Mortgage News for the Week of March 8, 2019
Average Homeowner Gained $9,700 in Equity in 1 Year

Homeowners keep racking up equity, and this could mean big volume for home equity loans, especially as interest rates slide.
The average U.S. homeowner gained $9,700 in equity from the fourth quarter of 2017 to the fourth quarter of 2018, according to the latest report from CoreLogic.

This equates to an 8.1% increase year over year and represents an aggregate gain of $678.4 billion since Q4 2017.

Home equity levels grew in almost every state, with the western region seeing the greatest increases, CoreLogic reported. 
The No. 1 Thing Millennials Hate About Their Home Is Not What You'd Expect

Life is full of regrets, from the risks you never took to the fashion choices you unfortunately made (shoulder pads, really?). But for many millennial homeowners, their biggest regrets may have to do with the homes they've purchased.

According to a recent  survey by, 63% of millennial homeowners feel buyer's remorse when it comes to their current home purchase. In fact, millennials (meaning those in the 23-38 age range) are more inclined to regret their home purchase than any other age group, and nearly double the percentage of baby boomers (35%) who say they have regrets.  Read more at
Affordability Outlook, Home Buying Power Improving

Slowing home price appreciation and declining interest rates have helped improve housing affordability and the buying power of home buyers.

Black Knight's Mortgage Monitor Report says that annual home price appreciation has slowed for 10 consecutive months as of December 2018; falling from a high of 6.8% annual growth in February to 4.6% at the end of the year.

Month-over-month, the average home price declined 0.3% in December, bringing the average home price down a combined -0.82% (-$2,440) over the past four months.

With the 30-year mortgage rate declining by more than half a point, that equated to a 6% increase in consumers' home buying power, keeping monthly payments the same; or a $62 decrease in monthly mortgage payment on the average priced house with a 20% down payment.  Read more at Mortgage Professional America.
US New Home Sales Hit 7-Month High, Services Sector Rebounds

Mortgage Apps: Higher-End Buyers Readying for Spring Market
The average loan size for purchase applications increased to a record high

An uptick in mortgage rates was blamed by the Mortgage Bankers Association (MBA) for the first decline in mortgage applications in three weeks.  MBA's Market Composite Index, a measure of mortgage loan application volume, decreased 2.5 percent on a seasonally adjusted basis during the week ended March 1.  The prior week, which ended February 22,included an adjustment for the Presidents' Day holiday.  On an unadjusted basis, the Index increased 10 percent.

The Refinance Index decreased 2 percent from the previous week and the share of refinancing applications shrank from 40.4 percent of those submitted to 40.0 percent.  The seasonally adjusted Purchase Index dipped 3 percent from one week earlier but was up 11percent on an unadjusted basis.  The unadjusted index was 1 percent higher than during the same week in 2018.  Read more at Mortgage News Daily.
Downward Mortgage Rate Trend Ends

house and graph While mortgage rates very modestly rose to 4.41 percent this week, they remain below year-ago levels for the fourth week in a row. In late 2018, mortgage rates rose over a full percentage point from the prior year, which was one of the main reasons that weakness in home sales continued into early 2019. However, the impact of recent lower rates and a strong labor market has led to a rise in purchase mortgage demand as we start the spring home buying season.

We hope you enjoyed this week's Market News. For more information about how PMA can help you, please contact us.

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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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