This Week in Real Estate consumer optimism is reported to be at it’s second highest level since 2007. Below are a few of the highlights from the week ending May 3, 2015 that influence our business:
* Consumer Sentiment at 2nd Highest Level Since 2007. U.S. consumer sentiment rose in April according to The Thomson Reuters/University of Michigan’s final reading. The index was 95.9 up from the previous month’s reading of 93.0. Consumer sentiment in April was at its second highest level since 2007, and was higher than the average level during the last five months than anytime since May 2004. 37% of all consumers expect personal-financial gains – the greatest share since April 2007. 58% of consumers reported favorable home selling conditions, the highest proportion since May 2006. Full story… http://www.marketwatch.com/story/as-consumer-sentiment-perks-up-the-question-of-spending-looms-2015-05-01
* Pending Home Sales Increase in March for Third Consecutive Month. Pending home sales in March continued their recent momentum, rising for the third straight month and remaining at their highest level since June 2013. The Pending Home Sales Index, a forward-looking indicator based on contract signings, climbed 1.1 percent to 108.6 in March from an upward revision of 107.4 in February and is now 11.1 percent above March 2014 (97.7). The index has now increased year-over-year for seven consecutive months and is at its highest level since June 2013 (109.4). Full story… http://www.mortgagenewsdaily.com/04292015_pending_home_sales.asp
* It’s Official: The First Quarter Saw a Refinance Mini-Boom. A continually low-interest rate climate led to borrowers refinancing at an increased rate in the first quarter, according to a new report from Freddie Mac. Freddie Mac’s quarterly refinance analysis for the first quarter of 2015 found that 63% of the single-family loans originated in the first quarter were refinances, compared to approximately 52% for the full year 2014, according to Freddie’s data. In addition, approximately 27% of borrowers increased their loan amount when refinancing in the first quarter compared to 17% during the same time period in 2014. “We estimate that borrowers who refinanced in the first quarter will save on net more than $1.4 billion in interest payments over the first 12 months of their new loan,” said Len Kiefer, Freddie Mac deputy chief economist. Full story… http://www.housingwire.com/articles/33745-its-official-the-first-quarter-saw-a-refinance-mini-boom
Have a productive week!