• Ashley Ortega
  • News
  • Market Recap: Mortgage Apps Down, Housing Market Index Positive, Housing Starts and Building Permits Improve

Market Recap: Mortgage Apps Down, Housing Market Index Positive, Housing Starts and Building Permits Improve

  • May 17, 2019

CMG Image

Mortgage rates continued to follow a downward trend this week.  However, both new purchase and refinance mortgage application submissions declined.  Home builder sentiment improved.  Housing starts and building permits each increased. 

Despite lower mortgage rates, the weekly mortgage application survey declined for the week ending 5/10.  New purchase applications were down 1.0% and refinance applications were down 1.0% for a composite decrease of 0.6%.  MBA economist, Joel Kan, referenced “ongoing global trade disputes” explaining those could, “lead to increased anxiety about the economy, which could cause some potential home buyers to put off their home search until the uncertainty is resolved.”

The National Association of Home Builders’ housing market sentiment index climbed in May to a level of 66, a 7-month high.  Current sales conditions jumped to a level of 72, expectations for the next six months increased to 72, and buyer foot traffic ticked upward to 49.  Although lower mortgage rates have generated some market movement, builders are still struggling with slimmer margins.  With rising materials costs and labor shortages, home buyers end up paying the difference as prices go up. 

Housing starts and building permits turned around in April, after declines in March.  Housing starts increased 5.7% month-over-month to a seasonally adjusted annual rate of 1.24 million and building permits are up almost 1% to a seasonally adjusted annual rate of 1.3 million.  Gains were driven by single-family home construction, up 6.2% to a rate of 854,000. 

Although construction activity has picked up and builder sentiment is positive, the NAHB thinks “the industry should be producing 1.1 million single-family homes a year” to keep up with buyer demand.  The forecast for 2019 comes in a little lower than 880,000.  Data suggests this year’s home buyers may still be facing a competitive market, with low mortgage rates, slowed home price appreciation, and limited for-sale inventory.  Mortgage preapproval could be the difference between getting your offer accepted and getting a pass.  Before you start shopping for a home get preapproved for mortgage financing.  The seller will know you are serious and can guarantee a faster transaction. 


Sources: CNBC, Econoday, MarketWatch, MarketWatch, MarketWatch, Mortgage News Daily

Ashley Ortega
Loan Officer
NMLS # 238561
Branch NMLS # 920781

Ashley Ortega

PHONE: (619) 554-1905

CMG Image
© CMG Financial, All Rights Reserved. CMG Financial is a registered trade name of CMG Mortgage, Inc., NMLS ID #1820 in most, but not all states. CMG Mortgage, Inc. is an equal opportunity lender with corporate office located at 3160 Crow Canyon Road, Suite 400, San Ramon, CA 94583 888-264-4663. Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act No. 4150025; AK #AK1820; AZ #0903132; Colorado regulated by the Division of Real Estate; Georgia Residential Mortgage Licensee #15438; Illinois Residential Mortgage Licensee; Kansas Licensed Mortgage Company #MC.0001160; Massachusetts Mortgage Lender License #MC1820 and Mortgage Broker License #MC1820; Mississippi Licensed Mortgage Company Licensed by the Mississippi Department of Banking and Consumer Finance; Licensed by the New Hampshire Banking Department; Licensed by the NJ Department of Banking and Insurance; Licensed Mortgage Banker – NYS Department of Financial Services; Ohio Mortgage Broker Act Mortgage Banker Exemption #MBMB.850204.000; Licensed by the Oregon Division of Financial Regulation #ML-3000; Rhode Island Licensed Lender #20142986LL; and Licensed by the Virginia State Corporation Commission #MC-5521. CMG Mortgage, Inc. is licensed in all 50 states and the District of Columbia. Offer of credit is subject to credit approval. For information about our company, please visit us at www.cmgfi.com. To verify our complete list of state licenses, please visit www.cmgfi.com/corporate/licensing and NMLS Consumer Access (www.nmlsconsumeraccess.org).