Pending Sales End Year on High Note; Home Point Buys Stonegate; Price Gains Stable

Pending home sales recovered from the reported 2.5 percent downturn they took in November, posting an increase of 1.6 percent in December. The National Association of Realtors® (NAR) said its Pending Home Sales Index (PHSI) which is based on contracts to purchase existing homes, increased to 109.0 in December from 107.3 t he previous month. The uptick puts the index 0.3 percent higher than in December 2015 after it trailed the year-earlier figure by 0.4 percent in November. NAR had blamed last month's poor showing on buyers "dispirited" by rising rates and tight inventory. Analysts polled by Econoday had not been optimistic about the pending sales number. A consensus was for an 0.6 percent gain but estimates ranged from a negative 1.8 percent to a 1.5 percent increase. Lawrence Yun, NAR

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http://www.mortgagenewsdaily.com/reports/newsletter/2017/1/30/2617

Mortgage Rates End Week Unchanged; Trump's 1st Week Results in Higher Costs For Homebuyers

Mortgage rates fell today, undoing enough of this week's damage to return precisely to levels seen last Friday. In simpler terms, rates ended the week 'unchanged.' That's not for lack of volatility during the week! 4 out of the 5 days saw bigger-than-average moves. Tuesday and Wednesday alone pushed rates more than an eighth of a point higher. But Friday and Monday's improvements were enough to offset the weakness. Rates benefited from this morning's economic data. Specifically, the first reading on Q4 GDP was weaker than expected . Weaker economic data tends to push rates and stock prices lower. 4.25% remains the most prevalent quote on top tier conventional 30yr fixed scenarios. That means today's improvements are more likely to be seen in the form of lower upfront costs (or a higher lender

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http://www.mortgagenewsdaily.com/reports/newsletter/2017/1/27/2612

Rates Remain at 2017 Highs; New Home Sales Tank

Mortgage rates moved higher for the 6th time in the past 7 business days, even after several lenders offered mid-day improvements in the afternoon. That leaves them at their highest levels of the year, although things were worse for most lenders earlier this morning. 4.25% remains the most prevalent quote on top tier conventional 30yr fixed scenarios. Like yesterday, a few more lenders moved up to 4.375%. It continues to be the case that there is little rhyme or reason to the short-term market movements causing volatility for rates. The bigger picture themes are more relevant. Those themes suggest a trend toward higher rates has taken shape although the implications would be more severe if rates break above mid-December's highs. While we're not there yet, it's safest to assume that's where

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http://www.mortgagenewsdaily.com/reports/newsletter/2017/1/26/2610

Rates Resume Uptrend; Price Gains Staying Above 6% Annually; Strong Purchase Apps

Mortgage rates moved higher for the 5th time in the past 6 business days. The past 2 days have combined to bring rates a full .125% higher. That's the increment by which rates are most commonly divided (i.e. 4.0, 4.125%, 4.25%, etc.). Under normal circumstances rates might move that much over 2 weeks as opposed to 2 days. In fact, it happened twice in this most recent cycle (Jan 18/19, and Jan 24/25). The only time we see rates moving any faster is during major blowouts like the weeks following the election or the 2013 taper tantrum. The average lender is once-again quoting 4.25% on top tier conventional 30yr fixed scenarios. This isn't the first time we've seen 4.25% this year, but closing costs are slightly higher today. That means effective rates are at 2017 highs. Several lenders are already

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http://www.mortgagenewsdaily.com/reports/newsletter/2017/1/25/2608

Existing Home Inventory Hits Record Low; Mortgage Rates Higher as Volatility Continues

Mortgage rates have been volatile recently, with 3 out of the past 5 business days seeing much-bigger-than-average moves. After improving nicely yesterday, rates rose quickly today by nearly the same amount. Relative to the recent landscape, this leaves us in the same territory as Thursday the 19th, on average. Throughout this volatile stretch, top tier 30yr fixed rates have averaged 4.125% during better moments and 4.25% on the bad days. The latter is slightly more prevalent today, but 4.125% is still out there. A mere eighth of a percentage point might not sound like much. It may not even BE much if considered in terms of the monthly payment change (about $14/mo on a 200k loan). But for borrowers looking to move down an eighth from today's quotes, it would cost more than $1000 on that same

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http://www.mortgagenewsdaily.com/reports/newsletter/2017/1/24/2605

FHA Premium Cut Officially Reversed; Rates Stay High; Appraisal Fails; Housing Will Survive

As was being widely rumored yesterday, the newly installed Trump Administration has indefinitely suspended a scheduled reduction in the annual premium for Federal Housing Administration (FHA) insurance. A 25-basis point reduction in that premium was announced by then Housing and Urban Development (HUD) Secretary Julian Castro on January 9, scheduled to go into effect on January 27. Mortgagee Letter 2017-07 was issued about an hour after Donald Trump took the oath of office as President, counteracting the earlier Mortgagee Letter 2017-01. The new letter says "FHA will issue a subsequent Mortgagee Letter at a later date should this policy change." The Mortgage Bankers Association (MBA) reacted immediately to the shift. David H. Stevens, President and CEO, issued the following statement on behalf

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http://www.mortgagenewsdaily.com/reports/newsletter/2017/1/20/2598

Rates Back Near 2-Month Lows; Fed's Dudley Wants You to Refi

Mortgage rates moved lower today , generally recovering the losses seen last Friday. This brings many lenders back in line with the lowest levels since November 17th, although last Wednesday (Jan 11) was slightly better on average. There hasn't been enough volatility to unseat 4.125% as the most prevalent 30yr fixed "note rate" on top tier scenarios. As such, today's improvement is limited to "effective rates" (which take closing costs into consideration). Heading into the 3-day weekend last week, we discussed the risk that the recent trend toward lower mortgage rates may have run its course, but that we'd need to wait until today to confirm. Today's improvements keep hope alive. That's no guarantee that rates will move lower, but at the very least it leaves borrowers with more options . On

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http://www.mortgagenewsdaily.com/reports/newsletter/2017/1/17/2592