HOME PURCHASE SENTIMENT INDEX INCREASES TO 83.7 IN APRIL

HOME PURCHASE SENTIMENT INDEX INCREASES TO 83.7 IN APRIL
Fannie Mae’s April 2016 Home Purchase Sentiment Index (HPSI) rose 3.5 percentage points in April to 83.7. More consumers think home prices will go up over the next 12 months compared to March, and slightly fewer consumers expect Mortgage Rates to go up over the next 12 months. Overall, the HPSI is up 1.4 points since this time last year.

• The net share of American who say that it is a good time to buy a house fell 3 percentage points to 30 percent, reaching an all-time survey low.
• Selling sentiment approached its all-time survey high in March, with the net percentage of those who say it is a good time to sell rising 16 percentage points to 15 percent.
• The net share of respondents who say that home prices will go up rose 3 percentage point to 37 percent, continuing the rising trend from March.
• The net share of those who say mortgage interest rates will go down fell 1 percentage point to negative 46 percent.
• The net share of respondents who say they are not concerned with losing their job rose 6 percentage points to 74 percent, nearly making up the 7 percentage point decrease in March.
• The net share of respondents who say their household income is significantly higher than it was 12 months ago remained the same at 11 percent.

TALKING POINTS …

TALKING POINTS …

• It has taken nine years, but the number of U.S. homes in foreclosure has fallen to a level not seen since before the 2008 housing crisis. The number of properties in active foreclosure declined by 24,000 to 631,000 in March, according to Black Knight Financial Services. That’s the lowest since October 2007.

• The wave of foreclosures crested in 2010 when banks seized a record 1.2 million properties and served even more with notices of default, auction, or repossession.

• Delinquencies on home loans across the country fell to 4.08 percent in March, the lowest since March 2007.

TALKING POINTS …

TALKING POINTS …

• Mortgage applications decreased 4.1 percent from one week earlier for the week ending April 22, according to the latest figures from the Mortgage Bankers Association. Rates moved higher for the second week in a row.

• The refinance share of mortgage activity is also backing away from its once increasing trend and instead decreased to 54.4 percent of total applications from 55.4 percent the previous week. In addition, the adjustable-rate mortgage share of activity increased to 5.2 percent of total applications.

• The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances (up to $417,000) increased to 3.85 percent from 3.83 percent, with points increasing to 0.35 from 0.32 (including the origination fee) for 80 percent loan-to-value ratio loans.