Yesterday the Consumer Price Index (CPI) was all the rage as mortgage rates fell at the second fastest pace this year, today the Producer Price Index (PPI) was released but the message was a bit different. While PPI has a lesser impact on interest rates than CPI, there have been some recent examples where it has impacted markets for better or worse, and with this morning's announcement it looked as though we might see another example, not a good one. The new headline and a revision to last month's numbers put the annual producer price index at 0.5% higher than…
Author: Private Lending Agent
“Second-quarter credit performance was in line with our expectations,” Wells Fargo CEO Charlie Scharf told analysts. “Consumers are benefiting from a strong labor market and rising wages. Performance in our consumer auto portfolio continued to improve reflecting our prior credit tightening actions, and we saw net recoveries in our mortgage portfolio.” Citi, the smallest of the mortgage sector's three depository institutions, originated $4.3 billion in mortgages from April through June, up 39% from the previous quarter but down 4% from the same period in 2023. As loan volume increased, JPMorgan also expanded its servicing portfolio in the second quarter, while…
Greg Austin Carrington Mortgage Services is introducing Native American Section 184 loans for its retail lending clients. “Section 184 loans are a great product in part because of their low cost compared to other loan programs,” Greg Austin, executive vice president of lending at Carrington Mortgage Services, said in the release. “They're becoming increasingly popular as Native Americans realize there's a product specifically designed for them, especially on tribal lands.” The Section 184 Loan Guarantee Program was established by the U.S. Department of Housing and Urban Development's (HUD) Housing and Community Development Act in 1992 to address the shortage of…
In the article Key Takeaways Assembly Bill 1418 would prevent California landlords from enacting “crime-free” housing programs, which would include refusing to rent to or evicting people with criminal records. It would also prevent California landlords from charging multiple months' rent as a security deposit. New York has passed a similar law to address homelessness and high housing prices. As any landlord can attest, screening tenants is one of the most important aspects of running a profitable business. As long as the screening doesn't violate fair housing guidelines (no discrimination based on age, race, sexual orientation, disability, religion, national origin,…
With inflation continuing to fall, homebuyers may need to get strategic. RICH LEGG/Getty Images News this week that inflation fell again in June — its third straight month of declines — was welcome news for millions of Americans, but perhaps most welcome for homebuyers. Potential homebuyers in recent years have been saddled with the highest mortgage interest rates in decades, after rates hovered at record lows in 2020 and 2021.However, a consistently declining inflation rate could be a sign that a cut in the federal funds rate is on the way. And while interest rates are unlikely to be cut…
Borch Drillman's co-conspirator, Mark Silver, pleaded guilty to his role in a mortgage fraud scheme involving a Cincinnati apartment complex.The Justice Department alleges that Silver and business partner Frederick Shulman used stolen identification to buy the Williamsburg mansion in Cincinnati for $70 million. The investors then resold the property to Drillman for $96 million, and lenders extended a $74 million loan based on the inflated price. The Justice Department said Silver and his co-conspirators defrauded both their lenders and Fannie Mae, which frequently purchased the private loans.Lakewood, N.J.-based Madison Title handled the closing of both transactions.Silver, of Suffern, New York,…
The Ohio State Teachers Retirement System plans to make four to five investments in real estate investment vehicles for its international and opportunistic portfolios in fiscal 2025, according to its fiscal 2025 investment plan released in June. The pension fund, which has $94.5 billion in assets under management, aims to invest in “niche products” in key markets, targeting property types such as data centers, medical offices and industrial properties in gateway markets and infill areas. STRS Ohio did not respond to a request for comment, but board documents state: “We target managers who have been able to weather real estate…
The median home price in the U.S. has hit a record high of nearly $400,000, but real estate firm Redfin Corporation (RDFN) says price growth may be stalling. In a recent note, Redfin highlighted that median home prices rose 4.7% year over year, the biggest increase in more than four months.The rise in home prices comes as mortgage rates have fallen from highs recorded in October 2023. In addition to lower mortgage rates, a historically low inventory market has led to strong demand pushing up average home prices.Despite falling mortgage rates, mortgage applications for homebuyers are down 13% from a…
Nertu I think it's pretty hard to predict what the Fed will do to get an edge. There are thousands of analysts watching it and we all have access to the same information. So while I have my own opinion on if and when the Fed will cut rates, it's probably just as useful to know what the market as a whole thinks will happen. Using futures prices, we can calculate the market-implied probability of a rate cut: As of July 9, 2024, the market sees a 70% chance of one 25 basis point rate cut in September from the…
High interest rates are hurting Northeast Florida home sales during an unusual summer. Sales typically pick up in June, but this year both completed and pending sales are down, as interest rates of about 7% are keeping buyers waiting, according to the Northeast Florida Association of Realtors. The number of closed sales in June fell nearly 11% from May to 1,907, while the number of pending sales plummeted 35% to 1,261, the Realtors Association said in a news release Thursday. The median sales price of a single-family home rose 1.3 percent in June to a record high of $405,000, while…