Today’s News Synopsis:

Net gains on loans originated by independent mortgage banks increased in the third quarter while profits continued to remain relatively stable.  HELOCs are starting to become more expensive and may continue to do so with the rise in interest rates.  Risky mortgage-backed securities have now been given a AAA rating once again.

In The News:

CNBC – “One of your monthly housing bills may get bigger” (12-7-16)

“Interest rates are rising, and while most homeowners today have fixed-rate mortgages, millions of them also have home equity lines of credit (HELOC), which are suddenly getting more expensive.”

Mortgage Bankers Association – “Mortgage Applications Decrease in Latest MBA Weekly Survey” (12-7-16)

“Mortgage applications decreased 0.7 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending December 2, 2016.”

Bloomberg – “AAA Ratings Return for Securities Backed by Riskier Home Loans” (12-7-16)

“Two ratings firms are assigning AAA ratings to bonds backed by new riskier home loans, one of the few times such securities have won top grades since the financial crisis, according to documents obtained by Bloomberg.”

ETF Trends – “Out on its Own, Real Estate Sector ETFs Struggle” (12-7-16)

“Buoyed by the Federal Reserve’s lower for longer stance on interest rates and investors’ seemingly unquenchable desire for income, real estate investment trusts (REITs) and the corresponding exchange traded funds were among the most popular income-generating asset classes earlier this year.”

Fannie Mae – “Presidential Election Clouds Views of Consumer Housing Sentiment in November” (12-7-16)

“The Fannie Mae Home Purchase Sentiment Index (HPSI) decreased in November for the fourth consecutive month, dipping 0.5 points to 81.2.”

DS News – “‘Low Inventory’ Defined 2016 Housing” (12-7-16)

“If there’s a compact way to sum up the 2016 housing market, it would be the words “low inventory.” In a year’s-end look at the U.S. housing market, Trulia found that no other issue dictated the course and nature of market as much as a lack of places to buy.”

CNBC – “Invest in Mexican real estate, short US pizza: Pro” (12-7-16)

“Choose Mexican over pizza, one analyst told CNBC’s Street Signs, and he wasn’t strictly talking about takeaways.  “The market is discounting a lot of macro bad news,” Alexis Dawance, head of equities at MFM Mirante, said, by way of rationalizing his stock picks.”

Mortgage Bankers Association – “Independent Mortgage Bank Volumes Up, Production Profits Stable in 3rd Quarter 2016” (12-7-16)

“Independent mortgage banks and mortgage subsidiaries of chartered banks reported a net gain of $1,773 on each loan they originated in the third quarter of 2016, up from a reported gain of $1,686 per loan in the second quarter of 2016, the Mortgage Bankers Association (MBA) reported today in its Quarterly Mortgage Bankers Performance Report.”

Bloomberg – “Airbnb Turns the Volume Down on Its Fights With Regulators Everywhere” (12-7-16)

“Airbnb has always operated under a cloud of legal uncertainty as it battled city governments over how to regulate its network of short-term rental properties.”

Housing Wire – “Mortgage defects fall for first time in a year as TRID issues subside” (12-7-16)

“Oct. 3, 2016 marked the one-year anniversary of the implementation of Consumer Financial Protection Bureau’s Know Before You Owe rule, which also goes by a couple of other names – the TILA-RESPA Integrated Disclosure rule and TRID.”