Inman

Real estate daily market update: January 11, 2018

AshDesign / Shutterstock.com

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

Most recent market news

Thursday, January 11

Freddie Mac Primary Mortgage Market Survey

“After dipping slightly last week, Treasury yields surged this week amidst sell-offs in the bond market,” said Len Kiefer, deputy chief economist. “The 10-year Treasury yield, for instance, reached its highest point since March of last year.

“Mortgage rates followed Treasury yields and ticked up modestly across the board. The 30-year fixed-rate mortgage averaged 3.99 percent, up 4 basis points from a week ago.”

Mortgage Bankers Association (MBA) Builder Applications Survey (BAS)

“After playing catch-up for 2 months following the slowdown caused by hurricanes Harvey, Irma and Maria, mortgage applications for new homes declined in December to a more normal growth rate of 7.8% on a year over year basis,” said Lynn Fisher, MBA Vice President of Research and Economics.

“Looking at all of 2017, applications increased by 7.1 percent compared to 2016. Based on December applications, we forecast that new home sales fell in December but remained nearly 16 percent higher than a year ago, and we are anticipating only modest year over year growth for new home sales in 2018. Despite robust demand, a lack of labor and land will continue to constrain homebuilders.”

Wednesday, January 10

Zillow Mortgage Rate Ticker

Source: Zillow

“Mortgage rates moved decisively higher this week as markets returned from the holiday season with vengeance, touching their highest levels since July,” said Aaron Terrazas, senior economist at Zillow.

“Mortgage rates are still lower than they were a year ago, but the momentum is clearly on an upward trend, as markets grapple with a growing consensus that the American economy is at full capacity, softer international demand for US debt, and larger fiscal deficits on the horizon.

“Inflation and consumer spending data due this week could reinforce the narrative of a strong U.S. economy, particularly if December retail sales are in line with or above expectations.”

News from earlier this week

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

Tuesday, January 9

National Quicken Loans Home Price Perception Index (HPPI)

“Appraisers and real estate professionals evaluate their local housing markets daily,” said Bill Banfield, Quicken Loans Executive Vice President of Capital Markets. “Homeowners, on the other hand, may only think about their housing market when they see ‘for sale’ signs hit front yards in the spring or when they think about accessing their equity.

“This is reflected in the HPPI. The housing markets that are rising quickly, like those in the West, are having appraisal values increasing above owner estimates because owners don’t realize just how quickly those markets are advancing.”

American Bankers Association Consumer Credit Delinquency Bulletin

“Home-related delinquencies continue to show overall improvement as the housing market gains strength,” said James Chessen, ABA’s chief economist.

“With higher property values and greater home equity, people are well-positioned and motivated to ensure their loan payments remain current.”

Mortgage Bankers Association (MBA) Mortgage Credit Availability Index (MCAI)

Source: Mortgage Bankers Association; Powered by Ellie Mae’s AllRegs Market Clarity

“In December a handful of investors made end of the year adjustments to their menu of offerings,” said Lynn Fisher, MBA’s vice president of research and economics.

“This resulted in a net decrease in credit availability for government backed programs (FHA/VA/USDA), and especially for lower credit score, higher loan-to-value loans, as well as streamline (requiring less documentation) refinances.

“Despite the decline in the jumbo credit availability over the month, the jumbo index was up nearly 20 percent from December a year ago, by far the largest gain among the component indices.”

CoreLogic Loan Performance Insights Report: Early-stage mortgage delinquencies increased following active hurricane season

“After rising in September, early-stage delinquencies declined by 0.1 percentage points month over month in October,” said Dr. Frank Nothaft, chief economist for CoreLogic.

“The temporary rise in September’s early-stage delinquencies reflected the impact of the hurricanes in Texas, Florida and Puerto Rico, but now the impact from the hurricanes is fading from a national perspective.

“While the national impact is waning, the local impact remains. Some Florida markets continue to see increases in early-stage delinquency transition rates in October, reaching 5 percent, on average, in Miami, Orlando, Tampa, Naples and Cape Coral.

“Texas markets such as Houston, Beaumont, Victoria and Corpus Christie peaked at over 7 percent in September, but are on the mend and improving in October.”

Monday, January 8

Fannie Mae Home Purchase Sentiment Index (HPSI)

Source: Fannie Mae

Source: Fannie Mae

“Consumers remained cautious in their housing outlook at the end of 2017, as tax reform discussions continued,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “In December, mirroring the other major consumer sentiment benchmarks, the HPSI reflected this caution and declined slightly.

“Entering 2018, housing affordability remains a persistent challenge, particularly in rental markets, where consumer expectations for price increases over the next 12 months reached a new survey high.”

Email market reports to press@inman.com.