by Calculated Risk on 8/10/2021 09:00:00 PM

Wednesday:
• At 7:00 AM ET, The Mortgage Bankers Association (MBA) will release the results for the mortgage purchase applications index.

• At 8:30 AM, The Consumer Price Index for July from the BLS. The consensus is for a 0.5% increase in CPI, and a 0.4% increase in core CPI.

by Calculated Risk on 8/10/2021 07:40:00 PM

Note: I'm tracking data for many local markets around the U.S. I think it is especially important to watch inventory this year.

From SacRealtor.org: Median sales price dips, inventory rises

July closed ended with 1,574 sales, an 8.6% decrease from June (1,723). Compared to one year ago (1,772), the current figure is down 11.2%.
...
The Active Listing Inventory increased 23.5% from June to July, from 1,297 units to 1,602 units. Compared with June 2020 (1,266), inventory is up 26.5%. The Months of Inventory increased from .8 Months to 1 Month. This figure represents the amount of time (in months) it would take for the current rate of sales to deplete the total active listing inventory.
emphasis added

Note that inventory in July was up 23.5% from last month, and up 123% from the record low in January 2021.

by Calculated Risk on 8/10/2021 05:22:00 PM

Congratulations to the residents of Rhode Island on joining the 80% club! Go for 90%!!! (80% of adults have had at least one shot).

The 7-day average cases is the highest since February 7th.

The 7-day average hospitalizations is the highest since February 21st.

The 7-day average deaths is the highest since May 28th.

This data is from the CDC.

According to the CDC, on Vaccinations.

Total doses administered: 352,550,944, as of a week ago 347,377,149. Average doses last week: 0.74 million per day.

COVID Metrics
	Today	Yesterday	Week Ago	Goal
Percent over 18, One Dose✅	71.2%	71.1%	70.1%	≥70.0%1,2
Fully Vaccinated✅ (millions)	166.9	166.7	165.1	≥1601
New Cases per Day3🚩	110,081	107,414	87,747	≤5,0002
Hospitalized3🚩	55,779	53,940	41,029	≤3,0002
Deaths per Day3🚩	434	423	344	≤502
1 America's Short Term Goals, 2my goals to stop daily posts, 37 day average for Cases, Hospitalized, and Deaths 🚩 Increasing 7 day average week-over-week for Cases, Hospitalized, and Deaths ✅ Short term goal met (even if late).

KUDOS to the residents of the 21 states and D.C. that have achieved the 70% goal (percent over 18 with at least one dose): Vermont, Hawaii, Massachusetts, Connecticut, Maine, New Jersey, New Mexico and Rhode Island are at 80%+, Pennsylvania, California, Maryland, Washington, New Hampshire, New York, Illinois, Virginia, Delaware, Minnesota, Oregon, Colorado, Florida and D.C. are all over 70%.

Next up are Utah at 69.5%, Nebraska at 68.6%, Wisconsin at 68.3%, Kansas at 67.7%, South Dakota at 67.4%, Nevada at 67.2%, and Iowa at 66.7%.

Click on graph for larger image.

This graph shows the daily (columns) and 7 day average (line) of positive tests reported.

This data is from the CDC.

by Calculated Risk on 8/10/2021 02:20:00 PM

I'm tracking data for many local markets around the U.S. I think it is especially important to watch inventory this year.

For Portland, OR:

Closed sales in July 2021 were 3,439, up 1.4% from 3,391 in July 2020.

Active Residential Listings in July 2021 were 3,180, down 23.1% from 4,133 in July 2020.

Months of Supply was 0.9 Months in July 2021, compared to 1.2 Months in July 2020.

Inventory in July was up 16.8% from last month, and up 65.5% from the record low in March 2021.

by Calculated Risk on 8/10/2021 12:17:00 PM

Five months ago, from Jann Swanson at MortgageNewsDaily: Fannie Warns Lenders on Investment Properties and 2nd Homes. 

I'm looking at data for some second home markets - and will track those markets to see if there is an impact from the lending changes.

This graph is for South Lake Tahoe since 2004 through July 2021, and shows inventory (blue), and the year-over-year (YoY) change in the median price (12 month average).

Note: The median price is distorted by the mix, but this is the available data.

Click on graph for larger image.

Following the housing bubble, prices declined for several years in South Lake Tahoe, with the median price falling about 50% from the bubble peak.

Note that inventory was high while prices were declining - and significantly lower inventory in 2012 suggested the bust was over.  (Tracking inventory helped me call the bottom for housing way back in February 2012, see:The Housing Bottom is Here)

Currently inventory is still very low, but solidly above the record low set four months ago, and prices are up sharply YoY.   This will be interesting to watch.

by Calculated Risk on 8/10/2021 10:17:00 AM

Note: I'm tracking data for many local markets around the U.S. I think it is especially important to watch inventory this year.

From the GAMLS for Atlanta:

Total Residential Units Sold in July 2021 were 9,683, down 5.7% from 10,270 in July 2020.

Active Residential Listings in July 2021 were 8,668, down 43.9% from 15,442 in July 2020.

Months of Supply was 0.99 Months in July 2021, compared to 2.00 Months in July 2020.

Click on graph for larger image.

This graph from the Georgia MLS shows inventory in Atlanta over the last several years - and the sharp decline in inventory at the start of the pandemic.

Inventory in Atlanta in July was up 11.3% from the previous month, and was 24.5% above the record low in April 2021.

by Calculated Risk on 8/10/2021 08:11:00 AM

I'm posting data for many local markets around the U.S.

From the New Hampshire Realtors for the entire state:

Closed sales Single family and Condos in July 2021 were 2,209, down 14.7% from 2,591 in July 2020.

Active Listings Single family and Condos in July 2021 were 2,217, down 37.0% from 3,521 in July 2020.

Inventory in July was down 8.8% from last month, but up 26.5% from the record low in February 2021.

by Calculated Risk on 8/09/2021 04:00:00 PM

Note: This is as of August 1st.

From the MBA: Share of Mortgage Loans in Forbearance Decreases to 3.40%

The Mortgage Bankers Association’s (MBA) latest Forbearance and Call Volume Survey revealed that the total number of loans now in forbearance decreased by 7 basis points from 3.47% of servicers’ portfolio volume in the prior week to 3.40% as of August 1, 2021. According to MBA’s estimate, 1.7 million homeowners are in forbearance plans.

The share of Fannie Mae and Freddie Mac loans in forbearance decreased 5 basis points to 1.74%. Ginnie Mae loans in forbearance decreased 12 basis points to 4.18%, while the forbearance share for portfolio loans and private-label securities (PLS) decreased 7 basis points to 7.37%. The percentage of loans in forbearance for independent mortgage bank (IMB) servicers decreased 4 basis points to 3.63%, and the percentage of loans in forbearance for depository servicers decreased 10 basis points to 3.49%.

“Forbearance exits increased as August began and new forbearance requests declined, resulting in the largest decrease in the share of loans in forbearance in three weeks,” said Mike Fratantoni, MBA’s Senior Vice President and Chief Economist. “1.7 million homeowners remain in forbearance, 13% of whom were current on their payments as of August 1st. Of those who exited forbearance last week, more than 10.5% were current. Forbearance has surely provided both insurance and assurance for many of these homeowners who worried about ongoing hardships, and it is positive to see so many continue to be able to make their payments while in forbearance.”

Added Fratantoni, “Delinquency rates have increased slightly for borrowers who have exited forbearance and began repayment plans, deferral plans, or modifications over the course of the pandemic. However, July’s strong job market report provides evidence of a rebounding economy, which should provide further support for homeowners exiting forbearance in the months ahead.”
emphasis added

Click on graph for larger image.

This graph shows the percent of portfolio in forbearance by investor type over time.  Most of the increase was in late March and early April 2020, and has trended down since then.

The MBA notes: "Total weekly forbearance requests as a percent of servicing portfolio volume (#) decreased relative to the prior week: from 0.06% to 0.04%."

by Calculated Risk on 8/09/2021 03:50:00 PM

Note: Data reported on Monday is always low, and is revised up as data is received.

This data is from the CDC.

According to the CDC, on Vaccinations.

Total doses administered: 351,933,175, as of a week ago 346,924,345. Average doses last week: 0.72 million per day.

COVID Metrics
	Today	Yesterday	Week Ago	Goal
Percent over 18, One Dose✅	71.1%	71.0%	70.0%	≥70.0%1,2
Fully Vaccinated✅ (millions)	166.7	166.5	164.9	≥1601
New Cases per Day3🚩	97,399	100,830	84,338	≤5,0002
Hospitalized3🚩	49,586	50,764	38,987	≤3,0002
Deaths per Day3🚩	456	457	321	≤502
1 America's Short Term Goals, 2my goals to stop daily posts, 37 day average for Cases, Hospitalized, and Deaths 🚩 Increasing 7 day average week-over-week for Cases, Hospitalized, and Deaths ✅ Short term goal met (even if late).

KUDOS to the residents of the 21 states and D.C. that have achieved the 70% goal (percent over 18 with at least one dose): Vermont, Hawaii, Massachusetts, Connecticut, Maine, New Jersey and New Mexico are at 80%+, and Rhode Island, Pennsylvania, California, Maryland, Washington, New Hampshire, New York, Illinois, Virginia, Delaware, Minnesota, Oregon, Colorado, Florida and D.C. are all over 70%.

Next up are Utah at 69.0%, Nebraska at 68.5%, Wisconsin at 68.3%, Kansas at 67.6%, South Dakota at 67.2%, Nevada at 67.1%, and Iowa at 66.5%.

Click on graph for larger image.

This graph shows the daily (columns) and 7 day average (line) of positive tests reported.

This data is from the CDC.

by Calculated Risk on 8/09/2021 01:03:00 PM

Fannie and Freddie earlier reported results for Q2 2021. Here is some information on single-family Real Estate Owned (REOs). 

Note that COVID is impacting foreclosure activity, from Fannie:

"The decline in single-family REO properties in the first half of 2021 compared with the first half of 2020 was due to the suspension of foreclosures that began in March 2020 as a result of the COVID-19 pandemic. In response to the pandemic and with instruction from FHFA, we have prohibited our servicers from completing foreclosures on our single-family loans through July 31, 2021, except in the case of vacant or abandoned properties." emphasis added

Freddie Mac reported the number of REO declined to 1,477 at the end of Q2 2021 compared to 2,812 at the end of Q2 2020.

For Freddie, this is down 98% from the 74,897 peak number of REOs in Q3 2010.

Fannie Mae reported the number of REO declined to 6,363 at the end of Q2 2021 compared to 12,675 at the end of Q2 2020.

For Fannie, this is down 96% from the 166,787 peak number of REOs in Q3 2010.

Click on graph for larger image.

Here is a graph of Fannie and Freddie Real Estate Owned (REO).

REO inventory decreased in Q2 2021, and combined inventory is down 49% year-over-year.

This is well below a normal level of REOs for Fannie and Freddie.