Market Studies

First American released their Loan Application Defect Index for September 2015 on Wednesday, which reflects estimated mortgage loan defect rates over time, by geography and by loan type, and estimates the frequency of defects in the information submitted in mortgage loan applications. According to the Index, loan defects in mortgage applications declined 1.2 percent from August to September. The Index is now down 20.6 percent from the high point of risk in October 2013.

As the Federal Open Market Committee reconvened Wednesday, results from their October 27th and 28th meeting placed yet another hold on the rate hike, leaving the federal funds rate at the current 0 to 1/4 percent target range.

Americans appear to be purchasing more homes as the U.S. homeownership rate has finally moved upward for the first time in two years in the third quarter of 2015, following a 48-year low hit the previous quarter, the Department of Commerce’s Census Bureau announced Tuesday.

The S&P Dow Jones Indices released its results of for the S&P/Case-Shiller U.S. National Home Price Index Tuesday, showing that home prices experienced year-over-year gains of 4.7 percent in August compared to a 4.6 percent increase in July.

In 2014, the market share of independent mortgage companies rose to 47 percent for home purchase loans and 42 percent for refinance loans, the highest those shares have been at any point in the last 20 years, meaning nonbank mortgage companies have more than regained their market share they lost due to the Great Recession.

With interest rates lower than they have been since 2012, now is likely the best time to purchase a home, according to Trulia’s most recent Rent vs. Buy Report.

With so many positive reports on the housing market thus far in 2015, economists believe that growth in 2016 will keep the upward trend going, but not without a few headwinds.

As consumers purchase more homes, remain current on mortgage payments thanks to low rates, and employment continues to grow, the housing market continues to show improvement.

Approximately three-quarters of mortgage industry professionals believe that today’s regulatory environment prevents them from lending to creditworthy borrowers.

Home prices appear to be losing some of their spark, slowing down to a marginal increase of 0.3 percent on a seasonally adjusted basis in August compared to last month.