The number of days it took to close mortgages backed by the VA dropped to a 10-month low in July, led by a faster time frame for refinancings, according to a report from ICE Mortgage Technology.
Mortgage rates are rising as the investors who influence housing finance react to a Fed decision to taper bond purchases that supported the economy during the pandemic.
An index measuring signed contracts for existing homes rose 8.1% in August, NAR said in a report on Wednesday. That’s more than five times the 1.4% gain expected by economists.
An index measuring the availability of jumbo mortgages rose 9.4% while the index for conforming home loans, eligigle for backing from Fannie Mae and Freddie Mac, rose 5.1%, the Mortgage Bankers Association report said.
Sales of existing homes declined 2% in August after rising for two consecutive months as buyers balked at soaring prices and the supply of homes on the market remained tight.
An increase in the supply of rental units coupled with a drop in the construction of single-family houses creates roadblocks for home shoppers, said Lawrence Yun, NAR’s chief economist.
An index measuring homebuilder sentiment rose in September, showing a more positive outlook for the new-home market, after three months of declines.
The dizzying increases in home prices seen earlier this year may have peaked, according to data from HouseCanary.
Half of Americans with student loans who don’t own property say their debt from college is keeping them from buying a home, NAR said.
Lifting the restrictions will allow Fannie Mae and Freddie Mac to aid in expanding homeownership to more Americans without increasing risk, said Jaret Seiberg, managing director at Cowen Group in Washington D.C.
