Easter baskets

Daily Rate Update: April 20th-24th

posted in: Uncategorized | 0

Friday – April 24, 2020

Growing fears of a pandemic induced economic slowdown, chaos in the oil markets, a mixed bag of earnings and staggering first-time unemployment claims filled the event list this week in the markets. Economic data for the near future will continue to be weak but U.S. stocks are showing resilience and are having their best month since June. Stocks sold off ahead of the bad news in March, and are now rallying as the weak data streams in.

The coronavirus pandemic continues to impact consumers as well as economic data during the shutdown of many businesses across the nation. April Consumer Sentiment fell to 71.8 this month, down from 89.1 in March. It was the third straight monthly decline. Durable Orders, expensive products meant to last three years or more, fell 14.4%.

Next week, the Fed kicks off their two-day meeting on Tuesday and ends Wednesday with the release of the monetary policy statement at 2:00 p.m. ET. The statement release will be followed by a press conference from Fed Chair Powell at 2:30 p.m. ET. With no change expected in the near-zero Fed Funds Rate anytime soon, it is more about what the statement conveys and what Fed Chair Powell says at his press conference.

Courtesy of Mortgage Market Guide

-CHECK US OUT ON SOCIAL-

Facebook

Twitter

YouTube

LinkedIn

Yelp


Thursday – April 23, 2020

Mortgage rates were unchanged in the latest remaining near historic lows. Freddie Mac reports that the 30-year fixed-rate mortgage is at 3.33% this week with 0.7 in points and fees. Freddie Mac said that mortgage rates have stabilized over the last few weeks as the market searches for direction in the fog of economic data. A year ago the rate was 4.20%.

Americans filing for first-time unemployment benefits hit 4.4 million in the week ended April 18 bringing the 5-week total to a staggering near 27 million or 16% of the labor force. The economic shutdown due to the pandemic has now erased all of the jobs gained since the financial crisis in 2009. It’s not clear as to how high the unemployment rate will climb. Some forecasts are as high as 30%!!! To put it into perspective, the Great Depression of the 1930s saw a high rate of 25%.

Sales of new single-family homes fell the most in 6.5 years in March as the pandemic shut down businesses while many jobs were lost. The Commerce Department reports that New Home Sales fell 15.4% in March from February to an annualized rate of 627,000 units versus the 655,000 expected. Sales were down 9.5% annually. Losses were seen across all regions in the U.S.The median new house price increased 3.5% to $321,400 in March from a year ago while there was a 6.4 months supply of houses on the market. Further declines are seen in the near future.

Courtesy of Mortgage Market Guide

-CHECK US OUT ON SOCIAL-

Facebook

Twitter

YouTube

LinkedIn

Yelp


Wednesday – April 22, 2020

The FHA, Fannie Mae and Freddie Mac have announced measures to deal with mortgage forbearance for millions of borrowers due to the economic malaise caused by the coronavirus pandemic. The FHFA has announced that Fannie Mae and Freddie Mac will purchase certain single-family mortgages in forbearance that meet specific eligibility criteria. In addition, GSE mortgage servicers will not have to advance principal and interest (P&I) for more than four months of missed payments for borrowers in forbearance. These steps are being taken to loosen credit in the housing market.

House prices rose in February but they did not reflect much, if any, influence from the coronavirus outbreak. The FHFA reports that house prices rose 0.7% in February from January and were up 5.7% in the 12 months ended in February. Dr. Lynn Fisher, Deputy Director of the Division of Research and Statistics at FHFA said, “The growth in home prices coincides with other data showing robust housing market activity in early 2020 preceding the current crisis.”

Mortgage rates were unchanged in the latest week and remain near historic lows. The 30-year fixed-rate mortgage was unchanged at 3.45% with 0.29 in points and fees. Mortgage application activity showed a slight Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “The pandemic-related economic stoppage has caused some buyers and sellers to delay their decisions until there are signs of a turnaround.

Courtesy of Mortgage Market Guide

-CHECK US OUT ON SOCIAL-

Facebook

Twitter

YouTube

LinkedIn

Yelp


Tuesday – April 21, 2020

Social distancing guidelines caused potential home sellers to pull properties off the market in March as the pandemic continued to disrupt the U.S. economy. The National Association of REALTORS® reports that March Existing Home Sales fell 8.5% from February to an annual rate of 5.27 million units versus the 5.35 million expected. However, year over year sales increased by nearly 1%.

The median existing-home sales price rose 8% annually to $280,600 while inventories were at a 3.4 month supply, well below 6 months that is seen as normal. “We have seen an increase in virtual home tours, e-signings and other innovative and secure methods that comply with social distancing directives,” said NAR President Vince Malta continued. “I am confident that Realtors® and brokerages will adapt, evolve and fight, ensuring the real estate industry will be at the forefront of our nation’s upcoming economic recovery.”

Today, the Federal Housing Finance Agency (FHFA) announced the alignment of Fannie Mae’s and Freddie Mac’s (the Enterprises) policies regarding servicer obligations to advance scheduled monthly principal and interest payments for single-family mortgage loans. Once a servicer has advanced four months of missed payments on a loan, it will have no further obligation to advance scheduled payments. This applies to all Enterprise servicers regardless of type or size.

Courtesy of Mortgage Market Guide

-CHECK US OUT ON SOCIAL-

Facebook

Twitter

YouTube

LinkedIn

Yelp


Monday – April 20, 2020

A recent report out by UBS Wealth Management Americas showed that despite the coronavirus pandemic, U.S. home prices could very well hold steady in 2020. The housing market began 2020 on a solid note due in part to a strong job market and low mortgage rates. However, the outbreak of the coronavirus shut down much of the nation causing an enormous amount of workers to lose their jobs. “While we do not believe widespread price declines similar to the global financial crisis of 2009 are likely, cities that rely heavily on leisure, tourism and retail sales as well as cities with very low affordability levels could be at risk for price declines,” said Jonathan Woloshin of UBS.

Plunging oil prices are pushing the energy sector stocks lower today and is spreading to the broader equity markets. West Texas Intermediate oil has declined to $10.52/barrel down &.74 to levels not seen since late 1999 as supply far outweighs demand. There are oil tankers sitting in oceans around the world filled with oil no place to go. The coronavirus outbreak has essentially removed gasoline demand through travel shutdown and stay-at-home orders. The national average price for a regular gallon of gasoline fell to $1.81 today but prices will push even lower this week to near $1 in parts of the country.

Courtesy of Mortgage Market Guide

-CHECK US OUT ON SOCIAL-

Facebook

Twitter

YouTube

LinkedIn

Yelp