Today’s News Synopsis:
The Mortgage Bankers Association reported a 3.1% increase in mortgage applications from last week. In their latest Housing Market Index, the NAHB reported builder confidence is at its highest in 12 years at 71. Fannie Mae released their latest economic forecast, showing they do not expect much to change with the likely increase in rates.
In The News:
DS News – “HSBC Pays Out $371M in Consumer Relief” (3-14-2017)
“It’s official: HSBC Mortgage has finished its obligations under the National Mortgage Settlement, supplying $371 million in relief for consumers.”
Bloomberg – “Fed Raises Benchmark Rate as Inflation Approaches 2% Target” (3-15-2017)
“The Federal Reserve raised its benchmark lending rate a quarter point and continued to project two more increases this year, signaling more vigilance as inflation approaches its target.”
Mortgage Bankers Association – “Mortgage Applications Increase in Latest MBA Weekly Survey” (3-15-2017)
“Mortgage applications increased 3.1 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending March 10, 2017.”
Fannie Mae – “Growth Forecast Unchanged Ahead of Expected Rate Hike” (3-15-2017)
“Growth expectations for 2017 remain subject to both upside and downside risks from potential policy changes as the Federal Reserve considers raising interest rates for the second time in three months, according to the Fannie Mae Economic & Strategic Research (ESR) Group’s March 2017 Economic and Housing Outlook.”
Bloomberg – “NYC Apartment Rents Need to Drop as Much as 15%, LeFrak Says” (3-15-2017)
“Apartment rents in cities such as New York and San Francisco will need to fall as much as 15 percent for a glut of high-end developments to be absorbed, according to billionaire real estate investor Richard LeFrak.”
NAHB – “Builder Confidence Hits 12-Year High” (3-15-2017)
“Builder confidence in the market for newly-built single-family homes jumped six points to a level of 71 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). This is the highest reading since June 2005.”
Fannie Mae – “Fannie Mae Prices $1.33 Billion Connecticut Avenue Securities Risk Sharing Deal” (3-15-2017)
“Fannie Mae (FNMA/OTC) priced its second credit risk-sharing transaction of 2017 under its Connecticut Avenue Securities™ (CAS) program.”
Bloomberg – “These Markets Are Really Moving After the Fed Interest Rate Hike” (3-15-2017)
“The Fed’s policy decision is sending shock waves through financial markets. But it’s not the first rate hike of 2017 that’s got the dollar tumbling and Treasuries rallying with equities.”
Bruce Norris will be speaking at 10 Life-Changing Days of a Real Estate Investor with LA South REIA on Monday, April 10.
Bruce Norris will be speaking at 10 Life-Changing Days of a Real Estate Investor with Pasadena FIBI on Thursday, April 20.
Bruce Norris will be speaking at the AOA “Million Dollar” Trade Show & Landlording Conference in Long Beach on Wednesday, May 24.
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The latest housing market index from the NAHB showed builder confidence remained relatively the same at 58. Regarding real estate developments considered riskier, fewer lenders were willing to take those risks and were becoming more picky. A large mortgage bond deal totaling almost $2 billion was about to be put together by JP Morgan.
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Tags: bruce norris, builder confidence, Connecticut Avenue Securities, Economic & Strategic Research Group, Economic and Housing Outlook, fannie mae, Federal Reserve, hard money, Hard money lender, HSBC Mortgage, mortgage applications, mortgage bankers association, National Association of Home Builders, National Mortgage Settlement, New York City, private money, real estate investing, the norris group, trust deeds, Weekly Mortgage Applications Survey, Wells Fargo Housing Market Index