Applications for mortgages for new home purchases decreased 8% in July compared with June but increased 2.4% compared with July 2015 according to the Mortgage Bankers Association’s (MBA) Builder Applications Survey (BAS)
The month-over-month decrease in applications is part of the normal seasonal pattern this time of year. However the momentum experienced during February and March seems to have slowed.
68.5% of loan applications were for conventional mortgages,17.2% were Federal Housing Administration. 13.6% Veterans Affairs loans, about 0.7% were U.S. Department of Agriculture/Rural Housing Service loans.
The average loan size for a new home in July was $325,843, down from $326,175 in June.
The delinquency rate for mortgage loans on one-to-four-unit residential properties decreased 11 basis points to a seasonally adjusted rate of 4.66 percent of all loans outstanding at the end of the second quarter of 2016. This was the lowest level since the second quarter of 2006. The delinquency rate was 64 basis points lower than one year ago,
The statistics of the new homes, the decrease in delinquency combined with with historic low interest rates shows a stable real estate market prevailing as we move from Summer to Fall
Fortune publishes the list of the 500 largest companies in the United States annually, organizing private and public companies by revenues, Publix Super Markets and Darden Restaurants two Central Florida Companies landed on the Fortune 500 list for 2016.
Lakeland-based Publix moved into the 100 biggest companies with revenues of $32.6 billion in 2015. It ranked 87, up from 101 in 2015. Publix continued to charge ahead by growing revenues 5.9 percent in 2015. The company also brought in nearly $2 billion in profits. Publix is a privately-traded, employee-owned company with about 180,000 workers nationwide.
Darden Restaurants a public company, based in Orlando, dropped a few spots to number 371, falling 46 spots from the past year after selling Red Lobster in 2015 for $2.1 billion. Its revenues drop by 18 percent last year but recorded $710 million in profits during the year Darden has about 150,000 employees at 1,500 restaurants and is the parent of Olive Garden, LongHorn Steakhouse, Eddie V’s, Bahama Breeze, Seasons 52, Yard House and Capital Grille.
Walmart, Exxon Mobile and Apple once again made it to the top three corporations.
Source: Orlando Sentinel.com
According to MGIC Connects infographic “Look Who’s Buying Her First Home” single women are the second largest home buying group after married couples.
Married couples hold the largest home buying position with 54%, single women come in second with 18%, followed by unmarried couples with 15%, single men with 11% and other with 2%.
According to Pew Research Center about 45% of Millennial women ages 18 to 24 are enrolled in college, compared to 38% of Millennial. Also, about 38% of Millennial women ages 25 to 32 have a bachelor’s degree, compared to 31% of Millennial men.
However, 36% of single women live at home with their parents or relatives, according to Pew Research Center. That is at its highest level since 1940.
The median age of single women homebuyers is 32 years old with median income $49,000/-according to the National Association of Realtors’ 2015 Profile Buyers & Sellers.
Pending home sales rose for the third consecutive month in April and reached their highest level in over a decade, according to the National Association of Realtors® (NAR).All major regions saw gains in contract activity last month except for the Midwest, which saw a meager decline.
The Pending Home Sales Index – a forward-looking indicator based on contract signings for homes that have not yet sold – hiked 5.1 percent higher to 116.3 in April from an upwardly revised 110.7 in March. Year-to-year, it’s 4.6 percent above April 2015 (111.2).
After last month’s gain, the index has now increased year-over-year for 20 consecutive months. Vast gains in the South and West propelled April’s pending sales in April to its highest level since February 2006 (117.4).
Pending sales in the Northeast climbed 1.2 percent to 98.2 in April, and are now 10.1 percent above a year ago. In the Midwest, the index declined slightly (0.6 percent) to 112.9 in April, but it’s still 2.0 percent above April 2015.
Pending home sales in the South jumped 6.8 percent to an index of 133.9 in April – 5.1 percent higher than last April. The index in the West soared 11.4 percent in April to 106.2, and it’s now 2.8 percent above a year ago.
Florida Governor Rick Scott announced that Orlando continues to lead the state in job creation based off of the April employment data. This is the fourth consecutive month Orlando has led the state.
Shopping for a mortgage can feel overwhelming. It’s intrusive because lenders require every detail of your personal and financial life to do their job. It’s complex because rate quotes and associated fees (also known as points) can be presented many different ways, plus rates change daily based on economic conditions. And it’s confusing because there are different kinds of lenders who all have a pitch as to why their model is the best.
First step is to choose the Mortgage Provider. There are three main sources for consumer mortgages. Armed with this knowledge, you’ll be ready to navigate the available information, and ask the right questions when you’re mortgage shopping.
These companies range from the biggest name-brand institutions down to smaller local banks and credit unions. They underwrite, approve and close loans for consumers, then either keep the loans on their own balance sheets or sell the loans to investment firms, Fannie Mae or Freddie Mac, who bundle the loans into mortgage bonds, or also known as mortgage backed securities (MBS).
Retail banks usually retain servicing rights, which means you would get your monthly mortgage statement directly from that bank, and the loan agent that handled your loan would remain your primary point of contact for all future inquires.
Advantages: Retail banks are usually a big brand or well-known local brand. These organizations can often be more flexible on loan approvals because they have the option to keep loans on their books, as opposed to selling the loans, which means more stringent underwriting. They also offer non-mortgage financial services like checking, savings, credit cards and financial planning, and they usually offer lower mortgage rates if you use them for additional services like a checking account.
Like retail banks, these companies underwrite, approve and close loans for consumers. They then sell the underlying loans to retail banks, investment firms, Fannie Mae or Freddie Mac, who bundle the loans into MBS.
Larger mortgage banks may keep servicing rights, so you’d get your monthly statement from the mortgage bank and retain your loan agent as primary contact for future inquiries. Smaller mortgage banks sell servicing rights along with the loans, which means you’d be contacting the new bank servicer for future inquiries.
Advantages: Your loan agent uses the many investors they sell to as a one-stop rate shopping process for you, and because they have their own underwriters, they still control the whole process from start to finish and can move very quickly.
These companies obtain loans for consumers through retail banks or mortgage banks. The loan is funded and usually also serviced by the retail or mortgage bank that the broker takes your loan to.
This model was quite popular in the past two decades leading up to the 2008 crash as big banks and mortgage banks outsourced the cost of sales forces to broker firms. But new stricter regulations have caused banks to want to control sales forces more tightly, so brokers are less prominent than they used to be.
Advantages: Mortgage brokers can rate shop for you across many banks, and lend on tough borrower or property profiles because of their ability to shop the profiles across many banks. Because regulators have made brokering a tough business post-crisis, the last standing brokers are usually highly experienced veterans.