Mortgage News for the Week of February 28, 2020
Pending Home Sales Jump 5.2% in January vs. 2% Expected
US New Home Sales Surge to 12.5 Year High in January
  • The Commerce Department said on Wednesday new home sales jumped 7.9% to a seasonally adjusted annual rate of 764,000 units last month, the highest level since July 2007.
  • Housing market strength could help keep the economic expansion, now in its 11th year, on track.
  • The sector, which accounts for about 3.1% of GDP, is being supported by cheaper mortgage rates after the Federal Reserve cut interest rates three times last year.
Home Prices are on the Upswing Again
Both the S&P CoreLogic Case-Shiller home price indices and the Federal Housing Finance Agency's (FHFA's) House Price Index (HPI) for December provide more evidence that low interest rates have reignited the fire under home price appreciation. Read more at Mortgage News Daily.
Increasing Amount of Americans are Getting Mortgages Before Marriage Licenses
Only 53% of first-time homebuyers are married
According to the National Association of Realtors, the first-time homebuyer composition is now mirroring the change in marriage rates.

In the 1960s, more than seven in 10 American homeowners were married. Two decades later, in the 1980s, a peak of 75% of first-time homebuyers entering the market were married couples. Today, only 53% of first-time homebuyers are married. Read more at Housing Wire.
Homebuilding Makes a Positive Contribution to GDP Growth
America’s economy grew at an annual rate of 2.1% in the fourth quarter, according to the second GDP estimate from the Bureau of Economic Analysis.

The estimate in Thursday’s report is based on more complete source data than what was available in the  prior estimate . The results match the pace of the prior quarter.

Homebuilding made a positive contribution to GDP in the fourth quarter, as well as personal consumption expenditures. Read more at Housing Wire.
Nearly Half of Homeowners Report Plans of Moving Over Next Decade
A new decade means… a new home?

According to 45% of homeowners, the answer is yes. A recent  survey  found that nearly half of homeowners plan to move within the next decade, possibly opening up some inventory for first-time buyers. Read more from the PA Association of Realtors.
Mortgage Market Update
Low Mortgage Rates Driving Sales
Given the recent volatility of the ten-year Treasury yield, it's not surprising that rates are low and consumer confidence is high, driving home sales upward, a trend that is likely to endure as we enter spring.
We hope you enjoyed this week's Market News. For more information about how PMA can help you, please contact us.
Plymouth Meeting Office: 610.834.8700
Doylestown Office: 215.345.7600
Ocean City, NJ Office: 609.398.8600
 
Information and analysis is obtained through third parties and is deemed accurate but not guaranteed. Philadelphia Mortgage Advisors is a licensed mortgage lender by the PA Dept. of Banking and Securities, NJ Dept. of Banking & Insurance, the state of DE, the Florida Office of Financial Regulation, MD Mortgage Lender #23004 and VA State Corporation Commission #MC - 6797. NMLS #128570.
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