Mortgage News for the Week of April 12, 2019
Housing Sentiment Surges in March, and Sellers are the Most Optimistic

Lower mortgage rates are likely behind a surge in housing sentiment, which could help rev up what started as a sluggish spring season.

A monthly survey from Fannie Mae showed that, in March, positive sentiment jumped to the highest level since June, which was just below the record high.

More consumers think now is a good time to buy and sell a home, and more expect interest rates to fall in the next year. The net share of those who say it is a good time to buy increased 7 percentage points to 22%, although this is 10 points lower than a year ago. The share of those who say now is a good time to sell a home increased 13 percentage points to 43%, up 4 points from a year ago  Read more from CNBC.
Gen Xers' Adult Children Influence Their Buying Decisions, Younger Millennials Become Buying Force According to Realtor® Generational Trends Study

One in six Gen Xers purchased a multi-generational home, overtaking younger boomers as the generation most likely to do so; with 52 percent of those Gen X buyers indicating that they did so because their adult children have either moved back or never left home.

This is according to the National Association of Realtors®' 2019  Home Buyer and Seller Generational Trends  study, which evaluates the generational differences 1  of recent homebuyers and sellers. The report also found that older millennials who bought a multi-generational home, at 9 percent, were most likely to do so in order to take care of aging parents (33 percent), or to spend more time with those parents (30 percent).  Read more from the National Association of Realtors.
Today's Pets Are Real Estate Influencers

April 11th was National Pet Day, and it's time to find a pet to appreciate, if not your own.

After all, pets have a big say in real estate. Eighty-one percent of Americans say animal-related considerations play a role when deciding on their next living situation, according to a report from the National Association of REALTORS®. Eighty-nine percent of those surveyed said they would not give up their animal because of housing restrictions or limitations. Twelve percent of pet owners have moved to accommodate their animal, and 19 percent said that they would consider moving to accommodate their animal in the future. REALTORS® surveyed said that one-third of their pet-owning clients often-or very often-will even refuse to make an offer on a home because it's not ideal for their animal.

Pet ownership is booming across the country. Seventy percent of U.S. households own pets, up from 50 percent a generation ago, according to ProShares Pet Care ETF, an exchange traded fund focused on the pet care industry. Ninety-five percent of pet owners consider their pets part of the family, according to a Harris Poll.  Read more from NAR's Realtor Magazine.
Builder Applications Hint at Strong Spring New Home Sales

Applications for financing new home purchases were up significantly in March.  The Mortgage Bankers Association (MBA) reports that Builder Application Survey (BAS) data for the month shows a 7 percent increase in those applications compared to March 2018 and a 19 percent gain over February.  The application data is not adjusted for seasonal variations.

"With a strong job market, rising wages and lower mortgage rates, housing demand remains strong, as shown by the solid 7 percent growth in new home purchase applications in March," said Mike Fratantoni, MBA Senior Vice President and Chief Economist.  "The confluence of declining mortgage rates with the spring buying season is supporting stronger housing demand and activity. Additionally, the drop in average loan size suggests that builders are tilting production to lower-priced homes, which continues to see the tightest inventories and strongest home-price growth."  Read more at Mortgage News Daily.
Mortgage Rates Inch Up

house and graph
Rates moved up slightly this week while mortgage applications decreased following last week's jump in rates - indicating borrower sensitivity to changing mortgage rates. Despite the recent rise, we expect mortgage rates to remain low, in line with the low 10-year treasury yields, boosting home buyer demand in the next few months.









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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.

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