Metrics Show Housing Market Seemingly Rebounding from COVID
Quite a few economic metrics in recent weeks can lead one to believe the housing market may be rebounding from the COVID-19 drop. The beginning of the flattening of the curve, the end of most stay-at-home orders, the 10-year yield approaching 1%, the decline of credit stress, and data from hardest-hit sectors starting to trend up are all positive signs things may be returning to normal. All of these metrics are reason for optimism considering the housing market and economy as a...Fannie Mae and Freddie Mac Forbearance Guideline Update
The Federal Housing Finance Agency has recently announced that Fannie Mae and Freddie Mac will now allow borrower’s who went into COVID-19 induced forbearance to refinance their loan or buy a new home as long as they have made three straight monthly payments after their forbearance ends. In addition, last month Fannie Mae and Freddie Mac announced that they would begin buying loans that went into “first-payment forbearance”. This would mean loans where the borrower went into forbearance within the first month of the loan closing could be purchased by Fannie Mae and Freddie Mac. This policy was set to expire at the end of May, but the FHFA decided to extend it through the end of August...Mortgage Rates Hit Another All-Time Low
For the sixth consecutive week, the amount of people applying for loans to purchase homes has risen. According to Freddie Mac, the 30-year fixed-rate mortgage has hit its lowest point since they’ve started recording rates, resulting in the higher number of loans. The previous record low for interest rates was at the end of April. This now marks the third time in 2020 that the mortgage market has recorded a historical low for interest rates. One factor leading to these low rates is the decreased financial volatility of the market in recent weeks. Consumers looking to buy homes in the coming months should try to take advantage of these low rates and judging by the uptick in purchase applications, they seem to be doing...Some Stimulus Payments Sent as Prepaid Debit Cards
While most people may be expecting a stimulus check from the U.S. Treasury, some people should be expecting prepaid debit cards instead. These prepaid debit cards are coming in plain envelopes from “Money Network Cardholder Services” in Omaha, Nebraska which could further confuse some people. In order to ease this confusion, the IRS itself has tweeted recently confirming that millions of Americans will be receiving their stimulus through these prepaid cards. Consumers have been using their stimulus money to help with groceries, car payments, and rent payments among other things, but what you may not know is it can be used for a down payment on a home as well. When checking your mail moving forward, make sure to look extra...Mortgage Loan Demand Shows Quick Recovery
Mortgage applications to purchase a home rose 9% from last week. This marks the sixth consecutive week home mortgage loan applications have risen. Since the beginning of April, the total number of mortgage loan application numbers have risen 54% marking a strong recovery in the mortgage market. Along with the rise in mortgage applications, a housing location preference shift may also be in play. Some analysts believe the market may move from small downtown apartments to more suburban markets with room for backyards and home...Connect With Us
