Shelter Six:  June Housing Starts and Retail Sales Figures Surge

July 20, 2020 by · Leave a Comment 

With record levels of mortgage volume clogging lenders’ pipelines, it is critical to set realistic expectations and deadlines with customers.

Appraisals are taking a solid two weeks right now, so best to put 20 days in the Appraisal Contingency, as it can take the lender a few days to order and review the appraisal.

It is also recommended to put in at least 25 days for the Financing Contingency and leave a solid 30 days for closing.

After plummeting in April, Builder Confidence has surged and more than doubled over the last 3 months. And, for good reason, as June Housing Starts were up 17% from May.

June Retail Sales rose 7.5% from May, well above the consensus of 5%, and are shockingly 1.1% above the June 2019 level.

According to Black Knight, forbearance figures decreased last week to the lowest level since the peak in May to 7.77% of all mortgages (4.12M borrowers).

Rate Update

Rates continue to trickle down to new lows as the 30-year is around or even under 3%.  Rates are projected to stay super low as long as the pandemic continues, and the Fed keeps buying bonds.

This Week

Existing Home Sales will be released on Wednesday and New Home Sales on Friday.