Mortgage Market News

Home prices across the nation jumped in June due to pent-up demand and affordability, along with a more robust labor market. CoreLogic reported on Tuesday that home prices, including distressed sales, rose 6.5% from June 2014 through June 2015, the 40th consecutive month of year-over-year price gains. May to June saw a 1.7% increase. Prices are down 7.4% from the peak seen back in April 2006. Looking ahead, prices are expected to increase 0.5% from June to July and 4.2% from June 2015 to June 2016.
The Federal Reserve released its July 2015 Senior Loan Officer Opinion Survey on Bank Lending Practices yesterday revealing that banks reported having eased lending standards for a number of categories of residential loans over the past three months. Most banks reported no change in standards and terms on consumer loans. Banks also reported stronger demand for home-purchase loans, while they also saw greater demand for auto and credit card loans.
Freddie Mac reported a profit of $4.2 billion in the second quarter of 2015 citing big gains in its loan guarantee and investment portfolio. The $4.2 billion is up a whopping 700% from the first quarter and allows the government controlled mortgage finance company the ability to cut a check for $3.9 billion to the U.S. Treasury. Both Freddie Mac and Fannie Mae were bailed out by the government when the housing bubble burst back in 2008 and have since been required to sweep profits to the Treasury under terms of the bailout.
Comments
See Older Posts...
Copyright © 2007-2016, Sheila Ledesma, Goldwater Bank. All Rights Reserved. Contact Webmaster.