Mortgage Rates Hit An All Time Historic Low! 13th Time This Year!

Rates In The Past 3 Years:

Rates Since 1971:

Bottom Line:

• Most Importantly, these above numbers are just averages.
• Here at Mason Mortgage Advisors we are built to focus on rates and closing costs.
• It's an exciting time to be a borrower.
• See what you qualify for by clicking on our Team's link here:
• Video:  Introduction  Jordaan Sieben, Mason Mortgage Advisors.  

Full Article:  

http://www.freddiemac.com/pmms/

Original Article Printed:

https://drive.google.com/file/d/1Xg0Jz3ENiSCZ7sbgartfihyDNvNDNFXJ/view?usp=sharing

Single Family Residential Permits Up 10.2% from Last Year (NAHB)

National Association of Home Builders:

"Over the first nine months of 2020, total single-family permits issued year-to-date (YTD) nationwide reached 713,286. On a year-over-year (YoY) basis, this is an 10.2% increase over the September 2019 level of 647,244."   

Full Article:

http://eyeonhousing.org/2020/11/strong-gains-for-september-single-family-permits/

"Housing Snapshot" Oct. 2020, National Association of Realtors

Key Highlights

• Existing-home sales grew for the fifth consecutive month in October to a seasonally-adjusted annual rate of 6.85 million – up 4.3% from the prior month and 26.6% from one year ago.
• The median existing-home price was $313,000, almost 16% more than in October 2019. Total housing inventory declined from the prior month and one year ago to 1.42 million, enough to last 2.5 months – a record low – at the current sales pace.
• More than 7 in 10 homes sold in October 2020 – 72% – were on the market for less than a month.

Full Article From the National Association of Realtors:

https://www.nar.realtor/newsroom/existing-home-sales-jump-4-3-to-6-85-million-in-october

 

Local Governments' Pandemic Responses Impacting Americans Motivation to Move Elsewhere?

Full Article:  

https://www.redfin.com/news/local-pandemic-response-americans-move/

 

Percent Of First-time Homebuyers Reached a New High of 83.10% (FY 2020)

• First-time homebuyers historically have dominated FHA’s purchase transaction insurance program, representing four out of every five loans endorsed.
• The percent of forward mortgages insured for first-time homebuyers in FY 2020 reached a new high of 83.10 percent, as shown by Exhibit O-7, above.

Article:  https://www.hud.gov/press/press_releases_media_advisories/HUD_No_20_194

Annual Report, Print PDF: https://drive.google.com/file/d/1_n2Xz-YmuI3RtN3RZm_UPlcdw8H5ajEn/view?usp=sharing

For-Sale-by-Owner (FSBO) Sellers: 2020 Profile of Home Buyers & Sellers

 

HIGHLIGHTS 
For-Sale-by-Owner (FSBO) Sellers:

• Only eight percent of recent home sales were FSBO sales this year. This remains close to the lowest share recorded since this report started in 1981. 

• The median age for FSBO sellers is 57 years.

• Sixty-four percent of FSBO sales were by married couples that have a median household income of $96,700. 

• FSBOs typically sell for less than the selling price of other homes; FSBO homes sold at a median of $217,900 last year (up from last year), and significantly lower than the median of agent-assisted homes at $242,300. FSBO homes sold more quickly on the market than agent-assisted homes. Seventy-seven percent of FSBO homes sold in less than two weeks—often because homes were sold to someone the seller knows. 

• Eighty-one percent of successful FSBO sellers who knew the buyer were very satisfied with the process of selling their home.

Source:

https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers#homebuyers

Landlords Who Have Pressure To Sell Their Properties Right Now:

 

Full Article:  https://urbn.is/35hCSGg

Financing the Home Purchase: 2020 Profile of Home Buyers & Sellers

HIGHLIGHTS 
Financing the Home Purchase:

• 87 percent of recent buyers financed their home purchase. Those who financed their home purchase typically financed 88 percent.
• First-time buyers who financed their home typically financed 93 percent of their home compared to repeat buyers at 84 percent.
• 58 percent of buyers, the source of the downpayment came from their savings. Thirty-eight percent of buyers cited using the proceeds from the sale of a primary residence, which was the next most commonly reported way of securing a downpayment.
• 11 percent of buyers, the most difficult step in the home buying process was saving for a downpayment.
• Of buyers who said saving for a downpayment was difficult, 47 percent of buyers reported that student loans made saving for a downpayment difficult. Forty-three percent cited high rent/mortgages and 36 percent cited credit card debt also making saving for a downpayment hard.
• Buyers continue to see purchasing a home as a good financial investment. Eighty-three percent reported they view a home purchase as a good investment.

Source:

https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers#homebuyers

National Population Trends, Homeowners vs. Renters:

 

Full Article:  

https://www.rentcafe.com/blog/rental-market/market-snapshots/renting-dips-claims-majority-23-cities/

Mortgage Rates Hit An All Time Historic Low!

“Mortgage rates hit another record low, the twelfth time this year, due to economic and political ambiguity,” said Sam Khater, Freddie Mac’s Chief Economist.

• 30-year fixed loan Average for Rates, fell to 2.78% ("0.7 points/fees").
• 15-year fixed loan Average for Rates, fell to 2.32% ("0.6 points/fees").
• The lowest in History (of record keeping by Freddie Mac, back to 1971)!

Rates In The Past 3 Years:

Rates Since 1971:

Bottom Line:

• Most Importantly, these above numbers are just averages.
• Here at Mason Mortgage Advisors we are built to focus on rates and closing costs.
• It's an exciting time to be a borrower.
• See what you qualify for by clicking on our Team's link here:
• Video:  Introduction  Jordaan Sieben, Mason Mortgage Advisors.  

Full Article:  

http://www.freddiemac.com/pmms/index.html?intcmp=CWS-HP&_ga=2.79679123.642634188.1604607675-2066066334.1603906005

Original Article Printed:

https://drive.google.com/file/d/1bJ6BMx2Il4al7DWwC0E4Kh33SJn-mZWu/view?usp=sharing

 

Builder Confidence All-time High via(NAHB/W.F. Housing Market Index)

National Association of Home Builders:

• "builder confidence in the market for newly-built single-family homes increased two points to 85 in October, further surpassing the previous all-time high."

Full Article:  http://eyeonhousing.org/2020/10/builder-confidence-continues-record-climb/

Lumber Prices Come Down Approximately 20%

• "Since mid-April, lumber prices have soared nearly 120%  but are down roughly 20% since mid-September." 
• "This unprecedented lumber price spike over the last several months has added nearly $16,000 to the price of a typical new single-family home." 

Full Article here:  http://nahbnow.com/2020/10/lumber-prices-trending-downward-from-mid-september-peak-but-still-high/?utm_source=linkedin&utm_medium=Social&utm_campaign=Social2020

(National Association of Home Builders)

Jordaan Sieben, Mason Mortgage Advisors

 

Sales Skyrocket for Luxury Homes!

"U.S. new home sales advanced to the highest level in almost 14 years"

 (Bloomberg Markets & Finance):

• "...tremendous surge in second home buying..." 
• "...the strongest we've seen in over a decade, even during the boom period..." 
• Ivy Zelman, CEO of Zelman & Associates(housing research firm).

How a Formal Mortgage Credit Pull/Inquiry Impacts your Credit:

 

• Pulling credit can be considered a necessary evil.
• It will help you to understand what kind of house you can afford, and what kind of down payment you can afford.
• What's awesome is that In the mortgage industry you can have your credit pulled multiple times within a 30-45 day window without it counting multiple times against your credit. Meaning that you can have your credit pulled within a 30-45 day window and it will only count against your credit score once.
• For the multiple times your credit will be pulled, the crazy thing is it will only knock off about 2 or 3 points from your credit score; that's nothing! 
• Let's get together and come up with a plan to get you qualified for a home loan as quickly as possible. PM me or comment for more info.

Home Flipping Trends (2nd Quarter, 2020)

• Home Flipping Decline!
• But Profits Rebound!
• 53,621 single-family homes & condominiums in the United States were flipped.
• 6.7 percent of all home sales, or one in 15 transactions.

Full Article & Video:

https://www.attomdata.com/news/market-trends/flipping/attom-data-solutions-q2-2020-u-s-home-flipping-report/

Top 125 Most Expensive Zip Codes In The Country

• Only 15 States Contain the 125 Most Expensive Zip Codes in the U.S.
• California has 87 of them by itself.  Followed by New York with 19.

2020 The 100 Priciest Zip Codes of H1 in NYC v2
Infogram

Mortgage Rates Once Again Hit an All Time Low! 2.86% & 2.37% (National Avg.)

• 30-year fixed loan Average for Rates, fell to 2.86%! 
• 15-year fixed loan Average for Rates, fell to 2.37%!
• The lowest in History (approximately 50 years)(of record keeping by Freddie Mac)!

    The most important thing to keep in mind is that these are National averages!  So there are lenders out there that could very well offer even lower rates.  Of course factors like credit scores, debt to income, open tradelines, reserves, and other variables which can impact what can be offered to a potential borrower.  

    Here at Mason Mortgage Advisors we are a Brokerage that works with over 20 different lenders, all with multiple lending programs to give the borrow options.  We add value by placing a focused importance on mortgage rates and closing costs.  See what you quality for by visiting us at: http://applywithwooley.com  You will be glad that you did.  

Rates In The Past 3 Years:

Rates Since 1971:

http://www.freddiemac.com/pmms/

July 2020 Existing and Pending Home Sales (National Association of Realtors)

Key Factors Currently Driving the Real Estate Market (Alongside COVID-19)

Lumber Prices Hit an All Time High!

 

1. Tariffs On Imported Lumber(Canadian).
2. Housing Starts Up 22.6%(month-on-month)(People moving out of cities).
3. New Home Sales Up 36%(Year-over-year).
4. Home Improvement Projects Up b/c Work from home(and/or time off work) + Stimulus checks.
5. Social Distancing at Saw Mills created a reduction of supply.  
6. Historical Low interest rates created increase in demand.

Bloomberg Markets and Finance

Two Story House built in one piece by Giant 3D printer.

 

Source:  https://youtu.be/lZh8E6zZdzk

Mortgage Rates Hit all Time Lows! Again! A Historical 2.88% & 2.44% (National Avg.)

• 30-year fixed loan Average for Rates, fell to 2.88%! 
• 15-year fixed loan Average for Rates, fell to 2.44%!
• The lowest in History (approximately 50 years)(of record keeping by Freddie Mac)!
•  The 8th time that rates have dropped to a new low since the corona-virus started. 

Rates since 1971:

Rates in Past 3 years:

Most importantly:

• This is only the national average.  Meaning that there are lenders out there that can beat that.  
• Focus on Lenders that will give you the lowest tier of rates and closing costs.  
• Don't deal with a lender that slaps you with excessive lender overlays above and beyond what the program/source calls for. 

1. Here at Mason Mortgage Advisors we are a brokerage that works with over 20 different lenders, each with all their own individual programs.  We have a multitude of lending avenues for the borrower.  Get the rates, closing costs, and flexibility you deserve.  
2. See what you qualify for by visiting here: http://applywithwooley.com/  Our team manager will greet you with a quick intro video. 

     

Bank of England Hold Interest Rates at 0.1%

• "The Bank of England left interest rates and asset purchases unchanged and said it doesn’t plan to tighten policy until it’s more certain about the outlook for inflation."

Source:  https://youtu.be/pj5aGKc0FJs

“Mortgage rates fell below 3 percent for the first time in 50 years" Sam Khater (Freddie Mac’s Chief Economist)

• MCLEAN, Va., July 16, 2020 (GLOBE NEWSWIRE) 
• Freddie Mac(OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), 
• showing that the 30-year fixed-rate mortgage (FRM) averaged 2.98 percent, 
• the lowest rate in the survey’s history dating back to 1971.

Full article: https://freddiemac.gcs-web.com/news-releases/news-release-details/mortgage-rates-fall-below-three-percent

New construction home sales are up 55%, the highest pace since the housing boom.

• Sales of newly built homes jumped 55% annually in June, according to a monthly survey by John Burns Real Estate Consulting, which has historically mirrored the U.S. Census report.

• It was the largest annual gain since homebuilding began again following the epic housing crash a decade ago. It is also the highest pace since the height of the unprecedented housing boom in 2005.

Top 50 Metropolitan Areas With the Strongest Rebounds Since Lockdown

See if your Area made the list:

Consumer Views On Buying and Selling a Home (2nd Quarter)

Full Article:  https://www.nationalmortgagenews.com/news/home-sales-outpace-projections-in-june-but-coronavirus-clouds-outlook?utm_source=twitter&utm_campaign=natmortgagenews-tw&utm_medium=social&utm_content=socialflow

Remote Online Notarization Laws 2020

Source:  https://www.youtube.com/channel/UCHkeJOyp0Pb3dJSt4iXjPQA

Home Flipping Rate Increases to 14-Year High (1Q 2020)

• Flipped Home Sales hit its highest level since 2nd Quarter 2006!
• However, Profit Margins on flipped homes sit at the lowest level since 3rd Quarter 2011.
• Home Flips Purchased with financing dip, while those purchased with cash climb. 

Much more information here in the Full Article:

https://www.attomdata.com/news/market-trends/flipping/attom-data-solutions-q1-2020-u-s-home-flipping-report/

Mortgage Credit Availability at lowest level since April 2014 (Mortgage Bankers Association)

Press Release:

"The overall credit availability index decreased 3.3% to its lowest level since April 2014, with all of the sub-indexes falling to lows not seen since 2014-2015," Joel Kan MBA's associate vice president of economic and industry forecasting.

Full Article:  https://www.nationalmortgagenews.com/news/mortgage-credit-availability-fell-over-30-in-four-months-mba?utm_campaign=natmortgagenews-tw&utm_source=twitter&utm_content=socialflow&utm_medium=social

We're not even thinking about raising rates: Fed chair Powell

"We are not even thinking about, thinking about raising rates" 
(Federal Reserve Chairman Jerome Powell)
Video Discussion on The Fed's next move if the U.S. economy recovers better than expected:

Source:
https://youtu.be/iGRuY2XwK4k

Continued Onslaught of Mortgage Demand From Homebuyers (CNBC's Diana Olick)

Source::
https://www.cnbc.com/video/2020/06/10/purchase-mortgage-applications-rise-for-eighth-straight-week.html

Residential Housing Crisis Unlikely (Goldman Sachs Mike Swell on Bloomberg TV)

No Foreseen Housing Crisis Based on: 

• Job improvement, "true unemployment under 10%" 
• No "oversupply of housing inventory."
• Not having "too much leverage in the system" in regards to LTV, and interest only loans...

VIDEO:

Source:

https://www.bloomberg.com/news/videos/2020-06-08/housing-crisis-unlikely-as-long-as-jobs-improve-goldman-s-swell-says-video

Housing Cost and Income Changes

Full Article:

https://urbn.is/2XGxurg

Update: Existing and Pending Home Sales April 2020 (NAR).

• Significantly fewer transactions Nationwide due to certain states Covid virus regulations which hindered property showings. 
• Some sellers took their homes off the market and some are holding back until the Covid situation settles. 
• More For Sale inventory is needed, from sellers and builders, to satisfy the current demand. 
• "Prices rose to a record high"  +7.4% since last year  (98 straight months of year over year gains).
• Buyers are still "facing record low mortgage rates!"
• Mortgage applications are up. "shows buyers are ready!"

New Home Sales 21% higher than Estimated

New home sales strongest in homes priced below $300,000 from CNBC.

Borrowers in forbearance can defer all missed payments until the end of their loan...

A new payment deferral option for borrowers in forbearance

(Fannie Mae and Freddie Mac announced) 

• The new program is for borrowers who took forbearance due to a coronavirus-related issue, and will not have to repay their missed payments until the borrower sells their house, refinances their current mortgage, or their mortgage matures.
• Borrower starts making their mortgage payments again when they’re able, and missed payments are deferred to the end of their loan.
• The CARES Act stipulates that a borrower whose mortgage is backed by either the government or the GSEs who is experiencing a COVID-19-related hardship can request and must be granted forbearance of up to 180 days, which then may be extended for another 180 days. Aka shift as many as 12 months of mortgage payments to the end of their loan (including escrow advances... without accruing any additional interest or late fees).
• "...the maturity date, remaining term, interest rate and payment schedule of the borrower’s mortgage remains the same as it was before" (Freddie Mac).
• Servicers are to begin offering this option to borrowers on July 1, 2020 (According to the GSEs and FHFA)

Full Article:

https://www.housingwire.com/articles/fannie-mae-freddie-mac-borrowers-in-forbearance-can-defer-all-missed-payments-until-the-end-of-their-loan/