This week’s mortgage news
Fannie Mae recently released its final Home Purchase Sentiment Index™ (HPSI) for 2015. According to the report, the HPSI rose 2.4 points in December, making 2015 the strongest year thus far. The positive outlook is attributed to consumers’ reported income growth and job security.
The HPSI is comprised of six components, and in December, four of them increased. In the household income category, the share of consumers who reported that their income was significantly higher than it was 12 months ago rose 9 percent. Meanwhile, when it came to job security, the number of people who said they were not concerned about losing their job increased by 3 percent.
In addition, based on their improved financial outlook, 4 percent more consumers felt now is a good time to sell their home, and the net share of respondents who say that home prices will go up rose 2 percentage points. On the buying side, the number of respondents who said it is a good time to buy remained unchanged at 35 percent.
Featured Product
Fannie Mae’s new HomeReady mortgage product was designed to align with today’s buyer demographics and to support sustainable homeownership. It is an innovative new product option for creditworthy, low-to-moderate income borrowers with expanded eligibility in designated low-income, minority and disaster-impacted communities. The low down payment option and enhanced pricing offers up to 97% financing with no minimum borrower contribution.
Industry Trends
WFS Jumbo rate – 5/5 ARM: 3.125%
Other WFS rates – Contact John D’Alessandro for current rates.
Refi Index – (+19.0%)
Purchase Index – (-2.0%)
NAHB Builder Confidence – 60 (even)
Existing Home Sales – 4,760,000 (-10.5%)
New Home Sales – 490,000 (+4.3%)
Pending Home Sales – 106.9 (-0.9%)
Housing Starts – 1,149,000 (-2.5%)
Building Permits – 1,232,000 (-3.9%)
