Shelter Six:  Home Buyers and Sellers More Optimistic

September 14, 2020 by · Leave a Comment 

Both home buyers and sellers reported greater optimism in Fannie Mae’s August Home Purchase Sentiment Survey.

Respondents indicating that it is a good time to buy increased from 53% to 59%, while respondents indicating that it is a good time to sell increased from 45% to 48%.

Despite recent Unemployment stats, respondents had little concern about job security with 78% reporting they were not concerned about losing their job (up 2% from July).

Inflation reports came in a little higher than expected last week, but were still far below the readings from the first few months of the year prior to the pandemic.

About 6M homeowners have been in forbearance at some point over the last six months and about 2M have now exited with only about 7% still in forbearance.

Self-employed borrowers pursuing a mortgage are now facing additional steps, including a YTD P&L, bank statements that support income, and a written business analysis.

Rate Update

Freddie Mac has been tracking rates since 1971 and last week’s were the lowest ever reported with the 30-year at 2.86% with .8 points, and the 15-year at 2.37% with .7 points.

This Week

The Fed meets on Wednesday. Retail Sales will also be released on Wednesday and Housing Starts on Thursday.