• CMG MORTGAGE, INC. NMLS #1820
  • Kevin Long
  • News
  • Market Forecast: Mortgage Apps, Housing Market Index, Housing Starts and Building Permits

Market Forecast: Mortgage Apps, Housing Market Index, Housing Starts and Building Permits

  • January 13, 2020

CMG Image

Mortgage rates did not move significantly last week, remaining historically low.  The two most significant housing reports scheduled for release this week include the National Association of Home Builders’ (NAHB) housing market sentiment index and housing starts and building permits.  The Mortgage Bankers Association (MBA) weekly mortgage application survey is also scheduled for release. 

The MBA mortgage application survey returned mixed results for the week ending 1/3.  New purchase mortgage application submissions increased 5.0% and refinance mortgage application submissions decreased 8.0% for a composite decrease of 1.5%.  The data suggests home buyers are shopping earlier this year than they have in previously, but refinance activity has slowed.

The NAHB housing market sentiment index is based on a survey of home builders’ perceptions about current sales conditions, sales expectations for the next six months, and buyer foot traffic.  Any reading above 50 is considered positive.  In December, the index reached a level of 76, a 20-year high.  Current sales conditions climbed to a level of 84 and sales expectations for the next six months jumped to 79.  Buyer foot traffic also increased to a level of 58. 

Housing starts track ground broken on residential projects and building permits track permits issued.  In November, housing starts increased 3.2% to a seasonally adjusted annual rate of 1.365 million units, a 10-month high.  Year-over-year, starts were up 13.6%.  Building permits also increased, up 1.4% month-over-month to a seasonally adjusted rate of 1.482 million, the highest level in 12 years.   

Construction activity is expected to pick up early this year, driven by strong buyer demand.  Many markets have gotten increasingly competitive as home buyers are competing over a limited number of homes for sale.  Home builders will likely be busy this year, replenishing inventory to satisfy buyer demand.

 

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

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).