Today’s News Synopsis:

Wells Fargo CEO John Stumpf has resigned in the wake of their recent scandal involving fake accounts.  The Mortgage Bankers Association reported mortgage applications decreased 6% with the increase in rates.  In Freddie Mac’s Insight report for this month, they were very curious why many do not see positive signs for homeownership rates in the future.

In The News:

Bloomberg – “S&P’s Real Estate Exuberance Looks Irrational” (10-12-16)

“Last month, the overseers of the S&P 500 index split real-estate companies from financial stocks, creating an 11th equity category in response to the growing size and outperformance of the sector in recent years.”

CNBC – “Stocks close mixed after Fed minutes; real estate, utilities lead” (10-12-16)

“U.S. stocks steadied Wednesday, closing narrowly mixed after the Federal Reserve’s September meeting minutes affirmed previous expectations for a possible December rate hike.”

The Mortgage Reports – “Housing Market Forecast: Experts Weigh In On 2017 Real Estate” (10-12-16)

“The year 2016 proved to be a hot one for real estate.  Home values, prices and sales showed some of their strongest numbers since before the economic downturn a few years ago.”

Freddie Mac – “Freddie Mac October 2016 Insight” (10-12-16)

“Freddie Mac (OTCQB: FMCC) released today its October Insight questioning the pessimistic tone of the projections of leading experts of future homeownership rates.”

DS News – “The Impact of Hurricane Matthew on Credit Risk Transfers” (10-12-16)

“As of the afternoon of October 10th, the Federal Emergency Management Agency (FEMA) placed a total of 171 counties across Florida, Georgia, South Carolina, and North Carolina under a disaster declaration due to the effect of Hurricane Matthew in these areas.”

 

CNBC – “Mortgage applications down 6% as rising rates take a toll” (10-12-16)

“As pumpkins pop up on front porches across the nation, the highest interest rates in a month are scaring consumers away from the mortgage market.”

Bloomberg – “Fed Minutes Point to Rate Hike ‘Relatively Soon'” (10-12-16)

“U.S. central bankers debating the merits of raising interest rates last month described the decision as a close call, with several saying a rate hike was needed “relatively soon,” minutes of the September meeting showed.”

Housing Wire – “Scandal-plagued Wells Fargo CEO John Stumpf relinquishes post” (10-12-16)

“Wells Fargo CEO John Stumpf just announced he plans to step down after the recent scandal surrounding the bank.”