Check out the latest economic news from Stephen Chow, Mortgage Broker, Sterling Bank on his Inside Lending Newsletter. Words from Stephen:
INFO THAT HITS US WHERE WE LIVE… Fannie Mae’s December National Housing Survey asked consumers to look into tomorrow and it was somewhat exciting to see that people are becoming more confident in the housing recovery.
Evidence of this came in the finding that 49% of those surveyed believe home prices will rise over the next 12 months, up from 43% a year ago. The size of that price increase was expected to be 3.2%, compared to just 2.6% last year. Even better, 33% of consumers polled said now is a good time to sell, a significant gain from the 21% who felt that way last December.
Fannie Mae’s chief economist commented: “The marked improvement in housing market sentiment over the course of 2013 bore out our view going into the year that the housing recovery was on a firm footing.” He now sees “a continued but measured housing recovery as we move through 2014.” Wednesday, the Federal Housing Finance Agency said it will delay plans to raise the base guarantee fee for mortgages securitized by Fannie Mae and Freddie Mac in order to give their new director time to review the changes. That’s good news for now.
DID YOU KNOW?… The cost to build the average U.S. single-family home hit $246,453 in 2013, reaching its highest mark since 1998, according to the National Association of Home Builders.
LOAN APPLICATIONS… The Mortgage Bankers Association reported loan applications up 2.6% overall for the week ending January 3.