Tax and MI Products; Sample of Vendor Updates; Hedging Long-Term Locks

Here’s something that’s kind of interesting. Half of all zero net energy homes have been built in California. “Cali,” a nickname despised by residents, has bold goals for all residential new construction to achieve ZNE (zero net energy) by 2020. Other states? Low energy costs are a barrier to generating ZNE demand. One-third of homeowners report having a monthly electricity bill less than $100, so while many households recognize the value of ZNE, the immediate financial incentives are not there yet. As California goes, so goes the nation

Capital Markets

With the upward trend in rates, many lenders have reached out with questions about extending long-term interest rate locks to borrowersBesides the competitive benefits, long-term locks may provide access to new sources of production, but they present unique risks for secondary departments. Learn about the opportunities, challenges, and hedging best practices for managing a pipeline of long-term locks in MCT’s latest whitepaper.

Late June’s economic indicators continue to point to moderate-to-strong GDP growth for the second quarter.The Conference Board’s Leading Economic Index was up by just 0.2 percent in May and though the index shows solid growth, it is unlikely that economic activity will accelerate into the second half of the year. Unemployment insurance claims remain especially low below the 220,000 level. Housing data in May and June was mixed with existing home sales declining 0.4 percent while new home sales were up 6.7 percent. Supply continues to remain tight and higher prices combined with higher mortgage rates are squeezing the budgets buyers and potentially keeping some on the sidelines. Meanwhile the National Association of Home Builders’ builder confidence survey weakened by two points to 68 as concerns about materials prices due to new tariffs are increasing.

The 10-year closed 2bps higher as confusing signals on global trade keep coming from the White House. The third estimate for Q1 GDP contained a downward revision to 2.0% (expected 2.2%) from the second estimate of 2.2%, attributable to downward revisions to private inventory investment and personal consumption expenditures. The GDP Deflator was revised up to 2.2% (expected 1.9%) from 1.9%. Personal spending was weak in the first quarter, but a pickup in personal spending now has many Q2 GDP forecasts increasing in expectations.

Lender Products

The Tax Cuts & Jobs Act eliminated the deduction for business entertainment expenses incurred after December 31, 2017. While this rule may sound straightforward, there is currently a potentially significant tax difference between entertainment expenses that a company pays directly to third party vendors from the treatment of entertainment expense that it reimburses to its employees. The mortgage tax experts at Richey May have provided some guidance to lenders in their latest blog on how to handle business entertainment expenses; read more here or contact their tax professionals.

Radian is on a mission to provide stellar mortgage insurance rates and top-notch partnership capabilities. Radian was first to market with BP Single rate reductions and have now decreased its BP Monthly rates. With multi-borrower rate adjustments, better pricing is available across all its mortgage insurance programs including, Monthly, Single, and SplitEdge. Radian also makes it easy to compare rates side-by-side, calculate mortgage payments, and much more with the Radian Rates App. Learn more about Radian’s mortgage insurance solutions and partnership capabilities at


The Virginia Housing Development Authority is searching for a Director of Homeownership Lending to direct and manage all activities related to the homeownership originations line of business for VHDA including its satellite and mobile offices. Among other duties, this person will lead and manage a highly motivated, professional mortgage lending staff of 50+ associates, establish and implement short and long term strategic plans for the Homeownership Originations division, and design and implement homeownership programs that address identified housing needs throughout the Commonwealth. The ideal candidate will have 6+ years executive management experience in the mortgage lending field, and a knowledge of investor/secondary market requirements, mortgage lending and compliance regulations as well as mortgage lending best practices. Hiring Range: $128,0645 – $166,482 + potential bonus + benefits. “VHDA is one of the nation’s premier housing finance organizations. Our mission is to help Virginians attain quality, affordable housing, which we accomplish through our public-private partnerships.” Interested parties should contact Recruiter Lila LaCroix. VHDA is an Equal Opportunity Employer.

Superior Mortgage Lending is a Las Vegas Mortgage Broker by design. We partner with several lenders to offer multiple Loan Products and we are not captured with certain credit scores and can offer better rates and no fees.  We have been in the Mortgage Industry  for over 18 years and we offer the most competitive rates in Nevada, California and Arizona. At Superior we have NO ORIGINATION AND NO UNDERWRITING FEES.
  • CONVENTIONAL LOANS – Giving you a low down payment, a great rate and a head start on your equity
  • FHA LOANS – Taking FHA borrowers to a new level with industry-leading government rates and pricing
  • VA LOANS – A hero for our veteran borrowers. Whether you are purchasing a new home or refinancing
  • REFINANCE LOANS – Multiple options allowing you to refinance with aggressive pricing that help you lower your payment or cash-out
  • JUMBO LOAN – Look no further. Superior gives you the pricing and turn times you deserve with competitive pricing 
  • FIRST TIME HOME BUYERS – We have great alternatives for borrowers looking to purchase with a low down payment
  • MORTGAGES FOR CANADIAN CITIZENS – Canadian citizens who are interested in purchasing a second home in the US. We can help!
  • COMMERCIAL LOANS – With over 30 years of business, commercial and multifamily purchase, refinance and construction financing experience
  • ELITE – The obvious choice for top-tier borrowers! Comprised of some of the best rates and pricing in the industry. You’ve build outstanding credit, you deserve an outstanding rate
 We have build a brand of professionalism and excellence, as well as having loan products to help more people. We specialize in mortgages only, that is our mission. Call us today and one of our professional Mortgage Loan Officers can help you get started to find your dream home or refinance your current mortgage.
 Our ultimate goal is to create lasting relationships with our clients so that we may continue providing excellent service for many years to come. We offer a wide variety of Residential and Commercial Loans. Superior Mortgage Lending is your premiere team of mortgage professionals in Las Vegas.

Mortgage Broker vs. Mortgage Lender

You can obtain a loan from either a Mortgage Broker or a Mortgage Lender. Lender is a financial institution that makes loans available directly to the borrower, Brokers connect borrowers to lenders were they have the ability to offer competitive rates and loan products. A direct lender offers mortgages, including commercial banks that offer a slew of services and mortgage banks. If you decide to obtain a mortgage through a direct lender instead of a mortgage broker, you will need to apply individually to each lender. This can be a time-consuming and frustrating process. The primary benefit of a mortgage broker is that they can shop with many lenders and get a variety of quotes, rates and loan programs. If you use a direct lender they only have access to their products and rates. A mortgage broker is able to shop a multitude of products and rates, as well as specialty programs such as Bank Statement Program, Unique Investment Programs, Hard Money Loans, Housing Events (Foreclosure, Short sale, Deed in lieu or Bankruptcy). If you don’t want to go through the hassle of contacting various banks, a mortgage broker might be a better option for you.

CONTACT US TODAY 702-507-4170

One of the Best Mortgage Brokers in Las Vegas. Helping You Finance Your Dreams!

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Existing Home Sales Below Expectations for Second Month

Analysts were expecting existing home sales to rebound in May after they fell behind year-ago levels in April.  However, the National Association of Realtors® (NAR) reported a second straight monthly loss, with the Northeast the only region where sales improved.

Sales of existing single-family homes, townhomes, condos, and cooperative apartments were at a seasonally adjusted annual rate of 5.43 million in May, a 0.4 percent decrease from April and down 3.0 percent from May 2017.  It was the third straight year-over-year decline. April sales were also downgraded from 5.46 million to 5.45 million.

The May results came in below the lowest of analysts’ expectations as reported to Econoday. Those predictions ranged from 5.44 million to 5.65 million with a consensus of 5.50 million.

Single-family home sales declined 0.6 percent to a seasonally adjusted annual rate of 4.81 million from 4.84 million in April and are also 3.0 percent lower than the 4.96 million sales pace a year ago. Existing condominium and co-op sales increased 1.6 percent to a seasonally adjusted annual rate of 620,000 units but remain down year-over-year by 3.1 percent.

Lawrence Yun, NAR chief economist, says a solid economy and job market should be generating a much stronger sales pace than what has been seen so far this year. “Closings were down in a majority of the country last month and declined on an annual basis in each major region,” he said. “Incredibly low supply continues to be the primary impediment to more sales, but there’s no question the combination of higher prices and mortgage rates are pinching the budgets of prospective buyers, and ultimately keeping some from reaching the market.”

The median existing-home price for all housing types sold during the month was $264,800, an all-time high and a 4.9 percent increase from the May 2017 median of $252,500.  It was the 75th straight month of year-over-year gains. The median existing single-family home price was $267,500, up by 5.2 percent on an annual basis.  Condo prices increased 2.5 percent to a median of $244,100.

While inventories are still lower than a year ago, the number of available units did increase for the second month in a row, climbing 2.8 percent from April to 1.85 million.  That is still 6.1 percent below the number of available units a year earlier, 1.97 million.  Inventories have shrunk year-over-year for 36 consecutive months. The unsold inventory is estimated at a 4.1-month supply.  NAR has historically called a 6-month supply a balanced market.

Properties typically stayed on the market for 26 days in May, unchanged from April and down from 27 days a year ago. Fifty-eight percent of homes sold in May were on the market for less than a month.

“Inventory coming onto the market during this year’s spring buying season – as evidenced again by last month’s weak reading – was not even close to being enough to satisfy demand,” added Yun. “That is why home prices keep outpacing incomes and listings are going under contract in less than a month – and much faster – in many parts of the country.”

“The abrupt hike in mortgage rates this spring, along with price appreciation and competition being the strongest in the entry-level part of the market, is why first-time buyers are not as active as they should be and their participation remains below its historical average,” said Yun.

First-time buyers accounted for 31 percent of sales in May, which is down from 33 percent both last month and a year ago.  Individual investors were involved in 15 percent of transactions and 21 percent of transactions were all-cash sales.  Sales of distressed homes made up only 3 percent of transactions.

“Realtors® in many parts of the country say their seller clients are dealing with a seesaw of emotions when deciding to put their home on the market,” NAR President Elizabeth Mendenhall said. “While they’re thrilled that they will immediately find multiple buyers interested in their listing, many fear they’ll have extreme difficulty finding another home to buy. Some have even decided to hold off until inventory conditions start improving, which is actually only exacerbating supply shortages.”

The Northeast saw the only strong market in May.  Existing-home sales there were up 4.6 percent from April’s level  to an annual rate of 680,000 units but remain 11.7 percent below a year ago. The median price in the Northeast was $275,900, a decline of 1.8 percent from the previous May.

In the Midwest, existing-home sales declined 2.3 percent to an annual rate of 1.26 million. This is a 2.3 percent annual decline.  The median price was $209,900, up 4.2 percent from a year ago.

Sales in the South inched down 0.4 percent to a 2.32 million annual rate, unchanged from a year ago. The median price gained 4.5 percent to $233,100.

The West saw sales decrease 0.8 percent to an annual rate of 1.17 million in May.  That number is down 4.1 percent from last May.  The median price in the West was $395,800, up 7.2 percent year-over-year.

Hard Money Loans available at #SuperiorMortgageLending. Very attractive terms, can close in 2 weeks, low down payment, #HighRiseCondos available, Investment properties and owner occupied. Start Your Loan Application today!
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Lenders Remain Pessimistic about Demand, Profits

Last week the Mortgage Bankers Association said that independent mortgage bankers had reported negative production revenue in the first quarter of this year. This week Fannie Mae reminded us that lenders have long expected it to happen.   

The company’s Mortgage Lender Sentiment Survey for the second quarter, which gathered responses from 87 senior executives representing 170 lending institutions, found more than a third (35 percent) expect their net profit margin to decline over the next quarter while 47 percent expect it will stay the same.  Over the last four quarters less than 20 percent of respondents have expected profits to improve.

Fannie Mae said it was the seventh consecutive quarter that the lender profit outlook has been negative, although responses to the second quarter survey were less downbeat than in the first quarter when nearly half of the lenders expected a decrease.  Expectations were substantially more negative that in the same quarter last year when nearly a quarter of lenders were looking for higher margins.



Respondents cited competition from other lenders as the primary reason for their lower expectations.  It was the sixth consecutive quarter for that sentiment to take first place and it tied with the first quarter as the survey high with a net of 78 percent. The second key reason given was “market trend changes” but it trailed at 31 percent. Among the few lenders who expect profits to increase, the most frequent justification was technological improvements.

Competition will probably continue to be seen as a top factor as expectations for mortgage demand decline.  The net share of lenders reporting they experienced growth in demand for purchase mortgages over the previous three months as well as the net share who expect growth over the next three months were both at the lowest level for any second quarter over the past three years.  However, the net an increase in demand for non-GSE eligible loans over the previous period at 44 percent was the highest for a second quarter since 2015.

For refinance mortgages, on net, more lenders continued reporting declining demand over the prior three months, with responses for all three loan types a net negative, ranging from -67 percent for non-GSE eligible loans to -73 percent for both government and GSE eligible loans.  The forward-looking responses were a little less gloomy, net positive responses about upcoming demand ranged from -46 to -54 percent.  Both sets were the lowest since the second quarter of 2014.

“Lenders remain bearish this quarter as they continue to face headwinds from rising mortgage rates, tight supply, and strong home price appreciation, which have drastically reduced refinance activity and restrained home purchase affordability,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “These factors have combined to squeeze mortgage origination volumes and have increased competitive pressures. Increased competitiveness will likely persist as a top driver of lenders’ mortgage business strategy. We expect this will prompt businesses to turn to cost-cutting as a means of managing their bottom lines, with payroll reduction likely to assume a more prominent role in future belt-tightening efforts.”

The net share of lenders reporting easing of credit standards over the prior three months as well as the net share of lenders reporting easing for the next three months remained stable overall. However, the net share reporting easing of credit standards for non-GSE eligible loans appeared to tick up from last quarter. In particular, the net easing share for non-GSE eligible loans for the next three months reached a survey high.




 Why Choose Superior Mortgage Lending?

Superior Mortgage Lending is a Las Vegas Mortgage Broker by design. We partner with several lenders to offer multiple Loan Products and we are not captured with certain credit scores and can offer better rates and no fees.  We have been in the Mortgage Industry  for over 18 years and we offer the most competitive rates in Nevada, California and Arizona. At Superior we have NO ORIGINATION AND NO UNDERWRITING FEES.
  • CONVENTIONAL LOANS – Giving you a low down payment, a great rate and a head start on your equity
  • FHA LOANS – Taking FHA borrowers to a new level with industry-leading government rates and pricing
  • VA LOANS – A hero for our veteran borrowers. Whether you are purchasing a new home or refinancing
  • REFINANCE LOANS – Multiple options allowing you to refinance with aggressive pricing that help you lower your payment or cash-out
  • JUMBO LOAN – Look no further. Superior gives you the pricing and turn times you deserve with competitive pricing 
  • FIRST TIME HOME BUYERS – We have great alternatives for borrowers looking to purchase with a low down payment
  • MORTGAGES FOR CANADIAN CITIZENS – Canadian citizens who are interested in purchasing a second home in the US. We can help!
  • COMMERCIAL LOANS – With over 30 years of business, commercial and multifamily purchase, refinance and construction financing experience
  • ELITE – The obvious choice for top-tier borrowers! Comprised of some of the best rates and pricing in the industry. You’ve build outstanding credit, you deserve an outstanding rate
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The Ever-Changing World of Private Mortgage Insurance; Capital Markets

Residential lenders aren’t the only ones having a tough time out there. Builder Hovnanian reported a Q2 loss of $9.8 million. The Social Security program’s costs will exceed its income this year for the first time since 1982, forcing the program to dip into its nearly $3 trillion trust fund to cover benefits. (It is estimated that the trust fund will be depleted in 2034 and Social Security will no longer be able to pay its full scheduled benefits unless Congress acts to shore up the program’s finances.) And while our stock market has rallied nicely, many large consumer food companies have seen their share prices drop by more than 30% in the last year as consumers move to fresh food and new brands.

Private Mortgage Insurance News

National MI announced the introduction of Rate GPS, a new risk-based pricing platform that assesses a variety of loan characteristics to more closely align National MI’s premium rates to the risk associated with individual loans. Rate GPS evaluates a variety of factors (including credit scores, loan-to-value ratios, debt-to-income ratios and other borrower, loan, and lender characteristics) to precisely calculate the appropriate mortgage insurance rates for individual loans. The new, granular risk-based pricing approach supports National MI’s goals for maintaining capital strength, generating strong risk-adjusted returns, and bolstering the credit quality of its loan portfolio. Based on the company’s current mix of business, Rate GPS represents an estimated overall rate reduction of less than 10%. “Rate GPS aligns with our lender customers’ desire for more targeted pricing and will ultimately enable lenders to structure their loans with more precision. We believe it will provide a more affordable option for borrowers,” said Brad Shuster, CEO of National MI. With Rate GPS, National MI leverages modern analytical and modelling tools to evaluate and assess historical loan data to produce rates that are closely calibrated to loan risks. The technology supporting Rate GPS is intended to deliver a smooth and seamless pricing process for lenders and their borrower customers.

LOs remind borrowers that, due to last year’s tax bill, several tax provisions were extended that expired at the end of 2016 and were retroactively reinstated for 1 year through 2017. Families with total adjusted gross income up to $100,000 may deduct 100% of the mortgage insurance premiums paid in 2017. The MI tax deduction gradually phases out until adjusted gross income reaches $110,000, at which point, the deduction reaches $0.

Fannie Mae and Freddie Mac have worked with the mortgage insurers (MIs), at the direction of the Federal Housing Finance Agency (FHFA), to revise the GSE Rescission Relief Principles. During 2018, the MIs will revise their master policies to reflect the new principles and obtain the required approvals from the GSEs, FHFA, and the state insurance commissioners. Once finalized, the GSEs and MIs will then coordinate an implementation date and notify lenders accordingly.

apple devices, books, business

USMI (a group that includes 5 of the 6 major MI companies) released a new report on the private MI’s role in homeownership nationwide. The report found that nearly 30 million homeowners have been served by MI for more than 60 years, and breaks down low down payment mortgage lending with MI in all 50 states. The report also underscores the historic importance of MI, how MI has helped promote homebuying in the U.S. especially with first-time buyers, and the protections that MI provides to American taxpayers and the federal government. The complete report on MI in the U.S. is available here. All 50 states fact sheets, plus data for the District of Columbia, are available here.

USMI submitted a comment letter on FHFA Notice of Regulatory Review. The comment letter suggests that FHFA should reassess its “Prior Approval for Enterprise Products” interim final rule for the GSEs, because though the regulation establishes a process for the GSEs to obtain prior approval from the FHFA for new products—and provide prior notice to the FHFA for new activities—the regulation is “unused [since its implementation in 2009] and apparently not fit for purpose.”

A U.S. national security panel approved a Chinese conglomerate’s $2.7 billion takeover of Richmond, Va.-based insurer Genworth Financial Inc., after the companies convinced authorities they would take extraordinary steps to secure Americans’ personal data. The approval by the Committee on Foreign Investment in the U.S. for China Oceanwide Holdings Group Co.’s deal marks the largest publicly reported Chinese deal to win CFIUS’s blessing during the administration of President Donald Trump. (CFIUS is a secretive, interagency committee that reviews proposed foreign takeovers of U.S. businesses. Led by the Treasury Department, it can advise the president to block deals on national-security grounds.) This materially increases the likelihood of GNW’s sale to China Oceanwide, as CFIUS was the most controversial review. The regulatory focus now moves to the Delaware Department of Insurance and Chinese regulators.

MGIC has turned heads with new rates for Borrower-Paid Monthly Premiums, Borrower-Paid Non-Refundable Single Premiums and Borrower-Paid Annual Premiums. MGIC is modifying its borrower-paid monthly and non-refundable single premium rates to include risk-based adjustments for DTI ratios greater than 45% and for 2 or more borrowers. These changes are effective with MI applications we receive on or after Monday, July 9, and subject to regulatory approval.

Its new BPMI monthly rate card modestly increases base premiums and aligns its rate card with those of peers (RDN, ESNT, and GNW). The card also introduces more granularity through adjustment factors, like those from peers. Is pricing stabilizing in the industry?

MGIC will insure loans with DTIs exceeding 45% only when the Representative Credit Score is 700 or greater, effective with mortgage insurance applications received on or after March 1, 2018. This change applies to loans with an Agency automated underwriting system (AUS) response. MGIC’s non-Agency Underwriting Requirements currently do not allow DTIs exceeding 45%.

And MGIC released its May data. Total new notices decreased -16.1% YOY, while total delinquent inventory fell by -10.5% YOY. IIF growth remained strong at +7.4% YOY, tracking above +7.0% forecasts for 2Q18.

Arch MI has announced its integration with Byte Software. Equipped with the newly designed integration, BytePro users now have direct access to RateStar, a risk-based pricing solution without leaving the BytePro LOS. Chris Hovey, Arch MI’s Executive Vice President and Chief Operating Officer stated, “We are committed to bringing technology solutions to the marketplace that improve lender efficiency and accuracy, and this new integration on the BytePro LOS will help lenders close more loans with RateStar – Arch MI’s most dynamic rate program.”

Superior Mortgage Lending  has made improvements to its Single Premium Financed Mortgage Insurance rates for correspondent loans. Click this link to price a loan.

CONTACT US TODAY 702-507-4170

One of the Best Mortgage Brokers in Las Vegas. Helping You Finance Your Dreams!

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After Long Search, MBA Finds New Leadership

A nine-month search for a replacement for David H. Stevens as president and CEO of the Mortgage Bankers Association (MBA) ended today with the selection of Robert D. Broeksmit.  Broeksmit is a Certified Mortgage Banker (CMB)  and current president and chief operating officer of Treliant Risk Advisors, a financial services consulting firm.  He has also held a series of senior leadership positions during a 33-year career in the mortgage industry, including serving as president of B.F. Saul Mortgage Company, executive vice president of Chevy Chase Bank and a vice president at Prudential Home Mortgage.  He is a past member of MBA’s Board of Directors, served as Chairman of MBA’s Residential Board of Governors and was Chairman of the American Bankers Association’s Mortgage Markets Committee.

“I have worked in mortgage banking since the mid-’80s and am honored and humbled to be selected for this role,” said Bob Broeksmit.  “Our industry, particularly on the residential side, is facing headwinds, and I look forward to working with the MBA team to address all business, legislative, and regulatory issues ahead of us to ensure the residential, commercial, and multifamily real estate markets remain healthy and vibrant.”

The new MBA head was identified by a search committee of 12 volunteer MBA members, chaired by MBA immediate past Chairman, Rodrigo Lopez.  MBA’s Board of Directors ratified the search committee’s recommendation at a meeting on Thursday.

Stevens, who joined MBA in March 2011 directly from a position of Assistant Secretary of the Department of Housing and Urban Development and Commissioner of FHA, announced his retirement last October.  He is due to leave his position in September.  Broeksmit will begin his job on August 20, providing several weeks of collaboration with Stevens to ensure a smooth transition.

Stevens said, “I’ve known Bob for over a decade, and he is an excellent choice to lead MBA.  Bob brings a deep understanding of how the industry works and understands the needs of our membership.  It has been my honor to work with MBA’s members and the great team at MBA these last seven years, and I look forward to working with Bob to ensure a seamless and successful transition.”

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Today’s Rates

Mortgage Rates change on a daily basis and can vary depending on your unique situation. Simply use the quick form below to receive FREE and accurate rate quotes from a nationwide network of trusted lenders.  

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Residential and Private Construction Numbers Solid in April

April turned out to be a solid month for construction.  The Census Bureau said that dollar value of new construction activity on residential, non-residential, and public projects was at a seasonally adjusted and annual total of $1.31 trillion.  This represented a 1.8 percent increase from March’s total of 1.29 trillion and was 7.6 percent higher than the $1.22 trillion rate in April 2017.

The result was better than anticipated.  Analysts polled by Econoday had expected the numbers to improve from the 1.7 percent decline in March but were looking at a consensus estimate of 0.8 percent. The range of estimates was 0.5 to 2.0 percent.

On a non-adjusted basis, the total spent during the month was $106.74 billion compared to $99.99 billion in March.  Spending for the first four months of 2018 totaled $387.0 billion, a 6.6 percent increase from the same period last year.

Privately funded construction was at a seasonally adjusted annual rate of $1.01 trillion, a 2.8 percent gain from March, and up 7.6 percent from the previous April.  On a non-adjusted basis there was $84.04 billion in construction put in place compared to 78.88 billion in March.  Through the end of April private construction totaled $305.27 billion, a 6.3 percent increase.

Residential spending is the largest component of private construction.   Spending there was up 4.5 percent from March to a seasonally adjusted annual rate of $556.30 billion, 9.5 percent higher than spending in April 2017.  Single-family construction was at a rate of $285.70 billion, unchanged from March but up 9.6 percent year-over-year.  Multifamily construction spending rose 3.6 percent for the month but was 4.0 lower than a year earlier.

On a non-adjusted basis there was $46.61 billion spent on residential construction during the month compared to $42.90 billion in March.  Year-to-date spending was up 8.6 percent at $150.46 billion.  Single-family spending is running 10.4 percent ahead of last year through April and multi-family was down 3.9 percent.

Public construction spending slowed by 1.3 percent from March at $296.12 billion but was 7.7 percent higher year-over-year. The residential component was down 0.2 percent to an annual rate of $7.14 billion but is 26.4 percent greater than last year.  That spending is also 7.5 percent higher across the first four months of 2018.

Build your new home in Las Vegas NV today! Superior Mortgage Lending can help you get approved for a New Home Loan. Choose form a great selections of new construction home designs . Discover Las Vegas new homes and the best communities from leading builders. Search across 46 builders and 280 neighborhoods.

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We can help you with all types of home purchases; primary homes, vacation homes and investment properties.

We specialize in all First Time Home Buyers. Use our Home Purchase Assistant to get pre-qualified today!

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Non-QM and Digital Products; Global Events Driving our Capital Markets

Plenty of people I know agree with the this Forbes article titled, “We Have Learned Nothing From The Mortgage Market Meltdown.” Builders are reducing labor costs by using premanufactured products that also require low maintenance. And what’s not to like about taking advantage of cheaper labor hundreds or thousands of miles away in an environmentally controlled environment? Know the difference between “modular” and “manufactured” and “mobile.”
Capital Markets

Mortgage Industry Advisory Corporation (“MIAC”) is pleased to offer, as exclusive agent, a $23 million pool of reperforming residential first lien whole loans. The Seller prefers to sell the loans on an all-or-none basis but will consider carves and all loans are offered on a servicing released basis. Loan characteristics are: Interest Rate Range: 1.5% to 13.28%, 76.72% Modified Loans, Geographic Concentration: CA, NJ, IL, FL, and NY, Average Total UPB: $196,937.40, WAC: 4.353% Aggregate LTV: 75%, WA FICO: 586, WA Months Performing: 7.57. For additional information, please contact Steve Harris.

Remember the acronym PIGS from 2010? Portugal, Italy, Greece, and Spain. Their fixed-income yields shot higher over the weekend due to renewed political uncertainty. Back to the future! Uncertainty about formation of a government has triggered an Italian debt sell-off, while bank shares in Spain, Portugal and France also have come under pressure.

Italy will soon be voting on what will essentially be its membership in the European Union. Although things have calmed down this morning, an Italian exit of the EU creates uncertainty in financial markets. Traders cope with that by buying bonds (among other things) from other countries, like the U.S., as a safe-haven, a flight to quality. Much of the panic money found its way into the US bond market yesterday. Not so much today.

And thus rates slid down yesterday, with the 10-year closing -16bps as investors flocked toward Treasuries amid political turmoil in Italy. Over the weekend, Italy’s President Sergio Mattarella objected to the appointment of euroskeptic Paolo Savona to the finance minister post. President Mattarella then called on former IMF official Carlo Cottarelli to form a caretaker government, but there are indications Mr. Cottarelli’s government will not be supported by any of the major parties, meaning there is an increased likelihood of another election in July or August. The worries surrounding Italy overshadowed news from Spain, where Prime Minister Mariano Rajoy will face a confidence vote before the weekend. These worries surrounding two of Europe’s most indebted economies produced the sharpest spike in the price of longer-dated Treasuries since June 2016.

In the U.S., Fed member Bullard argued for a slower pace of rate hikes. The fed funds futures market has seen a moderation in rate hike expectations, with the implied probability of a June hike falling to 75% from 90% on Friday and 95% one week ago. But housing & jobs drive our economy, and the S&P Case-Shiller Home Price Index increased 6.8% in, above expectations after an identical reading in February. The Conference Board’s Consumer Confidence Index increased to 128.0 in May, showing consumers’ assessment of current conditions is at a 17-year high.

Recall that retail sales increased 0.3 percent in April and March’s figures were revised upward; a moderate rebound after a weak first quarter. Clothing stores increased a robust 1.4 percent for the month, but department stores only managed a 0.2 percent gain. Furniture stores, which are an indication of housing demand, increased 0.8 percent. On the weak side, food services & drinking places, which are an indication of disposable income, declined 0.3 percent in April. All things considered, the increase in spending is not that dramatic considering this year’s tax cuts and current labor market conditions.

This morning we learned that last week’s apps dropped nearly 3%, the 6th straight week of declines, and refis are now down to 35% of the total. The May ADP employment report was +178k, much less than forecast. We’ve also had the second look at Q1 GDP (+2.2%, in line with expectations). And advanced indicators for April were released: wholesale (flat) and retail (+.5%) inventories. The latest Fed Beige Book will be released at 2PM ET. With lots of news, rates are higher versus Tuesday’s close: the 10-year is yielding 2.84% and agency MBS prices are worse .125.

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Existing Home Sales Reverse Course, Down 3%

Existing home sales put an end to two straight months of gains, retreating in April on both a monthly and annual basis.  The National Association of Realtors® said the sales of single-family homes, townhouses, condos, and cooperative apartments dropped by 2.5 percent from March’s estimate of 5.60 million to a seasonally adjusted annual rate of 5.46 million. That put sales at a 1.4 percent deficit when compared to April 2017.  It was the second straight month that sales have lagged on an annual basis.


Economists polled by Econoday were not looking for greatly improved numbers but results even missed that target.  Estimates ranged from 5.48 million to 5.64 million.  The consensus was for no change from the March 5.60 million number.

Single-family home sales were down by 3.0 percent to a seasonally adjusted annual rate of 4.84 million from 4.99 million in March and are 1.6 percent below the 4.92 million sales pace a year ago. Condo and co-op sales continued their recent strong performance, rising 1.6 percent to 620,000 units, level with sales in April 2017.

What NAR called “staggeringly low inventories” of available homes again got the blame for the disappointing sales volume even though that inventory rose sharply from March. Lawrence Yun, NAR chief economist, says “The root cause of the underperforming sales activity in much of the country so far this year continues to be the utter lack of available listings on the market to meet the strong demand for buying a home,” he said. “Realtors®say the healthy economy and job market are keeping buyers in the market for now even as they face rising mortgage rates. However, inventory shortages are even worse than in recent years, and home prices keep climbing above what many home shoppers are able to afford.”

The median existing-home price for all housing types in April was $257,900, up 5.3 percent from the median of $245,000 a year ago.  The increase marks the 74th straight month of year-over-year gains. The median existing single-family home price was $259,900, a 5.5 percent annual increase and condo/coop prices rose 3.4 percent to $242,500.

The much-lamented inventory of available housing stock at the end of April was 1.80 million homes.  This was a significant 9.8 percent uptick from March but is still 6.3 percent lower than the 1.92 million homes for sale the previous April.  For-sale listings constitute an estimated 4.0-month supply at the current rate of absorption compared to a 4.2 month supply last year. The inventory has fallen year-over-year for 35 consecutive months.

Properties typically stayed on the market for 26 days in April, down from 30 days in March and 29 days a year ago. Fifty-seven percent of homes sold in April were on the market for less than a month.

“What is available for sale is going under contract at a rapid pace,” said Yun. “Since NAR began tracking this data in May 2011, the median days a listing was on the market was at an all-time low in April, and the share of homes sold in less than a month was at an all-time high.”

“With mortgage rates and home prices continuing to climb, an increase in housing supply is absolutely crucial to keeping affordability conditions from further deterioration,” said Yun. “The current pace of price appreciation far above incomes is not sustainable in the long run.”

First-time buyers accounted for 33 percent of sales in April, the highest share since last July, compared to 30 percent in March and 34 percent a year ago. Individual investors bought 15 percent of homes sold, and 21 percent of transactions were all cash. Distressed sales continue to shrink and are now at the lowest level, a 3.5 percent share, since NAR started tracking them in 2008.

Existing home sales were flat or declined in all four regions and three are now running behind their 2017 levels.  In the Northeast sales fell 4.4 percent to an annual rate of 650,000, putting them 11.0 percent lower than a year ago. The median price in the Northeast was $275,200, which is 2.8 percent above April 2017.

Sales were unchanged in the Midwest from the prior month at an annual rate of 1.29 million and are 3.0 percent below the previous April. The median price in the Midwest was $202,100, an annual increase of 4.6 percent.

The South posted a 2.9 percent decline in sales to an annual rate of 2.33 million but remained above last year’s number by 2.2 percent. The median price was $227,600, up 3.9 percent from a year ago.

There was a 3.3 percent drop in existing-home sales in the West. The annual rate of 1.19 million was 0.8 percent lower than a year earlier.  Still, prices rose on an annual basis by 6.2 percent to a median of $382,100.


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New Home Sales Continue to Improve on Annual Basis

New home sales dipped in April, a reversal that was expected by many analysts. The U.S. Census Bureau and the Department of Housing and Urban Development said sales of newly constructed homes during the month were at a seasonally adjusted annual rate of 662,000 units.  This is 1.5 percent below the revised rate of 672,000 units in March.  The March estimate was revised down from 694,000 units, erasing much of that month’s reported 4 percent gain.

Las Vegas is forecast to have the fastest rising home values in the country in 2018, according to a new report.

The estimated median home value in the Las Vegas area is expected to reach $247,331 in September 2018, up 5.9 percent from September 2017, according to home-listing service Zillow.

That’s the fastest forecasted rise among the 30-plus metro areas listed in the report.

Nationally, Zillow expects home values to climb 3.1 percent in the next year.

Las Vegas home prices have already been rising at among the fastest rates nationally.

According to a report last week from the S&P CoreLogic Case-Shiller Indices, Las Vegas-area home prices were up 8.6 percent year-over-year in August, second-fastest among 20 metro areas listed in the report.

How to Choose a Mortgage Lender

Selecting a mortgage lender for your home purchase is a big decision. Every home purchase or refinance is very unique so you may want to ask your lender if they have experience with situations similar to yours. Are you a first-time homebuyer? Do you have less-than-stellar credit? What type of loan are your looking to quality for, like VA, FHA, Conventional, USDA? When meeting with a mortgage originator ask for a Loan Estimate, a form that can help you easily compare different loans from different lenders. A Loan Estimate will show you all the details of your loan, including rates, fees, monthly payment, and more.


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Mortgage Rates Unchanged to Begin Week

May 21 2018, 3:38PM


Mortgage rates held steady today, which is better than what could be said for most of last week when rates shot up to the highest levels in 7 years.  Friday was the only day of improvement, but it was scarcely enough to undo the damage from the previous 4 days.  That said, it did raise questions.  Specifically, was Friday some sort of indication that the worst was behind us in terms if upward rate momentum?

Answering that question is tricky business because the time frame matters greatly.  In the short term, there’s always a possibility that a prevailing trend toward higher rates will cool-off and reverse course.  While that’s also technically possible over longer time horizons, we can begin to talk more about probabilities and less about random chance.  With that in mind, we’ve be discussing the general momentum toward higher rates for many months now.  Rest assured it will be big news when and if it changes.

Until then, assume that underlying risk of gradually higher rates remains intact, and that it will continue to be mitigated by periodic corrections toward lower rates.  Unfortunately, in addition to being relatively less common, those friendly corrections haven’t really helped rates make up much of the lost ground.  As such, last week’s same bottom line still applies: it will take a much bigger, much more sustained move in bond markets for lenders to make meaningful changes to mortgage rates.  Until then, it makes sense to remain defensive in terms of locking vs floating.

Today’s Rates

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