Origination

The amount of down payment assistance programs available dropped very slightly in Q1, but thousands of programs are still out there. A recent report highlights the most important of these programs available to military and veterans. On top of VA loans, veterans can expect to cut down their down payment entirely with these programs.

On Tuesday, at 10 a.m. EST, the U.S. Census Bureau along with the Department of Housing and Urban Development (HUD) will release the New Residential Sales Report for April 2017. With construction activity droppping off slightly, how will sales react?

Potential buyers could be taking a temporary step back from the housing market as the volume of mortgage applications declines even though fixed and adjustable rates continue to fall. Yet, even taking into account the current decline, mortgage rates remain higher than they were a year ago. The average loan size for applications that have been pushed through has also reached a new high.

A new analysis of data on the Custom Built Home Market reports that the growth of the market share of custom built homes has slowed yet still remains in fluctuation. The past four quarters, ending in Q1 of 2017, record a two percent increase in the number of custom home starts nationwide compared with the previous four quarters. Experts predict the market will continue to fluctuate in the coming quarters.

Monday, Flagstar Bancorp, Inc. closed on its formerly announced acquisition of Opes Advisors, Inc. In doing so, Flagstar said it has now expanded its origination business and increased its access to higher quality purchase mortgage originations. This is Flagstar’s second acquisition this year.

Millennials are starting to move into the housing market, but with inventory dwindling they may be out of luck. The solution? Newly built homes. Though millennials are often first time buyers, it does not necessarily mean they are starter home buyers.

On Wednesday, LendingHome, a mortgage marketplace lender, announced two new business developments. The company gained Fannie Mae seller and servicer approval, which according to LendingHome, allows them to expand their consumer home financing business and better serve their customers. They also announced Robert Stiles, formerly Nationstar Mortgage, as CFO.

A recent survey concluded that the number one misconception and cause for dwindling first time homebuyers is being required to put 20 percent down when it comes to securing a mortgage. Other believed factors include a reduced number of houses on the market, growing student debt, and rising interest rates. Constant dialogue between industry professionals and the education of prospective buyers can help remedy this trend.

Fifty-six percent of homebuyers deem that “forever homes” are outdated. With changing lifestyles and shorter tenure in homes, buyers are looking to new home construction rather than a resale in order to get the exact floor plan they want. Higher interest rates are not a turn off for the present-day buyer who prefers convenience to price.

The Department of Housing and Urban Development along with the U.S. Census Bureau released their April New Residential Construction Activity Report on Tuesday. Year-over-year, Permits, Starts and Completions increased 5.7 percent, barely increased 0.7 percent and increased 15.1 percent respectively. However, number shave fallen month-over-month.