Mortgage News for the Week of February 7, 2020
Americans are Equity-Rich as Home Values Rise
More than a quarter of mortgaged homes had an LTV lower than 50%.
Almost 15 million homes in the U.S. were equity-rich in the fourth quarter, meaning their mortgages were 50% or less of their estimated market value, according to ATTOM Data Solutions.

Equity-rich properties were 27% of all mortgaged homes, matching the share in the prior quarter, the report said. Read more at Housing Wire.
Mortgage Applications Jump 5% to Almost 7-Year High
Low interest rates last week drove demand for home loans to the h ighest level in almost seven years.

Applications rose 5% from the prior week to the highest level since May 2013, according to a seasonally adjusted index from the Mortgage Bankers Association. Read more at Mortgage News Daily.
For-Sale Housing Inventory Sinks Like a Stone
According to realtor.com’s  Jan uary Monthly Housing Trends Report , national housing inventory declined 13.6% in January, representing the steepest year-over-year decrease in more than four years.

In turn, the supply of for-sale homes in the U.S. has hit its lowest level since realtor.com began tracking the data in 2012. Read more at Mortgage Orb.
Housing Market Is Feeling Effects of Coronavirus Outbreak
Interest rates drop, luxury market cools.
The U.S. housing market is feeling the impact of the new coronavirus outbreak from China. Mortgage interest rates have dropped because of it, and the luxury sector has seen Chinese buyers, who had been propelling that market, quickly vanish from it.

“China has been the most important source of foreign demand for real estate,” Lawrence Yun, chief economist at the National Association of REALTORS®, told realtor.com®. “The upper-end market can expect to be softer as a result.” Read more at NAR's Realtor Magazine.
Mortgage Market Update
Markets staged a rebound with increases in manufacturing and service sector activity. The combination of very low mortgage rates, a strong economy and more positive financial market sentiment all point to home purchase demand continuing to rise over the next few months.
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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