Guardian Residential Lending Industry News, October 1-8, 2020

Guardian Residential Lending Industry News, September 24 – October 1, 2020
October 1, 2020
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October 15, 2020
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In the Know: A Roundup of This Week’s Local and National Real Estate Stories

Everything You Should Know About The New Mortgage Refinancing Fee That Goes Into Effect Dec. 1 (Forbes, Oct. 8)

The new “adverse market refinance fee” is a 0.5% fee that will be charged to refinances sold to Fannie Mae or Freddie Mac (about 70% of all loans), starting on Dec. 1.

The reason for the fee is to recoup some of the expenses incurred by those government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac, due to the economic downturn caused by Covid-19.



Average U.S. mortgage rate drops to 2.87% (HW, Oct. 8)

The average U.S. mortgage rate for a 30-year fixed loan is 2.87% this week, dropping one basis point from last week’s 2.88%, Freddie Mac said in a report on Thursday. The rate is now one basis point from an all-time low set in mid-September.

The average fixed rate for a 15-year mortgage was 2.37%, rising one basis point from last week’s 2.36%, the mortgage securitizer said.

Mortgage rates that have stayed below 3% for 11 consecutive weeks have boosted housing demand, acting as a counterweight for an economy that is struggling amid the worst public health crisis in more than a century.



Mortgage rates set another record low, sparking new strength in refinances (CNBC, Oct. 7)

-Refinance volume surged to the highest level since mid-August as mortgage rates dipped to 3.01%.

-Refinances jumped 8% last week and were 50% higher than a year ago, according to the Mortgage Bankers Association.


The U.S. won’t see a housing bubble crash anytime soon (HW, Oct. 8)

After holding out for July 15 housing data, HousingWire’s housing data analyst is making the call

At some point in the future, home prices will fall and sales will decline year over year, but even when this happens it will not constitute a bubble crash anytime soon.

Today, we are on an upswing. The U.S. housing market is undergoing a V-shaped recovery, but until existing home sales hit 5,770,000 again, the full recovery in existing home sales will not be complete as that was the number we hit earlier this year


Homes sold two weeks faster in September due to unusual surge in demand (CNBC, Oct. 1)

It took just 54 days to sell a home in September. That is the shortest time since began tracking this metric in 2016. Back then it took 78 days.

The median price of a home sold in September was $350,000, up just over 11% annually.


Studies Suggest the Economy is Strengthening (The M Report, Oct. 5)

On the housing front, Goyette noted Fannie Mae remained bullish on this market.

“In housing, data released this week continued to show strength in the housing market, with an increase in pending sales to record levels,” he continued. “The increase in September private residential construction spending supports our outlook for a strong rebound in residential fixed investment in the third quarter.”


It’s the condos…(SF Examiner, Oct. 6)

Young, new SF residents are the ones selling due to COVID-19

Single-family homes so far are holding up pretty well and in fact showing slight increases in value over the past two quarters, but condos? They’re feeling the pinch; and it’s directly related to falling rents.


Election Year Ripple Effects: Housing Prices and Inventory (The M Report, Oct. 8)

On the ground, agents aren’t necessarily expecting a huge market shift due to the current battle for the White House.

“Almost all the buyers I work with ask how the election could impact their home purchase,” Pruitt said. “I don’t have a crystal ball, but presidential elections have never seemed to affect the housing market much in the six election cycles I’ve been a real estate agent. The pandemic is having a much bigger impact, with low mortgage rates motivating buyers who want more space to work from home.”


Thanks for reading.