All Things in Moderation

Vital Statistics:

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.

Filed under: Economy, Morning Report |