December New Home Sales report

 

December New Home Sales report was released today at 468K unites. This came in about 68K higher than expectations of 400K, and higher than December’s upwardly revised 427K.  This was the best number in 5.5 years and shows a 9.6% increase from december to January.  New Home sales is a timely inicator because it shows signed contracts in January. The Median Sales Price fell 2.2% to 260,100.  Supply fell 4.7% from 5.2%. The consensus was for this to be a bad number with last month’s inclement weather conditions. So this is a very good report.

 On the other hand,             The Mortgage Bankers Association released their weekly Mortgage Application data for the week ending February 21st and the index was reported Down 8.5%. The purchase index, which was down 6% last week, fell another 4%. Purchase Applications are now down 15% this year.  Interest rates increased 3bp to 4.53%  with a cost of 0.26%.. This did not help any refinance activity which was down 11%. So, well have to watch the upcomming reports and see why the New Home sales number was so strong, and purchases seem to be hurting. Maybe weather had to do with some of it.

 Attention Realtors:
The CFPB might be stepping beond the Lending institutions and stepping into YOUR business.  Long and Foster Real Estate is in a class action lawsuite for 11.2 million dollars for RESPA violations and NAR  can’t really do anything about this one.  Up in till now, Realtors were pretty much untouched by regulation with all the money and lobbying thats helped them thru NAR. Now, this company Long and Foster, is in hot water with this  lawsuite there facing over allegedly sharing in settlement fees with another company. Read more
Rich Hopkins is a mortgage broker originating both residential as well as commercial mortgages since 1999. Focused primary on new home buyers, Rich works with Realtors in the New York market, helping them increase their listings.

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