Mortgage News for the Week of August 16, 2019
Read the Latest Market Update for the Philadelphia Region
NAR: New Condo Rules Will Open More Doors for Buyers
The association says changes to FHA financing qualifications will bring more entry-level homes to the market, helping to meet buyer demand.
The National Association of REALTORS®, after reviewing the Department of Housing and Urban Development’s new condominium financing rules, says the guidance affords property owners greater flexibility in the qualification process for loans insured by the Federal Housing Administration. Lenders will be able to issue FHA loans for single condo units, and buildings with a greater number of investor-owned units or greater percentage of commercial space can qualify for FHA financing, among other changes HUD released Wednesday. NAR expects the new rules, which will go into effect Oct. 15, to revive a condo market that has been stifled since the Great Recession. Read more from the National Association of Realtors.
Home Prices Up 3 Percent in July as Supply Fell 3 Percent—The Largest Decline in a Year
U.S. home-sale prices grew at a steady 3.3 percent rate year over year to a median of $318,100 across the metros Redfin tracks. Home prices have been growing in the healthy 3 percent range since May.

Overall the market in July didn’t hold any big surprises, although it is notable that the number of homes for sale at the end of the month fell for the first time in a year. Home sales were down for the second month in a row. Read more from Redfin.
Experian Data Reveals Mortgage Debt by the Generations
Mortgage debt may be thought of as good debt, but even good debt can be concerning.

Millennials are racking up mortgage debt and are on pace to hold more average mortgage debt than any of their predecessors, according to a study by credit reporting company Experian. In the first quarter of 2019, millennials held an average of $222,211 in mortgage debt, a 5% increase from Q1 2018. It is one of the largest mortgage debt increases seen by any generation in the past year. Read more from Mortgage Professional America.
Housing Starts Fell Again in July But Permit Activity Increased
Housing starts continued to disappoint in July, falling 4.0% compared with June to an adjusted annual rate of 1.191 million, according to estimates from the  U.S. Census Bureau and U.S. Department of Housing and Urban Development .

Although that is down from the revised June estimate of 1.241 million units, it is up 0.6% from 1.184 million units in July 2018. Read more at MortgageOrb.
Mortgage Rate Update
Mortgage Rates Remain Near Historical Lows
(US Weekly Averages as of 8/15/2019)
The sound and fury of the financial markets continue to warn of an impending recession, however, the silver lining is mortgage demand reached a three-year high this week. The decline in mortgage rates over the last month is causing a spike in refinancing activity – as homeowners currently have $2 trillion in conventional mortgage loans that are in the money – which will help support consumer balance sheets and increase household cash flow. On top of that, purchase demand is up seven percent from a year ago.
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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