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  • Foster Hamilton Blog

    Wednesday, October 03, 2018   /   by Steven Guzman

    Mortgage Rates Surge Well Into New 7-Year Highs

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    Mortgage rates skyrocketed today, in relative terms.  It was the single worst day in nearly 2 years, and among only a few days where effective rates moved more than 0.10%.  Typically, mortgage rates are offered in 0.125% increments.  We're able to track "effective rates" by examining the upfront costs associated with any given rate.  For instance, a quoted rate might not change from day today despite major changes in upfront costs/credits.  At a certain point, the upfront cost change is big enough that it makes more sense to jump up by the aforementioned 0.125% increment.
    In other words, if you have a loan in process, an effective rate increase of 0.10% means there's a very good chance that you're looking at a 0.125% increase in rate today.  And if you're not, you'd instead be seeing this move in the form of higher upfront costs or lower lender credit.  Either way, it was a big, bad ...

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    Friday, August 24, 2018   /   by Steven Guzman

    Are Home Prices Finally Pumping the Brakes?

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    Home prices for purchases financed by Fannie Mae and Freddie Mac appreciated at an 0.2 percent rate during June, and the estimate for May was increased from the 0.2 percent originally reported to 0.4 percent.  It also appears that April's gain, which was revised last month from 0.1 percent to 0.2 percent has been revised again, up another 0.1 point. The Federal Housing Finance Agency, regulator and conservator for the GSEs, reported that home prices rose 6.5 percent compared to their Housing Price Index (HPI) for June 2017.
    Prices were up month-over-month in seven of the nine census regions, ranging from 0.1 percent in the West South Central division to 0.7 percent in the Mountain division.  Those two states also posted the smallest and the largest year-over-year changes, 5.0 and 9.5 percent respectively.  The two regions where prices fell were New England and the South Atlantic, both down 0.4 percent.
    The June report also contains i ...

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    Thursday, August 02, 2018   /   by Steven Guzman

    Fannie and Freddie Extend Strong Earning Streak

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    Both Fannie Mae and Freddie Mac, the two government supported enterprises (GSEs) that have been in federal conservatorship for ten years this month, reported another quarter of strong financial returns.  Freddie Mac finished the second quarter with Comprehensive Income of $2.4 billion and the significantly larger Fannie Mae had Comprehensive Income of $4.5 billion.
    Freddie Mac's Comprehensive Income was higher than both the $2.1 billion posted in the first quarter of 2017 and the $1.9 billion in the second quarter of 2017. Its Net Income was $2.5 billion compared to $2.9 billion and $1.7 billion in the two earlier periods.  A portion of the revenue was due to a $334 million ($264 million after-tax) judgement against Nomura Holding America, Inc. from litigation involving certain non-agency mortgage-related securities.
    Net interest income was down $15 million from the 1st quarter and $376 million from the 2nd quarter of 2017 at $3.0 billion ...

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    Thursday, July 26, 2018   /   by Steven Guzman

    Under 35 Homeownership Rate Rising Fastes

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    The homeownership rate remained essentially unchanged in the second quarter of 2018.  The Census Bureau said the rate rose 0.1 percentage points compared to the first quarter rate of 64.3 percent.  Homeownership hit an all-time low of 62.9 percent in the second quarter of 2016 in the Census Bureau's records which go back to 1996.

    The rate was lowest in the West at 59.7 percent, unchanged from the first quarter of the year.  The Northeast, while retaining its next to the bottom position, posted the largest gain of any region, rising 0.8 percentage point to 61.3 percent.  While homeownership remains low among those under 35 years of age, the rate among that cohort did increase from 35.3 percent to 36.5 percent, the largest gain of any age groups.  Homeownership among the oldest Americans, those 65 and older, continues to trend down, falling another half percent from the first to the second ...

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    Wednesday, July 11, 2018   /   by Steven Guzman

    Foreclosure Inventory Cruising on at 11-Year Low

    The foreclosure inventory, that is the percentage of loans in the process of foreclosure, appears to have stabilized at 0.6 percent of all outstanding first mortgage loans.  CoreLogic said on Tuesday that that the inventory has been unchanged at that level, the lowest since June 2007, since last August.  The number is down 1 basis point compared to April 2017.

    The company's monthly Loan Performance Insights Report shows that, nationally, 4.2 percent of mortgages were past due by 30 days or more in April, including loans in foreclosure.  This is a 0.6 percentage point decline in the overall delinquency rate compared with the previous April when it was 4.8 percent.
    The rate of early stage delinquencies, loans that were 30 to 59 days past due, was 1.8 percent in April, compared to 2.2 percent a year earlier and the share in the next stage, mortgages that were 60 to 89 days delinquent, was 0.6 percent, unchanged year-over-year.  The serious delinquency rate, loans ...

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