Morning Briefing: Mortgage applications dropped in lead up to Labor Day weekend

by Steve Randall10 Sep 2015
Mortgage applications dropped in lead up to Labor Day weekend
Mortgage application in the week leading up to the Labor Day weekend dropped by 6.2 per cent on a seasonally-adjusted basis from a week earlier. The Mortgage Bankers’ Association figures show that on an unadjusted basis, there was a 7 per cent decrease. The Refinance Index decreased 10 per cent; the seasonally adjusted Purchase Index decreased 1 per cent; the unadjusted Purchase Index decreased 3 per cent.

The share of the loan applications was 56.9 per cent for refinance (down from 58.7 a week earlier); ARM’s were down to 6.9 per cent of all applications; FHA’s made up 13.4 per cent (up from 12.7 per cent); VA’s were up to 10.8 per cent (from 9.8 per cent); USDA share was 0.8 per cent (up from 0.7 per cent).
Housebuilding lags job growth says NAR
The National Association of Realtors says that supply of new homes is trailing the creation of jobs in around two thirds of the 146 metros it measures. It says that the situation is contributing to “persistent housing shortages and unhealthy price growth in many markets.”

Economist Lawrence Yun says that homebuilding has failed to keep up with the strengthening labor market which is eroding affordability: "Affordability issues for buying and renting because of low supply are already well–known in many of the country’s largest metro areas, including San Francisco, San Diego and New York," says Yun. "Additionally, our study found that limited construction is a widespread issue in metro areas of all sizes."

Yun does not see the situation improving soon. As job creation continues to grow the construction industry is facing challenges such as increased labor and materials costs, limited credit availability and an uncertain level of first-time buyers.
“Final Destination” actress sells Hollywood loft
Ali Larter, one of the stars of “Heroes” and hit movie “Final Destination” is selling her loft in LA’s Hollywood Hills according to The 5-bedroom, 5.5 bathroom home of 5,500 is on the market at $5.85 million. Outside space at the property includes grassed yard, gym and spa. The actress bought the home in 2009 for $2.9 million according to the Los Angeles Times.