TheMReport — News and strategies for the evolving mortgage marketplace.
Issue link: http://digital.themreport.com/i/291672
These sTories heaTed up The MRepoRt's social media channels The sTory: more homeowners plan to rent over selling The scoop: While the spring typically means that home inventory goes up, a recent Redfin survey suggests otherwise. In a poll of more than 1,900 homebuyers across 22 major metro areas, the online broker found 39 percent of homeowners have plans to rent out their existing home after buying a new place—limiting the amount of supply coming to the market. Homeowners are moving more toward keeping homes because of lower mortgage rates available. The rates make the owners able to keep the home and turn it into rental property while still purchasing another home for themselves. The sTory: more First-Time Buyers ready to enter market in 2014 The scoop: Zillow and Pulsenomics recently released the Confidence Housing Index, which measures consumer sentiment. The good news is based on the findings, 4 million people want to make the leap in 2014 to be first-time homebuyers. The bad news is the reality of that happening could prove difficult. Home inventories are not as high as they once were, and mortgage rates have come up since a low of 3.3 percent in 2013. There is still the possibility, though, that the power of positive will make it happen. The sTory: Jpmorgan to cut additional 6,000 mortgage Jobs in 2014 The scoop: JPMorgan Chase announced in late February it plans to cut an additional 6,000 mortgage banking jobs in 2014 as the bank adapts to a continued spiral in loan demand. The announced cuts come on top of an estimated headcount reduction of 11,000 last year, the bank revealed in an investor presentation. Also set for the chopping block are about 2,000 jobs in consumer banking and other services. Altogether, the megabank expects to have approximately 260,000 in its employ at the end of the year. Something New MReport tracks the pulse of the industry by engaging on various platforms. And the most recent tweet chat with Auction.com EVP Rick Sharga (@ricksharga) yielded some interesting information. Remember to follow @TheMReportNews to find out when our next tweet chat will be held and tweet us using #themreport. Th e m Rep o RT | 7 Social life @Barbara_REO Historic average is 64%. Peak was over 70%. I think we'll dip down to 62–63, but eventually settle back to average. @TheMReportNews I've been on record as saying that weak demand will be a problem in 2014, and the MBA says loan apps are at 20-year lows. @Barbara_REO Loans for low-/middle-income families are a problem right now. Many won't meet DTI requirements of QM; don't have down payment. @TheMReportNews I think that new home sales numbers have been overblown in the media. Only up 2% since last year.