New Homes Sales in September Rose, Apple disappointing earnings, 2017 lenders expect more than $1Trillion in mortgages
October 26, 2016
The Commerce Department reported that New Home Sales in September rose 3.1% from August to an annual rate of 593,000 units, below the 610,000 expected. However, the 3.1% comes after August was revised lower to 575,000 from the 609,000 originally reported. New Home Sales are up nearly 30% from September 2015. The median price for a new home rose 6.7% in the past year to $313,500 due in part to lower inventory numbers. Currently, there is a 4.8 month supply of new homes, below the August level.
Popular iPhone maker Apple reported disappointing quarterly earnings after the market closed on Tuesday, as the numbers were lower across the board. Apple saw its first annual revenue decline since 2001 dropping to $217 billion in 2016 from $233 billion in 2015. The drop in revenues was due in part to falling sales for the iPhone. In addition, forecasts for 2016 holiday sales during the last three months of 2016 only matched analysts’ average estimates.
The Mortgage Bankers Association (MBA) reported on Tuesday that lenders across the nation are expected to write more than $1 trillion in mortgages for home purchases in 2017. The MBA expects $1.1 trillion in purchase originations next year, an 11% jump from 2016. “Strong household formation coupled with further job growth, rising wages, and continuing home price appreciation will drive strong growth in purchase originations in the coming years,” Michael Fratantoni, MBA’s chief economist, said in a statement.
