Data

Surveys show a March slump in consumer confidence after gains in the previous two months. Fannie Mae's Home Purchase Sentiment Index cited concerns about the economy, job status, and income among the factors contributing to the backslide in confidence. Those expecting mortgage rates to rise also rose in a manner comparable to 2013 numbers.

Poor growth in the economy in the first three months of 2017, coupled Federal Open Market Committee’s March meeting minutes just released to spur a drop in mortgage rates. Thirty-year fixed mortgages and 15-year FRM both showed lower rates this week and a steady decline during the first three months of the year. This marks the third consecutive week of reductions.

On Thursday, the National Mortgage Servicers Association held a member meeting in Washington D.C., where some of the nation’s top servicers heard from Consumer Financial Protection Bureau Director Richard Cordray. This comes on the heels of Wednesday's Five Star Government Forum, where attendees listened to top-level speakers and participated in panel discussions on the economy and the future of the market.

According to new data, millennials are entering the housing market in droves. In February, the demo accounted for 86 percent of all closed loans, with most of those being conventional loans. Millennials also saw their time-to-close shorten for the month, reaching its fastest turnaround since March of last year.

In a letter to shareholders, JPMorgan Chase CEO Jamie Dimon made the statement that the days of “too big to fail” are over and that taxpayers will no longer pay for a bailout should a major financial institution collapse. This is because of a stronger regulatory environment, more liquidity, and higher capital levels, Dimon said. He also covered tech, immigration issues, and other issues in his letter, and participated in a town hall event on Tuesday.

The Fair Housing act was supposed to level the playing field for American minority groups nearly 50 years ago. While segregation and homeownership among blacks and Latinos has improved in some areas, age-old issues still linger. And it’s been especially rough since the recession.

Fannie Mae looked into the efficacy of early education for borrowers and buyers and found underwhelming results. While buyers, agents, and lenders like the programs in theory, the reality is that all see the programs as cumbersome. The GSE recommended retooling the programs, but not abandoning them.

CoreLogic’s February 2017 Home Price Index Report (HPI) reported gains both year-over-year and month-over-month. Home prices including distressed sales rose one percent month-over-month, and seven percent year-over-year. Some areas, particularly in the western U.S., are still harmed by low inventory. In much of California, Washington, and Oregon, home prices are considered “overvalued” as prices were over 25 percent above sustainable levels.

Whether they’re considering taking out a home equity line of credit (HELOC) or already in the process, nearly half of homeowners say interest rates are the most influential factor to consider. Almost half of borrowers listed interest rates as the most influential factor when deciding on a HELOC, which is over twice the second most influential factor: loan amount. Additionally, 36 percent of borrowers list the lower interest rates as the most valuable aspect of a HELOC compared to other options.

With nearly $5 trillion available to borrowers, the equity economy is at an 11-year high, according to a new report by Black Knight. Fewer borrowers are underwater on the heels of a strengthening appreciation market, and refis are nearly half of all new loans. More than two-thirds of tappable equity is in the hands of borrowers with low-rate mortgages.