Mortgage applications increase
The number of new mortgage applications increased in the week ending June 5 compared to the previous week. The Mortgage Bankers Association data shows that there was an 8.4 per cent rise on a seasonally-adjusted basis and a 19 per cent increase on an unadjusted basis. The refinance index increased 7 per cent from the previous week. The seasonally adjusted purchase index increased 10 per cent and the unadjusted purchase index increased 20 per cent and was 15 per cent higher than the same week a year ago.
Mike Fratantoni, MBA's Chief Economist said that the impact of the Memorial Day holiday on mortgage applications was greater than it was previously assumed, leading to the recovery last week: “Comparing volume over the past two weeks, purchase activity is up over 6 per cent, while refinance activity is down 5 per cent. Strong job gains in May and initial signs of wage growth are supporting the purchase market.”
Houston, we have a problem?
The housing market in Houston has suffered a slowdown in May following highs and lows of the year so far. The Houston Association of Realtors says that sales were down 4.3 per cent year-over-year with 6,807 homes sold. Months of inventory increased to 3.1 months compared to 2.8 a year earlier while media prices climbed 10.5 per cent to an all-time high of $223,000.
"We have had our ups and downs with home sales this year, but HAR predicted declines due to uncertainty about oil as well as tight inventory, so none of this comes as any surprise,” said HAR Chair Nancy Furst with Berkshire Hathaway HomeServices Anderson Properties. “We are on our way to a more normalized housing market after a record-setting 2014, and just like an airplane coming in for a landing, passengers are told to expect the possibility of some dips and bumps on approach."
Wells Fargo tops table for Latino mortgage originators
A league table of America’s top 250 Latino mortgage originators has been published by the National Association of Hispanic Real Estate Professionals. The report shows that Wells Fargo has the highest number of Latinos in the top 250 followed by independent mortgage lenders New American Funding and Alterra Home Loans. Teresa Palacios Smith, NAHREP's 2015 president said: "We are proud to recognize these hardworking individuals for their success and devotion to their profession." The number one spot was taken by a mortgage originator from GEM Mortgage, Manuel Corral from Pomona, CA.