Morning Report: Homeownership rate slips

Vital Statistics:

  Last Change
S&P futures 3321 -62.6
Oil (WTI) 37.45 -2.29
10 year government bond yield   0.76%
30 year fixed rate mortgage   2.90%

Stocks are lower this morning as COVID-19 cases continue to rise. Bonds and MBS are up.

Mortgage applications rose 1.7% last week as purchases rose 0.2% and refis rose 3%. “Mortgage applications to buy a home were flat compared to the prior week, but overall activity remains strong this fall,” said Joel Kan, MBA Associative Vice President of Economic and Industry Forecasting. “Applications jumped 24 percent compared to last year, and the average loan size reached another record high at $372,600. These results highlight just how strong the upper end of the market is right now, with outsized growth rates in the higher loan size categories.”

Rental issues (nonpayment, evictions) could usher in the next housing crisis. Eviction moratoriums will end on January 1 for the Federal Government and many states. These tenants could then face eviction processes and will be on the hook for missed rent payments. Second, many landlords rely on that rental income to make the mortgage payment or to live on. That said, it probably won’t be worse than the 2009 financial crisis.

CoreLogic has received multiple bids for the stock, valuing it at over $80 per share. CoreLogic has been pursued by Cannae, which is trying to replace the board of directors.

The homeownership rate ticked down in the third quarter, from 67.9% to 67.4% according to Census. The homeownership rate topped out at 69.2% during the real estate bubble.

2 Responses

  1. Good read:

    “In other words, as much as we revere democracy, there are times — and they do typically involve the internet — when one’s fellow citizens deliberately make their choices not in order to foster the greatest societal good, but, instead, to mess with you.

    Because they want to send a message. Because they think it might be kind of funny. And above all, you know: because they can.”

    Like

  2. How is South Korea like Illinois?

    All four of South Korea’s living ex-presidents are either in prison or have previously served time.

    Like

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