Morning Briefing: Mortgage applications set to soar says MBA

by Steve Randall23 Jul 2015
Mortgage applications set to soar says MBA
New mortgage applications were flat last week but the Mortgage Bankers’ Association says there are good things coming. Its latest weekly survey of home loan applications showed a 0.1 per cent dip in the week ending July 17 compared to the previous week with little movement in the share of mortgage types. However the big news from the MBA is its projection for the next two years. The updated outlook is for purchase originations to total $801 billion in 2015, up $71 billion from its previous forecast. Next year continues the trend with $885 billion in mortgage originations, up $85 billion from the previous forecast.

In its report the Mortgage Bankers’ Association said that the housing market recovery has “shifted to a higher gear” and it expects an increase in prices and sales but for more purchases to be financed. It also expects that more mortgage applications will be approved as the economy and job market improves. The total level of loans will be $1.35 trillion this year and $1.26 trillion in 2016. The overall totals reflect the MBA expectation that refinancing loans will be lower as mortgage rates increase.
Existing home sales at near-8-year high
Existing home sales in June increased to their highest rate since February 2007 with an increase of 3.2 per cent to a seasonally-adjusted rate of 5.49 million. Sales are 9.6 per cent higher than a year ago. The National Association of Realtors said Wednesday that the median sales price also hit an all-time high of $236,400, 6.5 per cent higher than a year earlier. NAR chief economist Lawrence Yun commented:  "Buyers have come back in force, leading to the strongest past two months in sales since early 2007. Limited inventory amidst strong demand continues to push home prices higher, leading to declining affordability for prospective buyers.”
Julia Roberts lists NYC home for $4.5 million
Julia Roberts has listed her home in Greenwich Village for $4.5 million according to the New York Post. The actress also owns a house in New York which is rented out but as she spends most of her time on the west coast it seems the apartment is surplus to requirements. The 3-bedroom, 3-bathroom home is at 45 West 10th Street.
Inventory is getting tighter says report
Housing inventory is getting tighter with months of remaining inventory down 12 per cent from this time last year. Pro Teck Valuation Services analysis of 200 markets also found that there are many signs of an improving housing market. [Our] data shows that there was an increase in the number of strong markets, while the number of weak or distressed markets decreased," commented Pro Teck CEO Tom O’Grady, "While there is still work to be done and there are still communities suffering, the overall health of the U.S. housing market has improved."