• CMG MORTGAGE, INC. NMLS #1820
  • Kevin Long
  • News
  • Market Recap: Mortgage Apps Jump, Home Builder Sentiment Slips, Housing Starts Hit Record High

Market Recap: Mortgage Apps Jump, Home Builder Sentiment Slips, Housing Starts Hit Record High

  • January 17, 2020

CMG Image

Mortgage rates did not move significantly and remain historically low.  Mortgage applications reacted and the Mortgage Bankers Association (MBA) weekly mortgage application survey showed a strong increase in both new purchase and refinance mortgage application submissions.  The National Association of Home Builders’ (NAHB) housing market sentiment index dropped by one point and remains overwhelmingly positive.  Housing starts climbed to a 13-year high.  Building permits declined month-over-month but increased year-over-year.  

For the week ending 1/10, both new purchase and refinance mortgage application submissions increased for a composite increase of 30.2%.  New purchase applications increased 16.0% and refinance applications increased 43.0% week-over-week.  MBA economist, Joel Kan, commented, “home buyers were active the first week of the year.  Low rates and the solid job market continue to encourage prospective buyers to enter the market.” 

The NAHB housing market index slipped slightly in January, down to a reading of 75, still one of the highest levels in 20 years.  Current sales conditions declined to a level of 81, sales conditions for the next six months were unchanged, and buyer foot traffic increased to a level of 58.  The shortage of available homes for sale has presented an opportunity for home builders needed to replenish housing inventory.  The signing of the recent US-Mexico-Canada Agreement on trade could also alleviate some of the cost barriers related to importing building supplies from Canada and Mexico.

Housing starts jumped to a 13-year high in December, exceeding expectations.  Housing starts climbed 16.9% and 40.8% year-over-year to a seasonally adjusted annual rate of 1.608 million units.  Building permits declined 3.9% month-over-month to a seasonally adjusted annual rate of 1.416 million.  Single-family home building growth was driven by the Midwest, up 57%, and the South, up 11.3%.  The Northeast and West each saw declines in housing starts, down 8% and 5% respectively.

Construction activity is likely to pick up early this year, with motivated home buyers competing over limited for-sale homes.  If you’re planning to buy a home this year, get preapproved for mortgage financing before your start shopping.  Your mortgage preapproval gives you a competitive advantage over other buyers who have not started the financing process and will take longer to close on the home.  

 

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

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).