Here is some of the more important Mortgage and Financial news that happened this week ( April 16th - 20th), that affects our real estate market here in Orange County California.
  • The NAHB housing market index fell to 33 in April from 36 in March. This is the second month homebuilder sentiment has dropped 3 points. Homebuilders lowered their ratings of present single-family home sales, sales six months from now while foot traffic through model homes decreased significantly. The level of the index suggests the downturn in housing will continue through the spring selling season and summer with possible adverse affects on the economy.

  • New residential construction starts gained unexpectedly in March, boosted by warmer weather. Housing starts increased 0.8% last month to a seasonally adjusted annual rate of 1.52 million, the highest level this year. Nevertheless, housing starts have tumbled 38.2% over the past twelve months, the largest year-over-year decline since 1991.

  • The MBA mortgage applications index fell 2.5% to 630.6% for the week that ended April 13. This was the fifth straight decline in the index. The purchase index dropped 4.2% last week while the refinance index fell 0.3%. Rising mortgage rates over the past few weeks have cut into application activity. Even with the string of declines lately, mortgage application volume remains 10.7% above year ago levels.

  • Freddie Mac announced plans to purchase as much as $20 billion in sub-prime mortgages as a way to curb rising mortgage delinquencies and foreclosures in that market. The plan will need to be approved by OFHEO. Freddie Mac will work with originators to develop new products which will include more stable financing through longer fixed rate periods. Mortgage backed securities are the largest fixed income market at $6.5 billion compared to $4.3 trillion in U.S. Treasuries and $5.4 trillion in corporate debt.

  • Mortgage rates fell in Orange County for the first time in six weeks on tame core inflation data released recently. 30-year fixed rate mortgages averaged 6.17% this week compared to 6.22% last week according to Freddie Mac's mortgage market survey. Economists at Freddie Mac said that lower rates should help to stabilize the downturn in housing market activity.

  • Jobless claims dropped 4k to 339k for the week that ended April 14. The elevated level of claims suggests some slack in labor market conditions with a higher rate of layoffs and a slower pace of hiring. The outlook is for initial jobless claims to trend moderately higher in the next several months as cyclical, housing-related construction and seasonal, auto manufacturing layoffs increase.
    • If you have any questions regarding your mortgage loan here in Orange County, or if your thinking about buying a home and would like to receive a no obligation quote from the areas most cost effective lender, please feel free to contact us at:  949-388-3396 or email us at: Info@SearchOCHomes.com