Refi Demand Skyrockets 47%, and Prime Property on Poipu Beach…
Mortgage applications soared during the week ended June 7 as interest rates declined further. While applications for home purchases were up, it was refinancing that again drove the overall numbers.
After months and months of uncertainty about whether the FHA is backing mortgages for Deferred Action for Childhood Arrivals recipients or not, HUD has finally given an official answer. And that answer is no.
Highest May reading in 2 years comes as more Americans are uncertain about their financial futures
“We expected more people to be ready to get into the market, because of the low mortgage rates and rising wages, but some have remained on the sidelines,” said Robert Dietz, chief economist for National Association of Home Builders. Economic uncertainties “are causing some prospective homebuyers to be reluctant,” he said.
Households also reported lower expectations of future income growth, according to the New York Fed report. That measure dropped to a 2.8% gain in May, from 2.9% the month before. A measure of income uncertainty stood at an eight-month high.
The Portland metro region is one of 15 across the country on the verge of a housing crisis, according to 24/7 Wall St.
The financial news company analyzed median home prices and looked at how quickly the numbers have risen after the 2008 financial crisis.
Its data found Portland-area home prices are almost 32 percent higher now compared with their pre-recession peak, with a median price near $367,000 today compared with $279,000 in the third quarter of 2007.
Other cities nearing a housing crisis in the 24/7 Wall St. report include Seattle, Austin, Salt Lake City, San Jose and Nashville. Go here to see the company’s methodology.
Home equity rises to the highest level since 2002
The value of all U.S. owner-occupied homes increased to a record $26.1 trillion in the first quarter, according to a Federal Reserve report released Thursday known as the Flow of Funds.
That was a gain of 4.3% from a year earlier, the slowest annualized increase since 2012. The collective value of U.S. homes is now 15% higher than the bubble peak reached in 2006. Once that bubble popped, it was a decade before values recovered to the same level.
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