Market Matters

Housing finance reform bill back on the agenda for next week Source: The Hill A proposal that would overhaul the mortgage finance system is expected to go back on the agenda of the Senate Banking Committee next week after being delayed over a lack of consensus, as supporters wanted additional momentum before pushing it out to the Senate floor. It’s not clear whether major sticking points have been resolved within the committee. Read the full story

Americans ready to spend money...especially on housing Source: HousingWire As a positive sign for the U.S. economy and housing conditions, Americans are reportedly more optimistic about buying a home, according to the PulteGroup Home Index survey. Overall attitudes toward buying a home is trending positive, and Margaret Gramann, senior vice president of sales for PulteGroup, Inc., commented, “For the first time in years, Americans have a growing sense of optimism that the housing market is improving, and that these positive changes may be sustainable.” Making sense of the story The survey found that 67 percent of people say they plan on purchasing a home, and of that amount, 32 percent are looking to buy within the next two years. Twenty-one percent would move up their buying timeline if they were able to sell their current home at a higher price point/break their lease without penalty. The results indicate that 57 percent of adults think now is a good or excellent time to purchase items they want or need, especially when it comes to entering the housing market. Millennials and move-up buyers represent the most engaged consumer segments, 85 percent and 71 percent, respectively, intending to purchase a home in the future. As for baby boomer trends, 50 percent of those aged 55 and older are looking to purchase a home in the future. Seventy percent of home shoppers plan to spend more or as much money on their next home, and 64 percent prefer to spend more on a home that's move-in ready rather than spend less and renovate. Read the full story

Talking Points … Homeowners largely have not extracted any recovered equity in their homes, according to a survey by Freddie Mac. Borrowers with conventional loans pulled just $6.5 billion out of their homes during the first quarter through cash-out refinancing, down from $6.7 billion during the prior quarter. Cash-out refinancing has been lower only in three quarters since mid-2000, and when adjusted for inflation, cash-out refinancing since 2010 has been near its lowest levels since 1997. Cash-out refinancing surged during the housing bubble, reaching a high of $84 billion during the second quarter of 2006. But many borrowers ended up in a position where they owed more than their homes were worth, resulting in a painful pay-back that continues today.