Eye On Housing
Builders and developers responding to NAHB’s Survey on Acquisition, Development & Construction (AD&C) Financing continued to report declining interest rates in the first quarter of 2021. The average effective rate (based on rate of return to the lender over the assumed life of the loan taking both the contract interest rate and initial fee into account) decreased from 7.27 to… Read More ›
While home buyers were benefitting from low mortgage rates at the end of 2020, builders and developers were also experiencing lower interest rates and improved credit conditions, according to NAHB’s survey on financing for Acquisition, Development and Construction (AD&C). The net tightening index derived from the NAHB survey was -17.0 in the fourth quarter of 2020, compared to -3.3 in… Read More ›
NAHB analysis of the most recent Quarterly Sales by Price and Financing published by the U.S. Census Bureau reveals that conventional loans financed the most new home sales in a fourth quarter since 2006 (see red bars in the chart below). However, the share of sales backed by conventional loans in the fourth quarter was down 2.2 percentage points (quarter-over-quarter)… Read More ›
The Mortgage Bankers Association’s (MBA) latest Weekly Application Survey shows that, for the week ending November 27, 2020, mortgage application activity decreased by 0.6% from the prior week on a seasonally adjusted basis, as indicated by its Market Composite Index. One of its two constituent indexes, the Purchasing Index, increased by 9% from the previous week while the other, the… Read More ›
The Federal Reserve’s latest Senior Loan Officer Opinion Survey on Bank Lending Practices addresses changes in the standards and terms on, and demand for, bank loans to businesses and households. The lending data show a tightening of standards across all purposes , but sufficient demand-strength for gains in residential real estate. For the third quarter, significant net shares of banks… Read More ›
While lenders continued to report tightening in the third quarter, builders and developers responding to NAHB’s survey on financing for Acquisition, Development and Construction (AD&C) reported a near-neutral change in credit availability. The net tightening index derived from the NAHB survey was -3.3 in the third quarter of 2020, compared to 12.0 in the second quarter. The index is constructed… Read More ›
The last weeks in August finished with subdued mortgage activity, per the Mortgage Bankers Association’s latest Weekly Application Survey. However, demand remains strong: Overall mortgage activity was 35% higher than what it was the same week one year ago. For the week ending August 28, 2020, the Market Composite Index decreased 2% from one week prior on a seasonally adjusted… Read More ›
Builders and developers responding to NAHB’s survey on financing for Acquisition, Development and Construction (AD&C) indicated that credit continued to become tighter in the second quarter of 2020. The net tightening index derived from the survey came in at 12.0, after reaching an 8 1/2-year high of 22.7 in the first quarter. The index is constructed so that positive numbers… Read More ›
The Mortgage Bankers Association’s (MBA) latest Weekly Application shows an uptick in applications for the week ending July 17, 2020. The Market Composite Index increased by 4.1% from the previous week on a seasonally adjusted basis. Refinancing activity showed continued fervor, increasing by 5.3% from the previous week, while purchasing activity increased moderately by 1.8%. The MBA’s 30-year fixed-rate mortgage… Read More ›
As the Mortgage Bankers Association’s 30-year fixed-rate mortgage rate reached a new historic low of 3.3%, sliding down by 8 basis points from the previous week, its benchmark Market Composite Index increased by 8% from the previous week, on a seasonally adjusted basis. Purchase applications increased to the highest level in over 11 years and for the ninth consecutive week…. Read More ›