Origination

A new survey revealed that millennials may not want the homebuying process to be as digital as most expect. In fact, two-thirds actually would prefer using a local real estate agent or lender over an online-based one. The survey also revealed that 56 percent of millennials plan to purchase a home in the next two years.

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.

Despite a strong February, housing starts have fell almost seven percent in March. Although sing-family starts dropped, single-family permits posted the third largest annual pace since the recession. Permits in March grew 3.6 percent to 1.26 million from February’s 1.216 million, and grew year-over-year by 17 percent.

Tight inventory is continuing to drive home prices upward, but despite the uptick in cost, sales aren’t slowing down anytime soon. According to a report covering March housing activity, existing home sales and overall home prices were both up. The expected rise in interest rates likely pushed buyers into the market ahead of the spring season.

Nationstar mortgage announced that it received the Servicer Total Achievement and Rewards (STAR) performer recognition for overall performance from Fannie Mae. Fannie Mae’s STAR Program aims to recognize the highest performing servicers for customer service. This is the third year in a row in which Nationstar has received the recognition.

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.

At the end of Q1 2017, M&T bank reported a mortgage banking revenue of $85 million, a $3 million increase from Q1 2016, but a decrease from Q4 2016’s $98 million. The bank’s real estate and other foreclosed assets dropped from $188 million to $119 million year-over-year, and quarterly from $139 million.

Zillow will release its Real Estate Markets Report for March 2017. The report covers several data points, including demand, home prices, inventory, and sales numbers. One thing to keep an eye out for in March is inventory levels. The previous report, from February 2017, showed declining inventory overall, a problem further developed by high demand.

According to a new report, homes are selling faster, at higher prices, and in higher volumes—all thanks to a tight inventory and ever-rising demand. Prices jumped the most in Manchester, New Hampshire, while sales saw the biggest increase in Richmond, Virginia. Months of supply dipped below three months for the first time in the report’s nine-year history.

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.