Purchase and refinances applications have increased!
Wow a week without scandal, athlete doping, government
fighting (beyond the normal nonsense), stock market craziness or anything else
significant. I don’t know what to do
with myself. I might actually have to
write about economic reports this week because there was nothing else to
distract me.
Existing home sales for the month of December were
unexpectedly lower. Although lower, they
were only down by 1%. The good news is
that existing sales are up 12.8% from a year ago. In addition, home prices are rising which is
a direct reflection of the fact that housing inventory is lower than anyone
every anticipated it would be at this point.
According to the National Association of Realtors inventory of existing homes
is down to 4.4 months where as in November it was 4.8 months.
The big question being asked is what happened to the millions of homes in shadow inventory that the
banks have been waiting for the right time to sell?
It appears that because of all of the mandates, laws and
rules banks must follow in regard to foreclosure and loan modifications, the
banks have been working closer than ever with homeowners to assist them by either
modifying their loan or being more cooperative with short sales If more homeowners receive assistance than
there are less homes for the banks to sell.
Mortgage rates have remained stable and the Mortgage Bankers
Association reported that, just as the prior week, purchase and refinances
applications have increased. Purchase
apps are up 3% and refinances increased 8%.
The latest FHFA price index is up 0.6 percent for the month
of November. This is the strongest rise since June. The Mountain region led all
areas in increases by surging 2.1 percent.
Home prices are 5.6% higher than they were a year ago and have reached
the highest level since 2006. Home
prices are expected to continue a strong rise throughout 2013 as long inventory
continues to remain scarce.
The employment picture continues its pattern of improvement. First time jobless claims were down to 330K which is the lowest they have been in 5 years. This does not appear to be an anomaly as we have been witnessing a steady decline over the last 30 days.
The employment picture continues its pattern of improvement. First time jobless claims were down to 330K which is the lowest they have been in 5 years. This does not appear to be an anomaly as we have been witnessing a steady decline over the last 30 days.
JJ Mack
916-517-1800
jj.mack@apmortgage.com
www.apmcroseville.com
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