Mortgage Rates

/Tag: Mortgage Rates

Denton County Home Sales Edge Higher In May

Denton County home sales edged up slightly during May with closed sales rising roughly 3 percent compared to a year ago. Sales of new construction were a bit softer than resales during May due to inventory mixes. The city of Denton saw home sales rise by almost 11 percent in May as lower average price points continued to boost activity. With the Federal Reserve poised to hike rates again this week, it's all about interest rates and affordability. The greater DFW area saw relatively flat home sales volume in May. Although new home builders were [...]

U.S. New Home Sales Flat In February

The Census Bureau reported new home sales for February at a seasonally adjusted annual rate of 618,000. This was slightly below expectations, but January was revised significantly higher so month over month the change was negligible. Compared to last year new home sales in February were up less than one percent. The median price for a new home contracted (signing of contract, not actually closing) was $326,800 while the average price of a new home last month posted at $376,700. The supply of new homes stood at 5.9 months in February, near the top of [...]

New Home Sales Softer In January At 593,000 (SAAR)

New home sales came in softer than expected for January, posting at a seasonally adjusted annual rate of 593,000. The Census Bureau numbers were 7.8 percent lower than Decembers revised numbers and 1 percent below January 2017. The median price of a new home contracted in January was $323,000, while the average price of a new home stood at $382,700. There was 6.1 months of supply for new homes in January, a gain of almost a full month compared to this time a year ago. As interest rates have spike during the past two months, [...]

Existing Home Sales Slump 4.8% In January, Denton County Sees 2.5% Rise

The National Association of Realtors reported that existing home sales slumped 4.8 percent in January. Despite a month-over-month increase in available inventory, existing home sales still came in softer than expected. The median price of an existing home was $240,500 in January, an increase of 5.8 percent from a year ago. Existing home prices have increased for 71 consecutive months according to NAR while existing home inventory has declined year-0ver-year for 32 consecutive months. In a sign that higher mortgage rates are starting to put a damper on sales, first-time buyers accounted for only 29 [...]

Denton County New Home Prices Jump 10% In January

Denton County new home prices jumped to a new high in January. According to NTREIS data the price of closed new construction within Denton County Texas was 10.2 percent higher year-over-year with the average price per square foot of a new Denton County home hitting $151. The total price of a new home was up 11 percent to $436,571. These are some impressive price increases particularly for what is normally a slower part of the selling season. December was a banner month for new home sales throughout the DFW area, and January looks to be [...]

DC’s Fiscal Lunacy, Fed’s Unwind Creating Waves For Housing Market

The fiscal lunacy in Washington and the Federal Reserve's balance sheet unwind are creating waves for the housing market. 2018 was starting off on the right foot with a noticeable, yet moderate rise in bond yields. As we received more concrete evidence that the Federal Reserve was actually unwinding some of that gigantic balance sheet, volatility erupted pretty quickly. After a 12oo point plunge in the Dow, some savvy mortgage borrowers probably took advantage of the temporary fear in the market to score a decent mortgage rate. It was a small window of opportunity, because [...]

Quicken Loans Overtakes Wells Fargo As Largest Mortgage Lender

Quicken Loans overtook Wells Fargo as the largest mortgage lender in the U.S. during the fourth quarter of 2017. Quicken Loans, with their Rocket Mortgage platform, reportedly originated $25 billion in home loans in the last three months of 2017. Wells Fargo was second with $23 billion, followed by Bank of America and JPMorgan Chase at $13 billion and $11 billion respectively. In case you missed it, here's the Rocket Mortgage ad aired during the Super Bowl... 2018 was poised to be a decent year for mortgage lenders, but likely not for Wells Fargo. Serial [...]

Fed Unwinds $21 Billion, Markets Puke On Higher Yields

The Federal Reserve System Open Market Account Holdings (SOMA) report for January 31st finally revealed the balance sheet unwind in action. Since the Fed announced their balance sheet unwind last year, the actual process had been proceeding at a snails pace, particularly with the mortgage-backed securities portfolio. The MBS instruments can take 2-3 months to roll off, so the MBS unwind has been virtually invisible until this week. With a $21 billion drawdown in the latest week, including over $10 billion in agency MBS unwind, it becomes increasingly clear why the markets were puking all [...]

Federal Reserve Sowed The Seeds Of The Next Housing Downturn

The Federal Reserve is poised to cause yet another housing downturn in the U.S. I'm not talking about a spectacular Lehman style apocalypse mind you, but an honest downturn that will be unavoidable. Today's S&P Case-Shiller home price index showed another rise in Dallas home prices in November. This is essentially lagged data confirming what most prospective DFW home buyers already knew, namely that Dallas area home prices are pretty damn high. The national index showed that U.S. home prices were up 6.2 percent, or roughly three times average U.S. hourly income growth. The BEA [...]

Fed Adds $705 Million Agency MBS With Un-Unwind

The Federal Reserve's balance sheet unwind was MIA again this week as agency MBS increased with latest System Open Market Account Account Holdings report. SOMA January 24 holdings reflected a magical $705 million INCREASE in agency mortgage-backed securities. This is rather strange behavior indeed for what was advertised as a balance sheet "unwind". It's looking more like the un-unwind, at least for the past two weeks. Much like the crony capitalist elite dining in Davos, the fine purveyors of bogus economic theory inhabiting the halls of the Marriner Eccles building are probably a tad bit [...]