Morning Briefing: Mortgage credit availability slightly higher

by Steve Randall07 Oct 2015
Mortgage credit availability slightly higher
The availability of mortgage credit was slightly increased in September according to the Mortgage Bankers’ Association. Its Mortgage Credit Availability Index, which uses Ellie Mae data, increased by 0.3 per cent to 126.5. Conventional MCAI saw the greatest loosening (up 1.1 per cent over the month) followed by the Conforming MCAI (up 0.8 per cent). The Jumbo MCAI was unchanged over the month and the Government MCAI decreased 0.2 per cent.
Surge of Chinese-speaking buyers in all-cash US homes deals
The level of Chinese-speaking buyers of US homes using all-cash for their deals has increased by 229 per cent in the ten years to May 2015. RealtyTrac and Ethnic Technologies looked at data on 10 million residential transactions during 2014 and 2015 and compared them with those in 2005 by ethnicity and native language. In 2005 the level of Chinese buyers paying cash was 14 per cent, in 2015 it was 46 per cent. Across all languages there was a 65 per cent increase in all-cash buyers in the ten years; from 20 per cent in 2005 to 33 per cent in 2015.

“Several of our new brokers are working with international clients and one new broker, who is also Chinese, is writing her third transaction in two months, ranging from $650,000 to over $1 million,” said Heidi Greer, broker at RE/MAX Alliance, covering the Denver market in Colorado.  “She is seeing both cash and low down payment financing buyers with an extensive Chinese network both at home and abroad.”
Tom Cruise lists again and this one’s a biggie!
Tom Cruise recently sold a Hollywood Hills compound for almost $2 million less than its $13 million asking price but it seems that it was just a taste of a bigger sale to come. The LA Times says that Cruise has now listed a Beverly Hills mansion which he bought for $30 million in 2007 and is hoping for a massive profit on the deal. The 10,000 square foot main house with tennis courts and swimming pool is being shown to potential buyers with an asking price of $50 million. However that property is not Cruise’s most expensive listing; last year his Colorado retreat was put on the market for $59 million. 


Should CFPB have more supervision over credit agencies?