Mortgage News for the Week of August 14, 2020
Homes Flying Off Market at Record Pace—46% Accept an Offer Within 2 Weeks
  • A record-high share of homes are selling fast: 46% of homes sold within the first two weeks on the market, the highest level since at least 2012 (as far back as our data on this measure goes).
  • Home sale prices were up 9% year over year to another new all-time high of over $311,000. “The combination of ultra low inventory, very high buyer demand, and super duper low interest rates is a very successful formula for sellers, not so great for buyers,” said Brian Morales, a Redfin agent in Orange County, California.
  • Pending home sales were up 10% year over year and have plateaued over the last month, up just 0.2% from the four-week period ending July 5. Sales declined an average of 1.4% over the same period the last two years.
  • The supply of homes for sale continued to fall; year over year, new listings were down 2.7% and active inventory of homes for sale was down 28%.
Home Prices Continue to Accelerate
Nearly every major metro area across the country saw home prices continue to escalate in the second quarter. Median single-family home prices increased year over year in 96% of measured markets—or 174 out of 181—during the quarter, according to the latest report from the National Association of REALTORS®. That percentage matches the metro areas in the first quarter that saw price gains.

“Home prices have held up well, largely due to the combination of very strong demand for housing and a limited supply of homes for sale,” says Lawrence Yun, NAR’s chief economist. “Historically low inventory continues to reinforce and even increase prices in some areas.” Read more from NAR's Realtor Magazine.
MBA Predicts New Home Sales Surge in July
The Mortgage Bankers Association (MBA) is predicting another strong month for new home sales. The association says its Builder Application Survey (BAS) data for July 2020 shows mortgage applications for new home purchases increased 39 percent compared to a year ago and is up 1 percent compared to June. This would be the second consecutive month of annual increases. This change does not include any adjustment for typical seasonal patterns. Read more from Mortgage News Daily.
The Jersey Shore Real Estate Market is Sizzling During Coronavirus Crisis. Here’s How Fast Houses are Selling.
People aren’t just flocking to the Jersey Shore to sit by the ocean or take a stroll on a boardwalk.
They’re buying houses.

But the inventory of available homes for sale isn’t keeping up with demand, so real estate agents say buyers are on a mad dash to put in offers, knowing they will lose out if they’re not ready to act fast. Read more from NJ.com.
Mortgage Refinancing Will Be More Expensive as Fannie Mae and Freddie Mac Raise Fees
  • Mortgage giants Fannie Mae and Freddie Mac just announced that they are raising fees for lenders on all mortgage refinances. The change is designed to shield the two from the additional risk brought on by the coronavirus pandemic.
  • The price adjustment adds 0.5% of the loan amount to the consumer’s cost. That amounts to $1,400 on the average mortgage originated today.
  • It will begin in September, which means it will basically apply to all refinances that aren’t already in process.
The Top Real Estate Terms Consumers Are Searching For
As conditions from the pandemic to historically low interest rates bring more consumers into the real estate market, the topics they’re searching for could highlight key areas to bring to your consumer outreach on social media, blogs, and videos.

Consumers are showing higher interest particularly in learning more about mortgages and financial questions about the homebuying process. Recent Google searches centered on real estate, according to Google Trends, are:
  • “Refinance home loan calculator” (up nearly 4,000% last week)
  • “Can you use your 401(k) to buy a house?” (up 2,800% in the past three months)
  • “How low will mortgage rates go?” (searches have quadrupled in the past week)
Mortgage Market Update
Mortgage Rates Rise
Homebuyer demand remains strong, especially for those in search of an entry-level home where the improvement in affordability via lower mortgage rates has a material impact. Even with this week’s uptick, very low rates are providing a significant boost to the housing market that continues to hold up well during this time of uncertainty.
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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