Today’s News Synopsis:

The Mortgage Bankers Association reported an 8% increase in mortgage purchase applications for the year.   With the increase in mortgage rates and cost for borrowing, we may see some changes in the housing market, including less construction and people buying smaller homes.  According to Freddie Mac, people renting are looking for more homes that are environmentally friendly since they are more concerned about spending too much on the utility bill than rent.

In The News:

Mortgage Bankers Association – “October New Home Purchase Mortgage Applications Increase 8 Percent Year over Year” (11-15-16)

“The Mortgage Bankers Association (MBA) Builder Application Survey (BAS) data for October 2016 shows mortgage applications for new home purchases increased 8 percent relative to October 2015.”

Freddie Mac – “Renters More Concerned About Utility Bills Than Rents, Give High Marks to Environmentally-Friendly Properties” (11-15-16)

“The latest Freddie Mac (OTCQB: FMCC) research shows more renters are worried about rising utility bills than rising rents and nearly half of the renters surveyed say they are willing to pay more for rentals with cost-saving water and energy features.”

Bloomberg – “Spike in Mortgage Rates Throws a Wrench Into U.S. Housing Market” (11-15-16)

“The spike in borrowing costs in response to President-elect Donald Trump’s pro-growth agenda is causing some heartburn in America’s housing industry.”

Yahoo Finance – “Freddie Mac to Roll Out Manufactured Housing Education Curriculum” (11-15-16)

“Freddie Mac ( OTCQB : FMCC ) has formed a partnership with Next Step Network, Inc., a Louisville, Kentucky-based non-profit housing intermediary, to implement a consumer education curriculum for buyers of manufactured homes.”

Wall Street Journal – “Trouble Brewing in Commercial Real Estate” (11-15-16)

“Defaults are rising in a key corner of the commercial real-estate debt market just as borrowing costs are set to jump, raising the likelihood of a slowdown of the $11 trillion U.S. commercial property sector in 2017.”

Market Watch – “5 big real-estate trends to watch in 2017” (11-15-16)

“A surprising twist toward the end of 2016 with the election of real estate magnate Donald Trump as president is likely to presage some dramatic changes in 2017 for the housing industry, which saw healthy increases ion values this year, thanks to factors including low interest rates, lower gas prices, stronger wage growth and millennials getting off the fence and entering the market.”

Housing Wire – “FHA single-family business explodes; No premium cut coming” (11-15-16)

“The Federal Housing Administration announced Tuesday that its flagship fund, the Mutual Mortgage Insurance Fund, grew in fiscal 2016, marking the MMI Fund’s fourth straight year of growth, but that doesn’t mean that an additional cut to the FHA’s mortgage insurance premiums is coming.”