• Corporate
  • News
  • Market Recap: Mortgage Apps Climb, Home Builder Sentiment Improves, Housing Starts Decline but Building Permits Increased

Market Recap: Mortgage Apps Climb, Home Builder Sentiment Improves, Housing Starts Decline but Building Permits Increased

  • August 16, 2019

CMG image

Mortgage rates have not moved significantly this week, staying near year-long lows.  Lower rates led to a significant increase in refinance mortgage applications.  The National Association of Home Builders (NAHB) housing market index improved.  Housing starts fell but building permits jumped. 

Lower rates spurred mortgage momentum for the week ending 8/9.  New purchase applications increased 2.0% and refinance applications climbed 37.0% for a composite increase of 21.7%.  The average 30-year fixed-rate mortgage rate has declined to its lowest level since November 2016.  The MBA’s associate vice president of economic and industry forecasting commented, “in just the last two weeks, rates have decreased 15 basis points and the finance index has increased more than 50%, reaching its highest level since July 2016.  The government refinance index, driven by a 25% increase in VA refinance applications, is now at its highest level since May 2013.” 

Home builder confidence improved to a level of 66 in August.  Current sales conditions jumped to a level of 73 and buyer foot traffic also increased to a level of 50.  Sales expectations for the next six months, however, dropped one point to a level of 70.  NAHB chief economist Robert Dietz commented on the positive outlook, “although affordability headwinds remain a challenge, demand is good and growing at lower price points for smaller homes.” 

Housing starts dropped again in July down 4.0% month-over-month to a seasonally adjusted annual rate of 1.191 million.  Severe weather, like Tropical Storm Barry in Louisiana, may have halted home building in the Southeast.  June’s figure was also revised slightly downward.  Single-family housing starts, specifically, increased 1.3% month-over-month, rising in all regions except the South.  Building permits climbed 8.4% to a seasonally adjusted annual rate of 1.336 million.  While builders acknowledge strong demand for homes, construction costs and lack of buildable lots continue to hamper activity. 

Lower mortgage rates continue to incentivize homeowners to refinance.  A refinance is an opportunity to lower your mortgage payment, change loan terms, and even take cash out, but it is a new loan origination that will come with closing costs.  Before you refinance, preview your new payment with our mortgage calculator. 


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

  • Facebook Icon
  • Linked In Icon
  • Twitter Icon
  • Google Plus Icon

Latest Tweets

© 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 Broker and Lender #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 (http://www.nmlsconsumeraccess.org/EntityDetails.aspx/COMPANY/1820).