CoreLogic released This Week in Real Estate that homeowners realized an 11.8% increase in home equity, totaling 870.6 billion dollars, between Q3 2017 and the same time period the prior year. Below are a few highlights from the first week of December that influence our business:
* FHFA Increases Loan Limits in Nearly Every Area of U.S. for 2018. The Federal Housing Administration announced Thursday that nearly every area of the U.S. will see FHA loan limits increase in 2018. The new loan limits will take effect for FHA case numbers assigned on or after Jan. 1, 2018. FHA is required by the National Housing Act, as amended by the Housing and Economic Recovery Act of 2008, to set Single Family forward loan limits at 115% of median house prices, subject to a floor and a ceiling on the limits. FHA calculates forward mortgage limits by Metropolitan Statistical Area and county. Back in 2016, the FHA increased loan limits for just 188 counties. Then, in 2017, this number jumped to 2,948 counties that saw an increase. And now, the number of counties increased even further to 3,011 counties for 2018. In high-cost areas, the FHA’s loan limit ceiling will increase to $679,650, up from $636,150 this year. The floor will also increase from $275,665 to $294,515 in 2018. However, in 223 counties, the FHA loan limits will remain the same.Full Story... https://www.housingwire.com/articles/42038-fha-increases-loan-limits-in-nearly-every-area-of-us-for-2018
* Consumers Expect Strong Increases in Housing Costs. After dropping in October from what had been an all-time high the previous month, Fannie Mae’s Home Purchase Sentiment Index (HPSI) resumed its upward trek, increasing by 2.6 points in November to 87.8, Strong responses to questions in the National Housing Survey (NHS) to questions about whether it was a good time to buy a home and expectations for home prices were the primary drivers of the index gains. “In November, the HPSI rebounded to near its all-time high, returning the index to its gradual upward trend and suggesting fairly stable consumer home-buying attitudes,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “These results are consistent with our expectation that the housing market will continue its modest expansion going forward. The net share of respondents who said now is a good time to buy a home increased 7 percentage points to 29, erasing the previous month’s 6-point drop. The net remains down 1 percentage point compared to the same period last year. The net share who view it as a good time to sell rose 4 points to 34 and is now 21 percentage points higher than last November. The net share who said home prices will go up in the next 12 months increased 6 percentage points in November.Full Story... http://www.mortgagenewsdaily.com/12082017_national_housing_survey.asp
Have a productive week.