Shelter Six:  September Home Sales Surge

October 26, 2020 by · Leave a Comment 

September Existing-Home Sales surged 9% from August and 21% from a year ago to the best level since May 2006, as the Median Existing-Home Price pushed 15% higher than a year ago.

September National Inventory levels were down 19% from a year ago to a 2.7-month supply and remain the primary obstacle to even stronger sales activity.

Builder Confidence shot up in October from 83 to a record-high index score of 85, according to the NAHB.

The Mortgage Bankers Association projects 2021 purchase originations to rise by 8.5% to $1.54 Trillion, which would be an all-time high.

MBA projects total 2021 originations (including refinances) to be $2.5 Trillion, which would be a drop off from this year’s projected $3.2 Trillion.

The CFPB extended the “GSE Patch” indefinitely last week, preventing the Debt Ratio on most loan programs being capped at a rigid 43% effective on Jan 10th of next year.

Rate Update

The uncertainties around the election and a potential stimulus package are putting some upward pressure on rates right now, but rates continue to hold steady around 3%.

This Week

New Home Sales will be released on Monday, 3rd Quarter Gross Domestic Product (GDP) on Thursday, and the Core PCE Price Index on Friday.