 of the 7 mortgage products tracked by the SLOOS while stronger demand was recorded for 6 of the same 7… Read More ›
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Nation Inches Closer to a Recovery But Underlying Variation Persists
For the country as a whole, the NAHB/First American Leading Markets Index (LMI), released today, rose to .98 in the third quarter of 2016, .01 point higher than its level in the second quarter of 2016, .97, and .05 point higher than its level from one year ago, .93. The LMI is now .20 point above its low of .78 reached… Read More ›
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Mortgage Rates Tick Up as LTV Ratio Ticks Down
Interest rates on conventional mortgages ticked up over the month of September 2016 according to data released by the Federal Housing Finance Agency (FHFA). However the increase in mortgage rates reflected a rise in the effective rate on previously occupied homes. Rates on new homes fell in September. The FHFA data show that the effective rate on all homes ticked… Read More ›
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Composition of New Home Sales Financing Shifts in Third Quarter
NAHB analysis of the most recent Census estimates concerning sources of financing for new home sales reveals that the composition of mortgages by financing method shifted over the third quarter of 2016. The share of new home sales financed with conventional loans expanded at the expense of FHA-insured and VA-backed mortgages. The shift to conventional mortgages indicates continued return to health in the… Read More ›