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30-second update:  Increased Loan Limits in Effect!

 

As of January 1, 2020, the new and increased loan limits for Fannie Mae, Freddie Mac, and FHA are now in place.  Fannie Mae and Freddie Mac loan limits are dictated by the Federal Housing Finance Agency which increased the 2020 loan limits due to the fact that home prices were up nearly 5% over last year’s totals.  Both Fannie Mae and Freddie Mac increased their national conforming loan limit to $510,400, up from $484,350 in 2019.  In addition, there are some markets where home prices are more expensive, that have higher loan limits.  In those areas, the 2020 maximum loan amount was increased to $765,600, up from $726,525 in 2019.

The FHA loan limit also saw an increase.  The new loan limit for most of the country is now $331,760, up from $314,827 in 2019.  In addition, FHA has also increased their 2020 limits for high cost counties.  There are approximately 70 high costs counties where the median home price far exceeds the typical FHA loan.  In these areas, the 2020 loan limit is $765,600, up from $726,525 in 2019.

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Sources:

 

http://bit.ly/35poich

http://bit.ly/37yFYDX

http://bit.ly/37z6RI2

 


Economic Reports Breakdown Housing Health

The Mortgage Bankers Association (MBA) released their mortgage application data for the week of December 16th.  This data showed a slight slowing of mortgage applications by about 5.3% from the prior week, but this was not a shock since given the holiday season.  Even though overall applications slightly slowed down for the week, purchase applications for the year are up by about 5% and refinances for the year are also up by a solid 128%.  According to the MBA, interest rates are still about 1% lower than where they were this time last year. 

Speaking of mortgage application activity, New Home Sales, which measures sales of single-family houses, increased in the month of November by 1.3%.  Year over year this report showed that contracts for new homes increased by a whopping 17% since November of 2018!  The median sales price for the month of November was $323,000.

As seen in these two reports, the housing market is still attractive and homes are still being sought out.  Lower rates, lower inventories and high levels of demand are keeping the housing market healthy and moving forward into the new year.

We Are Happy To Help - Call us at 855-LOANS-USA or visit us at AdvisorsMortgage.com

Sources:

http://bit.ly/2Swdl63

http://bit.ly/2sq38xg


30 Second Update:  Fannie Mae Boosts 2020 Housing Forecast

The research team at Fannie Mae have revised their 2020 housing forecasts to much higher levels.  This past year, growth in single-family housing starts grew just over 1% annually.   Now, in 2020, single-family housing starts are expected to accelerate to 10% and top one million new homes by 2021.  The main factors driving the surge in home starts are a strong labor market, increased consumer spending, and low interest rates.  

Supporting this forecast is a survey done by the National Association of Home Builders, which resulted in builder confidence increasing by five points in December to 76, the highest reading since June 1999.  Overall, both reports are strong indications that supply for housing in 2020 will begin to align much more with the strong demand that was prevalent throughout 2019.

We Are Happy To Help” Call us at 855-LOANS-USA or visit us at AdvisorsMortgage.com

Sources:

https://cnb.cx/2sS6zgm

https://fxn.ws/2ZjxX32


Demand for Home Ownership Continues

The National Association of Realtors’ Pending Home Sales report was recently released showing that signed contracts on single-family homes, co-ops and condos were up by 4.4% from October 2018 to October 2019.  Month-over-month sales were down slightly by 1.7% due to tight inventory levels, but this was a very good report overall, showcasing the health and resiliency of the housing market.

Speaking of tight inventory and continued demand, we see home prices continuing to rise.  The Federal Housing Finance Agency released their monthly House Price Index for the month of September, and it showed that homes increased nationally in price by 0.2.  Annually, homes increased by 5.1% which was a large 0.5% increase from their last report.  This report analyzes only homes that were purchased with mortgages with conforming loan limits.

With tight inventory levels and buyers continuing to come to market, it is clear that the housing market is very healthy and still very attractive to those out shopping for a house.  

We Are Happy To Help” Call us at 855-LOANS-USA or visit us at AdvisorsMortgage.com

Sources:

http://bit.ly/2EbatTN

http://bit.ly/36xQBGO


30-Second Update:  U.S. Unemployment Rate Hits 50-Year Low

 

According to the recently released November Jobs Report, the unemployment rate ticked down to 3.5% from 3.6%, matching the lowest jobless rate in 50 years.   In November, 266,000 new jobs were added, blowing away economists’ expectations of 187,000 new jobs.  Larry Summers, director of the National Economic Council, stated, “Bottom line, America is working,” and that, “these are very strong numbers.”   In addition to the strong job report, average hourly earnings rose 3.1% from a year ago, slightly above the 3% expected by economists.  Overall, the combination of a robust increase in new jobs, along with the tick-up in hourly wages, the labor market continues to be a driving force behind a strong economy. 

We Are Happy To Help” Call us at 855-LOANS-USA or visit us at AdvisorsMortgage.com

Sources:

https://cnb.cx/2Pkaav3

https://on.mktw.net/2sTM9U


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