The Three Big Mortgage Trends of 2018

first_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago December 13, 2017 3,028 Views Home / Daily Dose / The Three Big Mortgage Trends of 2018 Share Save The Week Ahead: Nearing the Forbearance Exit 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Subscribe in Daily Dose, Featured, Journal, News mortgage trends TransUnion 2017-12-13 Staff Writer Previous: FHLBank of San Francisco Welcomes New Board Member Next: Yellen: Tax Reform Will Likely Provide ‘Some Lift’ to Economy Demand Propels Home Prices Upward 2 days ago Tagged with: mortgage trends TransUnion The lowest mortgage loan delinquency rates since 2005, a reduction in the share of refinanced mortgages, and the return of home equity line of credit (HELOCs) are trends to look for in the mortgage industry in the next year according to TransUnion’s 2018 consumer credit forecast released on Wednesday.Trend 1: Serious mortgage delinquency rates to fallAccording to the forecast, the mortgage delinquency rate is expected to drop to 1.65 percent by the end of 2018, the lowest observed since 2005, down from a rate of 1.91 percent for Q3 2017.“From a credit performance standpoint, mortgage loan delinquency rates are the biggest story and are expected to decline next year driven primarily by strong employment and rising home prices,” Matt Komos, VP of Research and Consulting at TransUnion said.The forecast states that increases to the labor participation rate, median household income, and home equity levels are additional factors impacting lower mortgage delinquency rates.Trend 2: Rising rates and refinancingWith interest rate increases expected in 2018, the forecast has projected continued reduction in the share of refinanced mortgages as a percentage of all mortgages. Industry forecasts have refinancing share dropping from 35 percent in 2017 to 28 percent in 2018.“Many existing homeowners already having refinanced into a low-interest rate mortgage may be unwilling or unable to move up due to how expensive housing has become. That lack of mobility can put pressure on the supply of entry-level housing,” Joe Mellman, SVP and TransUnion’s mortgage line of business leader said.Trend 3: Return of HELOCsHome equity line of credit is set to make a comeback in 2018 with TransUnion forecasting approximately 1.6 million HELOC originations in 2018. That stands in stark contrast to the previous five-year period when less than half that number were originated. According to the forecast, as rising home prices see many more homeowners tapping into their home equity, the three largest uses for HELOCs will be:Debt consolidation to a lower interest rateFinancing a large expense such as home improvementRefinancing an existing HELOC or Home Equity LoanFor more about the 2018 TransUnion Forecast, click here.center_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Related Articles Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago The Three Big Mortgage Trends of 2018 Servicers Navigate the Post-Pandemic World 2 days ago Sign up for DS News Daily  Print This Postlast_img read more

China’s economy shrinks for first time in decades as virus hits

first_imgChina’s economy recorded the first contraction in decades in the first quarter as the coronavirus outbreak shut down large parts of the world’s second-largest economy and dimmed the global outlook.Gross domestic product shrank 6.8 percent in the first quarter from a year ago, the worst performance since at least 1992 when official releases of quarterly GDP started, missing the consensus forecast of a 6 percent drop. Factory output fell 1.1 percent in March, retail sales slid 15.8 percent, while investment decreased 16.1 percent in the first three months of the year.The sharp contraction underscores the pressure that Chinese policy makers face as they attempt to revive the economy without nullifying efforts to contain the virus. The continued spread around the world also threatens to add fresh downward pressure on China’s exporters in a feedback loop that could throw millions out of work. “The first quarter contraction is not a surprise, considering the nationwide lock down in late January and February,” Robin Xing chief China economist at Morgan Stanley Asia, said on Bloomberg TV. “Most major economies are still in the lockdown stage. As a result, growth in the second quarter will be shallow, just marginally above zero.”China’s markets held gains after the release as investors digested the data. The Shanghai Composite Index was up 0.7 percent at 10:02 a.m., while the Chinese currency was 0.2 percent stronger versus the dollar. The Hang Seng Index climbed 2.4 percent in Hong Kong.China’s economy was forced into a paralysis in late January as the epidemic that first started in Wuhan spread across the country. The economy remained shuttered for much of February with factories and shops closed and workers stranded at home. The process of resuming business has been disappointingly slow and the return rate only inched up to around 90 percent at the end of March, Bloomberg Economics estimates.To cushion the economic blow, China has unveiled a range of support measures, although not on the scale of other nations.That includes 3.55 trillion yuan (US$502 billion) in low-cost funding provided to financial institutions, 1.29 trillion yuan in pre-approved local government special bonds, and 1.6 trillion yuan in cuts to various fee taxes, according to the nation’s cabinet.The central government is also mulling other policies like raising the deficit-to-GDP ratio, issuing special sovereign bonds and increasing the local government special bond quota, in order to fuel a faster economic recovery, according to a recent article from a senior official.Exports fell less than expected in March as production capacity was gradually restored, but economists warn bigger headwinds lie head as the rest of the world shuts down and external demand diminishes.Topics :last_img read more

Eastern Michigan press conference: Boeheim discusses team weaknesses

first_img Related Stories Coleman, Grant combine for 25 points in win over Eastern Michigan PRESSURE POINT: Syracuse uses full-court defense to remedy early struggles against Eagles Facebook Twitter Google+ Published on December 4, 2012 at 2:18 amcenter_img Syracuse head coach Jim Boeheim addresses the media after the Orange defeated Eastern Michigan 84-48 on Dec. 3. Fourth-ranked Syracuse overcame a sloppy first half to move to 6-0 on the season. Commentslast_img