Mortgage applications to purchase new homes unexpectedly rose in March from February due in part low rates and strong economic conditions at the start of the month. The Mortgage Bankers Association's (MBA) Builder Application Survey showed that new home purchase applications rose 14% last month and was up 21% from a year ago. The MBA expects that new home purchases in April will decrease.
The Mortgage Bankers Association reports that the number of mortgage loans requesting forbearance continues to increase. The total number of loans in forbearance rose from 2.73% to 3.74% during the week of March 30 to April 5, 2020. Mortgages backed by Ginnie Mae had the largest weekly growth and the highest overall share in forbearance requests by investor type, while independent mortgage bank (IMB) servicers continue to have a higher share of loans in forbearance.
The major U.S. stock indexes are higher today as reports continue to reveal that more U.S. states are setting sights on reopening their respective economies as the virus numbers decline. In addition, President Trump said he hoped a return-to-work plan might be "ahead of schedule." Add in the huge and growing stimulus package and there is virtually "trillions" of reasons for stocks to be optimistic. The Dow Jones Industrial Average is up 500 points in morning trading.
Home purchase applications rise in March. . U.S. stocks rebound.
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