• CMG MORTGAGE, INC. NMLS #1820
  • Kevin Long
  • News
  • Market Forecast: FHFA House Price Index, Mortgage Applications, Existing Home Sales

Market Forecast: FHFA House Price Index, Mortgage Applications, Existing Home Sales

  • January 20, 2020

CMG Image

Markets are closed today in observance of the Dr. Martin Luther King Jr. Holiday.  Important housing reports scheduled for this week include the Federal Housing Finance Agency (FHFA) house price index and the existing home sales report.  The Mortgage Bankers Association (MBA) will release its weekly mortgage application survey on Wednesday.  

The MBA weekly mortgage application survey tracks week to week changes in new purchase and refinance mortgage applications.  For the week ending 1/10, new purchase application submissions jumped 16.0% and refinance application submissions climbed 43.0% for a composite increase of 30.2%, an exceptionally strong start for 2020. 

The FHFA house price index tracks changes in the value of homes financed through conventional mortgage loans.  This data subset is smaller than the data surveyed through the Case-Shiller home price index but is still used to gauge home price appreciation trends.  In October, the FHFA house price index increased 0.2% month-over-month and 5.0% year-over-year.

Existing home sales or resales account for approximately 90% of real estate transactions.  In November, existing home sales fell 1.7% month-over-month to a seasonally adjusted annual pace of 5.35 million.  Although buyer demand is strong, shoppers are competing over limited listings.  The inventory of homes for sale has dropped to a 3.7-month supply, well below the 6-month supply needed for a balanced market 

Housing professionals are expecting an early home buying season this year, with today’s historically low mortgage rates.  If you plan on buying a home this year, get preapproved for mortgage financing before you start shopping.  A competitive market likely means multiple offers and you want your offer to stand out to the seller.

 

Sources: Bloomberg, CNBC, Econoday, MarketWatch, MarketWatch, Mortgage News Daily, National Mortgage Professional Magazine  

Kevin Long
Area Sales Manager
NMLS # 195255
Branch NMLS # 1108042


Kevin Long

PHONE: (615) 567-8901
KLong@cmgfi.com

APPLY NOW MY VIDEO
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).