Industry Wrap: Kevin O'Leary and Doug Duncan Square Off on 'Closing Bell' Over Housing Market
By Laura Haverty | January 21, 2016
Thursday’s Industry Wrap summarizes important news and events each week from around the housing finance industry. Material on external websites may be subject to publisher’s access policy.
Is Kevin O'Leary Right? Are Millennials Shunning Homeownership?
In a recent segment on CNBC's Closing Bell, Shark Tank investor Kevin O'Leary says Millennials “don't give a poo-poo about owning a house.” O'Leary's comments came after Fannie Mae Chief Economist Doug Duncan gave his 2016 outlook, which foresees continued growth in the housing market, although more slowly than in 2015. As reported by The Home Story (also a Fannie Mae publication), O'Leary's view that Millennials lack enthusiasm for homeownership contradicts research by Fannie Mae's Economic & Strategic Research Group. Fannie Mae's National Housing Survey August Topic Analysis finds a majority of Millennials say owning a home makes more sense than renting. In fact, 91 percent of 18-34 year-old renters say they plan to own a home “at some point,” notes the article. (Read article, view video)
NAHB: Builder Confidence Holds Firm in January
Builder confidence in the market for newly-built single-family homes held steady at 60 in January from a downwardly revised December reading of 60 on the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index. “After eight months hovering in the low 60s, builder sentiment is reflecting that many markets continue to show a gradual improvement, which should bode well for future home sales in the year ahead,” says NAHB Chairman Tom Woods, a home builder from Blue Springs, MO. (Read press release)
National Foreclosure Inventory Down 21.8 Percent from November 2014, Says CoreLogic
CoreLogic’s November 2015 National Foreclosure Report shows the foreclosure inventory declined by 21.8 percent and completed foreclosures declined by 18.8 percent compared with November 2014. The number of completed foreclosures nationwide decreased year over year from 41,000 in November 2014 to 33,000 in November 2015. The number of completed foreclosures in November 2015 was down 71.6 percent from the peak of 117,657 in September 2010. (View the results)
Mortgage Applications Rebound 21 Percent, Says MBA
The Mortgage Bankers Association announced on January 14 that mortgage applications increased 21.3 percent from one week earlier, according to the group’s Weekly Mortgage Applications Survey for the week ending January 8. The previous week's results included an adjustment for the New Year's holiday. "MBA's purchase mortgage application index reached its second highest level since May 2010 on a seasonally adjusted basis last week, second only to the week prior to the implementation of the Know Before You Owe rules," says Lynn Fisher, MBA's vice president of research and economics. "Bolstered by strong fourth-quarter growth in jobs and continuing low rates, the results are similar to levels we saw in early December, suggesting that the purchase market's strong finish to 2015 may be continuing. While refinances also increased on a holiday-adjusted basis, refinance activity was down 38 percent relative to a year ago when rates dove below 4 percent," he adds. (View press release)