Get the Latest Housing Market Data for the Philadelphia Region from Long and Foster's Market Conditions Report |
Buyers Undeterred by Increasing Bidding Wars |
Buyers are increasingly facing fierce bidding wars in their hunt for a home. Even as home prices surge and competition remain tight, house hunters are undeterred.
About 40% of potential buyers who’ve been searching for a home say they haven’t bought a house yet because they keep getting outbid, according to a new survey by the National Association of Home Builders. A year ago, the primary reason cited was unaffordable prices. Read more from NAR's Realtor Magazine.
|
Why Are Credit Scores Soaring in a Recession? |
Credit scores have never been higher, positioning more Americans to qualify for some of the best mortgage rates ever. Yet, nearly 10.1 million Americans remain unemployed and have skipped mortgage or debt payments. How can this be?
“It’s been bizarre with this recession to see credit scores go up,” Matt Schulz, chief credit analyst at LendingTree, told MarketWatch.
At the beginning of 2020, FICO credit scores averaged 703. By October, the average FICO credit score rose to 711, Experian FICO credit score data shows. VantageScore credit scores—which factor mortgages in more heavily—rose an average of four points above 2019 scores to 690 in 2020. (In general, a FICO score above 660 and a VantageScore above 670 is considered good, MarketWatch notes.) Read more from NAR's Realtor Magazine.
|
Existing Home Sales Rise Slightly in January, but Record Low Supply Weighs on Market |
Homebuilders Preparing for Big 2021, Data Suggests
Single-family permits are up nearly 30% from one year ago
|
Overall housing starts in January totaled 1.58 million units, a decline of 6% from December, according to the latest statistics from the U.S. Census Bureau. But there’s reason for optimism from homebuilders – a huge spike in building permits.
“Despite a modest month-over-over decline, single-family housing starts are up 17.5% from one year ago,” said Odeta Kushi, deputy chief economist at title insurance firm First American. “Single-family permits, a leading indicator of future starts, are up nearly 30% from one year ago. It’s still not enough to significantly narrow the gap between supply and demand, but it’s a step in the right direction.”
A total of 1.881 million residential building permits were issued last month to homebuilders, roughly 1.2% above December’s tally but more than 22% greater than were issued a year ago. Read more from Housing Wire.
|
Applications for New Home Purchases Jumped 17 Percent in January |
Applications for mortgages for new home purchases increased 17% in January compared with December and were up 18.9% compared with January 2020, according to the Mortgage Bankers Association’s (MBA) Builder Application Survey (BAS).
“New home sales activity started 2021 at a strong pace, with purchase mortgage applications for newly constructed homes jumping nearly 19 percent compared to last January,” says Joel Kan, associate vice president of economic and industry forecasting for the MBA, in a statement. “These results are consistent with the still-increasing pace of single-family housing starts and permitting activity reported over the last several months. The low supply of existing homes on the market, and changing household preferences toward newer, larger homes, continue to spur buyer demand." Read more from Mortgage Orb.
|
Mortgage Market Update
Mortgage Rates Move Up
|
Economic spending has improved, due to the most recent stimulus, but supply chain shortages are causing downstream inflation, leading to higher mortgage rates. While there are multiple temporary factors driving up rates, the underlying economic fundamentals point to rates remaining in the low 3 percent range for the year. |
We hope you enjoyed this week's Market News. For more information about how PMA can help you, please contact us. |
phone: 610.834.8700
Information and analysis is obtained through third parties and is deemed accurate but not guaranteed. Philadelphia Mortgage Advisors is a licensed mortgage lender by the PA Dept. of Banking and Securities, NJ Dept. of Banking & Insurance, the state of DE, the Florida Office of Financial Regulation, MD Mortgage Lender #23004 and VA State Corporation Commission #MC - 6797. NMLS #128570.
|
|
Follow us on social media! |
Weekly Housing Market Monitor
Get the latest national housing market data in the Weekly Housing Monitor from the National Association of Realtors.
|
Recent Economic Data
(click to enlarge)
|
PMA & PHFA/NJHMFA can make it easier for first-time buyers to purchase a home!
|
are Easier with PMA's
In-House Approvals!
|
|
