Data

Low inventory continues to hinder the housing market. Many potential sellers simply aren’t selling out of fear of not being able to afford a new home. Moving may mean losing their low mortgage rates, which were locked in after the crisis.

Goldman Sachs released its earnings from Q1 2017. Overall, the bank reported revenues of $8.03 billion, and net earnings of $2.26 billion at the end of the quarter on March 31. However, the bank still failed to meet Wall Street expectations. Thomson Reuters had predicted Goldman Sachs share value to be $5.31 a share, and the actual value was $5.15 a share.

Bank of America posted a 40 percent growth in overall net income for Q1. Growing consumer banking revenues seem to be the key. But the bank’s mortgage platform is down from a year ago, even as overall loan revenue is up.

The National Association of Home Builders (NAHB) and Wells Fargo reported a solid market for new single-family homes in the April NAHB/Wells Fargo Housing Market Index (HMI), a measure of market conditions based on three factors, with a range of zero to 100. All three individual components of the HMI (present single family sales, next six-month single family sales, and prospective buyer traffic) reported losses month over month, but are still strong.

The April Economic and Housing Outlook report from Fannie Mae paints a steady picture of an economy the GSE expects to give no big surprises. The combination of potential political unrest home and abroad and a smoothly growing housing market are keeping the GSE’s predictions on the safe side. Still, housing is a significant bright spot this year.

As mortgage applications increase, mortgage rates have begun to drop, according to data from the Mortgage Bankers Association (MBA) and Freddie Mac. The MBA’s Market Composite Index, a measure of mortgage loan application volume, rose 1.5 percent from a week earlier, while the 30-year fixed-rate mortgage dropped from 4.10 to 4.08 percent. The average loan size for purchase applications was at $318,700, a survey high.

Refinances fell in February as mortgage rates rose, according to the Federal Housing Finance Agency’s (FHFA) February 2017 Refinance report. The average interest rate on a 30-year fixed rate mortgage in February 2017 was 4.17 percent, up from January 2017’s 4.15 percent.

Independent mortgage bankers profits are up, according to the Annual Mortgage Bankers Performance Report. Independent mortgage banks and mortgage subsidiaries of chartered banks made an average of $157 more on average per loan originated in 2016 compared to 2015. The report also found that average production volume was $2,679 million per company, another increase from 2016’s $2,504 million per company.

According to new rankings, Tampa, Florida, has the best single-family housing market in the country. Dallas; Las Vegas; Columbus, Ohio; and Jacksonville, Florida also made the top five. All had strong demand, home price appreciation, and economic growth.

Down payments are holding back renters from entering the housing market. Mortgage payments tend to be considerably cheaper than a rent payment on a monthly basis, but Zillow’s Housing Aspirations Report found that 70 percent of renters across the country are find high down payment costs to be the top roadblock to homeownership.