Mortgage applications for new homes increased in June
There was a 1 per cent rise in the number of mortgage applications for new homes in June compared to the previous month. New figures from the Mortgage Bankers’ Association show that 67.2 per cent were conventional loans, 19.6 per cent were FHAs, 1 per cent were RHS/USDA loans and 12.2 per cent were VAs. The average loan size of new homes increased from $320,744 in May to $321,678 in June.
"Application activity in June was slightly higher compared to the past two years, leading us to estimate that new homes sales increased 8 per cent from May on a seasonally adjusted annual basis," said Lynn Fisher, MBA's Vice President of Research and Economics. The MBA estimates new single-family home sales were running at a seasonally adjusted annual rate of 496,000 units in June 2015, based on data from the BAS.
Builder confidence hits 10-year high
Builders’ confidence in the US housing market has reached its highest since 2005. The National Association of Home Builders/Wells Fargo Housing Market Index for July hit 60 while June’s figure was also revised up to that level. “This month’s reading is in line with recent data showing stronger sales in both the new and existing home markets as well as continued job growth,” said NAHB Chief Economist David Crowe. “However, builders still face a number of challenges, including shortages of lots and labor.” NAHB chairman Tom Woods added that the association expects continued recovery for the market for the rest of this year.
‘Salem’ duo buy Hollywood home
Actors Ashley Madekwe and Iddo Goldberg have bought a new home in the Hollywood Hills. The couple star together in TV series ‘Salem’ and are married in real life. Their new home is a 3 bedroom, 2.5 bathroom mid-century home of almost 2,000 square feet. Zillow reports that the listing agent was Verna Cornelius of Rodeo Realty.
Mortgage rates higher amid bond market volatility
The volatile bonds markets has pushed mortgage rates higher this week according to the Freddie Mac Primary Mortgage Market Survey. 30-year fixed rate mortgages averaged 4.09 (up from 4.04 last week), 15-year FRM’s averaged 3.25 per cent (up from 3.20 per cent), 5-year ARMs averaged 2.96 per cent (up from 2.93 per cent) and 1-year ARMs averaged 2.50 per cent (unchanged).