Greenway Mortgage Blog

Blog

MarketMinute | How Does 2023 Look for Refinances?

Jan 6

5:21

AM

Category | Markets in a Minute

Demand for employment remained high in November as companies looked for workers to fill positions despite worries of a looming recession.

Minutes from last month's Fed meeting showed officials were still focused on stamping out inflation but gave few clues about future rate hikes.

A December reading of the manufacturing sector showed factory activity slowing down. The prices producers paid their suppliers fell.

Housing News

A large drop in mortgage applications last week made headlines. Higher rates were blamed, though apps typically fall some at year’s end.

Cash-out refinances will cost consumers more in 2023 due to higher fees from the FHFA. Refis still make up almost one third of mortgage apps.

Beginning in March, Freddie Mac will require a first lien mortgage to be at least 12 months old before it can be paid off by a cash-out refinance.

MarketMinute | How are the markets finishing the year?

Dec 30

3:59

AM

Category | Markets in a Minute

The dollar is ending the year on the defensive, having given back roughly half of its 2022 gains, as investors bet inflation is slowing.

Jobless claims rose only modestly last week and held near prepandemic levels, suggesting the labor market remains historically tight.

Purchasing power of middle-income household paychecks fell 2.9% in 2022, as inflation hit middle earners harder than other groups.

Housing News

Month-over-month house prices were flat in October, changing 0.0%, according to FHFA. Prices rose 9.8% over October 2021.

Pending home sales fell 4% in November, more than expected. Higher mortgage rates and tight inventory continue to affect the housing market.

Mortgage applications rose 0.9% last week. Refinance apps were up 6% week over week, and purchase apps were down 0.1% for the week.

MarketMinute | Home prices continue their rise

Dec 23

1:36

PM

Category | Markets in a Minute

Consumer confidence rose to an 8-month high in December as inflation retreated and the labor market remained strong.

In a sign of labor market strength, unemployment filings remain at historically low levels, though they rose slightly last week to 216K.

The economy grew faster than previously thought in the 3rd quarter, a sign the Fed's battle to slow it down is having only a limited impact.

Housing News

NAHB reports homebuilder sentiment dropped for the 12th month in December to the lowest level since 2012 but may be near the bottom.

New home construction continued to decline, and permits plunged in November, as higher borrowing costs eroded affordability and demand.

Existing home sales fell 7.7% in November, the 10th straight month of drops. However, the median sales price rose 3.5% annually to $370,700.

MarketMinute | How Much Did The Fed Raise Policy Rates?

Dec 16

5:01

AM

Category | Markets in a Minute

Consumer prices came in better than expected in November, up just 0.1% from October and up 7.1% over last year, signaling inflation is ebbing.

Consumers pulled back on spending in November, with retail sales for the month declining 0.6%, more than the expected 0.3% drop.

The Fed raised policy rates 0.5% this week and signaled more rate hikes to come in 2023 as it continues to fight inflation.

Housing News

Although still lower than a year ago, purchase mortgage applications were up 4% last week. Refinance applications rose 3%.

Home office updates and induction cooktops are in for 2023, while high pile carpet, subway tiles, and open shelves are losing popularity.

NAR predicts a total of 4.78 million existing home sales in 2023, down from the 5.13 million existing home sales expected to close in 2022.

MarketMinute | What's Supporting Home Prices?

Dec 9

4:24

AM

Category | Markets in a Minute

Nonfarm payrolls rose 263K in October, well above the expected 200K. Wages jumped 0.6%, double the estimate, which could fuel inflation.

Money supply growth fell in October to a 39-month low, continuing a 7-month decline and signaling a slowdown in economic activity.

After 4 consecutive 0.75% interest rate hikes, the Fed is widely expected to increase rates by 0.50% at its December meeting next week.

Housing News

Black Knight reports the pace of home price declines slowed by 0.43% in October, the smallest drop this year, due to inventory shortages.

According to a recent Wall Street Journal article, almost 70% of households with mortgages have rates below 4% and are reluctant to sell.

Despite steadily improving rates, purchase mortgage applications fell 1.9% week to week and were 40% lower than the same week a year ago.