Origination

Jumbo and Government loans jumped in March, boosting overall credit availability. However, Conforming loans saw a drop of 2.6 percent in that time, driven by increased home prices and rising interest rates.

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.

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.

According to a new report, the average household spends an additional $447 per month when moving from a two-bedroom to a three-bedroom home. Move-up costs vary by home size and location but are steepest in San Jose, California, and in coastal areas. The lowest move-up costs are in Cleveland, Ohio.

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.

According to a newly released working paper released by the Federal Housing Finance Agency, first-time buyers, as a whole, overpay on housing purchases—, particularly when compared with repeat buyers. Despite buying cheaper, smaller homes, they out-pay repeat buyers by more than 1 percent—and about $3,000—on the same properties. This is likely due to a higher willingness to pay, the paper stated.

The latest U.S. Census data shows that spending on single-family construction is up over the month and the year. Spending in this segment rose 1.2 percent over January and 3.4 percent since last February. Multi-family and overall spending are both up as well.

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.

Many areas of the U.S. have seen home prices exceed supporting economic fundamentals, according to a report from Fitch Ratings. Areas such as Texas and Florida have seen increases in home prices that have led top overvalued homes, as inflation can't keep up.