Shelter Six:  September Home Sales Surge

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.

October 26, 2020 by · Leave a Comment

About James

James A. Williamson is currently the Sr VP of Sales Development for Shelter Lending Services (formerly Fairfield Mortgage). James joined Shelter in 1994 and was the company's top Loan Officer in GA for 20 straight years helping over 2500 families finance their homes. James now oversees an incredible group of Loan Officers in Atlanta while further building Shelter's Atlanta business.

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