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Real estate daily market update: December 21, 2017

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 We’ll add more market news briefs throughout the day. Check back to read the latest.

Most recent market news

Thursday, December 21

Freddie Mac Primary Mortgage Market Survey

Said Len Kiefer, Deputy Chief Economist: “30-year fixed mortgage rates have been bouncing around in a narrow 10 basis points range since October. The U.S. average 30-year fixed mortgage rate increased 1 basis point to 3.94 percent in this week’s survey.

“The majority of our survey was completed prior to the surge in long-term interest rates that followed the passage of the tax bill. If those rate increases stick, we’ll likely see higher mortgage rates in next week’s survey.

“But even with yesterday’s increase, the 10-year Treasury yield is down from a year ago, and 30-year fixed mortgage rates are 36 basis points below the level we saw in our survey last year at this time. Mortgage rates are low.”

Zillow Mortgage Rate Ticker

Current rates for 30-year fixed mortgages by state. Source: Zillow

“After holding steady in a narrow range for much of last week — even after the Federal Reserve increased its benchmark short-term interest rate — mortgage rates increased sharply on Tuesday to their highest level since late October,” said Aaron Terrazas, senior economist at Zillow.

“While the increase coincided with the passage of tax reform legislation in Congress, the effects of the reform were already largely priced into markets. Beyond inflation and output data due later this week, markets should be relatively quiet moving into the Christmas holiday.

“Low trading volumes this time of year could exaggerate smaller movements that would not have as much of an impact during normal trading times.”

Zillow’s real-time mortgage rates are based on thousands of custom mortgage quotes submitted daily to anonymous borrowers on the Zillow Mortgages site and reflect the most recent changes in the market. These are not marketing rates, or a weekly survey.

Black Knight’s First Look at November 2017 Mortgage Data: Continued hurricane-driven effects lead to largest 90-day delinquency increase in nine years

About Black Knight, Inc.

Black Knight (NYSE:BKI) is a leading provider of integrated software, data and analytics solutions that facilitate and automate many of the business processes across the homeownership lifecycle. ​

Black Knight is committed to being a premier business partner that clients rely on to achieve their strategic goals, realize greater success and better serve their customers by delivering best-in-class software, services and insights with a relentless commitment to excellence, innovation, integrity and leadership.

News from earlier this week

Wednesday, December 20

Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey

Tuesday, December 19

CoreLogic Housing Credit Insights Q3 2017 Update

Housing Credit Nationally


Credit Score

Debt-to-Income (DTI)

Loan-to-Value (LTV)

Investor ShareInvestor Share

Condo/Co-Op Share

Documentation Type

 

“The CoreLogic Housing Credit Index is up compared to year a ago, in part reflecting a shift in the mix of loans to the purchase market, which typically exhibit higher risk,” said Frank Nothaft, chief economist at CoreLogic.

“Further the Index shows higher risk attributes for both purchase and refinance loans, although the risk levels still remain similar to the early 2000s. When looking at the two most recent quarters in which the mix of purchase and refinance loans were similar, the CoreLogic Housing Credit Index for each segment remained stable.

“Looking forward to 2018, with continuing economic and home price growth, we expect credit-risk metrics to rise modestly.”

Tuesday, December 19

CoreLogic Loan Performance Insights

30 days or more delinquent – national

Loan performance – national

Transition rates – national

“September’s early-stage delinquency rate increased by 0.3 percent from a year ago, the largest increase since June 2009,” said Frank Nothaft, chief economist at CoreLogic.

“This does not reflect a deterioration in credit, but rather the impact of the hurricanes in Texas, Florida and Puerto Rico. September’s early-stage delinquency transition rate rose to 2.6 percent in Texas and it rose to 3.2 percent in Florida, which is higher than the 1 percent that’s typical for both states.

“Texas and Florida’s early-state delinquency transition rates in September are much lower than New Orleans in September 2005 when the transition rate reached 17.4 percent as a result of Hurricane Katrina.”

U.S. Census Bureau and the U.S. Department of Housing and Urban Development Monthly New Residential Construction, November 2017

Click to view original source

Building permits

Housing starts

Housing completions

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